Opinion | Market research ready for reset post coronavirus

Jasal Shah, CEO and managing director of research firm Markelytics Solutions, is very busy in handling the surge in client queries. The outbreak of covid-19 in India (and globally) has made companies and brands uncertain about their future as the prolonged lockdown finds the country staring at a serious economic slump. Shah said the clients’ fears are not unfounded. “There will be a new normal post-covid-19. So, how you conduct market research and what you want to explore will change.”

The methodology will be the first to change. Praveen Nijhara, CEO, Hansa Research, agreed: “Traditionally, India uses face-to-face interviews for market research as labour is cheap here. Not just that, clients, so far, had a mental block regarding online research. They somehow felt the quality of data is better in face-to-face interviews. In the West, 90% research is already online.”

Research will also move online. Prasun Basu, president, South Asia, Nielsen, said by the year-end, he expects at least 30% of the industry to move online. “Digital research will grow rapidly.” Nielsen’s retail data, modern trade data and media measurement have already moved online. Nielsen has launched 10-12 digital services for clients, Basu said.

However, he’s quick to add that physical meetings have some advantages and everything cannot be done online. “A majority of our work, such as product trials or mystery shopper services, cannot be moved online.” The market research industry knew that it had to move a majority of its services online, but “we needed that push which is now forced by the covid-19 situation”, he added.

With the drastic change in consumers behaviour, firms and brands are curious to understand the implications for their products and services. Most are trying to find whether covid-19 will impact behaviour even after the lockdown.

Nijhara’s view is that if the lockdown continues for a very long period, then there may be a fundamental shift in consumer behaviour. “There will be a temporary aberration if the restrictions are eased in two months,” he said.

Nijhara said firms’ market research budgets may shrink in the immediate future, but they have been reaching out to check if they should diversify or get into product categories. “Pharma firms are wondering if they should jump into health and wellness products.”

Markelytics’ Shah agreed: “Personal entertainment brands and healthcare firms are suddenly looking for research actively. Companies come for market research both in distress and in growth stage.” Now, companies, brands and retailers are looking for ways to attract the consumer once the lockdown is lifted, he added.

Shah said auto firms are researching on the small car category as expect the market to pick up, with consumers shunning Ola and Uber because of safety and hygiene concern. There’s action in the personal finance space, too, with firms wondering whether customers will look for loans if they face a cash crunch post-covid-19. “Every company is trying to see the same consumer from a different perspective. Yes, there will be a slowdown. If the lockdown is prolonged, people will postpone buying cars. Companies want to keep their assessments ready as to which segments will open up.”

Nielsen is flooded with queries, too. “The world has changed so much that the only guiding “feel” other than gut feel is research,” Basu said, He expects the companies’ propensity for research to rise. “Last month, we did four online studies. This month, we commissioned 32 online studies for our clients,” he said. “That’s the kind of change we are seeing. There’s really a new normal.”

Shuchi Bansal is Mint’s media, marketing and advertising editor. Ordinary Post will look at pressing issues related to all three. Or just fun stuff.