The post-covid shopper
She isn’t located where you might expect, nor behaving like in pre-covid times. Marketers who grasp what the pandemic has done to consumers are likely to fare better than those awaiting a return to normalcy
Consumer behaviour has been reshaped by covid-19, we can all sense. But in what way? A survey by KPMG has some indications of what marketers could expect. It forecasts a new consumer mindset, detects a growing digital inclination, and advises companies to work on reinforcing trust. Interestingly, though, half the survey’s respondents feel that the pandemic’s impact will be short-lived, with those in tier-II and tier-III cities showing more optimism than those in bigger cities. This may be because the latter have many more corona cases. In Delhi, for example, a recent study suggested that every fourth person had covid antibodies—a sign of exposure to the virus.
By the KPMG findings, perhaps retailers ought to focus on smaller cities and towns. Some 22% of tier III respondents report no impact of the pandemic on their spending. In tier-I cities, only 9% say they spend as usual. The way to reach consumers, however, has begun to shift. Another big finding of KPMG’s study is an increasing dependence on digital outlets. The adoption of online shopping has been especially robust in smaller urban zones. This is also where discretionary purchases have held up. Consumers in tier-III cities are 1.5 times more inclined towards spending on apparel than tier-1 cities, and 2 times more inclined to spend on accessories, skincare and cosmetics.
Will brick-and-mortar shops survive? Yes, it would seem,but in-store safety will influence purchasing decisions in the future more (68%) than brand loyalty (36%) or reviews (26%) will, according to the survey. This may be an opportunity for indie brands and startups to make breakthroughs. It also gives bigger brands a chance to reinvent themselves and reach out afresh.
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