Consumer Behavior Post Lockdown...Consumer Behavior Post Lockdown What is the S Chandramouli [email protected] Bala Narayanaswamy [email protected] 13th May 2020

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Consumer Behavior Post LockdownWhat is the

S Chandramouli [email protected]

Bala Narayanaswamy [email protected]

13th May 2020

Srividya Viswanathan [email protected]

Baidhani Mondal [email protected]

Vipul Halathi [email protected]

‘New Normal’?

© Feedback Insights 2

The real voyage of discovery consists not in

seeking new landscapes, but in having new

eyes.

Marcel Proust


What exactly is this ‘New Normal’ after the Lockdowns that everyone talks about? …

‘New Normal’

• When consumers embrace a set of new norms of behaviour, personal- and social … and new norms of perceived risk …

• resulting in new patterns of ‘usual’ / ‘unusual’/ ‘rare’ actions and behaviours

The Model….

• Derived from ‘Diffusion of Innovation’ frameworks that apply to adoption of New-to-the-World Products and Services

• In this case it’s the ‘World’ that changes after Covid and Lockdown… of the old product categories

The focus is the future

• Changes in re-adoption of the categories, and how soon the consumer expects to be in the market again ( for e.g. back in a mall or a

multiplex )

• Which together determine which part of the consumer economy comes alive again, how soon?

Feedback Insights: COVID-19 Consumer Perspective Study: Premise of the study

The Feedback Insights Perspective


The 'Research' focused on the core urban consumers necessary to re-energize the economy …. SEC A1 and A2 (the top 16% of all urban individuals;12 years +)

Feedback Insights: COVID-19 Consumer Perspective Study: Approach to Analysis 1/2

‘Self Opted Survey

Respondent'

administered primarily

through social media

between April 24th –

29th 2020

India based and

Completed Profile

information taken for

analysis

5 and 3 points scale

based on relevance

used

Survey Methodology

Collating data,

Cluster Analysis

This involves seeing

patterns of behavior

across sets of data

representing

sections of people

Creating Behaviour

based segments

This will depict the

behaviour across

segments derived

post analysis

Final report

Provides the key

take away and top

messages


The Analysis looked at a range of attitudes and over two-dozen behaviours to understand how the consumer sees the future after Covid-19 and the Lockdown

Feedback Insights: COVID-19 Consumer Perspective Study: Approach to Analysis 2/2

M E T R I C S ’ F O C U S

COVID-19

Mindset

COVID-19

LockdownImpressions

COVID-19

Post Lock Down Behaviours

© Feedback Insights 6AGE GROUP – 3 respondents didn’t respond OCCUPATION – 40 (3%) respondents have Miscellaneous job profiles

coverage

A C R O S S I N D I A

362 | 30%852 | 70%

SEC Classification A11074 | 88%

A2104 | 12%

Male Female

North

289

24%

East

87

7%

South

548

45%

West

290

24%

< 25 Years 25 – 34 Years 35 – 44 Years 45 – 55 Years >55 Years

51 (4%) 134 (11%) 227 (19%) 338 (28%) 461 (38%)

A G E G R O U P S

O C C U P A T I O N

Work from Home (with Project)

Work from Home (w/o Project)

Work from Office Businessman Retired Home Maker

540 (44%) 167 (14%) 21 (2%) 218 (18%) 154 (13%) 74 (6%)

1214 (100%)Count (Percentage)


FINDINGS


KEY MESSAGES

Positive and Optimistic, the Indian Consumer has emerged

from the COVID-19 episode very socially and community

conscious.

Concerns related to health and job/business stand out.

Worries do not touch children’s education, maintaining

‘Social Standing’ or getting depressed

Family Time, Focus on Health has been given the ‘Big’

Thumbs Up

Consumer’s

COVID-19

Mindset


Lockdown has created the avatar of the ‘Socially and Community Conscious’ Indian. He/She has looked for ‘Community Connection’ while enjoying ‘Family time’ and becoming ‘Health Conscious’

Feedback Insights: COVID-19 Consumer Perspective Study: SURPRISES | POSITIVE OUTCOMES

Time Spent

with Family

Focus on

Health

Increased

Community

Consciousness

Pollution

Control

14%Covid

Health

Warriors

Govt.

Performance State Govt. :

Police etc.

POSITIVE OUTCOME OF COVID-19

Q: Imagine you were Sleeping Beauty / Rip Van Vinkle who woke up from a

yearlong sleep on 1st Apr, 2020, what would surprise you the most?Q: According to you, what is the positive outcome of COVID-19.

Please select the one which is most important as per your opinion

1%

4%

7%

7%

11%

15%

24%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Hand Washing

No House Help

Closed Offices

Social Distancing

Closed Public Places

Masks on the road

People at Home

Empty Roads

SURPRISE ELEMENT

24% 22%

21%

4% 2%

8%


19%

21%

31%

34%

37%

40%

50%

0% 10% 20% 30% 40% 50%

The worry experienced during Lockdown is related to ‘Health’ and ‘Impact on Jobs/Income/Savings’

Feedback Insights: COVID-19 Consumer Perspective Study: WORRY INTENSITY

Q: How worried are you about the following?

*Note: Worry Intensity = Extremely Worried + Very Worried proportion

Worry Intensity*

You or a family member catching the virus

Reduced earning due to job loss/ salary cut

Need for increased saving

Price rise of essentials/ other items

Disruption to children’s school/ college

Increased mental tension/ stress/ depression

Ability to maintain lifestyle/ social standing


SEGMENTS


Agile Anita

Aa

Rapid Rao

Rr

Steady Sam

Ss

Trailing Tarun

Tt

These segments have been

created based on the

differing speeds they

adopt to re-start their

regular lives

THE SEGMENTS(Based on Behaviours)

Agile Anita

13%

Rapid Rao

28%

Trailing Tarun

22%

Steady Sam

37%


Four segments emerged based on patterns of behavior and mental outlook displayed.

Feedback Insights: COVID-19 Consumer Perspective Study: Behavior based Segments

Agile Anita

Highly Skilled,

Finance or Tech

professional, South

based, Young

13% Sample

Rapid Rao

An Entrepreneur,

Risk Taker, Ok with

Erratic Income

28% Sample

Steady Sam

Affluent, Steady

Income, Older

37% Sample

Trailing Tarun

Older, Staying at

home, Women

centric

22% Sample


Aa Symbol

used the denote

Agile Anita in

the study

Aa

Agile Anita

(13% of the Sample Base)

Agile Anita is the torch bearer for the economy.

Predominantly a high skilled, Financial or

Information Technology professional who

works from home and is mostly south

based. The Lockdown has not impacted

work much.

Youngish, with one in four being a

millennial. Both genders well represented,

truly a non gender biased perspective.

Agile Anita could well be Agile Amit!

Highly social, seeks to ‘Feel Normal’ at the

earliest, and is hungry to bring back

experiences, becoming the pioneer in

experience based activities.


Rr Symbol used

the denote

Rapid Rao’ in

the study

Rapid Rao


Rapid Rao is a Risk Taker and closely

follows in the heels of Agile Anita, is

ahead of him/her in Financial dealing

Predominantly an Entrepreneur, lives in

the top metros. Is middle aged and Male.

He looks to getting back on his feet at the

earliest and is a pioneer for all financial

related activities. Also, displays risk taking

behaviours bucking trends. Rr


Steady Sam


Steady Sam is a ‘Wait and Watcher’ and

takes the middle of the road approach

Is older, affluent with steady income. He

typically owns multiple cars and goes for

international holidays.

Majority continue to work from home,

about 15% waiting to get back to work

post lockdown.

Quite social, takes a balanced approach to

getting back to normal, not too far behind

from the Rapid Rao, prefers the less

riskier approach

Ss

Ss Symbol used

the denote

Steady Sam in

the study


Trailing Tarun


Trailing Tarun is risk averse and would rather wait

than take hurried steps towards normalcy

Is older and stays at home. Some of them

have finished with their professional

commitments, others opted out, women

dominated

The Lockdown has not changed things too

significantly unlike others, and shows

preference towards status quo.

Tt

Tt Symbol used

the denote

Trailing Tarun in

the study


You or a family member catching the virus

Reduced earning due to job loss/ salary cut

Need for increased saving

Price rise of essentials/ other items

Disruption to children’s school/ college

Increased mental tension/ stress/ depression

Ability to maintain lifestyle/ social standing 21%

21%

23%

36%

36%

39%

42%

Feedback Insights: COVID-19 Consumer Perspective Study: Worry Intensity for each segment

The financial impact of ‘Reduced earnings’ highlighted among Rapid Raos’ and Steady Sams’

Q: How worried are you about the following?

*Note: Worry Intensity = Extremely Worried + Very Worried proportion

Aa Agile Anita Rr Rapid Rao

22%

22%

34%

36%

39%

43%

53%

14%

16%

29%

30%

30%

33%

51%

Ss Steady Sam Tt Trailing Tarun

21%

24%

32%

33%

39%

42%

49%

Overall


> Half feel overall optimistic, with Rapid Rao leading the way. The mood has improved over the Lockdown for the majority

Feedback Insights: COVID-19 Consumer Perspective Study: DEGREE OF OPTIMISM | CHANGE IN EXPERIENCE

55%

52%

60%

56%

55%

46% 48% 50% 52% 54% 56% 58% 60% 62%

Trailing Tarun

Steady Sam

Rapid Rao

Agile Anita

Overall

Optimism Meter

66%

54%

63%

59%

60%

0% 10% 20% 30% 40% 50% 60% 70%

Trailing Tarun

Steady Sam

Rapid Rao

Agile Anita

Overall

Mood Improvement Meter

Figures represent % of respondents feeling optimistic Figures represent % of respondents feeling better

Q: Based on the current situation, how do you feel? Q: Compared to 24th Mar’20, when the lockdown started, how has your experience changed?

59% Delhi

Optimistic 62% Bangalore

felt better


KEY MESSAGES

The positives of the lockdown has been reflected in ‘Time

spent with Family’, ‘Savings’ and ‘Increased Time’ for

themselves. The Uncertainty on Jobs/Business however

has dragged everyone down

More than half eating healthier, with Rapid Raos’ and

Steady Sams’ spending even more time on work during the

lockdown

Consumer Impressions of the Lockdown


Time spent with family, Time for oneself and Increased Savings appreciated.One in two negatively impacted on work, One in four on health and sleep

Feedback Insights: COVID-19 Consumer Perspective Study: Top Positive and Negative Impacts of the Lock Down

Time spent with family (81%)

Change in expenditure pattern (80%)

Catching up on other activities (78%)

Impact on job/ business (55%)

Physical Health (28%)

Sleep pattern (27%)

TOP 3 NEGATIVE IMPACTS

TOP 3 POSITIVE IMPACTS

Q: Please tell us what is the impact the following has had on you:

1in 3 women

negatively

impacted

PATTERNS

• ‘Rapid Rao’ and ‘Steady Sam’ enjoy

the ‘Time Spent with family’ the

most

• ‘Steady Sam’ also appreciates the

increased ‘Savings’ and the ‘Me

Time’

• ‘Negative impact on Job/ Business

comes across as a strong concern

across segments


Healthy eating

Time spent on work

Exercising

Time on stock markets

Eating non veg

People stayed away from Non Veg and the Stock Market. Healthy eating practiced by majority

PATTERNS

60%

49%

33%

35%

10%

MoreLess (%)

4%

12%

36%

36%

55%

37% Mumbai

exercised less

46% Mumbai

worked more

Q: During the lockdown, are you doing ‘More’, ‘Less’ or ‘Same’ of the following?

Feedback Insights: COVID-19 Consumer Perspective Study: Activity Patterns During Lockdown: More or Less

Impact on ‘eating non – veg’

least among the Agile Anitas

Agile Anita who is unable to

get to a gym shows reduced

‘exercising’

Rapid Rao and Steady Sam

spend more time on work


THE NEW NORMAL


KEY MESSAGES

The home becomes the ‘hub’ for social activity, with most people meeting

socially within weeks, coupled with huge surge in alcohol, online - non

essentials and online - food purchase

Consumption expected to get back on track within months, except for the

‘Big Ticket’ purchases which will be pushed out to later 2021.

The Indian also wants the ‘Bai’ (maid) back, with house help resuming

immediately, the comfort of which seems to have been missed.

The Stock Market retains the confidence of the consumer, Gold not attracting

much attention. However, upsurge seen in medical insurance

Post COVID-19Lockdown Consumer Behaviour


The ‘New Normal Blueprint’ identifies the behaviors that will start ‘Early’, ‘Later’ and ‘Maybe Never’

1.Shopping Online

2. Indoor Household Services (Maids, Cooks etc.)

3.Purchasing hard liquor/ beer

1.Plan international travel

2.Big ticket purchase (House, Vehicle, Land)

3.Remodeling (Interior/ Furniture/ Fittings etc.)

1.Luxurious Product (Antique/ Painting etc.)

2.Financing/ Loans

3.Gold

Feedback Insights: COVID-19 Consumer Perspective Study: The New Normal Blueprint

Top 3 ‘Early’ Top 3 ‘Greater Than A Year’ Top 3 ‘Never’


Please read carefully to help you navigate the charts that follow. This section outlines the start, volume of consumption across segments over time

Feedback Insights: COVID-19 Consumer Perspective Study: How to read the charts that follow

Meeting Socially

50%

Q: Please tell us when are you likely to start/ resume these activities after lockdown is lifted –

80%

0

0

0

0

Indicates when everyone

gets to 50% consumption

Timeline Scale indicates

number of days.

Indicates when

everyone gets to 80%

Consumption

Indicates 50% for the

segment

Starting Point for the

activity for the segment

Indicates 80%

Consumption for the

segment

Aa

Rr

Ss

Tt

Starting Point 0 2 years10 30 90 300

In days


Meeting socially gets off to a flying start. Eating at Restaurants braved by the risk taking ‘Rapid Rao’. Movies have to wait.

Feedback Insights: COVID-19 Consumer Perspective Study: Experiences Sought Post COVID-19 Lockdowns 1/4

Starting Point

50%

50%


80%0

0

0

0

0 2 years10 30 90 300

In days

80%0

0

0

0

50% 80%0

00

0

1 in 3 will not go

back to a theatre

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

EATING AT RESTAURANTS

MEETING SOCIALLY

MOVIES IN THEATRE


Everyone gets back to shopping online within days, a big driver of consumption. Malls pick up within months


Starting Point


0 2 years10 30 90 300

In days

50%

50%

80%0

0

0

0

80%0

0

0

0

50% 80%0

0

0

0

70% Bangalore

shops in few

days

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

SHOPPING AT MALLS

ATTEND LARGE EVENTS

ONLINE SHOPPING


Online food gets on track in weeks. Alcohol gets a huge upsurge with 50% consumption in weeks, longer tail for the 80% mark .


50%


80%0

0

0

0

ALCOHOL/BEER


In days

50% 80%0

0

0

ORDER FOOD ONLINE

0

26% Tt do not

want to order

online again

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

1 in 3 in

Bangalore start

in few days


Domestic Travel settles well in months. International Travel lags.


50%


80%

0

0

0

0

50% 80%0

0

0

0

DOMESTIC TRAVEL

INTERNATIONAL TRAVEL


In days

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


Lifestyle services comes back to life within months, including travel. Household help gap filled almost immediately.

Feedback Insights: COVID-19 Consumer Perspective Study: Lifestyle Sought Post COVID-19 Lockdowns

50%

50%


80%0

0

0

80%0

0

0

0

50% 80%0

0

0

0

0

BEAUTY SERVICES

HH SERVICES

TRAVEL

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


In days


Rapid Rao initiates consumption, with Steady Sam following closely.

Feedback Insights: COVID-19 Consumer Perspective Study: Purchases Sought Post COVID-19 Lockdowns 1/2

50%

50%


80%0

0

0

80%0

0

0

0

50% 80%0

0

0

0

0

Dresses & Shoes

Consumer Durables

Electronics

1 in 10 women

want to buy in

few days

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


In days


Financial uncertainty has deferred all big tickets, with only Rapid Rao spending more easily than the others. Will take an year plus for this category to normalize. Trailing Tarun pushes all big purchases to 2021

Feedback Insights: COVID-19 Consumer Perspective Study: Purchases Sought Post COVID-19 Lockdowns 2/2

50%

50%


0

0

0

80%0

0

0

0

50% 80%0

0

0

0

0

LUXURIOUS ITEMS

BIG TICKET PURCHASE

REMODELING

80%

consumption

not reached in

the category

1 in 3 Tt do not

want to buy a

car/house now

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


In days


Approx. one in three balk from taking new debt. Stock market still rules and has the confidence of all categories of investors

Feedback Insights: COVID-19 Consumer Perspective Study: Financial dealings Sought Post COVID-19 Lockdowns 1/2

Stocks/ Mutual Funds

Financing/ Loan

Gold


46% Mumbai

back in few

days0

50% 80%0

0

50% 80%

50% 80%

0

0

0

0

0

0

0

0

0

Steady Sam stays away, 80%

mark not reached. Trailing

Tarun does not reach 50%

Overall 1 in 5 stay

away from Gold

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


In days


Medical Insurance see a big surge, within weeks 50% of the sample plan to review/re purchase medical insurance

Feedback Insights: COVID-19 Consumer Perspective Study: Financial dealings Sought Post COVID-19 Lockdowns 2/2

LIFE INSURANCE

MEDICAL INSURANCE


0

0

0

50% 80%0

0

0

0

50% 80%

0


In days

Aa

Rr

Ss

Tt

Aa

Rr

Ss

Tt


With an optimistic approach to Covid 19, the consumption

for most activities would be back on track within months

of Lockdown lifts or permissions granted.

The Big Ticket Purchase, International Travel and Loans see

hesitance in resumption

The biggest positive is the emergence of the ‘socially and

community’ conscious Indian Consumer who has reacted

to this Covid 19 episode in an united manner cutting across

segments, age, gender, location and occupation

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Documents

Consumer Behavior Post Lockdown...Consumer Behavior Post Lockdown What is the S Chandramouli [email protected] Bala Narayanaswamy [email protected] 13th May 2020