Impact of COVID on consumer companies
Part 1: How the pandemic is changing consumer behavior?
If you want people to change their habits and re-evaluate their decisions then it is easier to communicate with them as they are going through a transition in their lives -for example: getting married, going to college, getting pregnant, etc. People are more receptive to new information and ideas at inflection points in their lives.
COVID is an unplanned event that is forcing consumers to relook into their habits and hence a lot of opportunities for brands to be relevant during these times. We would cover brands in the next part in measuring their responses but first, let’s look at what are the obvious changes that are happening in people’s lives.
Home isn’t built to live for 24*7. We realized it once we are shut inside our homes. Our digital devices are just not enough and we need more than entertainment.
We realized we are using a lot more of dish soaps and toilet soaps. One of the reasons could be panic buying but there is the rationale behind it as out of home consumption has shifted to in-home.
Work is home and home is work. Boundaries are fluid and hence bad for general mental health. On the other hand, traveling to work for 2 hours to check your emails sounds not so smart as this can be done from anywhere in the digitally connected world.
No one knows clearly what would be the second and third-order effects of COVID in our lives and we are struggling with the knowledge of the future. This has created tension as no one knows for certain what the future can hold for us.
People who stay alone or with families are dealing with different levels of anxiety. We all are looking for some “me time”. It would be some time before people start traveling. Catching up with a friend in your favorite restaurant is a luxury now.
Domestic violence cases are on the rise which is unfortunate yet reflects the reality of the society when people are confined within four walls of their homes.
Consumers have shifted to news channels for keeping a tab on what’s happening. TV viewing has increased in India. There is growing paranoia as people remember day-wise tally of COVID cases happening in the country. Cooking has gone up as we are cooking every meal at home. Need of the hour is to have more and simpler recipes and hence viewing of all cooking related channels have gone up.
Immunity has become a big differentiator as better immunity means better protection against COVID. Focus has shifted to what’s going inside the body and what would it do. Going back to roots would eventually happen as people would develop a taste for ayurvedic medicine- Chawanprash, Ghiloy, ashwagandha, etc in the Indian context.
Hygiene is of paramount importance. People finally got onboarded with the use of sanitizers. 47% of households have bought a new hygiene category as per research.
Buying on e-commerce has increased. Kirana/stand-alone shops could saw their arrival as it became a backbone for all shopping needs when e-commerce slots got filled especially in India as they still contribute to 80% of fmcg business.
Brands need to figure out better ways to connect than just saying the usual. Look out for the next series on this!
