Traditional shopping behaviour is being significantly disrupted and transformed globally and in India amidst the Covid-19 pandemic, according to Capgemini Research Institute’s note on “The consumer and COVID-19: Global consumer sentiment research in the consumer products and retail industry”.
Uncertainty is high and many businesses are shut, and people are concerned about recession and are keeping a closer eye on spending: customers are focusing on essential goods rather than lifestyle and leisure products.
At the same time, with lockdown measures in place across India, there has been a surge in the use of online channels. In this fast-changing and volatile environment, how can consumer products and retail organizations drive operational resilience and maintain their pre-crisis focus on customer relationships and engagement?
To help answer those questions – and understand the impact of the pandemic on short-term and mid-term consumer behaviours, Capgemini surveyed more than 11,000 consumers around the world including India. At the beginning of April 2020, Capgemini reached out to consumers across the US, UK, Germany, France, Netherlands, Sweden, Norway, Italy, Spain, India, and China.
Drawing on that extensive research three key consumer trends for consumer products and retail (CPR) organizations in the short- and mid-term:
Convenience: Appetite for online shopping and convenience will continue to accelerate post-lockdown
Health and safety: With consumers becoming more concerned about health and wellness, they will expect safer in-store and last-mile practices from CPR organizations in a post-pandemic scenario
Focus on purpose: Organizations that embody a sense of purpose and strong sustainability credentials will see greater consumer engagement
Key Indian consumer sentiment:
* Most of the Indian consumers’ appetite for online shopping will increase from 46% in the current scenario to 64% over next 6-9 months.
* In the next 6-9 months, Indian consumers would decrease their shopping at physical retail stores and over 46% of Indian will shop at physical retail stores. compared to 59% of Indian consumers who shopped at physical retail stores before the pandemic.
* 72% of Indian consumers will prefer to purchase from retailers, which will offer delivery assurance as well as assurance of compensation for future cancellations in next 6-9 months.
* 74% of Indian consumers will prefer to purchase from retailers offering delivery at flexible timing in next 6-9 months.
* 89% of Indian consumers will be more cautious about issues of cleanliness, health and safety post Covid-19 pandemic.
* 78% of Indian consumer will prefer to increase usage of digital payments going ahead.
* 75% of Indian consumers will purchase with retailers adopting safety practices in stores.
* Over 65% of Indian consumers will increase the purchase of groceries and household supplies during the course of next 6-9 months.
* 75% of Indian consumer are optimistic about recovery in next 6 months compared to 48 % of consumers worldwide.