COVID-19 pandemic is radically changing consumer behavior in India: EY Future Consumer Index.
The COVID-19 crisis is being defined by four distinct consumer behavior segments, according to the EY Future Consumer Index, a survey of 1,046 Indian consumers, mostly in urban areas, covering their current behaviors, sentiment and intent. These are “Hibernate and spend”, “Cut deep,” “Save and stockpile” and “Stay calm, carry on”.
Consumers that fall into the “Cut deep” group (35%) are significantly impacted by the pandemic as it impacts their employment; others representing the “Save and stockpile” group (25%) are worried about their families, less optimistic about the future and have been stockpiling essentials. Most consumers (38%) represent the “Hibernate and spend” group, who are concerned about the pandemic but are also the best positioned to deal with it, on the other hand, “Stay calm, carry on” group (2%) are the least impacted and are expected to resume their old shopping behaviors. COVID-19 is also a reminder to the consumer products industry about the fragility in ways of doing business. Given the anticipated changes in consumer behavior and category dynamics, the report highlights that consumer products companies would need to take quick actions to respond to the ‘Now’ phase, alter operating model to address the ‘Next’ phase and then consider strategic transformations to build a resilient organization for the ‘Beyond’ phase.
Indian consumer products companies face a multitude of challenges in the ‘now’, ‘next’, and ‘beyond’ phase coupled with the radically changing consumer behavior in India.
What consumer products companies are saying about the challenges they are facing?
EY enterprise resiliency framework areas: