The Next Normal of Consumer Behaviour McKinsey & Company predicted the “next normal” of consumer behaviours that will follow the COVID-19 crisis. We’ve summarized their top 10 predictions below:
1. Shifts in loyalty: baskets will evolve as consumers adapt to changes in availability, explore new health attributes, and try/retry brands.
- Promote health & wellness brands. Introduce new products/services to meet increased consumer demand for health.
- Brands in non-essential categories experiencing purchase interruptions need to stay connected with their consumers and make plans to re-acquire as consumer confidence and mindset becomes more optimistic. This will also be an excellent opportunity to acquire new consumers.
2. Reset the price/value relationship: shift to lower price points and private label options in response to the economic downturn.
- Reorganize product/service assortment and pricing to deliver against different price point tiers.
- Communicate how your brand is good value for money.
3. Home recast as the coffee shop, spa, restaurant, and more with ease and convenience: growth of DIY as consumers find more convenient and less expensive ways to “get the job done”.
- Set home as a priority location for consumption growth. Offer home based DIY solutions.
4. Blending of demographic “norms”: Shifts in category and brands as more Millennials settle down and cook at home, and more men take responsibility for shopping.
- Acquire Millennial consumers as they evolve to a more home-centric lifestyle.
- Understand the shopping attitudes and behaviours of men to inform merchandising and package design plans.
5. Return to center store and large brands: Familiarity and availability supported by large scale supply chains.
- Signal brand leadership and generate consumer trust with ubiquitous distribution and supply continuity.
- Leverage consumers returning to center store and big brands as an opportunity to reset and re-vitalize legacy brands.
6. The e-Boomer: Channel bifurcation as online becomes the destination for stock up shopping and grocery/c-stores for fill-in and fresh trips.
- Align product assortment and pack sizes to shopping trip types by channel.
7. High times for the lower end: Price and stable supply favour the dollar, discount, supercenter channels.
- Align product assortment and pricing with retail channel priorities.
- Set dollar, discount and supercenter as priority channels for sales growth.
8. Re-luring to retail: Brick and mortar retail (ex. grocery) will require new approaches to get consumers back into their stores.
- Reinvent the retail experience.
9. De-urbanization: The shelter at home experience leads to a reversal of the urban migration trend.
- Prioritize suburban markets as sources of growth.
10. Sustainability remerging, redefined: Simultaneously striving to meet environmental and public health goal goals.
- Strengthen corporate and brand delivery against sustainability and public health needs.
SOURCE: McKinsey & Company, COVID-19: Briefing Materials. April 3, 2020. FULL REPORT
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