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Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
NAVIGATING COVID-19CHANGING CONSUMER DYNAMICS
FOR THE LATEST INSIGHTS VISIT: NIELSEN.COM/COVID-19
DALIA USELYTE
10.06.2020
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CONSUMER BEHAVIOR ACROSS MARKETS IN THE IMMEDIATE TERMS HAS
DEFINITELY CHANGED, THE SUBSEQUENT QUESTION IS “WHEN WILL IT RETURN TO
NORMAL?”
THE ANSWER MAY WELL BE NEVER.
COVID-19 HAS SHAKEN WORLD’S ECOSYTEMS
HOUSEHOLD SIZE AND
STRUCTURE
INDUSTRY/BUSINESS
INVESTMENT AND
INNOVATION
CONSUMER VALUES AND
ATTITUDES
MEDIAPOPULATION
POLICY AND
LEGISLATION
DISRUPTIVE CHANGES
can happen at any time
to dramatically affect
dynamics and drivers
TECH ADOPTION DEMOGRAPHIC
CHANGES
URBANIZATION
AND CITY SIZE
ENVIRONMENTAL
CHANGESRETAIL LANDSCAPE
ECONOMIC/INDUSTR
Y DEVELOPMENT &
GDP
INFRASTRUCTURE
AND ACCESS
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NIELSEN CONNECTINTELLIGENCE. FASTER.
3
109MARKETS
WORLDWIDE
MEASURED
MONTHLY
POINT OF SALE DATA
CONSUMER INSIGHTS
IN-STORE STUDIES
INNOVATION
SYNDICATED
REPORTING
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HOW HAS CONSUMPTION CHANGED?
Source: Nielsen Global Survey “Understanding the Impact of COVID-19 on Consumer Behavior” conducted in March 2020 Field dates differ across markets
RE-PRIORITIZING EATING AT HOME% Respondents – Eating/Cooking at Home “More Often” since COVID-19
2027 25 23
18 15 13
0
20
40
60
Global AsiaPasific
LATAM MiddleEast
Africa Europe NorthAmerica
FOOD DELIVERY. More often% Respondents
20
3025 23
17 14 13
0
20
40
60
Global AsiaPasific
LATAM MiddleEast
NorthAmerica
Africa Europe
TAKE-OUT FOOD. More often % Respondents
54
6158
53 53 53
47
Global Africa LATAM Europe Asia Pasific Middle East NorthAmerica
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Hand Sanitizer
SALES EVOLUTION WILL DIFFER BY CATEGORY
Source: Nielsen Retail Measurement Services Weekly Sales Growth Trend vs. Year-ago.
5 Jan - 11 Jan 12 Jan - 18 Jan 19 Jan - 25 Jan 26 Jan - 1 Feb 2 Feb - 8 Feb 9 Feb - 15 Feb 16 Feb - 22 Feb 23 Feb - 29 Feb 1 Mar - 7 Mar 8 Mar - 14 Mar 15 Mar - 21 Mar 22 Mar - 28 Mar
TOILET SOAP ADULT ANALGESICS PASTA HOUSEHOLD CLEANERS TOILET TISSUE AMBIENT SOUP NOODLES
UNITED KINGDOM
#1
PROACTIVE HEALTH-
MINDED BUYING
#2
REACTIVE HEALTH
MANAGEMENT
#3
PANTRY
PREP
#4
QUARANTINE
LIVING
PREP
JAN 7 JAN 31 FEB 22 FEB 23 – 29 MAR 1 - 7 MAR 8 - 14 MAR 15-21 MAR 22 -28
China reports
novel
coronavirus
UK Public health
campaign launched
<10 CASES 10 – 20 cases
PM unveils COVID-19
Action Plan, declared
“level 4 incident".
35 – 206 cases.
Govt launches public
health/hygiene
campaign
PM announces non-
essential contact;
working from home;
avoiding pubs etc
Schools are closed
except for children of
key workers
All schools, cafes,
pubs, restaurants,
cinemas, gyms and
shops selling non-
essential goods
remain closed from 23
March.
#5
RESTRICTED
LIVING
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POST – PANDEMIC EATING HABITS
Source: Nielsen Global Survey “Understanding the Impact of COVID-19 on Consumer Behavior” conducted in March 2020 Field dates differ across markets
86
77
62 62 6256 54
50
39
30
20
EATING AT HOME MUCH AND LITTLE MORE OFTEN, % OF RESPONDENTS
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REGENERATION CONSUMPTION DYNAMICSAccelerated technology adoption will underpin the consumption dynamics
CONSUMPTION CHANGES
REPRIORITISED
VALUES
ORIGIN
PREFERENCES
REASSESSED
PRICING
MECHANISMS
RESET BRAND
RELATIONSHIPS
REBALANCED
FMCG BASKETS
WALLET
ADJUSTMENTS
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Source: Nielsen Global Survey “Understanding the Impact of COVID-19 on Consumer Behavior” conducted in March 2020 Field dates differ across markets
52 50
40 4248
57
77
40 42
51 48
44
35
22
7 8 9 10 8 8
2
Global Europe Asia Pacific North America LATAM Africa Middle East
Short Term <3 m Mid Term: 4-12 m Long Term: > 12 m
LENGTH OF COVID PERIOD WILL IMPACT
CONSUMER SPEND
WALLET
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CHANGE IN ONLINE SHOPPING HABITS
Source: Nielsen Global Survey “Understanding the Impact of COVID-19 on Consumer Behavior” conducted in March 2020 Field dates differ across markets. Mathematical regional average
27
38
28 2723 23 22
Global Asia Pacific Middle East LATAM Europe North America Africa
SHOPPING ONLINE MORE, % OF RESPONDENTS
BASKET
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BASKET
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CONSTRAINED SPENDING MAY ALTER
PRE-COVID PRICING LANDSCAPE
Source: Nielsen Retail Measurement, MAT Apr/May 2019
More focus on value offerings
PRE-COVID
VALUE SHARE OF PRICE TIERS – ALL FMCG
18% 19% 18% 17% 14% 16%
50% 46% 51% 54% 61% 63%
15% 14%15% 16% 12% 11%
17% 20% 16% 13% 13% 11%
GLOBAL NA EUROPE APAC AME LATAM
SUPER-PREMIUM
PREMIUM
MAINSTREAM
VALUE
PRICE SENSITIVITY
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CHANGING PRIORITISES WILL IMPACT ASSORTMENTNew space for innovation and new listings in demand categories
HEALTH LOCAL ORIGIN VALUE BRANDS
New values
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HEALTH-MINDED BUYING WILL REMAIN
WELL-BEYOND THE PANDEMIC
Source: Nielsen Global Survey “Understanding the Impact of COVID-19 on Consumer Behavior” conducted in March 2020
29%of U.S. consumers
expect the changes in
their purchase behavior
for health products to last
for the next 6 months of
more.
43%of U.S. consumers plan
to purchase health &
wellness products online
after the pandemic.
IN CHINA A majority of shoppers plan to
prioritize healthy eating after
the pandemic:
New values
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MOST RELEVANT BENEFITS IN READY TO EAT
AND DRINK PRODUCTS
CLAIMS FOR READY TO EAT AND DRINK
PRODUCTSUS UK
Contains healthy supplements like vitamin C, D,
Omega 3, probiotics1 1
It is nutritious 2 5
Delicious taste 3 2
Helps keep my immune system strong 4 3
Made out of high quality ingredients 5 4
Source: Nielsen BASES COVID-19, consumers’ sentiment; Quick Screen claim analysis across 15 countries
New values
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LEANING TO LOCAL: SUPPLY & ECONOMIC
ASSURANCE
Source: Nielsen global disLoyalty Survey. % Always influenced to try or switch brands
‘Homegrown’ will become increasingly important
PRE-COVID
22,8%
19,8%
19,1%
18,7%
17,4%
16,5%
16,0%
15,8%
15,4%
14,8%
INDIA
THAILAND
PAKISTAN
PHILIPPINES
VIETNAM
EGYPT
USA
MALAYSIA
INDONESIA
ITALY
23% deeply devoted,
only buying local
products.
57%mostly buy local,
will consider those
from other
countries.
ONLY BUYING LOCAL
REGIONAL PULSE
HIGH ASIA PAC, AFRICA/
MIDDLE EAST, NORTH
AMERICA
EUROPE, LATAM
LOW
New values
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WHAT WE HAVE LEARNED FROM FMCG
MANUFACTURES AND RETAILERS IN
CHINA
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COVID-19 ACCELERATES ONLINE ADOPTION
Sources: 2) Nielsen Social Intelligence Survey on Coronavirus, Feb. 2020, Mainland China
Online buying will emerge as part of the “new normal”
IN CHINA Shoppers are planning to
continue to buy necessities
online after the pandemic:
NEW HABITS: NEW NORMS
BEHAVIOUR CHANGES MAY STICK INTO
THE FUTURE CREATING NEW RETAIL
OPPORTUNITIES
In China and South Korea older consumers
began venturing online, welcoming the security
and convenience that technology could provide
amidst restrictions of movement and
heightened caution
CHINA
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Online shopping during
covid-19 may be the
embedded future reality
• 67% purchased daily
necessities/ fresh products
more than 2x per week
• 59% willing to buy daily
necessities / fresh products
more frequently online after
the pandemic.
WHAT LIES AHEAD FOR CONSUMERS?
Source: Nielsen China Coronavirus Survey - Feb.24-Feb.29. Nielsen Social Intelligence Solution
• 93% would like a 5G phone
• 67% believe that A/VR can
be used in future virtual
shopping scenarios
• ~50% are interested in
purchasing intelligent
speakers / AI assistant
CHINA
Smart technology to shape
smarter experiences
• Expanded buzz from diet /
nutrition to encompass
fitness, mental health,
immunity and disinfecting /
hygiene.
• 90%+ will consider buying
air and water purifiers
• 77%+ will consider buying
blenders and smart bands.
Multi-dimensional health
attributes will become
More influential
Long term investment in
health
• 80% of respondent will pay
attention to eating healthy
even after the epidemic.
• 76% are planning to spend
more on sport and fitness
in future
• 60% will increase spending
on regular medical
checking
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HOW RETAILERS IN CHINA WILL ADJUST TO A NEW NORMAL
67%
53%
43%
"As China returns to a new normal, there are sweeping
learnings from their experience. It has been a very challenging
time. Consumer habits have changed and manufacturers and
retailers are looking ahead to turn the crisis into an opportunity"
JUSTIN SARGENTPresident, Nielsen China
Source: Based on a Nielsen China survey of 10,000 retailers
WILL INVEST MORE IN ONLINE
CHANNELS & APPLICATIONS FOR
THEIR CONSUMERS
WILL ADJUST THEIR PRODUCT MIX
TO INCLUDE MORE HEALTH &
SAFETY PRODUCTS IN INVENTORY
AND ON-SHELF
WILL WORK ON THEIR SUPPLY
CHAINS (ESP. FOR FRESH FOOD)
CHINA
Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
Thank you!
DALIA USELYTE
Business Development manager
e.mail: [email protected]
Tlf. + 47 940 13 809
