COVID-19 WHAT’S NEXT?

CONSUMER BEHAVIOUR AND PREFERENCE

CHANGES DURING & POST COVID
AGENDA

How are consumers reacting

01 How COVID-19 might affect
Indonesia’s GDP?
04 currently?

Some samples of short term brand

How concerned are Indonesian
02 Consumers? 05 reactions to keep them relevant to the
consumers

POST COVID CONSUMER: How may

How is it affecting business &
03 industries? 06 COVID-19 change the consumer
behaviour permanently?
The post COVID-19 era will have an
economy shaped by new habits, societal
norms and regulations based on reduced
CORONAVIRUS
close-contact interaction and tighter travel P AN DEM IC
and hygiene restrictions
How COVID-19 Might Affect
Indonesia’s GDP?
 Prediction over Indonesia GDP
with 1,4% if ends in 2020 Q4, And
-1,3% if ends in 2021 Q2

Source: Perspective on COVID-19 and implications for consumer and retail companies by Mc Kinsey & Company in association with MMA
Optimism in Indonesia has declined since the previous pulse, and
largely divided between quick recovery and stagnation/slow growth

Source: Mc Kinsey & Company

Indonesians are increasingly feeling an impact on their finances and
job security and expect to cut back on spending

Source: Mc Kinsey & Company

 How Concerned Are
Indonesian Consumers?
 Level of concern has
INCREASED
Nearly SIGNIFICANTLY
half the population feel the disruption in
daily life, and financial security is being raised as
a major concern. Health and Scarcity are low on
concern. (in March Track)

Source: AC Nielson & Kantar

Public Health, Uncertainty on the Duration of the situation and
Family Safety on top concerns (in April track)

Source: Mc Kinsey & Company

 How Is It Affecting
Businesses & Industries?
 • Jakarta Airport witnessed slump, as the
Considering restrictions government advises against travel or non
placed across Indonesia, not essential travel - will continue

only on human movements • People actively reschedule travel, or cancel and

ask for refunds – delaying to next year or until
but on commercial and vaccination available

industries establishments are • Decrease in recreation plans , reducing going out

to movie theatres, shopping areas and
facing unprecedented recreational parks – will start employing limited
challenges numbers visitors and distancing rules and health
check up

• Hospitals and Clinics continue to see reduced

visits - will start introducing consultation thru video
call
Impact on Business and Industries depending on the level involvement of
characteristics: large gathering, close human interaction, hygiene related,
postponable and dependent on travel

• Tourism and Hospitality, sport and Music have high impact due large gatherings and
close human interaction and Automotive largely due to cost wise.

• Beverage and and Non Food Retail have medium impact due to large gathering.
• FMCG is still growing among Upper SES and Middle SES, but slow-down is expected
to hit Lower SES if quarantine continues to limit activity of consumers relying on daily
income

• Not only germ-killing categories benefiting from COVID-19, but also an uplift seen
across categories to accompany consumers to spend time #dirumahaja
People plan to increase spending on groceries, snacks, entertainment at
home, personal care household and child supplies. These categories will
remain longer during COVID-19 situation.
How Are Consumers
Reacting Currently?
 ADJUSTING ADOPTING ALIGNING
People take time to adjust to the new normal that they With the COVID-19 situation prolonging, people worry With the acceptance of the new normal people
have been present with, which saw sudden impact on about finances more. They prepare to plan long term will move toward more long term alignment, find
day-to-day behaviours and let go off heavy spend occasions new ways to manage life
 As people staying more in-home, all outdoor entertainment, leisure, hobbies,
shopping are stopped and moved to online lifestyle. Consuming more health
supplement, and cooking more Frugal on spending, to save more

ADJUSTING STAGE –
BEHAVIOURAL TRANSITION
 TV Viewing increased but will fall back before COVID,
once the PSSB is lifted

MORE PEOPLE WATCHED TV & PRIME TIME = ALL TIME ESPECIALLY VIEWERS
PRIMEARE
TIME
TURNING
= ALL TIME
INTO
WATCHED LONGER FOR YOUNGER AGE GROUP MOVIE
ESPECIALLY
& NEWS FOR YOUNGER AGE GRO
 Priority & More spending on:

• Personal care and home care to stay healthy and safe from COVID-19
ADOPTING STAGE – • Wi-Fi and data usage for online entertainment, education, and work; and
food/groceries
SPENDING BEHAVIOUR
Less priority and spending on luxury goods (automotive, electronics, branded
MODIFICATION fashions)
ALIGNING STAGE
–
ONLINE ONLINE SHOPPING SURGED
BEHAVIOUR +500% Growth conversation in Indonesia
TRANSFORMATIO
N
Almost all categories, people are buying through online
Online Food Delivery Surged.
+900% spike from baseline pre-COVID -19, people talking about one of the front-liner, online delivery
Effect of COVID-19 spread in mobile apps
activity in Indonesia

Food and beverage delivery mobile apps saw the most in-app ONLINE
purchase increase
FOOD
DELIVERY
Online Entertainment Surged.
+410% growth of conversation in Indonesia from the previous moments where people are talking about online
entertainment
App Usage Skyrocketed.
MORE NEW APPS COMING IN
NEW ONLINE ACTIVITY
More people try new things
 CONTENT, SALES, AND MEDIA
OPPORTUNITY
ONLINE LIFESTYLE FRUGAL CENTRIC MULTIPLE CHANNELS

PRIME TIME = ALL TIME

Tapping & Relate Sale Promo & Reward New Placements
ESPECIALLY FOR YOUNGER AGE GRO
 WHAT’S NEXT?
Expected Post COVID-19
CONSUMER BEHAVIOUR
New habits and attitude will stick
“THE NEW NORMAL”
while waiting for available vaccination and post treatable.
NEW ATTITUDE
Health Enthusiast
Who ever increasing focus on health and hygiene
for personal safety as well as for family. They will
shop more health consciously, go where its
hygienic standard applied or safe
Life Simplifier Online Homer
Who continue enjoying spend more time
Who want to eat less and buy less. They
at home, as it appreciate more time with
reacting to the clutter of ‘stuff’. They want to
family while everything else can be done
downsize their possessions, many of which lie
thru online. They will still go out but not
around unused and unnecessary.
as frequent a before
 Related to Related to Family Related to
Health & Nutrition Food Habits

Related to Work
Related to Related to Travel Habits NEW
Business & Service
HABITS

Related to Personal Related to Youth

Related to Lifestyle & Beauty Lifestyle
 Related to Family Related to Related to Work
SECONDARY
Health & Nutrition

Health Life Simplifier Online Homer

Enthusiast

Related to
PRIMARY Related to Lifestyle Related to Lifestyle
Health & Nutrition
Related to Health & Nutrition

Hygiene Conscious  Hygiene Regime, Germ

Killing Products (home care & personal care),
places with hygienic protocols

Pandemic Conscious  Mask Wear, Contactless,

Immunity Certification

Immunity Conscious  Regular Multivitamin,

Specific Multivitamins

Fresh Food & Local Produced

Health Assurance  Exercise/fitness

activities, e-Health, Health insurance
Related to Work

• Partly Remote Working - Home office

Technology Set Up

• Less Physical Meeting - Concall

• Seminars On Web

• Self Employed or Side Business (wfh)

• Demand on Internet Data

• Laptop over Desktop

• Sanitizing Office

• Less Business Travel

Related to Lifestyle
• Less Out of Home ( dining, movie, malls,
recreations)

• Less Holiday Traveling

• Reluctant to go to invited mass

gatherings , more into Home gathering
with known people

• Prioritise basic needs- Food,

Education, Health

• Online Goes LIFESTYLE – for everything

• Into Technology Entertainment (social

media, apps, VoD)

• More Experiments Digital Alter Ego such

as‘Live Stream Room’

• More home cooking and eat more of snacks

• Carry Hygiene Kit (mask, sanitizer, gloves)

Related to Family

• Ongoing restriction but less

• Do More Often Sanitizing in the House

• Ritual Hygiene &Health Regime – in/out of the

house

• Rigid Attention to Elderly Family Member

• Challenge to balance between online and offline

lifestyle and in and out of home

• Requirement of Parenting Tips for Monitoring

children online study

• Pursuing kids hobbies and talents within the new

normal

• Scrutinize School policy and procedure anticipating

Covid-19 outbreak in school environment
Related to Business

• Hygienic Oriented Services

• Cashless Transactions

• Invest More on Debt Funds, Post Office and

Bonds Schemes than in equity funds
Related to Personal & Beauty Care

• More ”me time’ and self care

• Conscious Beauty = Good Beauty & Healthy

Beauty

• High Tech Facials

• Maximizing existing products or Add more

• Conscious of Mental Health

Related to Food Habits
• More Healthier Choices

• Continue buying Groceries thru online

• Food Safety – prefer pre-packaged

• More Selective on Resto Outlet

• More into Cooking and More Eating

(snack/dessert) trigger bigger portion
of consumption

• Trying new food, new recipe as opportunity

rises and emotional indulgence

• Favored buying food with its own delivery

Related to Travel

• Back to Personal Transportation

• Travel by Car for Domestic Holiday

• Delay for Holiday abroad

• Preferable Online Car Transport

Related to Youth Lifestyle

• Longer Online Duration

• Go out more often than their parents

• More concern Personal Health

 KEY
OPPORTUNITY

• Health Enthusiasts will take on in every aspect of their life as explained in insights of ‘new
habits’. They will continue to tab on any news related to covid (from outbreak,
vaccination to hygiene requirements), keep up the hygiene routines in and out of home,
The 3 attitudes can be used to expect others to keep the distancing, and appreciate and lean more towards product and
personify when offering the services that helps maintaining their health fit and utilized hygienic procedures. For
companies who understand and help them go thru life safer and healthier, will be highly
product and service to correlate regarded.
with consumers’ expectation of
• Online Homer and who take on the online lifestyle, will appreciate and lean more any
needs and desires, during the products and services that brings their online lifestyle enjoyable and uninterruptible either
new normal. for personal entertainment , self growth, family use and work related.

• Life simplifier and who take on frugal spending, will prioritize on habits and will appreciate
and lean more to any discount and premiums or rewards that related to health, related to
online lifestyle, in order to save more.
 KEY
OPPORTUNITY

• All new habits can be curated and correlated with promoted product and
services.

• Me Time and Family Time will remain relevant and any products and
services that can support and enrich these moments, will be appreciated

• Younger Generation, must be encouraged to remain positive and optimistic

with their life, hobbies and passions. Once a while they can be reminded
about hygiene safety.

• Reaching consumers at scale and have them engaged with the brands
through preferred channels of their choice or multiple online channels
based on their evolution of online lifestyle
Let’s hear what they say!

•
What Brands Should Do
The unprecedented disruptions for
brands has long-term implications
 Journey of Consumers’ Emotion

#1 Disruption #2 Uncertainty #acceptance of NN

(short term) (mid-term) (long term)

Lifestyle changes Mental fatigue – Prolong

Long term behavioral shift
Loosing freedom Economic Impact
New Outlook to life
Quarantine Living Life vs Livelihood
#1 Disruption #2 Uncertainty #3 acceptance of NN
(short term) (mid-term) (long term)
Lifestyle changes Mental fatigue – Prolong Long term behavioral shift
Loosing freedom Economic Impact New Outlook to life
Quarantine Living Life vs Livelihood
#1 Disruption #2 Uncertainty #3 acceptance
(short term) (mid-term) of NN (long term)

Lifestyle changes Mental fatigue – Prolong Long term behavioural shift

Loosing freedom Economic Impact New Outlook to life
Quarantine Living Life vs Livelihood

Evolve with consumer and

help and support be driver of positivity
Help adapt to NN

REASSURE & SUPORT OFFER HOPE ADAPT & ENABLE

ROLE OF BRAND
Make it easy for consumers to cope up

#1
Consumers are facing the crisis with positive outlook rather than
anxiously and expect brands to show positivity too and help
consumers
DISRUPTION
OFFER HOPE
help and support
Demonstrate Corporate
Social Responsibility

The quarantine living, offering new

opportunities (new in-home occasions), brand
Make a difference for should adapt into new in-home rituals and
consumer in everyday life experiences

Agile in innovating delivery to the consumers

immediate needs
DISRUPTION
Reassure and support consumers to adapt to the changing lifestyle

AUTHENTICITY IN ACTION
INNOVATE TO CATER TO NEW OCCASIONS AND RITUALS
AND POSITIVITY IN COMMUNICATION

Bring out the positive Demonstrate Be agile in innovating Pay attention to home
spirit in tone of corporate occasion marketing
communication responsibility and
contribute actively

Resonate with the Consumers expect Innovate to cater to the Create new in-home rituals
positive outlook brands to play a consumers immediate and experiences as in-
demonstrate by responsible role needs due to a changing home occasions have
consumers in their lifestyle e.g. in-home increased
response to the crisis Ease consumers
everyday lives through occasions, heightened
products and services sensitivity to health and
hygiene, delivering the
Showcase the soul of experience at home, big
brand by contributing
packs
tangibly
Help consumers bring out their fighting
sprit

#2 Uncertainty
be catalyst of positivity
OFFER HOPE
Consumers see advertising as a
relief and hope, humour should not
be avoided and help people to bond
(social interaction)
Extension lockdown give tensions and trade off
between desire and scarcity (supply and shrinking
income), thus brand can relook at pricing, promotion,
new format to support customers

Brought out survival spirit by taking up to pursuit

interest and skilling up, so brand partners consumers
with content creation , not just consume
UNCERTAINITY
Offer hope through advertising and partner with consumers to celebrate their survival spirit

COMMUNICATE TO OFFER HOPE AND AN INNOVATE YOUR OFFER, TOUCH POINTS TO BE

ESCAPE FROM THE NEGATIVITY RELEVANT AND MEANINGFUL

Tickle and treat through Partner consumers in Address Desire vs

Entertain and engage Enable to consumers to
tone of communication creating content not just Scarcity tensions
through advertising bond and socialize
consume
Prolonged lock down will
give rise to consumer
Use creative channels to Through Consumers are locking to desires or urges. Prevailing
offer distraction and Use of appropriate humour communications and learn new skills as they short supply, lockdown and
escape from the crisis is acceptable as it adds leveraging its digital have more time shrinking income will pose
cheer and positivity to lives channels brands should constrains to fulfill this
Content doesn’t need to as they struggle with enable consumers to Provide a platform to desire.
specifically reference uncertain times interact with others encourage and take part
corona virus as people affiliative spirit of in this wave of creativity Address this tensions with
are all too aware of the Indonesians for your consumers pricing, formal innovations
situation (small affordable
indulgence).
New behaviors leading to irreversible shift , brand to tab and
adept, and experiment with new delivery and media channels
#3 Acceptance
to cater new lifestyle
Evolve with consumer and help
adapt to NN
ADAPT & ENABLE
Brand choice can shift from instant gratifying to
sustainable long term benefit such as healthy,
safety and hygiene are preferable
ACCEPTANCE STAGE
Enable & adapt to the changing consumer needs

MONITOR SIGNALS OF CHANGING DESIGN YOU OFFER TO CATER TO ADOPT DIGITAL AS AN ENGIN
BEHAVIOUR AND MINDSETS THE NEW NEEDS OF DELIVERING YOUR PROMISE

Keep fingers on the Embrace shift towards Adapt to an evolved Be digitally prepared-
changing pulse of safety, health, hygiene & consumer- experiment make online shopping
Look out for Irreversible
consumer’s towards long sustainable products with nee delivery & media immersive to mirror
behavioural shift
termism channel offline shopping

Understand shifts in Proactively adopt new

These themes should Brands will need to
consumer decision Be prepared to server a tools such as
be considered for future accelerate their learning
criteria leading to a new more discerning and e-commerce, immersive
product development. on how to market to a
normal in consumer selective customer. experience to restore
more digitally savvy
behaviour. physical store shopping
consumer.
experience for online
shopping.
SUMMARY
How Brands can Respond
#1 Disruption
REASSURE AND SUPPORT
- Communicate your contribution and
responsible action
- Innovative to support consumers
adapt with the disruption
- Review media to optimize
#2 Confusion & Uncertainty #3 Acceptance of the New Normal
OFFER HOPE ADAPT AND ENABLE
- Communicate to be catalyst of hope
- Evolve with the consumer and help adapt
to the new normal
- Innovate to address tension of
Desire Vs Scarcity
- Experiment with the new delivery and
media channel
- Help consumers to create content,
than just consume through your media
- Relook at digital as an engine of delivery of
channels
your brand promise
Case Study
Phase I - Disruption

• INNOVATE

• ACTION & CONTRIBUION

1. Change of shopping habit & protocol at Singapore Malls 3. Stay healthy virtually with PoundFit / FF/ Celeb Fitness

4. Coffeeshop adapting 5. Gojek only pick & drop

2. AirBnB new online “leisure” experience “HomeSize” 1L coffee customer to greenzone places
Nivea reminds people who wash hands & use hand-sanitizer often, not to
forget to take good care of their skin using Nivea Cream
Phase II – Confusion & Uncertainty

OFFER HOPE
 3. Nike campaign tagline “Play
The World” encourage people
to play their part by exercise
from home in order to save the
world

1. No matter how complicated the situation we are

facing, there’s awalys a luck that brighten our day to
share. (-Wardah)

4. WFH doesn’t mean not to

take care of our face. Olay
reminds people to takes care of
their beauty behinds the
2. Although we can’t be close, we can still be camera
connected together with Vodafone
Phase III – Acceptance of The New Normal

ADAPT & ENABLE

1. New business on entertainment
2. SoKlin & SuperSol by WingsGroup turns their secondary functional product into
category: Drive In Cinema
“Disinfectant Spray”
(1st Biggest in Asean by Ergo&Co)
3. FairPrice shows how every single thing we do now become more
skillable and valuable than ever.