Professional Documents
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03 April India Webinar COVID-19
03 April India Webinar COVID-19
Barometer India
Research
Understanding Consumer
Sentiments and Implications for
Brands
2
“Before the 21 days”
Soumya Mohanty
Chief Client Officer, South Asia, Insights Division,
Kantar
3rd April 2020
We will be in a position of having a
blank page for a new beginning
because lots of companies and
money will be wiped out in the
process of slowing down.
Li Edelkoort
How we have built your story
Our Global COVID-19 Using Social Intelligence Using Kantar’s Thought-leadership, Using the world’s largest
Barometer and India tools and Google WorldPanel data to analysis, and brand equity database
COVID-19 sentiment Insights to understand understand change in intelligence on learnings to bring you learnings
survey looking at consumers sentiments consumer buying from around the globe on the importance of
consumer’s attitudes, and reaction towards the behaviour post the strong brands
behaviours and situation outbreak of COVID-19
expectations
** Survey among
panellists
5
COVID19 - India sentiment survey details
Nagpur Kolkata
Surat
Bhubaneswar
Pune + Cuttack
Hyderabad
Mumbai
Vijayawada
Kochi Metros
Non Metros
6
Worldpanel’s survey details on panelists
Only Hygiene categories
Study done between 20th Interviews done Coverage across the Close to 2,300 housewives
and 23rd March, before telephonically country, but reporting at across all SECs
the Lockdown was in the Country or Zonal interviewed
place level
7
What you will hear today..
Back to basics…
Provide a vision to look forward to
8
8
We were not very happy even before COVID-19
Indian Consumer
Confidence Index
has been
declining through
the later half of
2019 signalling
weaker
sentiments
41% 21%
Believe that Believe that
they are better they will be
off financially better off
compared to financially in the
last 12 months next 12 months
9
The mood was one of “Wait & Watch”
82% 64%
Concerned about 15-19 aged
exposure to consumer worries
pollutants and about crime and
contaminated air violence around
them
10
IMPACT WE SEE IN OUR SENTIMENT
Now, edgy and anxious, India is much closer to China than US
12
Disruption bothers us more than health concerns
14
31
31%
33
45%
17 45
17
18
24
Highly concerned Concerned
Highly concerned Concerned Neutral Low concern
Neutral Low concern
13
This is true across the world
50 50
44 45
34
31
23
21
16 17 17
14 13
12
14
We are worried about everyday disruption, not yet a recession
SOUTH
FRANCE GERMANY ITALY KOREA UK US INDIA
%High Concern/ Agree
15
Like other Asian and LATAM markets we are expecting a quick recovery
as we monitor the lockdown, these trends will change
65
57
54
49
45
37 36
34 34 33 32 31 30 30 30
23 22 21 20 20 20
Top 2 Box 16
Readiness is all for the Europe/ US. India closer to South Korea. France stands
out as an exception.
17
Emerging segments
Individual
Life stage
Optimist youth I 28%
Collective
(family)
18
An anxious nation waits it out, pre Lockdown
“If Winter
comes, We have been waiting & watching the world fall victim
can Spring with heightened anxiety. When it did happen our
be far approach is pragmatism.
behind?”
19
THE IMPACT WE SEE IN BEHAVIOURS
We are optimistic attitudinally, but behaviours are contrary
US 33% 25
UK 22%
51
South Korea 24%
24
Italy 23%
France 18%
21
Shared mobility will take a hit
22
Will we learn to live with less?
28% 7%
23
We differ from China in some significant ways
India China
41% 59%
of digital penetration of digital penetration
16% 42%
Net commerce users Mobile payment users
$40Bn $1.5Tn
Online retail transaction value Online retail transaction value
3% 25%
share of Online retail to the Total Share of Online retail to the Total
Retail Value Retail Value
Source: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/china/china%20digital%20consumer%20trends%20in%202019/china-digital-consumer-trends-in-2019.ashx
24
However, first purchases online is being made across categories
26%
24%
20%
18%
17%
15%
Food and beverages Clothing and accessories Services (insurance, OTC pharmaceutical Cosmetics and personal Electronics (e.g. TVs,
telecommunication products care products handsets, electrical
services, etc.) appliances)
25
Back to basics, across the board decline in packaged F&B , cosmetics
purchase
Net
0% 10% 20% 30% 40% 50% 60% 70% 80%
Personal cleaning products like soaps, handwashes, sanitizers 67% 10% 56%
Products like antiseptic liquids, anti-bacterial liquids and wipes 63% 11% 51%
Home hygiene products like bathroom, floor cleaners, phenyl 58% 11% 47%
Food items like packaged atta, pulses, rice, oil 41% 18% 23%
Nutritional products like Chyawanprash, milk food drinks 28% 18% 10%
Long shelf life products like Tetra pack milk 23% 29% -6%
Packaged foods items like chips, namkeens, biscuits, instant noodles 22% 39% -17%
Ready to cooks items like idli-dosa powder, frozen foods 22% 38% -17%
Buy More
26
Buy Less
Planned purchases being deferred, especially vacations and high ticket items
…Investments and Insurance will be less impacted
% of people planning to defer purchases due to Coronavirus outbreak
Vacation/holiday 77%
Automobiles 64%
Apparels 63%
27
Hygeine is here to stay
Increased focus on health and hygiene
47%
Indian households
claim increased toilet Hand Sanitizers Hand Washes Toilet Cleaners
cleaning, more so in
rural (49%) vs urban
(43%)
ꟷ Floor Cleaners
Antiseptic Liquids 9%
Floor Cleaners 6%
“Disappointment
won’t last a
lifetime unless There is optimism of quick recovery, but stocking up
you lie down and as well, mainly essentials – preparing for the worst.
give into to it”
Whether we will learn to live with less has to be
watched.
We had over the years shed the frugality of our
parents & lived it up–is the pandemic just a pause, or
will it make us more cautious about future?
Brands that stay away may run the danger of
falling by the way!
32
ROLE OF BRANDS
Precedent – Previous events showed elastic economic behavior
Previous
epidemic/disasters
have shown short
term impact, but
generally recovery
is seen over a
period.
34
This pandemic differs in its global
reach and the impact on consumer
psyche.
35
We may already have started down-trading, attitudinal loyalty lower
Change in shopping behavior - India Keep purchasing the same brands as always
Agree Neutral Disagree
Italy 71%
68%
63%
59%
53% Germany 68%
47%
US 66%
27%
25% 25%
22%
20% 21% UK 64%
16% 16% 18% 19%
France 61%
Pay more attention Keep purchasing Prefer paying with Pay more attention Buying more of India 59%
to prices/cost the same brands credit cards, debit to the origin of branded products
as always cards and mobile products
apps instead of
cash South Korea 26%
36
What is likely to stay is an increased attention to the origin of products now
…much more than Europe and US
INCREASED
India 63%
US 35%
UK 25%
Italy 40%
Germany 20%
France 34%
37
We’ve seen before that strong brands recovered NINE TIMES faster following
the financial crisis of 2008
+317%
BrandZ Top 10
Powerful Brands
+196%
BrandZ Strong
Brands Portfolio
+128%
S&P 500
+59%
MSCI Word Index
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
39
Salience plays a crucial role in brand equity and consumer decision making
% contribution of Salience to Power in India categories 2018/19
India 2019 = Salience 41%, Difference 26%, Meaningful 33%
Top quartile
50
48 47
46 46 45
46 45 45 45
44 44
44 44 44 43
44 43
43 42
42 42 42 42 42 42
42 41 41 41
41 41 41 41 41 41 40
40 40
40 39 39 39
39 38
38 38 38 38
38 37 37 37
37
36
36 35
34
32
30
41 categories total 40
We don’t want advertising to be seen as exploitative
Consumers expect advertising to help them navigate the new normal with a positive perspective
41
We want brands to take the fight home
27 25 23 21
18
15 14
42
This needs re-imagining what we do and how we do it
43
Saying what you always say may not help
SOUTH
FRANCE GERMANY ITALY KOREA UK US INDIA
44
Standouts/differentiators
Remember, communication is not the only marketing lever
Nike and PopSugar Fitness: Offered their premium features training club app for free
45
Finally…
46
46
What we can learn
from China
The impact on certain sectors was profound during the pandemic
48
But after the pandemic, there is huge potential for rebound
49
Many consumers tried new things
50
Emerging Lessons
“If Winter
comes,
can Spring
PAY ATTENTION to the changes of consumer mindsets,
be far
consumption behaviour and lifestyles
behind?”
DON’T ASSUME A NORMAL OR A NEW NORMAL Some
habits may stick , while not doing others can create intense
longing. None of the trends in China are new , disruption has
just accelerated it. India may take that route or not.
51
We are here to help…
ꟷ Launching COVID-19 Barometer in India to track shifting mindsets over next 4 weeks
ꟷ Agile, online solutions so you don’t lose touch with your customers
52
The State of the
Nation
Poonam Kumar
54
Overwhelming reaction is PANIC, but there are significant mentions of HOPE
as well
56
People respond differently to Uncertainty and Fear
57
Unite, Rally & Support
1. 2. 3.
Gratitude to Crisis behavior – Unite to fight
Rally behind Setting past
a common enemy, support
the leadership those keeping differences
leaders and those fighting from
Show solidarity us safe and aside the front. High stress, high
comfortable optimism.
58
Fight & Call out
1. 2. 3.
Crisis behavior – Finding places
Fight and call Fight and call Fight and to park the blame. High stress,
out out detractors call out the high anger.
“COVIDIOTS” leadership
The new normal – An
apocalyptic world where the
nation is fragmented, violence
reigns and every day is confined
4. 5. 6.
to the insides of their homes.
Fight and Fight and call Fight and call Idiots are destroying my world
call out out celebrity out police
the culpable culture brutality Self-protection – Fight till their
upper-class voice is heard. Be Heard
59
Surrender, Pray & Accept
1. 2. 3.
Crisis behavior – Staying
Worried Putting health Accepting home and taking care of loved
about the & safety and finding ones, not endangering the rest
vulnerable above all else upsides of the world. Acceptance,
Desire to help
60
So what should Brands do?
BRANDS –
SHOULD
NOT HIDE
This is not a time to focus on short term equity and quarterly sales
1. 2. 3. 4. 5. 6.
Time for brands to Keep the light on – Time to speak to It is the time to build Be human, real, Signal your values in a
show up and support show people what you people and not trust by setting your vulnerable. way that is needed.
– 92% say they wish are made of consumers. Make it agenda aside and
to hear from brands less about you and helping people heal
more about them. and feel better.
7. 8. 9. 10.
Empathize (I see you, Help people trust Don’t add to the It is the time to build
I feel what you feel). themselves and cacophony of greater meaning.
believe that they will conflict and
come through this confrontation
63
We saw the Indian response to COVID-19. How are we coping with the
lockdown? The psychology of lockdown and the tensions created
EXTROVERTED:
My impulse to move freely
in the world is constrained
AFFILIATION: INDIVIDUALISTIC:
My need to be with My need to stand apart
others is restricted is encouraged (but I
don’t have an audience)
INTROVERTED:
My impulse to retreat from
the world is encouraged (but
there is no safe place -my
neurosis come to the fore)
64
Six ways that people respond to lock down: the bad
65
Six ways people respond to lock down – the good
66
How can a brand be a good lockdown partner?
67
How can a brand be a good lockdown partner?
68
Reflecting the Reality
Let’s see how brands are doing it
69
Those that got it Wrong!
70
Finding the Good
Ikea – I Stay Home
71
Sharing the burden
What you DO matters as much as what you SAY
72
These are difficult times, but also unique opportunity to do much more, be
much more – some strategies for brands
1. Wartime spirit – Pride, Courage, Romantic ideals to elevate the spirit The need for brands to be
more human than ever
2. Recalibration and Repurposing – Giving perspectives on what’s really
important.
3. Going up to the Front – So many owe so much to so few. Generating
collective feelings of responsibility
4. Doctrines of mindfulness – Refreshing real meaning, living fully in the
moment, a collective moment of truth
5. Saying Thank you and everything else that matters
6. A silent hug - Stirring people back to what makes us human, relatable
human moments
7. Humor – a way to cope. Gallows humour or just plain silly fun
8. Pitching in heartily – Knights on scooters
9. Needing our neighbors more than ever
73
When the storm passes, consumers may not remember exactly what the
brands said or did, they’re going to remember how the brand made them feel.
Whether it made them laugh, whether it made them think, whether it played for
the team, and it not only inspired, but enabled them to do the same.
74
Media
in the time of
Covid-19
Pablo Gomez
The solution?
ꟷMinimize the time you go dark, not more than 6
months
ꟷOr just decrease investment, not lower than 50% to
minimize impact.
Source: Kantar Barometer - What happens when brands go dark? August 2018
Which touchpoints should I focus on?
News have been the main driver, as people have the need
to be continually informed of the evolution of the situation.
But Kantar Media Spain also think that people will suffer of
“news saturation” and will start moving to other types of
entertainment beyond: like Netflix, Amazon Prime or HBO.
This time we see the same pattern across the rest of the
Asian countries. Where 32% of respondents declared
that they have increased their online shopping activities.
Source: Qartz April 2016: China’s Internet got a strange and lasting boost from the SARS epidemic. 80
Kantar World Panel Vietnam feb 2020, Kantar Survey across 6 countries in Asia in Feb 2020.
Inspiration – How Next is embracing digital transformation
Source: Kantar Cross Media Database, analysis run for YouTube in SEA 2018
83
Inspiration, How Nike continues to be in touch with consumers
84
In summary
BE READY FOR BUDGET CUTS AVOID OR MINIMIZE BLACKOUT FOCUS ON DIGITAL and TV
We expect a decrease on advertising Don’t be off for more than 6 months or Also explore new platforms like News or
and media investment. This is the best continue with at least 50% of Music Streaming services.
time to look for efficiencies. investment.
85
Media in the
time of
Covid-19
Thanks for joining the webinar today.
Watch out for the next webinar coming soon.
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