rl Fd Pt hs Post-COVID-19 consumer habits & corporate strategies Guessing the Wala realesThis work was made for you to , ’ , oe @O@® ‘Our job is to enable companies to craft their best future self and tackle every upcoming challenge. We believe this can only be achieved by encouraging people to innovate and explore new business models. We aim to inspire you by giving you the keys to understanding new markets.Methodolog BUEN AC i ted R od ee Ce oe I ere structural changes that could result from the COVID-19 crisis. Since COVID-19 appeared in China in January, our analysts have Pee Rae dal a tema ko eee eee eae iC FP eres se Meier Rites ets Relies treats Developing digital platforms and assets for our clients makes us able Ree eC ur eu hcl Seite eek oct eer} enna nan tag Become ta area Reta ra Cede ener ene eaet oN PE eeieaceareeuCetcustacne chic toni ee us! CPOE reine cael a caiomnet ascot cay& Edito. ! Reosonablerto be reason-driven. We have entered a new phase of the COVID-19 epidemic that is impacting the lives of incividuais anc businesses all aroune the ‘world. In these challenging times, we are observing a radical transformation in the way we work, consume, interact, and live. “There will be no return te the same lives and behaviors from COVID-I9: more than ever, ts necessary to take a step back to analyze these changes and reflect on what they say of tends to commie, Some (large) business models and societal values We need to best prepare companies for the future by adapting thelr 5 pillors of value creation tothe new paradigms ‘sicn's, ecosystem, social and environmental impact, infrastructure, and customers. Making companies anc their mocels more robust and resilient is necessary. 311 it's not enough to avoid suffering from unexpected situations, companies must take advantage of them, Inone wore, players need to become anti-fragile. The crisis shows us new standards of doing business and teaches us to continuously evaluate shifting our habits and principles to embrace the ‘new reasonable’.& Is stimulus enough, or do [investment programs] require some kind of direction: a major top-down vision, like Great Society, or a specific industrial policy? Money alone won't do. A directed plan, a vision about what comes next, is needed ck. to drive thre Nouriel Roubini aka Dr Doom EconomistTable of (OTC oe COVID-19 is changing consumer habits. From the COVID-19 crisis to the ‘new reasonable’. What is your next move?COVID-19 is changing consumer habits.With self-isolation, 3 billion people are transforming their behavior. Culture & entertainment Bad cinemas, thesters, Many urban citizens left cities for the countryside Sport Full remote work for many A Gyms,cours files, corporate companies wade: for the first time Retail 8 shopping Millions of people currently or soon to be in partial unemployment shopping centers, apparel stores, Ovi stores Work offices, sheeting romsAnd usage is shifting towards more virtualization. Most of the apps are used to virtualize physical interactions & usage (social, work, sport & education) be social [— cames > Work & [collaboration © [+ education |. Werk & collaboration f+ Social ail J Games . % fe social at. Social a ca > = |. sport 9 Smee “p. Games: eae © be social ‘Sources: TensorflowMedi Entertainment — @ Education / Work © Shopping Morning wake up & decide to exercise or meditate @ [have some meetings on our future virtual workshop with one of our clients @ | browse online to find the best indoor plants @ I make my purchase online Afternoon @ {take an online training course @ order food for the week with home-delivery | have virtual dinner with friends | play collaborative games through my smartphoneMedia & entertainment growing usage and new habits.aoe As countries restrict d: ! ly lives, global Internet traffic explodes. Internet traffic reaches an all-time ‘Consumer demand increases for online peak media, especially entertainment and work platforms +70% global Internet traffic Main categories: in the past 2 months tomdial forcing SVOD players to limit video quality to 720p. 9.1 terabits/sec. peak (March 10) equivalent to 2m HD videos/sec. tbecia Which leads to a key challenge for carriers to ensure a stable and secure Internet & mobile infrastructure.As videos surge, new social concepts and features are being developed. On the weekend of March 14-15, time spent strea worldwide ‘TV ratings reached ths of individual watch time, ing spiked 20% ighest level with ShIS NETFLIX PARTYA So do video games, a vector of both entertainment and The industry remains impacted by the epidemic, cancelling major sector events such as E3, postponing ‘game releases, and facing capability challenges... nay, we han some wh ou tr Sevens Weebly be atsren ss a2 oobi Thnk yout your pore bcos Still, video-game developers see an increase in usage and engagement on their games, reflecting the social nature of this industry. In fact, overall video game Internet traffic has increased by 75% in the US since restrictions were imposed. (verizon) The same trend happened in China regarding mobile gaming. With accelerated success for big franchises. Call of Duty: Warzone users doubled to 30m in 10 days after launch (March 10).Self-isolation is smoother as people keep connected online. ’ More profoundly than ever, social networks offer an Social ‘opportunity to maintain a social link between ec ieclatign people in isolation and to keep companies connected to their customers. Creat 2016, -| ‘ +70% epee A) increase in numberof people using Facebook shoroctane tie A Messenger group video (from March 9 to March 16). past few weeks, fm X2 9 zl FI) voice and video calls on WhatsApp year-over-year, a BEM places most impacted pee - and spreading solidarity. (Gourees ENED) Tok lett sssand encourages sible attitude with Artists & music % labels are enges & leveraging “sjorestechezmol chal Facebook & Incollaboration with F Instagram to Haison government) perform live Teugt sessions from Eeetivat #SOLIDARITYATS their homes. Hy ’ Twitter #«Away from the gym, Instagram is the new place to work out. ) Fines yoge meditation and more Social media such as Instagram or Youtube enable live streamers to provide coaching. ess platforms providing sports lesson streaming, such as Peloton or LesMills are thriving. 3 teem distancing and staying at home are strengthening the live coaching trend on apps and social media... building the next generation of influencers? Video games are also used for sport: the “Ring Fit adventure” game on intendo Switch faced huge demand and is now sold-out, with resellers selling it at 4 times the retail price.Remote work, education, and emerging inequalities.The largest experiment of remote work has started: ! After startups and small companies, large corporations turn to fully remote In France, 8 million people are now working fully remotely according to the French government's estimates (x7" vs 2019). This forces companies to find new ways to organize their daily meetings and other convivial moments, but also to manage their teams and to ensure business continuity if It is possible, A a= Hopefully, work-from-home _ software can help companies support this massive shift, ecoA ranked #1in the US and Canada (and 9¢ + ranked #2 in France, tay, Spain and UK Although its @ business app, Zoom over performs in 135 markets in all categories of the app stores (across all games and apps), not only job-related tones, as iis also used by schools in France for instance (+600,000 co Zoom stocks sed free appe 5% of growth) More than 900 million minutes o meetings and calls every day between +50% ii chat volume is Mere week earlier in the US, r hed 22 emote wo 7,000 new pal +40% in growth comparedito the last 2 quarters combined.But remote work raises inequalities between white- and blue-collar workers. COVID-19 highlights a major divide between OB whe can work enor ne tee This situation should raise awareness about must stay in the field. While full remote is ' the necessity to better empower operators oat for some workers, can segregate rca for som Treen segreg inorder to ensure both business resilience and people's safety using technology. Uber drivers are being forced to choose besween risking Covid-19 or starvation [Connecting warehouse and client facing workers Z a 7Online shopping experience and key challenges.A COVID-19 reshuffles the cards of e-commerce in some categories. ! At first glance, COVID-19 has a moderate impact on overall E-commerce. eM ad co] aes Racing er ‘Consumption index on e-commerce cross category in France Poyted Pulse: la conseenmation (ela crise) en France wie trevers de nes achatsCOVID-19 is raising major challenges for retailers. who will need to adapt their models. 8% Supply & delivery dependency Ethical questions Gowen OD EEA, amazon ‘ssncnsnastage of retailers expect inventory shortagesCOVID-19 is changing the overall consumer journey. y BH Needs Customer focus on essential products: Food / Hygienic/ Grocery / Baby / Pantry *196% growth on Pasta’ gS ° After-Sales Extended delay for ‘eusiomer returns chorgedest return Search FR customers spent +27.5%* more time doing online research vs ast month, Conversion rate on Food / Grocery products increased! by 420%" during this period a o Delivery Customers are now seeking contactless delivery (t0-door delivery} - while Relais Calis areclosea Long term delivery option only or 4 weeks) Collaborative delivery is developing o) ‘Conversion channel Prioritization of Drive solutions for the purchase. Drive grawth on Monday léth ‘was “100% vs "classic days” Bl Payment ‘Customers aim to avoid any Contact during payment which is positively impacting Mobile Payment and Online paymentWill social shopping and distance commerce reach the West? Offline store! users grew Is the Lipstick King. live streaming, by 105% in 2019 to During a for Singles’ Day 2019, Li generated insales!Let’s deep-dive into some key categories Pret) Nag ae LUXURY meatyArdea ad erat it Rise in power of Se eLG) esis The panic bu: Cie ancl Daneel OSS ae eee aeeuioe Cece a cE eld Bray Ea Home pan cite ee carte nd Peretti) Neuere RCRD ca res eee eric eet Ce Road Coterd eed ead Ree ey il) oer pnebalag areneHair color ae PVT toig i) SN at EES Bee ated Ba Tater 1) flat* Fragrance very strong decrease* Pe MeL Coe] o) Cee -= Baby ee corer Si ee oe afDespite a global decrease in sales, consumers stay true to the fashion brands they love.Emerging trends Ld Peers oe eee Peete Peo] Pree res FO Aue SCs MMe eae cod Demers ee pei epi nok ie in online platforms. eee Pe ntoo acne Overall, consumers are more Seer Dee he aay DeeFor luxury, the outlook is However, this crisis is pushing looking catastrophic. retailers into the future. 2020 luxury sales PRADASome first learnings after a few weeks of self-isolation. Mela e eee ee ars Pinte eee eee er Pe ae Nee Ei }work organization every Or Pers arr es OeCOVID-19 will help people and businesses cross the Moore’s Chasm.From the COVID-19 crisis to the ‘new reasonable’.These structural changes will lead to a ‘new reasonable’ paradigm and design This unprecedented crisis will not allow us to return to our previous lives. What can we expect from tomorrow's world? Crises won't stop. We'll just have to learn and .Beni Social distancing will become a new social norm. technologies to self-isolation, nd hese habits could last after the crisis and be massively adopted: contactless and mobile payments could replace willbe the next move of merchants’ digitization. From sport to ‘education and work remote tools will open new markets, is not only technological topic: he ‘experiences ensuring people stay Ir ‘mass events like the Olympic Games will be thing of the past. design user fay from each other? Maybe -oncerts, movie theater ‘or the remaining companies and verticals that hadn't moved to digital, it also means that more than ever, there is a need for them to be visible and viable through digital8 Anti-fragility and “ability to adapt” will be a must-have and a value driver. For analysts and investors, estimating the value of a company has become extremely difficult due to the uncertainty of the pandemic and marke: velatility, Successful companies tomorrow could be the ones that are able to convince us oftheir resilience and speed capacities, and nus of their long term growth prospects. In the new paradigm, treal time! will be the most critical superpower co ensure instant market fit ‘This superpower requires the adoption of a systemic approach, embracing longer-term strategy and relying on intangible assets such as talent, ecosystems, customers, or CSR impact Marketing activation, business models, people operations, supply chains..ll the cornponents of your business must be highly adaptive as the world can turn upside down at any moment. In order to be sustainable companies .wil need to find an equilibrium that preserves interests of al siskeholders, mm Engaaing, taining sn ale talent pool Reshaping your business model CCornmuricating to shareholders to valve your strengths, with new KPIs. barycenter of value Anvsipating new (ER ‘customer trends Bulding astute, andundarstanding coordinated trackable habits needs supply ena, eying on new technologies wth fess dependency on suppliers. Innplementing proactive approach regarcing Social Environmental pact.The relationship with data & Al will be reshuffled — starting with health. Two years after the Combridge Analytic -cends|, our personal location data might be shared with European governments to slow down the pendernic, when Israel, Russia, or Singapour ate al utmost importanes, it's for good reasons, But whe Wye imagined that a heath crisie would ehallenge such fundamental principles? Will it last after the crisis subsides to prevent future threats? On thes, tof health, our prevention system in the West mighi benefit from massive investment and shift: international consortiums could emerge to create # eommon health data reference system ‘hot will allow data interoperability between health systems, and allow patient cata to be securely stored. Only in critical times of crisis, data from connected devices (wearables, health equipments.) hospitals bed availablity, patient churn.) could be analyzed thanks to predictive A\, to immediately lentify and treat potential carrier of diseases o1 p:ovice diagnoses more easily even if patients are not physically withCities, shops, and workplaces will need be completely reshaped. The spread of virtual habits such as remote working, remote education, e-commerce shopping, and weeks of isolation ray create = new paradigm around physical places and an alternative urban model From shops or company offices to mobility hubs, ving & transit places will have to be profoundly transformed te fit new indoor r Jow do we design 2 factory or atrain station guaranteeing the application of “barrier gestures? This could also lead us to redefine retail stores’ implementation and concepts: what could also face en urban exodus as hyperurbanism will be nt given the there will be regularly simi that companies will be more flexible wit «emo People will increasingly b= on the quest for the great outdoors. Could shared and distributed workplaces saread over the world replace big HOs? hat [vs @ whole economy that could be rethought throuah new city models anc new regions that could be populated and redynamizedCollective interest will get real and visible. COVID-19 shows us that individuals, companies. and governments are highly dependent on one another, no one can survive the crisis f ‘other countries are severely suffering from it This sed episode may teach us the need for governments and corporations to find a global new deal for the sake of society and nature. Exomplesare numerous, Werld Health Organization has launched #BuildforCOVIDI, an online hackathon with Facebook, Mictosol, Giphy, Pinterest, Slack, TikTok, Twitter and WeChat as partners while Ale Liquide, Schneider Electric, PSA and Valeo (e217 up to produce 10,000 respirators. ‘Are we at the dawn of a new paradigm, one in which economic agents ‘will conquer new territories of value together? Cleatly, our common responsibility is to ensure that no one is left behind. In order to lower barriers to entry in this Future, we should collectively monitor and tackle critical social and technological drifts for people who are not ‘in the system” (migrants, blue-collars vs remote-ready workers. Our consumer society has shown its Weaknesses. Sel-isolation is @ breath for the environment (se= picture opposite} but also an opportunity to eombine growth with more inclusiveness and sustainability,What is your next move?Due to the economic disruption, the profound societal and environmental changes and the acceleration of digital ial .. allocating capital to the right strategic topics will be decisive to ensure the sustainability of your model and create AV-TIOLom ae B=\ 7-1 alco WNas phulanew paradigm} companies will have to arbitrate between the short term and the long term. During the crisis, Companies have to manage the challenges of preserving their business model. Tem dat -Mcno\(-1Ad [elatt—a fern Paci aukcis Pre MRE Caee Cee ts Peciaeis lsat eesCompanies need to prepare for recovery with a stakeholder-centric approach to ensure long-term growth. [Ecosystem INFRASTRUCTURED Wociat @ environment a 0 Timpactfel Al Credits ‘Alexandre Mahé ‘Axelle Ricour-Dumas cyritvart Laurent Blassin Flore Desvignes Guillaume Gombert carl Gonnet Valentine Jahan Gabrielle Peyrelongue ‘Tania Phan Constance de Saline Marine Chatras ‘Audrey Da Cruz Elodie Da Silva Costa Fiona Grunberg Benoit TalabotWhat are you waiting for? For a private presentation, please contact: * FABERNOVEL For media inquiries, please contact: