In the second Consumers and the new reality report, we continue to examine the effects of COVID-19 on consumers’ needs, behaviors and preferences. The effects of COVID-19 continues to be felt around the globe and organizations will need to anticipate and prepare for the new reality. In particular, what are the long-term shifts in consumer behaviors and how can organizations transform their business to successfully adapt to these changes?
This executive summary is the second of three reports based on KPMG International’s survey of more than 60,000 consumers from 29 May – 24 August 2020. This report examines consumer experiences during that period in the following key sectors: Consumer & Retail, Banking, Insurance, Entertainment & Leisure and Travel & Tourism.
Consumer expectations for the new normal extend to 12 months or more and the underlying findings from the last report have now become part of everyday life.
Overall, the combination of basic consumer needs of value and convenience indicates serious consequences ahead for the economic fortunes of individual markets. The predicted increased use of local suppliers remains positive while the trend for global brands is down.
Additionally, we see that personal safety moves into the top three purchase drivers demonstrating the need for organizations to work harder and faster to ease consumers’ anxiety around in-person interactions.
Organizations which are most likely to prosper over the long term are those that:
- adapt their business models and embrace the right type of partnerships to respond to the new reality
- rethink their cost of doing business across multiple facets
- demonstrate their purpose and prioritize personal safety for their employees and customers, and
- understand who their customers are, that their needs are changing quicker and brands will need to adapt faster to meet their expectations.