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    Asian Consumer Behaviour May Change Forever After Covid

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    Jimmi Hamka
    The survey, conducted by US management consulting firm McKinsey & Company, is based on research conducted with more than 5000 consumers in Asia across seven countries – Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that there are four areas within the food industry that may need to be reimagined following the end of the crisis.

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    Asian Consumer Behaviour May Change Forever After Covid

    Uploaded by

    Jimmi Hamka
    18 views3 pages
    The survey, conducted by US management consulting firm McKinsey & Company, is based on research conducted with more than 5000 consumers in Asia across seven countries – Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that there are four areas within the food industry that may need to be reimagined following the end of the crisis.

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    Asian consumer behaviour may change forever after Covid

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    The survey, conducted by US management consulting firm McKinsey & Company, is based on research conducted with more than 5000 consumers in Asia across seven countries – Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that there are four areas within the food industry that may need to be reimagined following the end of the crisis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views3 pages

    Asian Consumer Behaviour May Change Forever After Covid

    Uploaded by

    Jimmi Hamka
    The survey, conducted by US management consulting firm McKinsey & Company, is based on research conducted with more than 5000 consumers in Asia across seven countries – Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that there are four areas within the food industry that may need to be reimagined following the end of the crisis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Asian consumer behaviour may change forever after Covid-19

    New research has shown that some shifts in Asian consumer behaviour in response to the

    coronavirus outbreak could be lasting beyond the pandemic. And that is something that should

    prompt food retailers to act – and in some cases, accelerate – the changes they have already

    made in response to the crisis.

    The survey, conducted by US management consulting firm McKinsey & Company, is based

    on research conducted with more than 5000 consumers in Asia across seven countries –

    Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that

    there are four areas within the food industry that may need to be reimagined following the end

    of the crisis.

    Firstly, food retailers should reimagine the safety, health, and scope of their supply chains.

    Consumers across the countries surveyed appeared to care more about in-store safety and to

    prefer healthy, locally sourced offerings than they did before Covid-19. Consumers have shown

    a heightened awareness of hygiene and cleanliness that may remain important in the post-

    coronavirus period.

    The data on Asian consumer behaviour showed an increase in consumption of products

    perceived by consumers to be healthy, such as fresh food, eggs, dairy, and bottled water – and

    a drop in purchases of alcoholic beverages and snacks.

    The research suggests retailers should rethink their offerings and provide healthier, more

    locally sourced products with a smaller environmental footprint. To meet rising customer

    expectations, companies should rethink the safety of the customer journey – for example, by

    using technologies such as self-checkout and cash-free transactions to reduce risks.


    Secondly, retailers should reimagine how technology can enhance delivery services. The

    survey results show consumers are shifting their food spending online and have yet to return to

    their normal spending levels for food service. Responses suggest an opportunity for grocers to

    digitalise their stores.

    Respondents in most countries showed a 30–70 per-cent drop in preferences for dine-in

    spending and an increase in grocery shopping and purchases of ready-made food in grocery

    stores, which consumers tend to prefer more than meal delivery from restaurants.

    The trend towards online

    Consumers are indicating they intend to continue shopping online at the new pace.

    To respond to the current crisis and meet future ones, food retailers should scale up their e-

    commerce channels and their capacity for home delivery, perhaps by partnering with last-mile

    players and cold-storage warehouses; by expanding shifts in existing warehouses; by using

    hybrid picking models or by converting some retail locations into dark stores.

    Thirdly, retailers should reimagine the meaning of value for money. People are currently

    concerned about the pandemic’s impact on their personal incomes, and consumers are willing

    to forgo planned future purchases because of uncertainty related to Covid-19. To address these

    shifts, food retailers should rethink their promotional calendars to safeguard their marketing

    spending for use only when needed to stimulate demand, either for discretionary products or

    for post-crisis essentials to meet people’s desire for value.

    Finally, retailers should reimagine loyalty. During the crisis, Asian consumer behaviour has

    reflected loyalty to retailers and brands offering essential products in their assortments.

    Location and availability of goods have been the primary reasons why consumers have changed

    stores, rather than promotions or pricing.


    Retailers are advised to determine which stores are being affected disproportionately by

    customers shifting to other primary stores. Targeted marketing may help bring these customers

    back, as would retailers finding a way to better communicate the efforts they are taking to

    support customers and their societies more broadly.

    These measures should help retailers be better equipped to provide employment opportunities

    to people who are currently out of work, reshape their industry ecosystem, and work closely

    with business partners on how to operate under the new normal.

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