According to KPMG, a new consumer is emerging – one who is financially constrained, more advanced in the use of digital technologies, more thoughtful and selective in decision-making and keen to see COVID-19 as an opportunity to reset values in the world.
“The changes we’re seeing are likely not short term. Most consumers believe they will be living their lives very differently for the foreseeable future. Businesses will be faced with new challenges in this new reality. Our research identifies three areas to inform organisations’ decisions and plans.”
The economic impact of COVID-19 will influence behaviours for some time to come. On average, 40% of respondents are financially constrained and are, therefore, reducing their discretionary spending. New and persistent consumer segments have emerged based on the economic and psychological impact of COVID-19. Those most affected, economically and psychologically, are less inclined to pay a premium for branded products or nice-to-have experiential factors and are deferring non-essential purchases.
A new consumer is emerging, it is being seen that they are digitally savvy and embraces the ease with which they can interact with organisations through digital channels. Organisations have responded to COVID-19 with high levels of innovation, including greater digital access to purchasing and customer support. Consumers of all ages are keen for this to continue.
Consumers increasingly purchase from organisations they trust, at a time where trust is becoming more complex to build. Historically, trust was driven by whether organisations delivered on the brand promise. Now, trust is multidimensional and nuanced – trust that companies will continue to put the consumer’s needs first; trust that the consumer will be safe dealing with them; and trust that their data will be secure and protected. In addition, younger respondents are concerned about a company’s environmental and social practices.
KPMG feels that this new reality means that physical retail will need to offer consumers new reasons to purchase offline. With price and convenience being key to consumers’ decision-making, retailers will need to develop their online and last-mile logistics and delivery capability and manage the balance between home delivery and in-store product ranges.
Indian TATA Group’s jewellery brand Tanishq announced the opening of its firstNovember 2, 2020 | By RetailME Bureau
MRF 2020 which will take place at the Conrad Dubai Hotel on November 25, 2020, willOctober 14, 2020 | By RetailME Bureau
UAE-based concept grocery retail chain, Grandiose has opened a new supermarket within
US-based fast food chain, Nathan’s famous Inc. brings another New York classic,
Dubai-based Union Coop, the leading Consumer Cooperative in the UAE, opened its
UAE homegrown marketplace, Noon.com has announced its Yellow Friday sale from November
UAE-based Al Maya Group officially launched an exclusive range of Woolworths products
Abu Dhabi headquartered LuLu Group has opened its latest hypermarket at Khalifa
elGrocer, the grocery delivery app with ties to some of the major
Jones the Grocer set to open its doors at Dubai’s newly launched
Saudi-based operators of hypermarkets and supermarkets BinDawood Holding Company has completed the
The regional food and grocery delivery app Talabat has announced the expansion
Walmart is hiring 10,000 new employees in Canada for positions in stores
UAE-based Union Coop, the largest consumer cooperative, opened its 3rd Mall, the
“The dream” for many entrepreneurs of any scale of business is to
The UAE cabinet announced this week that the 100% foreign ownership law,
UAE-based Al Futtaim ACE, a home improvement and outdoor brand, announces the opening
‘Data is the new oil/soil’ has been the narrative across all industries
The Middle East Retail Forum 2020 kicked off with its first fireside
India-based Titan Watches is expanding its footprint in the UAE with 10 exclusive
The 13th annual Global Shopper Study, conducted by Zebra Technologies Corporation, has
GCC-based noon.com, the homegrown digital marketplace, announced its biggest ever Yellow Friday Sale
UAE-based Al-Futtaim has announced the opening of Watsons in Dubai Festival City
Sweden-based home furnishing retailer, IKEA has opened its new store in Abu
For cyber criminals, 2020 year has been one of the most profitable