Evolving consumer trends during COVID-19 by Nielsen

This artwork was created using Nielsen data.
Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
17 July, 2020
COVID-19 EVOLVING
CONSUMER TRENDS
Edition 4
UNDER EMBARGO UNTIL 17 JULY 2020 1:30 PM

2
Copyright©2020TheNielsenCompany(US),LLC.Confidentialandproprietary.Donotdistribute.
SAMEER SHUKLA
West Market Leader - South Asia,
Nielsen Global Connect
PRASUN BASU
President - South Asia Zone,
Nielsen Global Connect

3
COVID-19 IMPACT
ON FMCG INDUSTRY
EMERGING
CONSUMER TRENDS
1 2

4
Nielsen Proprietary
NOTE: These represent TYPICAL markers of these stages, but are not always consistent, especially with the
number of cases or deaths.
INDIA STILL IN TRANSITION ON CONSUMER BEHAVIOUR THRESHOLDS
NIELSEN’S SIX KEY CONSUMER BEHAVIOR THRESHOLDS
#1
PROACTIVE HEALTH-
MINDED BUYING
#2
REACTIVE HEALTH
MANAGEMENT
#3
PANTRY
PREPARATION
#4
QUARANTINED
LIVING
PREPARATION
#5
RESTRICTED
LIVING
#6
LIVING A
NEW NORMAL
Interest in health and
wellness products.
Health and public
safety products
prioritized . e.g. face
masks.
Pantry stockpiling of
health-safety products.
Increased online
shopping
Strain on the supply
chain.
Restricted shopping
trips, online fulfillment is
limited, Rising price
concerns.
Return to daily routines
Permanent shifts in
channel mix, supply
chain, and hygiene
practices.

5
EARLY
GROWTH
RECOVERY
CHINA
58 IMPACT LIMITED TO ONE PROVINCE
AND CONTROLLED EFFECTIVELY
INDONESIA
94 LATE HIT OF PANDEMIC
FLAT
GROWTH
MALAYSIA
240 COMPLETE LOCKDOWN IN MARCH
PARTIAL LOCKDOWN IN APRIL
PHILLIPINES
157 PARTIAL LOCKDOWN
MID MARCH TO APRIL
VIETNAM
3 LOCKDOWN FOR 3 WEEKS IN APRIL
DELAYED
GROWTH
RECOVERY
THAILAND
44 2 LOCK DOWNS AT A STRETCH
END OF MARCH TO MAY END
INDIA
227 4 LOCK DOWNS AT A STRETCH – END
OF MARCH TO MAY END
11%
4%
1%
7%
6%
3%
9%
5%
3%
-1%
0%
-1%
-6%
-8%
Jan-Dec'19 Jan-May'20
34%
52%
22%
40%
83%
42%
88%
38%
48%
72%
60%
17%
58%
10%
28%
6%
TT MT E-Comm
COVID-19 HAS IMPACTED ASIAN MARKETS IN DIFFERENT WAYS
Severity, Spread of the Pandemic and Markets’ dependence on Retail Channels bringing the difference
Cases per
million*
FMCG VALUE GROWTH
OVER PREVIOUS YEAR
CHANNEL
CONTRIBUTIONS**
Source: Nielsen RMS – May’20; Secondary Sources
LOCKDOWN
SITUATION

6
INDIA HAD A DELAYED GROWTH RECOVERY, HOWEVER, FMCG
INDUSTRY EXHIBITS SIGNS OF REBOUND IN JUNE TO PRE COVID LEVEL
100 100 100 100 100 100100 103 103 99 101 105
70
84 78 72 74 77
92
109
94
104 101
78
Urban Rural Food Non
Food
Traditional
Trade
Modern
Trade
100 101
75
98
FMCG - All India
DEC+JAN+FEB'20 PRE- COVID: MAR'20 LOCKDOWN 3 & 4: MAY'20 UNLOCK 1.0: JUNE'20
Source: Nielsen RMS
Value Sales indexed to Pre COVID period keeping the average of Dec’19+Jan’20+Feb’20 at 100

7
CATEGORIES WITH DIFFERENTIAL PATTERNS OF RECOVERY
100 100 100100 100 87
19
43 48
120
102
82
Deos Hair Colors Skin Care
100 100 100 100 100100 101 99 101 101
89 79 77
90 80
108 103
116
98 105
Tooth Paste Shampoos Hair Oils Washing
Powders
Detergent
Cakes/Bars
100 100 100100
159
11196
147
86
114
200
118
Toilet Soaps Liquid Toilet Soaps Cleaners Floor
100 100 100106 105 110102 99 102103 107 111
Packaged Atta Refined Oils Cheese
BEAUTY SEES SHARP RECOVERY IN JUNE DAILY USE CATEGORIES RETURN TO NORMALCY
GHAR KA KHANA CONTINUE TO TREND
DEC+JAN+FEB'20 PRE-COVID: MAR'20 LOCKDOWN 3 & 4: MAY'20 UNLOCK 1.0: JUNE'20
Source: Nielsen RMS
HEIGTHENED HYGIENE IS THE NEW NORMAL
Value Sales indexed to Pre COVID period keeping the average of Dec’19+Jan’20+Feb’20 at 100

8
EMERGING
CONSUMER
TRENDS

9
CONSUMERS PREPARE FOR UNCERTAINTY
KEY CONCERNS
Nielsen Online Study: 19-25 June, 2020, 1725 respondents, 22 cities
PRIORITISING
FUNDAMENTALS
BEARISH ON
DISCRETIONARY
- /+ 4 vs Consumer Study Apr 10-14
Economic
Recession: 84%
Health
Mental Health: 59% (+4)
MSME Shutdown: 66%
Physical Health: 45%
Pers/ Home Hygiene : 60%
Healthy Food: 64% (-5)
Medical : 55%
Education: 44%
Home Entertainment: 41%
Investment: 40%
Increasespends
Fitness: 51% (-5)
Dine Out: 70% (+5)
Travel: 64% (+7)
Apparel: 47%
Alcohol : 56% (+12)
Luxury brands: 60% (+6)
New car/ bike: 60% (+5)
Decreasespends
Tobacco : 50% (+4)
NET CHANGE (-4)
Employment
Rising Unemployment/
Salary Cuts: 84%
NET CHANGE (+6)
CONSUMER BEHAVIOUR
1
Q. What could be future concerns that could arise as a result of current COVID 19 situation?
Q. How will the COVID 19 pandemic impact your spends for the following in the coming times?

10
URGE TO BREAK FREE WITH SAFETY AND IMMUNITY
Traditional Trade + Modern Trade
SURGE IN
EVOLVED
HYGIENE AND
IMMUNITY
CATEGORIES
Modern Trade Banner
DEC+JAN+FEB'20 PRE-COVID: MAR'20 LOCKDOWN 3 & 4: MAY'20 UNLOCK 1.0: JUNE'20
0%
2% 23%
283%
Chyavanprash
10%
73% 55%
112%
Liquid Toilet Soaps
10%
24%
28%
39%
Branded
Honey
- /+ vs Consumer Survey - Apr 10-14
Precautionary
Measures
Keeping 1-2 m
distance from
unknown people
Staying away
from public
gatherings/
group meets
Covering face
with a mask
when outside
Using hand
sanitisers
Washing hands
multiple times for
20 secs
Sanitise surfaces
in public areas
before touching
Home remedies
to boost
immunity
Current
Adherence
80% (-2) 70% (-13) 87% (-3) 83% (-4) 77% (-12) 52% 58% (+4)
% to continue for
more than Six
months
39% 40% 42% 54% 56% 46% 49%
Nielsen Online Study: 19-25 June, 2020, 1725 respondents, 22 citiesSource: Nielsen RMS
CONSUMER BEHAVIOUR
2
Safety and Immunity will remain embedded in consumer behaviour for a long time
(Value Growth vs YA)

11
CONSUMERS CAUTIOUS: PREFER ‘CONTACTLESS’, HOME DELIVERY
27%
34%
40%
24%
65%
19%
25%
39%
50%
74%
Home delivery
(Dept Stores +
Food Aggregators)
Home delivery
(Neighbourhood stores)
Home Delivery
(E-commerce)
Visiting
(Department stores)
Visiting
(Neighbourhood stores)
Where are consumers buying?
Pre COVID Currently
Nielsen Online Study: 19-25 June, 2020, 1725 respondents, 22 cities
Reliance on online shopping:
62% intend to increase online shopping by more than 20%
Increase in digital payments:
54% paying more often via payment apps
WHEN DO YOU THINK IT WILL BE SAFE TO..
AFTER SIX
MONTHS
Travel internationally 83%
Stay in hotels/ resorts 74%
Travel by long distance trains 73%
Travel by public transport - train, bus, metro 67%
Travel domestically on a plane 66%
MORE FOCUS ON DOOR STEP DELIVERY! CONSUMERS ARE MINIMISING PHYSICAL
TOUCHPOINTS!
CONSUMER BEHAVIOUR
3

12
HOME COOKING BECOMES A GROUNDED MINDSET
Convenience and ‘Regional Recipes’ stay top of mind
2,648
3,798
4,794
13,237
24,319
Scratch
Cooking
Upcycle Food
Cuisine
First Time
Gourmet Face On
The Convenience
Bait Continues
Reloading
Regional Recipes
Social Media Conversations
Key Texts
Traditional ,
Authentic ,
Regional, Local
Jhatpat, Fatafat
“3 easy steps”
“Less than 3 mins”
First time tried
Experiment
Use up, Left over
Last night
बचे हुए खाने
From scratch
Step by step
KITCHEN DISCOVERY
CRITICAL NEEDS
• Healthy
• Safer
• Economical
• Fresh Ingredients
SHED INHIBITIONS
• Time consuming but
not that difficult
• Minimal Ingredients
• Help online is freely available
INDULGENCE
• Fun and My Taste
• As per my needs (oil, spices)
Source: Nielsen Social Intelligence Period: 1 Mar-15 June
COOKING MINDSETS
CONSUMER BEHAVIOUR
4

13
CONSUMER SENTIMENT ON ‘VOCAL FOR LOCAL’ SHOWING
STEADY GROWTH
#vocalforlocal
#atmanirbhar
#indiafirst
#proudlyindian
#MakeInIndia
#supportlocal
#proudlyindian
#swadeshibharat
OVERALL SENTIMENT
Two in Three consumers intend to buy
more ‘Local’ brands going forward
KEY CONSUMER PERCEPTIONS –
WHAT IS A LOCAL BRAND?
1 Manufactured in India 78%
2 Creates jobs opportunities for Indians 50%
3 Available across India 49%
4 Headquartered in India 48%
5 Uses Ayurveda/ natural ingredients 43%
Source: Nielsen Social Intelligence
Nielsen Online Study: 19-25 June, 2020,
1725 respondents, 22 cities
CONSUMER BEHAVIOUR
5
4 May 11 May 18 May 25 May 1 Jun 8 Jun 15 Jun 22 Jun 29 Jun
Vocal for local

14
TO SUM UP…
VOCAL FOR LOCAL IS A GROWING SENTIMENT
FMCG INDUSTRY EXHIBITS SIGNS OF REBOUND IN JUNE TO PRE COVID LEVELS
URGE TO BREAK FREE, BUT SAFETY AND IMMUNITY STILL IMPORTANT
THE CONSUMER IS CAUTIOUS: PREFERS ‘CONTACTLESS’, HOME DELIVERY

This artwork was created using Nielsen data.
Copyright © 2020The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Evolving consumer trends during COVID-19 by Nielsen

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