As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. Through a series of regular, global surveys, we are tracking how customers’ expectations, spending, and behaviors are changing throughout the crisis across multiple countries over time. Please check back regularly for updates.
Boost in optimism and spend intent
Consumer optimism regarding economic conditions after COVID-19 are up by more than 50% since February; strongest growth in spend intent is for out-of-home entertainment, dining out, and travel.
Chinese consumers’ optimism hit a new high in October. More than 80 percent say they are returning to normal routines—and many embrace digital shopping.
These exhibits are based on survey data collected in China from October 15 to 22, 2021. Check back for regular updates on Chinese consumer sentiments, behaviors, income, spending, and expectations.
US consumers exhibited strong optimism and spend in October, driven by consumers across the age and income spectrum.
Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
In Spain, consumer optimism about the economy has doubled since February 2021, reaching 33 percent. Consumers indicated greater intent to spend, and almost half intended to splurge this year. At equal rates of 60 percent, Spanish consumers said they are omnichannel shoppers and have returned to participating in out-of-home activities (way up from 20 percent in February 2021). More than four in ten reported changing brands, mainly for price. Over one-third said more of their holiday shopping would be online in 2021 than in 2020, and about 40 percent said they would start shopping earlier.
Spend not splurge – consumers point to muted sales
Optimism for an economic rebound has peaked, with young consumers the most optimistic
Despite this, spending intent is negative for many categories, though improved from February
Boost in optimism and spend intent
Consumer optimism regarding economic conditions after COVID-19 are up by more than 50% since February; strongest growth in spend intent is for out-of-home entertainment, dining out, and travel
Spend not splurge – consumers point to muted sales
Optimism for an economic rebound has peaked, with young consumers the most optimistic
Despite this, spending intent is negative for many categories, though improved from February
To what extent are you committed to success? Don’t miss the most compelling marketing event of the year. Come and hear how three leading marketers have dealt with challenging situations, turning them into outstanding successes. Here is your opportunity to ask questions and workshop issues and ideas. Learn how to focus your marketing energy, recognise what you are good at and charge on!
Boost in optimism and spend intent
Consumer optimism regarding economic conditions after COVID-19 are up by more than 50% since February; strongest growth in spend intent is for out-of-home entertainment, dining out, and travel.
Chinese consumers’ optimism hit a new high in October. More than 80 percent say they are returning to normal routines—and many embrace digital shopping.
These exhibits are based on survey data collected in China from October 15 to 22, 2021. Check back for regular updates on Chinese consumer sentiments, behaviors, income, spending, and expectations.
US consumers exhibited strong optimism and spend in October, driven by consumers across the age and income spectrum.
Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
In Spain, consumer optimism about the economy has doubled since February 2021, reaching 33 percent. Consumers indicated greater intent to spend, and almost half intended to splurge this year. At equal rates of 60 percent, Spanish consumers said they are omnichannel shoppers and have returned to participating in out-of-home activities (way up from 20 percent in February 2021). More than four in ten reported changing brands, mainly for price. Over one-third said more of their holiday shopping would be online in 2021 than in 2020, and about 40 percent said they would start shopping earlier.
Spend not splurge – consumers point to muted sales
Optimism for an economic rebound has peaked, with young consumers the most optimistic
Despite this, spending intent is negative for many categories, though improved from February
Boost in optimism and spend intent
Consumer optimism regarding economic conditions after COVID-19 are up by more than 50% since February; strongest growth in spend intent is for out-of-home entertainment, dining out, and travel
Spend not splurge – consumers point to muted sales
Optimism for an economic rebound has peaked, with young consumers the most optimistic
Despite this, spending intent is negative for many categories, though improved from February
To what extent are you committed to success? Don’t miss the most compelling marketing event of the year. Come and hear how three leading marketers have dealt with challenging situations, turning them into outstanding successes. Here is your opportunity to ask questions and workshop issues and ideas. Learn how to focus your marketing energy, recognise what you are good at and charge on!
Indian consumers are optimistic about the economy and plan to spend more. They are open to new shopping behaviors as they transition to out-of-home activities.
These exhibits are based on survey data collected in India from October 15 to 22, 2021. Check back for regular updates on Indian consumer sentiments, behaviors, income, spending, and expectations.
While consumer optimism remains steady, we see signs of discretionary spend recovery.
These exhibits are based on survey data collected in the United States from February 18 through 22, 2021. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Saudi consumers remain optimistic about economic recovery, however they continue to spend less on discretionary items and more on essential goods.
These exhibits are based on survey data collected in Saudi Arabia from January 25 to February 10, 2021. Check back for regular updates on Saudi consumer sentiments, behaviors, income, spending, and expectations.
These exhibits are based on survey data collected in the United States between February 2019 and June 2021, as well as longitudinal surveys conducted between March 2020 and February 2021. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Optimism and spend intent returning
Consumer optimism regarding economic conditions after COVID-19 up by more than 50% since February (from 21% to 34%); strongest growth in spend intent for out-of-home entertainment and travel, but most categories are increasing
US consumers exhibited strong optimism and spend in October, driven by consumers across the age and income spectrum.
Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Optimism and spend intent returning
Consumer optimism regarding economic conditions after COVID-19 up by more than 50% since February (from 21% to 34%); strongest growth in spend intent for out-of-home entertainment and travel, but most categories are increasing
This document is meant to help with a narrower goal: provide facts and insights on the current COVID-19 crisis to help marketers and business decision makers. In addition to the humanitarian challenge, there are implications for the wider economy, businesses, and employment. This document includes consumer insights from third-party data providers between February 2019 and August 2021, as well as longitudinal surveys conducted between March 2020 and August 2021, in the United States. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Despite an ongoing lockdown, German consumers’ expectations for economic recovery are stable, with half believing their routines will return to normal by the end of 2021.
These exhibits are based on survey data collected in Germany from February 23–27, 2021. Check back for regular updates on German consumer sentiments, behaviors, income, spending, and expectations.
In Qatar, the prevailing sentiment is uncertainty about the health of family members and the duration of the COVID-19 crisis. Although consumers are optimistic about the country’s economic recovery after the COVID-19 situation subsides, they are cutting their spending on almost all categories. During the crisis, consumers have both adopted and increased their usage of digital activities such as remote learning, videoconferencing, and contactless delivery and pickup of food and supplies.
These exhibits are based on survey data collected in Qatar from April 24–May 1, 2020. Check back for regular updates on Qatari residents’ consumer sentiments, behaviors, income, spending, and expectations.
European consumers are gradually returning to pre-COVID-19 spending and out-of-home activities, including holiday shopping, though some pandemic-related practices will continue.
In Turkey, consumers’ income and household finances have been affected by COVID-19. A majority of Turkish consumers are concerned about personal health, the economy, and the duration of the crisis. Both the observed effects and the uncertainty around the situation are manifesting as decreased spending across most categories. A spike in online spending on household essentials and entertainment is expected to continue, at least in the short term.
These exhibits are based on survey data collected in Turkey from April 7–9, 2020. Check back for regular updates on Turkish consumer sentiments, behaviors, income, spending, and expectations.
Optimism grows as categories recover
One-third (32%) of French consumers are optimistic for the future —the highest rate seen in our surveys; while net spending intent remains negative, it is trending up across all categories
As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. Through a series of regular, global surveys, we are tracking how customers’ expectations, spending, and behaviors are changing throughout the crisis across multiple countries over time.
Mexican consumers continue to be worried about their economy during the COVID-19 crisis, with optimism about a recovery climbing slowly.
These exhibits are based on survey data collected in Mexico from February 20–March 2, 2021. Check back for regular updates on Mexican consumer sentiments, behaviors, income, spending, and expectations.
As containment measures have been lifted, Australian consumers’ optimism has returned to April levels, though spending intent is still negative.
These exhibits are based on survey data collected in Australia from Sep 4–7, 2020. Check back for regular updates on Australian consumer sentiments, behaviors, income, spending, and expectations.
Filipino consumers generally remained as optimistic in October as they were in April; however, optimism among lower-income groups declined significantly.
As the government’s COVID-19 restrictions ease, Filipino consumers are cautiously resuming spending activity. While overall optimism remained the same from April to October, optimism in the lowest income group dropped significantly, while those in the highest income group increased. Optimism among 20- to 24-year-olds also declined. Additionally, approximately 50 percent of respondents believe their finances will be impacted for at least six more months, up from only about 10 percent last April. Overall decreases in spending are expected to soften after the pandemic, but most categories will likely see spending declines linger for the long term.
These exhibits are based on survey data collected in the Philippines from April 17 to 20, and October 1 to 12, 2020.
Portuguese consumers are concerned about the health of family members as well as the economy, and are cutting back on spending.
Portuguese consumers continue to feel the economic effects of the crisis, and their concerns about health, safety, and the economy are increasing. Most consumers still believe that the personal and financial impact of COVID-19 will continue to last well beyond two months. They expect to cut their spending across almost all categories. However, the proportion of consumers’ income, spending, and savings affected by the COVID-19 situation has decreased slightly since the last pulse. Portuguese consumers have been leaving home mainly to shop and meet family, and expect to continue doing so in the near future. In addition to lifted restrictions, consumers are waiting for the endorsement of medical authorities prior to engaging in out-of-home activities.
These exhibits are based on survey data collected in Portugal from June 19–21, 2020. Check back for regular updates on Portuguese consumer sentiments, behaviors, income, spending, and expectations.
Consumer optimism in Asia is highest in China, India, and Indonesia, where consumers continue to expect a quick recovery from the effects of COVID-19.
These exhibits are based on survey data collected in Australia, China, India, Indonesia, and Japan from September 4–30, 2020. Check back for regular updates on APAC consumer sentiments, behaviors, income, spending, and expectations.
COVID-19 is no longer among Italian consumers’ top concerns. Consumers remain pessimistic about economic recovery and inflation; many aim to reduce their spend.
Italian consumers are increasingly worried about the effects of rising prices and the invasion of Ukraine. Unemployment is a number-two concern for respondents in Gen Z, millennials, and the low-income group. Almost six out of ten share a negative view of Italy’s current economic state; hopes for an economic recovery are lower than during the entire COVID-19 pandemic. Consumers observed the highest price increases in groceries and gasoline. To cope with inflation, Italian consumers are changing their purchase behavior, shifting toward discounters and private labels. The leading factors for these choices are prices and value for money.
Indian consumers are optimistic about the economy and plan to spend more. They are open to new shopping behaviors as they transition to out-of-home activities.
These exhibits are based on survey data collected in India from October 15 to 22, 2021. Check back for regular updates on Indian consumer sentiments, behaviors, income, spending, and expectations.
While consumer optimism remains steady, we see signs of discretionary spend recovery.
These exhibits are based on survey data collected in the United States from February 18 through 22, 2021. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Saudi consumers remain optimistic about economic recovery, however they continue to spend less on discretionary items and more on essential goods.
These exhibits are based on survey data collected in Saudi Arabia from January 25 to February 10, 2021. Check back for regular updates on Saudi consumer sentiments, behaviors, income, spending, and expectations.
These exhibits are based on survey data collected in the United States between February 2019 and June 2021, as well as longitudinal surveys conducted between March 2020 and February 2021. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Optimism and spend intent returning
Consumer optimism regarding economic conditions after COVID-19 up by more than 50% since February (from 21% to 34%); strongest growth in spend intent for out-of-home entertainment and travel, but most categories are increasing
US consumers exhibited strong optimism and spend in October, driven by consumers across the age and income spectrum.
Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Optimism and spend intent returning
Consumer optimism regarding economic conditions after COVID-19 up by more than 50% since February (from 21% to 34%); strongest growth in spend intent for out-of-home entertainment and travel, but most categories are increasing
This document is meant to help with a narrower goal: provide facts and insights on the current COVID-19 crisis to help marketers and business decision makers. In addition to the humanitarian challenge, there are implications for the wider economy, businesses, and employment. This document includes consumer insights from third-party data providers between February 2019 and August 2021, as well as longitudinal surveys conducted between March 2020 and August 2021, in the United States. Check back for regular updates on US consumer sentiments, behaviors, income, spending, and expectations.
Despite an ongoing lockdown, German consumers’ expectations for economic recovery are stable, with half believing their routines will return to normal by the end of 2021.
These exhibits are based on survey data collected in Germany from February 23–27, 2021. Check back for regular updates on German consumer sentiments, behaviors, income, spending, and expectations.
In Qatar, the prevailing sentiment is uncertainty about the health of family members and the duration of the COVID-19 crisis. Although consumers are optimistic about the country’s economic recovery after the COVID-19 situation subsides, they are cutting their spending on almost all categories. During the crisis, consumers have both adopted and increased their usage of digital activities such as remote learning, videoconferencing, and contactless delivery and pickup of food and supplies.
These exhibits are based on survey data collected in Qatar from April 24–May 1, 2020. Check back for regular updates on Qatari residents’ consumer sentiments, behaviors, income, spending, and expectations.
European consumers are gradually returning to pre-COVID-19 spending and out-of-home activities, including holiday shopping, though some pandemic-related practices will continue.
In Turkey, consumers’ income and household finances have been affected by COVID-19. A majority of Turkish consumers are concerned about personal health, the economy, and the duration of the crisis. Both the observed effects and the uncertainty around the situation are manifesting as decreased spending across most categories. A spike in online spending on household essentials and entertainment is expected to continue, at least in the short term.
These exhibits are based on survey data collected in Turkey from April 7–9, 2020. Check back for regular updates on Turkish consumer sentiments, behaviors, income, spending, and expectations.
Optimism grows as categories recover
One-third (32%) of French consumers are optimistic for the future —the highest rate seen in our surveys; while net spending intent remains negative, it is trending up across all categories
As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. Through a series of regular, global surveys, we are tracking how customers’ expectations, spending, and behaviors are changing throughout the crisis across multiple countries over time.
Mexican consumers continue to be worried about their economy during the COVID-19 crisis, with optimism about a recovery climbing slowly.
These exhibits are based on survey data collected in Mexico from February 20–March 2, 2021. Check back for regular updates on Mexican consumer sentiments, behaviors, income, spending, and expectations.
As containment measures have been lifted, Australian consumers’ optimism has returned to April levels, though spending intent is still negative.
These exhibits are based on survey data collected in Australia from Sep 4–7, 2020. Check back for regular updates on Australian consumer sentiments, behaviors, income, spending, and expectations.
Filipino consumers generally remained as optimistic in October as they were in April; however, optimism among lower-income groups declined significantly.
As the government’s COVID-19 restrictions ease, Filipino consumers are cautiously resuming spending activity. While overall optimism remained the same from April to October, optimism in the lowest income group dropped significantly, while those in the highest income group increased. Optimism among 20- to 24-year-olds also declined. Additionally, approximately 50 percent of respondents believe their finances will be impacted for at least six more months, up from only about 10 percent last April. Overall decreases in spending are expected to soften after the pandemic, but most categories will likely see spending declines linger for the long term.
These exhibits are based on survey data collected in the Philippines from April 17 to 20, and October 1 to 12, 2020.
Portuguese consumers are concerned about the health of family members as well as the economy, and are cutting back on spending.
Portuguese consumers continue to feel the economic effects of the crisis, and their concerns about health, safety, and the economy are increasing. Most consumers still believe that the personal and financial impact of COVID-19 will continue to last well beyond two months. They expect to cut their spending across almost all categories. However, the proportion of consumers’ income, spending, and savings affected by the COVID-19 situation has decreased slightly since the last pulse. Portuguese consumers have been leaving home mainly to shop and meet family, and expect to continue doing so in the near future. In addition to lifted restrictions, consumers are waiting for the endorsement of medical authorities prior to engaging in out-of-home activities.
These exhibits are based on survey data collected in Portugal from June 19–21, 2020. Check back for regular updates on Portuguese consumer sentiments, behaviors, income, spending, and expectations.
Consumer optimism in Asia is highest in China, India, and Indonesia, where consumers continue to expect a quick recovery from the effects of COVID-19.
These exhibits are based on survey data collected in Australia, China, India, Indonesia, and Japan from September 4–30, 2020. Check back for regular updates on APAC consumer sentiments, behaviors, income, spending, and expectations.
COVID-19 is no longer among Italian consumers’ top concerns. Consumers remain pessimistic about economic recovery and inflation; many aim to reduce their spend.
Italian consumers are increasingly worried about the effects of rising prices and the invasion of Ukraine. Unemployment is a number-two concern for respondents in Gen Z, millennials, and the low-income group. Almost six out of ten share a negative view of Italy’s current economic state; hopes for an economic recovery are lower than during the entire COVID-19 pandemic. Consumers observed the highest price increases in groceries and gasoline. To cope with inflation, Italian consumers are changing their purchase behavior, shifting toward discounters and private labels. The leading factors for these choices are prices and value for money.
Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.
Geopolitical Events|COVID19|Canada and the World| March 18 2022paul young cpa, cga
• More and more countries are lifting vaccine mandates.
• Supply chain continues to face many challenges.
• Immune and gene therapy continues to explore different ways to treat diseases.
• Little has been said about the need for all levels of government to have better crisis and risk management policies and procedures.
• WHO governance model needs to have more audits as part ensuring steps are taken to mitigate future pandemics.
Italian consumers are increasingly pessimistic about the economy, with many aiming to reduce spending and modify consumption habits.
Italian consumers are increasingly worried about the effects of rising prices, as well as the invasion of Ukraine. Of Italians surveyed, six in ten expressed a negative view of the current economy; hopes for an economic recovery are lower than they were throughout the entire COVID-19 pandemic. Consumers perceived the highest price increases in groceries and fuel, along with strong increase in spend. These sentiments have translated into reduced consumption. Changed consumer behavior is also apparent, with a shift towards discounters and private-label brands. Price, value for money and availability are the biggest drivers of these choices.
UK consumers are pessimistic about the economy. Rising prices and the invasion of Ukraine are top concerns, and consumers are trading down significantly.
In the United Kingdom, consumers are most concerned about rising prices and the invasion of Ukraine. Their views of the current and future state of the economy are extremely pessimistic, worse than throughout the entire COVID-19 pandemic. Spend for groceries and gasoline soared, while consumers reduced spend in non-essential categories. Almost two-thirds of consumers have assumed new shopping behaviors in the last four to six weeks, with more than four out of ten trying private label. Trade-down in retailers visited and brands is evident, with the key drivers of choice being prices and value for money.
Optimism and spend intent returning
Consumer optimism regarding economic conditions after COVID-19 up by more than 50% since February (from 21% to 34%); strongest growth in spend intent for out-of-home entertainment and travel, but most categories are increasing
Across the continent, the pattern holds: Europeans are anxious about the state of their countries’ economies, and worried about the future. Russia’s invasion of Ukraine and price inflation overshadow other concerns, and consumer anxieties in turn are impacting confidence in household finances and national economies, especially among vulnerable populations.
Worried about spending more on food, transport and fuel, consumers report cutting back on less essential items. Most say they’ve changed their shopping behaviors in recent months, trading down to more affordable brands and retailers. With no relief clearly in sight, 2022 continues to prove a challenging year for the continental consumer.
Rising prices and the Ukraine invasion are top concerns for German consumers, fueling a general slide into economic pessimism.
German consumers are experiencing intense unease regarding the state of the economy and its future outlook—with public sentiment sinking lower than at any time during the COVID-19 pandemic. Survey participants felt the greatest concern about rising prices and the invasion of Ukraine. Spend on groceries and gasoline has soared, even as consumers cut spending in non-essential categories. Almost two-thirds have assumed new shopping behaviors in the last four to six weeks, with more than forty percent trying private-label brands. There’s a clear trade-down trend in stores visited and brands chosen, with prices and value for money as key drivers.
Despite an ongoing lockdown, German consumers’ expectations for economic recovery are stable, with half believing their routines will return to normal by the end of 2021.
These exhibits are based on survey data collected in Germany from February 23–27, 2021. Check back for regular updates on German consumer sentiments, behaviors, income, spending, and expectations.
Despite an ongoing lockdown, German consumers’ expectations for economic recovery are stable, with half believing their routines will return to normal by the end of 2021.
These exhibits are based on survey data collected in Germany from February 23–27, 2021. Check back for regular updates on German consumer sentiments, behaviors, income, spending, and expectations.
Italian consumers are increasingly pessimistic about the economy, with many aiming to reduce spending and modify consumption habits.
Italian consumers are increasingly worried about the effects of rising prices, as well as the invasion of Ukraine. Of Italians surveyed, six in ten expressed a negative view of the current economy; hopes for an economic recovery are lower than they were throughout the entire COVID-19 pandemic. Consumers perceived the highest price increases in groceries and fuel, along with strong increase in spend. These sentiments have translated into reduced consumption. Changed consumer behavior is also apparent, with a shift towards discounters and private-label brands. Price, value for money and availability are the biggest drivers of these choices.
Geopolitical Events|COVID19|Canada and the World| January 29, 2022paul young cpa, cga
Summary:
Viruses are here to say as viruses will continue to mutate.
All levels of government and the private sector need to address issues with the healthcare model.
There needs to strict audits of privacy laws related to vaccines passports.
1. New Variants - https://abcnews.go.com/Health/variants-emerge-us-government-turns-attention-universal-coronavirus/story?id=82469854
2. Variants - https://www.who.int/en/activities/tracking-SARS-CoV-2-variants/
3. Vaccines - https://toronto.ctvnews.ca/why-domestic-vaccine-production-across-canada-is-key-to-controlling-another-pandemic-1.5758924
4. AI and Healthcare - https://www.healthcareitnews.com/news/ai-powered-rpm-can-help-address-rural-neonatal-care-crisis
5. Healthcare - https://www.modernhealthcare.com/politics-policy/watchdog-HHS-failing-public-health-emergencies
6. Convoy - https://globalnews.ca/news/8579418/justin-trudeau-trucker-convoy-violence-ottawa/
7. Food Prices - https://www.azernews.az/region/188532.html
8. GDP - https://finance.yahoo.com/news/2021-u-gdp-growth-best-130001935.html
9. Immune and Gene Therapy - https://www.elevate.bio/
10. Commodity - https://ihsmarkit.com/research-analysis/weekly-pricing-pulse-commodity-price-strength-continues-as-oil.html
11. Monitoring - https://www.mccarthy.ca/en/insights/blogs/techlex/privacy-commissioners-comment-vaccine-passports
12. Privacy laws - https://www.natlawreview.com/article/data-privacy-day-around-world-data-privacy-day-january-28-2022
13. Digital healthcare - https://financialpost.com/pmn/business-pmn/digital-healthcare-group-etao-to-go-public-via-2-5-bln-spac-deal
14. Drug costs - https://www.medpagetoday.com/publichealthpolicy/generalprofessionalissues/96924
Although Japanese consumer optimism about economic recovery is improving steadily, the majority of consumers are still cautious about reengaging in out-of-home activities.
These exhibits are based on survey data collected in Japan from February 24–27, 2021. Check back for regular updates on Japanese consumer sentiments, behaviors, income, spending, and expectations.
Although Japanese consumer optimism about economic recovery is improving steadily, the majority of consumers are still cautious about reengaging in out-of-home activities.
These exhibits are based on survey data collected in Japan from February 24–27, 2021. Check back for regular updates on Japanese consumer sentiments, behaviors, income, spending, and expectations.
Japanese consumers’ behaviors and finances are gradually recovering to normal, though their responses indicate a slight increase in pessimism. The long-lasting impact of COVID-19 is prolonging Japanese consumers’ intent to stay conservative about spending across categories. In a further sign of cautiousness, the trend of shrinking pessimism over the past few years reversed for the first time. Meanwhile, people’s demand for travel is rising, considering the next seasonal vacations.
COVID-19 pandemic impact on digital advertising industry Yieldbird
To make this situation at least a little easier, we have decided to compile the most important knowledge we possess in terms of the potential future implications of the pandemic; and we have set out ways to navigate this difficult situation. We hope the will prove useful to you in terms of making all necessary business decisions.
Spanish consumers are pessimistic about the economy. Rising prices, unemployment, and the invasion of Ukraine are top concerns, and consumers are trading down.
In Spain, consumers are most concerned about rising prices, unemployment, and the invasion of Ukraine. Their views of the current and future state of the economy remain pessimistic, at a level comparable to attitudes in the early months of the COVID-19 pandemic. Spend for groceries and gasoline soared, while consumers reduced money directed to savings and spent less on non-essentials. Of the 80 percent of consumers who have assumed new shopping behaviors in the last three months in search of value for money, more than half tried private labels. Trade-down in retailers visited and brands is evident, with the key drivers of choice being prices and value for money. However, 39 percent of consumers say they plan to splurge in 2022.
Similar to McKinsey Survey: Italian B2B decision maker response to COVID-19 crisis (20)
German consumers are pessimistic about the economy. Rising prices and the invasion of Ukraine are top concerns, and we see a significant down-trade in shopping.
In Germany, consumers’ top concerns are rising prices and the invasion of Ukraine, followed by climate change and COVID-19. Pessimism about the current and future state of the economy has eased but remains at a level comparable to attitudes in the early months of the COVID-19-pandemic. As spend for groceries and gasoline soared, consumers reduced money directed to savings and spent less on non-essentials. Of the 70 percent of consumers who have assumed new shopping behaviors in the last three months, more than four out of ten tried private labels. Trade-down in stores visited and brands is clearly visible, with the key drivers of choice being prices and value for money. However, 46 percent of consumers say they plan to splurge in 2022.
For consumers in France, inflation eclipses other sources of concern. It triggers changes in shopping behaviors as consumers seek better value for money.
French consumers’ optimism regarding the economic recovery is stable at around 14 percent—a level last seen in the depths of COVID-19 lockdowns. Top sources of concern are rising prices (cited by 54 percent), followed by the invasion of Ukraine (13 percent) and climate change (10 percent) and far ahead of COVID-19 (4 percent). Nine out of ten survey respondents perceive high price inflation in the country. These trends have implications for brand and retailer loyalty: of the 73 percent of respondents saying they have tried new shopping behaviors in the last three months, 40 percent say they purchased private labels. Household products remain the category most affected by this trading-down trend.
Australian consumers, in view of the omicron variant, are feeling less optimistic about economic recovery than last year and remain cautious on spending.
In Australia, optimism about economic recovery has declined since the November 2020 pulse survey but remains higher than at the onset of the COVID-19 pandemic. Six in ten consumers predict routines will return to normal only after June 2022; two-thirds do not plan to splurge in 2022. Although Australian households increased their spending in the past month, net intent to spend remains negative. Digital and omnichannel adoption continues in most categories, and intent to use out-of-home services rose. Seventy-five percent of consumers have addressed the rise of omicron by changing how they engage in out-of-home activities. Most consumers have tried a different brand or retailer, especially to switch brands in pursuit of value.
Indian consumers’ optimism has remained high since October 2021 and has reached the highest levels across other Asian markets since COVID-19 started.
Nearly three-quarters of India’s consumers are optimistic about economic recovery, and net intent to spend is growing and positive across many categories. Omnichannel usage continues across the majority of categories, and social-media influence is high, especially for Gen Z and millennials. More than 90 percent are engaging in social media and entertainment platforms. There is an upward trend for new technology, such as crypto and augmented reality/virtual reality, and consumers intend to continue digital activities as the COVID-19 crisis subsides.
About 40 percent of consumers are engaging in out-of-home activities, especially among the vaccinated segment. Most consumers have tried new shopping behaviors such as new retail outlets and new brands.
Indonesian consumers remain optimistic on the economy, expecting higher incomes and spending. Many tried and plan to keep using digital services and omnichannel methods.
In Indonesia, optimism about future economic conditions increased more than 25 percent over September 2020 from an already high base, boosted by planning for the upcoming holiday season. Eight out of ten consumers say they will dine out, shop for gifts, and redecorate. Out-of-home activities are generally rising but remain far below prepandemic levels. Optimism about the economy is tempered by views of household finances; half predict finances won’t return to normal before June. The loyalty shake-up continues, with 60 percent citing value as their primary reason to try a new brand. New digital behaviors are starting to show evidence of stickiness: 60 percent say they intend to use new shopping methods when the pandemic subsides.
Most Korean consumers expect that normalcy will return to routines only after June 2022, yet there are signs of pre-COVID-19 routines returning.
Korean customers have been less optimistic than those in other countries about the economic recovery. But optimism in Korea is much higher now than two years ago. Half of consumers indicate a desire to splurge, with intent to do so being the strongest in Gen Z and millennials. One-eighth of consumers say they have returned to out-of-home activities.
As inflation rises, French consumer hopes for economic recovery wane, with optimism sinking back to the lows of lockdown.
Optimism regarding the economic recovery has decreased to 14 percent in France—levels last seen in the depths of COVID-19 lockdown. Top sources of concern are rising prices, the invasion of Ukraine, and political uncertainty. Nine out of ten survey respondents perceive high price inflation in the country, and 60 percent expect prices to rise further over the next year. These trends have implications for loyalty: in the search for higher purchasing power, 69 percent of respondents have tried new shopping behaviors in the last four to six weeks. Household products remain the most impacted category, with 65 percent of consumers switching for cheaper options.
Spanish consumers are primarily concerned about inflation and the invasion of Ukraine, and are becoming increasingly pessimistic about the economy.
Only 14 percent of Spanish consumers are optimistic about economic recovery, with concerns focused on inflation and the invasion of Ukraine. Four in ten have an increasingly negative sense of the economic outlook—mostly due to petrol and supply-chain shortages, as well as unemployment. Price-increase Perceptions of price increases are particularly high regarding groceries (at 95 percent) and other household products. In these categories, more than half of respondents have reacted to inflation by trying less costly brands. Over the last six weeks, half have tried a private-label brand, 30 percent have switched brands, and a quarter have tried out a different retailer.
Rising prices and the Ukraine invasion are top concerns for German consumers, fueling a general slide into economic pessimism.
German consumers are experiencing intense unease regarding the state of the economy and its future outlook—with public sentiment sinking lower than at any time during the COVID-19 pandemic. Survey participants felt the greatest concern about rising prices and the invasion of Ukraine. Spend on groceries and gasoline has soared, even as consumers cut spending in non-essential categories. Almost two-thirds have assumed new shopping behaviors in the last four to six weeks, with more than forty percent trying private-label brands. There’s a clear trade-down trend in stores visited and brands chosen, with prices and value for money as key drivers.
As inflation rises, French consumer hopes for economic recovery wane, with optimism sinking back to the lows of lockdown. Optimism regarding the economic recovery has decreased to 14 percent in France—levels last seen in the depths of COVID-19 lockdown. Top sources of concern are rising prices, the invasion of Ukraine, and political uncertainty. Nine out of ten survey respondents perceive high price inflation in the country, and 60 percent expect prices to rise further over the next year. These trends have implications for loyalty: in the search for higher purchasing power, 69 percent of respondents have tried new shopping behaviors in the last four to six weeks. Household products remain the most impacted category, with 65 percent of consumers switching for cheaper options.
Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.
Spanish consumers are primarily concerned about inflation and the invasion of Ukraine, and are becoming increasingly pessimistic about the economy.
Only 14 percent of Spanish consumers are optimistic about economic recovery, with concerns focused on inflation and the invasion of Ukraine. Four in ten have an increasingly negative sense of the economic outlook—mostly due to petrol and supply-chain shortages, as well as unemployment. Price-increase Perceptions of price increases are particularly high regarding groceries (at 95 percent) and other household products. In these categories, more than half of respondents have reacted to inflation by trying less costly brands. Over the last six weeks, half have tried a private-label brand, 30 percent have switched brands, and a quarter have tried out a different retailer.
Across the continent, the pattern holds: Europeans are anxious about the state of their countries’ economies, and pessimistic about the future. Price inflation and the war in Ukraine overshadow other concerns, and these anxieties in turn are causing confidence in household finances and national economies to plummet, especially among low-income households and the elderly. As consumers worry about spending ever more on food, transport and fuel, they cut back on less essential items. Most say they’ve changed their shopping behaviors in recent months, trading down to more affordable brands and retailers. With no relief clearly in sight, 2022 continues to prove an unusually challenging year for the embattled continental consumer.
Indian consumers’ optimism has remained high since October 2021 and has reached the highest levels across other Asian markets since COVID-19 started.
Nearly three-quarters of India’s consumers are optimistic about economic recovery, and net intent to spend is growing and positive across many categories. Omnichannel usage continues across the majority of categories, and social-media influence is high, especially for Gen Z and millennials. More than 90 percent are engaging in social media and entertainment platforms. There is an upward trend for new technology, such as crypto and augmented reality/virtual reality, and consumers intend to continue digital activities as the COVID-19 crisis subsides.
About 40 percent of consumers are engaging in out-of-home activities, especially among the vaccinated segment. Most consumers have tried new shopping behaviors such as new retail outlets and new brands.
Indonesian consumers remain optimistic on the economy, expecting higher incomes and spending. Many tried and plan to keep using digital services and omnichannel methods.
In Indonesia, optimism about future economic conditions increased more than 25 percent over September 2020 from an already high base, boosted by planning for the upcoming holiday season. Eight out of ten consumers say they will dine out, shop for gifts, and redecorate. Out-of-home activities are generally rising but remain far below prepandemic levels. Optimism about the economy is tempered by views of household finances; half predict finances won’t return to normal before June. The loyalty shake-up continues, with 60 percent citing value as their primary reason to try a new brand. New digital behaviors are starting to show evidence of stickiness: 60 percent say they intend to use new shopping methods when the pandemic subsides.
Australian consumers, in view of the omicron variant, are feeling less optimistic about economic recovery than last year and remain cautious on spending.
In Australia, optimism about economic recovery has declined since the November 2020 pulse survey but remains higher than at the onset of the COVID-19 pandemic. Six in ten consumers predict routines will return to normal only after June 2022; two-thirds do not plan to splurge in 2022. Although Australian households increased their spending in the past month, net intent to spend remains negative. Digital and omnichannel adoption continues in most categories, and intent to use out-of-home services rose. Seventy-five percent of consumers have addressed the rise of omicron by changing how they engage in out-of-home activities. Most consumers have tried a different brand or retailer, especially to switch brands in pursuit of value.
Chinese consumers have grown less optimistic about the economy, likely due to recent outbreaks of the omicron variant.
In China, overall optimism on economic recovery remains high relative to other countries surveyed. However, the share of optimistic consumers has decreased by more than ten percentage points versus October 2021, likely in reaction to recent omicron outbreaks. Omnichannel shopping behavior and adoption of digital activities continue to prevail, and intent to continue these is high. Meanwhile, intent to spend on out-of-home activities has decreased significantly.
Indonesian consumers remain optimistic on the economy, expecting higher incomes and spending. Many tried and plan to keep using digital services and omnichannel methods.
In Indonesia, optimism about future economic conditions increased more than 25 percent over September 2020 from an already high base, boosted by planning for the upcoming holiday season. Eight out of ten consumers say they will dine out, shop for gifts, and redecorate. Out-of-home activities are generally rising but remain far below prepandemic levels. Optimism about the economy is tempered by views of household finances; half predict finances won’t return to normal before June. The loyalty shake-up continues, with 60 percent citing value as their primary reason to try a new brand. New digital behaviors are starting to show evidence of stickiness: 60 percent say they intend to use new shopping methods when the pandemic subsides.
Most Korean consumers expect that normalcy will return to routines only after June 2022, yet there are signs of pre-COVID-19 routines returning.
Korean customers have been less optimistic than those in other countries about the economic recovery. But optimism in Korea is much higher now than two years ago. Half of consumers indicate a desire to splurge, with intent to do so being the strongest in Gen Z and millennials. One-eighth of consumers say they have returned to out-of-home activities.
Indian consumers’ optimism has remained high since October 2021 and has reached the highest levels across other Asian markets since COVID-19 started.
Nearly three-quarters of India’s consumers are optimistic about economic recovery, and net intent to spend is growing and positive across many categories. Omnichannel usage continues across the majority of categories, and social-media influence is high, especially for Gen Z and millennials. More than 90 percent are engaging in social media and entertainment platforms. There is an upward trend for new technology, such as crypto and augmented reality/virtual reality, and consumers intend to continue digital activities as the COVID-19 crisis subsides.
About 40 percent of consumers are engaging in out-of-home activities, especially among the vaccinated segment. Most consumers have tried new shopping behaviors such as new retail outlets and new brands.
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McKinsey Survey: Italian B2B decision maker response to COVID-19 crisis
1. McKinsey & Company 1
Optimism is relatively low but growing: One-third are optimistic
about the economy, up seven percentage points from two weeks ago
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
14 12
56
50
30
37
April 3 April 27
Optimistic: The economy will rebound in 2–3 months and grow
just as strong as or stronger than before COVID-19
Neutral: The economy will be impacted for 6–12 months or
longer and will stagnate or show slow growth thereafter
Pessimistic: COVID-19 will have lasting impact on the economy and will
show regression/fall into lengthy recession
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
2. McKinsey & Company 2
Italy remains slightly less optimistic compared to other regions,
ahead of only Japan, South Korea, and Spain
12 11 9 12
18
12 10
41
13 12 10
43 47 47
50
49
50
29
19
48
58
51
41
45 42 43
37
33
39
68 71
10
30
37
50
ItalyFrance UKSpainAll
countries
Germany
2
China India Japan S. Korea Brazil US
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
Optimistic: The economy will
rebound in 2–3 months and grow
just as strong as or stronger
than before COVID-19
Pessimistic: COVID-19 will have
lasting impact on the economy and
will show regression/fall into
lengthy recession
Neutral: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Europe APAC
1% -9% 4% 7% 0% 0% 12% 3% 2% 8% -10% -5%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Percentage-
point change
in optimism
between April
1–9 surveys
and April 20–
28 surveys
3. McKinsey & Company 3
Italy overall budget continues to decline more so than Europe
averages; near term spend also reductions decelerate
64 64
27 23
9
April 3 April 27
12
Company’s budget (changes already made)2 Expected in the next two weeks3
Italy
Europe4
61 58
26 24
1813
April 28April 6
Spend shifts as a result of COVID-19
% of spend changes
56 47
32
34
19
April 3 April 27
12
56 43
29
33
16 24
April 28April 6
1“About the same” refers to ±3% change in budget.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Percentages may not add to 100 because of rounding.
3Q: How do you think spending on the following may change in the next two weeks? Percentages may not add to 100 because of rounding.
4Includes survey respondents from (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414).
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
IncreasedAbout the same1Reduced
4. McKinsey & Company 4
Respondents report steep downward budget shifts across all
categories, with banking and insurance least affected to date
68
57
51
69
72
68
76
61
67
70
60
59
63
24
30
32
20
19
24
16
23
21
23
21
23
27
8
13
17
11
9
7
8
16
12
7
19
18
10
Distribution and transportation
Software and telecom
Banking and insurance
Commodity inputs
Packaging
Specialty inputs
Energy
Processing supplies
Finished goods
Vehicles
Capital equipment
IT hardware
Real estate
Reduced About the same3 Increased
Budget changes due to COVID-19 (changes already made)1
% of respondents
Net
intent2
Services
Inputs
Capex
-60%
-44%
-34%
-58%
-63%
-61%
-67%
-45%
-56%
-63%
-41%
-40%
-53%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Figures may not sum to 100% because of rounding.
2Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3“About the same” refers to ±3% change in budget.
5. McKinsey & Company 5
Advanced industries are experiencing the most significant decline
in budget across categories
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Budget net intent is described as the % of budget decreases subtracted from the % of budget increases.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas?
3“About the same” budget changes are those that are +/- 3%.
Budget net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
17 26 17 29 24 32 22
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
6. McKinsey & Company 6
In the next two weeks, pockets of near-term decline in spend are
likely to decrease in severity
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Net intent is described as the % of spending decreases subtracted from the % of spending increases.
2Q: How do you think spending on the following may change in the next two weeks?
3“About the same” spending changes are those that are +/- 3%.
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
Next two-week spending net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
27 32 28 26 29 59 35
7. McKinsey & Company 7Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Pharma and
medical products
Technology,
media, telecom
Advanced
industries
Global energy
and materials
Travel,
transportation,
and logistics
Global finance,
banking, and insurance
Consumer/retail
All industries are shifting capacity down in light of tempered
demand; advanced industries and travel seeing sharpest declines
Flat
-15%
Demand
for
products/
services
Operational capacity (eg, production)3 Flat-15%
Impact of COVID-19 on demand and capacity1,2
% change due to COVID-193
1Q: How has the coronavirus (COVID-19) situation affected your company’s production (operation) capacity? Percentages may not add to 100 because of rounding.
2Q: How has the coronavirus (COVID-19) situation affected demand for your company’s products/services? Percentages may not add to 100 because of rounding.
3Weighted average uses following midpoints: “increased/reduced 25+%” is +/- 30%, “increased/reduced 11–25%” is +/- 18%, “increased/reduced 4–10%” is +/- 7%, “About the same (+/- 3%)” is 0%.
8. McKinsey & Company 8
Companies are reducing marketing spend in all regions; nearly 60
percent of Italy’s B2B companies have reduced their marketing
62 63 58 56
68 71
62
69 65 71
58 57
18 19
21 23
18 14
19 8
26 20
16 20
20 18 21 21
14 15 19 24
8 10
26 23
SpainAll
countries
Germany ChinaFrance USItaly UK India S. KoreaJapan Brazil
Europe APAC
Marketing spend change1
% of responses
1Q: How has the coronavirus (COVID-19) situation affected your company’s marketing spend across all channels? Percentages may not add to 100 because of rounding.
2“About the same” refers to ±3% change in budget.
IncreasedAbout the same2Reduced
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
9. McKinsey & Company 9
The importance of digital sales has doubled over that of traditional
sales interactions since the onset of COVID-19
Importance of digital vs traditional to
B2B buyers themselves1,2
Points allocated out of 100
1Q: Prior to COVID-19, how important were each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more points to the method that you believe is more important to
you personally when interacting with your suppliers.
2Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to you personally when interacting with your suppliers.
3Q: Prior to COVID-19, how important was each method in delivering an overall outstanding sales experience? Distribute 100 points across these items, giving more points to the method that you believe is more important to your customers.
4Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to your customers.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Importance of digital vs traditional to
B2B company customers3,4
Points allocated out of 100
45
65
55
35
Before COVID-19 April 27
+45%
48
69
52
31
Before COVID-19 April 3
+45%
Traditional Digital
10. McKinsey & Company 10
Digital, self-serve, and directed channels are now seen as the most
beneficial for researching suppliers
28
22 22
18
15
29
18
8
16 16
14
13
11
23 23
15
Supplier
website
Live chatInfo on
mobile
app
Online
material
from
supplier
Post on
social
media/
online
Google/web
search
Email from
sales rep
Text from
sales rep
Trade
show
Industry
publication
Customer
referral
Referral
from
someone
in my
industry
Print
material
from
supplier
Meeting
sales rep
in person
Call from
sales rep
Direct
mail from
sales rep
1Q: What ways of interacting with a supplier would be most beneficial to you when researching/considering suppliers going forward? Rank up to 3 that would be most beneficial. A free-response option was given, but <1% of respondents filled it
out in 2020; ~12% of respondents answered ‘None of these’ as one of their top three responses.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400)
Most beneficial supplier interactions for researching/considering suppliers1
% of respondents ranking in top 3
Digital
Self-serve Directed Self-serve Directed
Traditional
11. McKinsey & Company 11
Self-serve ordering is preferred significantly more over other
methods
50
42
35 34
39
28
25
21
Ordering
from sales
rep in person
Using call
center/customer
service
Using my
company’s
e-procurement
portal
Using a supplier’s
website
Calling sales repUsing a
mobile app
Using my
company’s
procurement
department
Emailing sales rep
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400)
1Q: Which of the following methods do you/would you most prefer to use when submitting your order? Please rank up to 3 that would be most beneficial.
Self-serve Internal processes
Most preferred method for ordering1
% of respondents ranking in top 3
Sales rep involvement
12. McKinsey & Company 12
58
50
42
42
3
18
44
51
48
2
In-person/field sales team (eg, meeting with
customers face to face)
Online/web support (eg, chatting with customers
via video/website/mobile app to support purchase)
Inside sales team (eg, interacting with
customers on the phone)
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Other
During COVID-19Before COVID-19
Go-to-market sales model during COVID-191,2
% of respondents
96%
shifted their GTM
model3 during
COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
The majority of companies that serve other businesses have shifted
their go-to-market model in response to the COVID-19 crisis
1Q: In what ways was your company’s product or service sold before COVID-19?
2Q: Now today, in what ways is your company’s product or service sold during COVID-19?
3Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19?
13. McKinsey & Company 13
E-commerce revenue is up more than 35 percent since the onset of
COVID-19
Percent of company revenue driven by e-commerce before and during
COVID-19 (among companies that sell online)1,2
Average % of total revenue
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
47
64
During COVID-19Before COVID-19
+36%
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
14. McKinsey & Company 14
E-commerce share of overall B2B company revenue is up in all
countries, most notably Brazil and Italy
Percent of company revenue driven by e-commerce before and
during COVID-19 (among companies that sell online)1,2
Average % of total revenue
45
56
51
47 46 47
44 42
47
61
42 40
56
65
56
64
51
57
52
47
53
68
62
52
All
countries
IndiaFrance JapanUKGermany SpainItaly China S. Korea Brazil US
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Before COVID-19
During COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Europe APAC
23% 16% 11% 21%36% 20% 12%13% 11% 46% 29%12%
X% % change
15. McKinsey & Company 15
2
14
37
42
6
As effective as before
April 3
Much less effective
Somewhat more effective
Somewhat less effective
Much more effective
100
1Q: How effective is your company’s new sales model at reaching and serving customers? Figures may not sum to 100% because of rounding.
68% of B2B decision makers believe the new sales model is as effective
or more so than prior to COVID-19 (up from 52% in early April)
Effectiveness of new sales model in reaching and serving customers1
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/3/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
5
20
43
26
6
April 27
100
53%
as effective or more so
compared to prior to
COVID-19
68%
as effective or more so
compared to prior to
COVID-19
16. McKinsey & Company 16
Companies are likely to keep their new sales model for more than
12 months after the onset of the COVID-19 crisis
35
47
13
4
Very likely to sustain 12+ months after
N/A, made no go-to-market changes
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
82%
are “very likely” or “somewhat
likely” to sustain these shifts
12+ months after COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
Staying power of new sales models1
% of respondents
1Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19? Figures may not sum to 100% because of rounding.
17. McKinsey & Company 17
More than 80 percent of B2B companies have adjusted incentives in
response to the effects of COVID-19
32
28
16
16
14
13
No change
Lower quotas
Short-term bonuses/incentives
Higher quotas
More fixed incentives
More variable incentives
Sales team incentive structure changes in response to COVID-191
% of respondents
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1Q: To what extent has your company made changes to the incentive structure of your sales team in light of COVID-19? Figures may not sum to 100% because of rounding.
18. McKinsey & Company 18
22
18
15
14
14
10
7
Advanced industries
Technology, media, and telecom
Global finance, banking, and insurance
Pharma and medical products
Global energy and materials
Travel, transportation, and logistics
Consumer/Retail
9
20
19
18
20
14
$1M to < $25M
$1B to < $10B
$25M to < $100M
$100M to < $500M
$500M to < $1B
$10B+
7
7
15
14
25
14
9
8
10,000–49,999
<50
50–99
500–999
100–499
1,000–9,999
50,000–99,999
100,000+
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 407)
1 Percentages may not sum to 100 because of rounding.
Survey respondents by no. of employees of company
% of respondents1
Survey respondents by role in company
% of respondents1
Survey respondents by industry
% of respondents1
Survey respondents by annual revenue of company
% of respondents1
19
18
15
14
9
7
7
6
6
Shipping/logistics
R&D/Innovation/Product design
Top management
Purchasing
Operations
Sales
IT/computer services
Marketing
Engineering
B2B Pulse Decision-Maker Pulse #2: Respondent Overview
Pulse #1 closed on April 3, 2020 Pulse #2 closed on April 27, 2020