The document summarizes survey results from McKinsey & Company on consumer purchase intent and behavior in China for mobile phones and large domestic appliances during the COVID-19 pandemic. For mobile phones, the survey found that 93% of respondents still plan to purchase a phone, though some intend to trade down to cheaper models or spend less. For large appliances, 94% of respondents either purchased recently or still plan to, but 17% spent less and 39% of future buyers will spend less. Income uncertainty and social guilt were cited as reasons for trading down or canceling purchases. Online channels may see increased preference over physical stores long term.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
After steadily improving, Japanese consumer optimism stabilizes and a majority of consumers remain cautious about returning to out-of-home activities.
These exhibits are based on survey data collected in Japan from October 15 to 22, 2021. Check back for regular updates on Japanese consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Consumer optimism regarding the United Arab Emirates’ economic recovery has increased significantly, but overall spending remains low as consumers adopt ways to save more.
These exhibits are based on survey data collected in the UAE from January 25 to February 10, 2021. Check back for regular updates on UAE consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Chinese optimism has improved to the highest level since March. Most Chinese consumers expect their routines and finances to return to normal within three months.
These exhibits are based on survey data collected in China from September 16–24, 2020. Check back for regular updates on Chinese 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.
Consumer optimism in UAE has remained steady since mid-March, but spending patterns have changed.
These exhibits are based on survey data collected in the UAE from June 16–18, 2020. Check back for regular updates on UAE consumer sentiments, behaviors, income, spending, and expectations.
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.
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.
Consumer optimism in Saudi Arabia has remained steady since mid-March, but spending patterns have changed to focus more on essential goods.
In KSA, a smaller proportion of consumers saw a decline in income and savings, but more than half continue to report a decline. The effect is seen in spending patterns and new habits adopted by consumers. Category spending indicates that consumers are stocking up in anticipation of the country’s upcoming tax increase on July 1, 2020. Consumers are not yet fully comfortable going back to “regular” out-of-home activities and are waiting for milestones beyond government lifting restrictions to return to normal patterns. Thus, they have started adopting new digital and low-touch activities, including grocery delivery.
These exhibits are based on survey data collected in KSA from June 16–18, 2020. Check back for regular updates on KSA 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.
Colombian consumers are most worried about public health, caring for their families, and the country’s economy during the COVID-19 crisis.
These exhibits are based on survey data collected in Colombia from September 1–11, 2020. Check back for regular updates on Argentines consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Central American consumers from Panama, Costa Rica, Guatemala, Honduras, and El Salvador are most concerned about their safety, the health and safety of their families, and public health generally during the COVID-19 crisis.
These exhibits are based on survey data collected in Central America from September 1–11, 2020. Check back for regular updates on Central American consumer sentiments, behaviors, income, spending, and expectations.
ABI Research NFC Consumer Experience Survey ResultsNFC Forum
Discover the 2022 ABI Research NFC Consumer Experience Survey Results presented by Phil Sealy and Andrew Zignani, of ABI Research. The goal of the survey was to provide a greater understanding of consumer adoption, familiarity, and experiences with Near-Field Communication (NFC)/contactless technology at both a global and regional level.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
After steadily improving, Japanese consumer optimism stabilizes and a majority of consumers remain cautious about returning to out-of-home activities.
These exhibits are based on survey data collected in Japan from October 15 to 22, 2021. Check back for regular updates on Japanese consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Consumer optimism regarding the United Arab Emirates’ economic recovery has increased significantly, but overall spending remains low as consumers adopt ways to save more.
These exhibits are based on survey data collected in the UAE from January 25 to February 10, 2021. Check back for regular updates on UAE consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Chinese optimism has improved to the highest level since March. Most Chinese consumers expect their routines and finances to return to normal within three months.
These exhibits are based on survey data collected in China from September 16–24, 2020. Check back for regular updates on Chinese 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.
Consumer optimism in UAE has remained steady since mid-March, but spending patterns have changed.
These exhibits are based on survey data collected in the UAE from June 16–18, 2020. Check back for regular updates on UAE consumer sentiments, behaviors, income, spending, and expectations.
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.
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.
Consumer optimism in Saudi Arabia has remained steady since mid-March, but spending patterns have changed to focus more on essential goods.
In KSA, a smaller proportion of consumers saw a decline in income and savings, but more than half continue to report a decline. The effect is seen in spending patterns and new habits adopted by consumers. Category spending indicates that consumers are stocking up in anticipation of the country’s upcoming tax increase on July 1, 2020. Consumers are not yet fully comfortable going back to “regular” out-of-home activities and are waiting for milestones beyond government lifting restrictions to return to normal patterns. Thus, they have started adopting new digital and low-touch activities, including grocery delivery.
These exhibits are based on survey data collected in KSA from June 16–18, 2020. Check back for regular updates on KSA 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.
Colombian consumers are most worried about public health, caring for their families, and the country’s economy during the COVID-19 crisis.
These exhibits are based on survey data collected in Colombia from September 1–11, 2020. Check back for regular updates on Argentines consumer sentiments, behaviors, income, spending, and expectations.
B2B decision-maker preferences and behaviors have shifted dramatically since the onset of COVID. The GTM revolution is here and B2B sales is forever changed.
Central American consumers from Panama, Costa Rica, Guatemala, Honduras, and El Salvador are most concerned about their safety, the health and safety of their families, and public health generally during the COVID-19 crisis.
These exhibits are based on survey data collected in Central America from September 1–11, 2020. Check back for regular updates on Central American consumer sentiments, behaviors, income, spending, and expectations.
ABI Research NFC Consumer Experience Survey ResultsNFC Forum
Discover the 2022 ABI Research NFC Consumer Experience Survey Results presented by Phil Sealy and Andrew Zignani, of ABI Research. The goal of the survey was to provide a greater understanding of consumer adoption, familiarity, and experiences with Near-Field Communication (NFC)/contactless technology at both a global and regional level.
Presentation on Consumer Buying Behavior for a Smart Phone: A study on young...Sushanka Malakar
This is a research report on Consumer Buying Behavior for a Smart Phone:
A study on young generation in Kolkata
I am bba final year student and this is my final year project
I hope it can help you all
Thank you...
81% des utilisateurs utilisent désormais leurs terminaux mobiles pour rechercher des produits avant de se rendre en magasin. L’étude note par ailleurs qu’en un an les smartphones ont remplacé les tablettes comme vecteurs privilégiés d’achats retail.
Les deux tiers des acheteurs font leur recherche préalable à la maison.
China’s rise as a global leader in ecommerce has been nothing less than stunning. This year, online retail sales are expected to swell to $1.5 trillion, representing a quarter of China’s total retail
sales volume, and more than the retail sales of the ten next largest markets in the world – combined.
Over the last 18+months, consumer behavior has witnessed tectonic shifts owing to the pandemic. Capgemini's recent report highlights these dynamic trends and evolving consumer behavior for consumer products and retails industries as we move forward in the new year.
Survey results: Consumer discretionary spending in China
1. McKinsey & Company 1
The COVID-19 outbreak caused major disruption in purchase intent in
China, but except for certain categories (e.g., jewelry, watches),
majority of consumers purchased or plan to make their purchases.
New declared intent1
Apparel,
footwear,
and
accessories
Personal
care and
wellness
Home
Vehicle
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 894, sampled to match general population (urban)
1. Two questions were asked: 1) Of the items you were thinking of buying, which ones did you buy in the last 3 months? 2) Which statement best describes your plan for the items you were planning to buy but haven’t yet?
Broader basket consideration among respondents who have selected at least 1 of the 4 category deep-dives.
Personal
electronics
20%
17%
13%
13%
26%
36%
25%
24%
24%
39%
55%
63%
72%
66%
61%
59%
39%
21%
46%
63%
56%
27%
25%
20%
21%
22%
26%
15%
59%
44%
28%
13%
20%
34%
7%
2%
55%
52%
62%
61%
63%
50%
48%
27%
22%
38%
33%
28%
33%
21%
35%
45%
53%
28%
15%
16%
15%
20%
50%
6%
7%
10%
6%
Casual wear
Sportswear / athleisure
Professional clothes
for office
Sports/ fitness equipment
Skincare
Fashion/ trendy clothes
Footwear
Sunglasses
Jewelry
Watch
Luxury brand handbags
Make-up
Mobile phone
Home décor
Large domestic appliances
Personal electronics
except mobile phone
Small domestic appliances
Furniture
DIY materials/ tools
for home improvement
Home construction /
renovation
Car / motorcycle
75%
73%
69%
5%
61%
73%
72%
39%
21%
4%
7%
41%
53%
5%
46%
30%
2%
4%
3%
2%
2%
Bought in past 3 months Still plan to buy within the year Purchase cancelled or indefinitely postponedXX% - % with initial purchase intent2
2. McKinsey & Company 2
This document
reflects survey
results in the China
market for two
categories – mobile
phones and large
domestic appliances.
McKinsey & Company 22
Mobile Phones Large Domestic
Appliances
.
Separate surveys were launched
to capture extensive insights for
each category
3. McKinsey & Company 3
Just 7 percent of those with the intent to purchase a mobile phone
before the COVID-19 outbreak plan to forego their purchase.
100
5 48
12
7
3
24Still plan to buy this year2
All respondents
38
Bought in past 3 months1
Will forego purchase2
55
2
Spent/intend to spend less than planned
Spent/intend to spend more than planned
Spent/intend to spend same as planned
However, initial signs point to potentially increased price/ promo sensitivity as planners look to trade down
1. Q: Of the items you were thinking of buying, which ones did you buy in the last 3 months?
2. Q: Which statement best describes your plan of the items you were planning to buy but haven’t yet? (Will buy in next 3 months/ Will buy in next 6-8 months/ Postponed indefinitely/ Will not buy it anymore even though I still want it/ Will not buy,
I’m not sure I want this anymore)
3. Q: Which statement best describes your purchase/ planned purchase? (Bought the same item/ brand as planned/ Spent less or bought a cheaper item/ brand instead/ Spent more than planned or bought a more expensive item/ brand instead)
Current declared purchase behavior/intent for mobile phones1
% of respondents with pre-COVID-19 purchase intent
93%
of respondents with pre-COVID-19
purchase intent have either bought
a phone, or still plan to do so
within the year
91%
of respondents who purchased a
phone (i.e., “buyers”) spent the
same as their original plan
31%
of respondents planning to buy a
phone later this year (i.e.,
“planners”) are looking to trade
down or spend less
Category highlights
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 894, sampled to match general population (urban)
4. McKinsey & Company 4
Uncertainty over the COVID-19 outbreak’s impact on income is the
most cited reason for trading down or not completing a purchase.
1. Q: Which statement best describes the reason for spending less on your future mobile phone?
Q: Which statement best describes the reason for spending less on your mobile phone?
Q: You mentioned you have dropped the plan of purchasing the mobile phone, Which statement best describes the reason for it?
51%
36%
4%
4%
2%
2%
I have less time to browse because of
this crisis
I want to save money because I am worried
about impact of COVID-19 on my income
I feel guilty to spend on mobile phone given
the serious impact of COVID-19 on society
I have to spend money on other things
I found a really good promotion even
though I wasn’t actively looking
I could not find anything I liked, either online
or in physical stores
Consumer sentiment for spending less / not purchasing mobile phones,1
% of respondents
Social guilt could also play a factor in demand
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 222 for mobile phone deep-dive, sampled to match general population (urban)
5. McKinsey & Company 5
Responses suggest an inclination among those who have traded
down or plan to trade down to stay with their preferred brand—
albeit with a discount or promotion.
1. Q: You answered previously that you still bought a cellphone, but spent less than planned. Which statement best describes your purchase? (Represents 9% of those who have purchased a mobile phone in the past 3 months)
2. Q: You answered previously that you still intend to buy a cellphone, but will spend less. Which statement best describes your future purchase? (Represents 31% of those who have plan to purchase a mobile phone later this year)
25% 21%
50% 57%
25% 21%
Cheaper brand
Respondents who
have purchased mobile
phone in past 3 months1
Respondents who
intend to purchase
within the year2
Same brand, cheaper
model
Same brand, same model
with a discount or promo
~57%
of respondents intend
to stick to the same
brand and same model
as they had planned,
and are looking for a
discount or promotion
to make the purchase
Intention for consumers who have traded down or plan to trade down their purchase,1,2
% of respondents
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 222 for mobile phone deep-dive, sampled to match general population (urban)
6. McKinsey & Company 6
While most past purchases were in physical stores, responses appear
to indicate a shift to online marketplaces for future phone purchases.
Potentially at the expense of single-brand and multi-brand stores
Channel used or
intended for purchase,1
% of respondents
1. Q: Where did you buy your prior phone? Q: For the phone you bought, which kind of store did you buy it from? Q: For your planned phone purchase, which kind of store will you buy it from?
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 222 for mobile phone deep-dive, sampled to match general population (urban)
Exclusive brand outlet or pop-up
Online marketplace with multiple
brands
Mobile operator physical store
Brand official website
Multi-brand electronics stores
Mobile operator website
Online site of multi-brand stores
Brand official APP
Brand official social media channel
Online website
Physical store
Prior channel used
4% 6%
7%
8%
6%
6%8% 4%
6%
10%
5%
10%
13% 6%
11%
11%
13%
18%
17%
36%
32%
34%
18%
1%
3%
Buyers Planners
7. McKinsey & Company 7
The survey responses suggest that the shift to online channels in the
mobile-phone category may remain following the COVID-19 crisis.
Expected change in consumer channel preference,1
% of respondents who use the channel
1. Q: How do you think your shopping preference for cellphones will change in the following channels after COVID-19 compared to before?
~18%
of respondents
expect to use
physical store
channels less
than before
Online websitePhysical store
44%
40%
35%
33%
27%
24%
22%
12%
9%
53%
54%
60%
55%
61%
71%
61%
70%
71%
56%
10%
10%
16%
17%
18%
20%
1%
3%
2%
2%
1%
2%
23%
3%
5%
Online marketplace with multiple brands
0%
Brand official app
3%Brand official social media channel
Mobile operator website
Online website of Multi-brand stores
5%Brand official website
Exclusive brand stores
Mobile operator physical store
Multi-brand electronics stores
1%Secondhand exchange sites
Will use this channel more
Will discontinue using this channelNo change in using this channel
Will use this channel less
Net increase in
channel preference2
+40%
+34%
+29%
+21%
+15%
+18%
+6%
-6%
-11%
-42%
Online channels may
gain
~34%
additional purchase
traffic switching from
physical stores
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 222 for mobile phone deep-dive, sampled to match general population (urban)
Leading channel pre-
COVID-19
8. McKinsey & Company 8
The most commonly cited barrier for buying online among those
who prefer in-store shopping is the lack of touch and feel experience.
1.Q: What are the Top 3 factors preventing you from buying your future cellphone ONLINE?
2.Q: What are the Top 3 reasons driving you to buy your future cellphone in ONLINE channels?
62%
34%
28%
28%
21%
17%
14%
14%
10%
10%
Limited technical support
Difficult to use website / mobile app
Long delivery times
I like seeing and testing before buying
Concern about safety of delivery
Uncertainty about delivery times and process
Sustainability issues (e.g., packaging waste)
Concern about data safety in website / mobile app
Limited real-time advice / answers to questions
Unclear return policy
32%
27%
27%
20%
18%
17%
15%
13%
13%
13%
Better price
Convenient return process
Wide assortment of products
Convenience
Promotion/ Discount
Reliable customer service
Multiple payment options
Fast delivery
Live support on the site to answer my questions
Ability to combine multiple orders into one shipment
Barriers to buying online for respondents
who prefer physical stores,1
% of respondents
Reasons for buying online for respondents
who prefer online,2
% of respondents
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 222 for mobile phone deep-dive, sampled to match gen pop (urban)
9. McKinsey & Company 9
This document
reflects survey
results in the China
market for two
categories – mobile
phones and large
domestic appliances.
McKinsey & Company 99
Large Domestic
Appliances
Separate surveys were launched
to capture extensive insights for
each category
.
Mobile Phones
.
10. McKinsey & Company 10
The results suggest less disruption in large appliances, but some
respondents expect to trade down for future purchases this year.
Current declared purchase behavior/intent for large domestic
appliances,1,2,3 % of respondents with pre-COVID-19 purchase intent
1.Q: Of the items you were thinking of buying, which ones did you buy in the last 3 months?
2.Q: Which statement best describes your plan of the items you were planning to buy but haven’t yet? (Will buy in next 3 months/ Will buy in next 6-8 months/ Postponed indefinitely/ Will not buy it anymore even though I still want it/ Will not buy,
I’m not sure I want this anymore)
3.Q: Which statement best describes your purchase/ planned purchase? (Bought the same item/ brand as planned/ Spent less or bought a cheaper item/ brand instead/ Spent more than planned or bought a more expensive item/ brand instead)
Category highlights
~94%
of respondents either purchased
in the last 3 months or plan to
purchase later this year
~17%
of respondents who purchased
a large appliance spent less
than originally planned
~39%
of respondents planning to buy
large domestic appliances later
this year are looking to spend
less than originally planned
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
100
11 45
13
6
6
17 3
Will forego purchase2
Still plan to buy this year2
All respondents
Bought in past 3 months1 61
33
Spent/intend to spend same as planned
Spent/intend to spend less than planned
Spent/intend to spend more than planned
However, just 6% state intention to completely forego purchase
11. McKinsey & Company 11
Along with income uncertainty, social guilt also appears to play a
role in respondents’ decisions to spend less or forego a purchase.
Reason for planning to spend less or foregoing future large-appliance purchases,1,2
% of respondents
34%
23%
18%
9%
7%
7%
2%
I had to spend money on other things instead
I felt guilty to spend a lot given the serious impact of COVID-19
on society
I wanted to save money because I’m worried about the impact
of COVID-19 on my income
My plans have changed (e.g. moving, renovation, etc.)
I don’t want to leave my house, and I don’t want to buy online
I have less time to browse because of the crisis
I have other things on my mind, and this is not a priority
1. Q: Which statement best describes the reason for spending less on your FUTURE large domestic appliances?
2. Q: You mentioned you have dropped the plan of purchasing large domestic appliances, Which statement best describes the reason for it?
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
12. McKinsey & Company 12
1. Q: You answered previously that you still bought large domestic appliances, but spent less than planned. Which statement best describes your purchase? (Represents 17% of those who bought a large domestic appliance in the past 3
months)
2. Q: You answered previously that you still intend to buy large domestic appliances, but will spend less than planned. Which statement best describes your future purchase? (Represents 39% of those who plan to buy a large domestic
appliance within the year)
50%
of respondents intend
to stick to the same
brand as they had
planned, out of which
~72% are looking for a
cheaper model within
the same brand
Those who plan to spend less suggest they are likely to purchase the
same brand, but a cheaper model.
Nearly a third of respondents are likely to switch to a cheaper brand in this category
41%
21%
15%
29%
11%
36%
33%
14%
Same brand, cheaper model
Respondents who
have purchased large
appliances in past 3 months1
Respondents who
intended to purchase
in next 3-6 months2
Same model with a
discount of promotion
Not buy some of the
appliances I originally planned
Cheaper brand
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
Intention for consumers who have traded down or plan to trade down their purchase,1,2
% of respondents
13. McKinsey & Company 13
In the short term, the findings suggest that online marketplaces could hold
as the leading purchase channel for large appliances.
Although physical appliance stores still play an important role for respondents, dept stores could continue to be challenged
Channel used or
intended for
purchase,1
% of respondents
1. Q: Where do you typically purchase these kinds of appliances? Select all that apply Q: Where did you buy your appliances from? Q: Where will you most likely buy your large domestic appliances?
Physical appliance store with multiple
brands
Online marketplace with many brands
Physical department store
Online website of appliance store
Brand official app
Online website of department store
Brand official website
Single brand store
Online website
Physical store
Prior channels used
5%
5% 6% 7%
6%
7%6% 6%
5%
8%
5%
25%
8%
8%
34%
25%
23%
35%
20% 10%
31%
30%
4%
44%
2%
4%
4%
Buyers Planners
Brand official social media channel
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
14. McKinsey & Company 14
In the longer term, consumer preferences appear to shift even more
online, toward marketplaces and appliance store sites.
Net increase in
channel preference2
33%
29%
27%
26%
26%
23%
23%
22%
21%
59%
39%
63%
36%
31%
60%
42%
64%
40%
26%
26%
32%
27%
33%
12%
12%
8%
Physical multi-brand appliance stores
Online website of multi-brand appliance stores
2%
Brand official app
7%
Physical department stores
6%Online marketplace with multiple brands
6%
6%
Brand official social media
Online website of department store
3%
3%
14%
Brand official website
6%
9%
Single-brand store
Will use this channel lessWill use this channel more
No change in using this channel Will discontinue using this channel
Channel penetration among
respondents pre-COVID-193
1. Q: How do you think your shopping preference for large domestic appliances will change in the following channels after COVID-19 compared to before?
2. Net intent is calculated by subtracting % of using less and discontinue use from using more
3. Q: Where would you typically purchase large appliances?
Online websitePhysical store
+24% 44%
-3% 8%
+17% 35%
-13% 6%
-18% 5%
+6% 34%
-12% 6%
+8% 25%
-18% 4%
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
Leading channels
pre-COVID-19
Expected change in consumer channel preference1
% of respondents who use the channel
15. McKinsey & Company 15
Special features and look/ style appear to have increased in importance, while customer service has decreased
The most commonly cited key buying factors are good value for
money and trusted brands.
Importance of key buying factors for those who are planning to buy within the year,1
% of respondents
22%
21%
19%
19%
19%
18%
18%
16%
16%
15%
15%
8%
3%
Lifetime / Sturdiness / ability to last
Special features
Reco from friends / family
Good value for money
Look / style
Trusted brand
Electricity efficiency
Affordable price
Ongoing promotions
International brand name
Customer service
Guarantee / warrantee program
Same brand as my current appliances
+1%
-1%
+7%
+4%
-1%
+5%
+3%
+1%
-3%
+10%
Difference from
pre-COVID-192
1. What are the top factors that you will prioritize in the appliances that you plan to buy?
2. What were the most important factor(s) that made you consider these brands before the outbreak? Difference is calculated by subtracting percentage of respondents selecting the factor for Jan purchase from percentage of respondents
selecting the factor for future purchase
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match general population
(urban)
0%
-11%
-5%
16. McKinsey & Company 16
With future purchases potentially moving online, the results suggest
convenient return processes and easy-to-use interfaces will be important.
‘Touch and feel’ experience is the most commonly reported barrier to online shopping
1. Q: What are the Top 3 reasons driving you to buy your future large appliances in ONLINE channels?
2. Q: What are the Top 3 factors preventing you from buying your future large appliances ONLINE?
41%
37%
33%
30%
22%
15%
15%
15%
11%
11%
Lack of prolonged payment options
I like seeing and testing them first before buying
Inconvenient return process
Uncertainty about delivery times and process
Concern about safety of delivery
Unclear return policy
Shipping costs
Limited technical support
Limited product information
Non user friendly website/ mobile app
22%
22%
20%
20%
17%
17%
17%
17%
13%
13%
Convenient return process
Easy to use shopping interface
Convenience
Better price
Promotion/ discount
Instructional content
Fast delivery
Personalized recommendation
Live support on the site
Recommendations from friends and family
Barriers to buying online for respondents
who prefer physical stores,2 % of respondents
Reasons for buying online for respondents
who prefer online,1 % of respondents
Source: McKinsey COVID-19 mobile and online survey, 4/28 - 5/9/2020 N = 225 for large domestic appliances deep-dive, sampled to match gen pop (urban)
17. McKinsey & Company 17
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