COVID-19 Likely to Usher in “Decade of the Home,” According to Accenture Survey Research
August 13 2020 - 12:01AM
Business Wire
New research highlights how retail and consumer
goods companies must adjust their product and service portfolios to
meet consumers locally
People’s refocus on their local community in light of the
COVID-19 pandemic will be long-term, bringing about the “decade of
the home” and forcing retailers and consumer goods companies to
tailor their products and services to drive a more local
experience, according to findings of a recent global survey from
Accenture (NYSE: ACN).
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Consumers are finding creative ways to
spend their time (Graphic: Business Wire)
The continuing discomfort with public spaces and travel, coupled
with growing financial fears amid widespread decline in household
income, will continue to keep people mostly at home, according to
the survey of more than 8,800 people in 20 countries. Findings of
the survey are presented in two Accenture reports, one for the
consumer goods industry and one for the retail industry.
Among the key findings:
- 69% of respondents expect to do most of their socializing over
the next six months either in their home, a friend’s home or
virtually;
- 53% of people who never worked from home previously now plan to
work from home more often in the future;
- 56% of consumers said that the pandemic has caused them to shop
in closer neighborhood stores, with 79% of those respondents saying
they plan to continue to do so long-term;
- 56% of consumers said they’re buying more locally sourced
products, with 84% of those saying they plan to continue to do so
long-term;
- 50% of respondents cited financial security as one of their top
three concerns over the next six months;
- 54% said they are shopping more cost-consciously and are likely
to continue doing so — with consumers overall far more likely to
have increased purchases of mid-range and budget brands and reduced
purchases of premium brands since the pandemic began.
- At the same time, 12% of consumers said they have increased
premium purchases, with 57% of those falling outside the
high-income bracket.
“Home is now the new frontier — it’s become the workplace, the
schoolroom, the place to try new hobbies, the place to socialize
and a safe sanctuary — so companies must account for this reality,”
said Oliver Wright, managing director and head of Accenture’s
global Consumer Goods practice. “They’ll need to think beyond
traditional tactics and be more creative, providing premium or
virtual experiences and tailoring their portfolios to engage
consumers. We’re already seeing this in the beverage and spirits
industry, with Carlsberg launching its ‘adopt a keg’ campaign, and
one London brewery offering a ‘pub in a box’ to local customers,
hand-delivered by musicians who’ve had their tours cancelled.”
The report notes that some brands are reaping the rewards of
adjusting their services to meet the shift in consumer demands by,
for example, launching a new shopping experience to connect U.S.
consumers with local businesses by allowing them to shop by region
and by state. Yet it cautions that taking advantage of these
opportunities will require ongoing and careful analysis to
anticipate which of these new consumer behaviors will stick and
then adapting their portfolios and financial models
accordingly.
“Companies must boost their analytics capabilities to understand
the pandemic’s impact on their businesses at a local level —
tracking its effect on local businesses and employment and people’s
level of comfort in returning to pre-COVID activities,” said Jill
Standish, senior managing director at Accenture and head of its
Retail practice globally. “In addition to making consumers
comfortable re-engaging outside the home through strict health and
safety measures, retailers should carefully assess their physical
assets — i.e., which stores to keep open and what inventory to
stock, taking into account, for example, whether and when schools
reopen. They might also experiment with temporary spaces, such as
pop-ups in local communities.”
The latest research supports Accenture’s previous findings that
the changes in consumer behavior, such as the dramatic rise in
e-commerce since the start of the pandemic, are likely to remain or
accelerate further. For instance, the proportion of online
purchases by infrequent e-commerce users — i.e., those who used
online channels for less than 25% of purchases prior to the
outbreak — has increased 170% since the outbreak.
Further, the survey found that consumers who have increased
usage of digitally enabled services (e.g., contactless payment,
in-app ordering and curb-side pickup) and have turned to digital
customer service channels (e.g., website or mobile app, mobile
messaging with virtual agent, or online chat with a chatbot) expect
to sustain an increased level of usage.
About the Research
Accenture’s COVID-19 Consumer Research is monitoring the
changing attitudes, behaviors and habits of consumers worldwide as
they adapt to a new reality during the COVID-19 outbreak. The
latest waves of this survey were conducted June 2-8 and June 16-22
with 8,839 and 8,852 consumers respectively in 20 countries across
five continents: Australia, Brazil, Canada, Chile, China, France,
Germany, India, Indonesia, Italy, Japan, Russia, Saudi Arabia,
South Korea, Spain, Sweden, Switzerland, the United Arab Emirates,
the United Kingdom and the United States.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services in strategy and consulting,
interactive, technology and operations, with digital capabilities
across all of these services. We combine unmatched experience and
specialized capabilities across more than 40 industries — powered
by the world’s largest network of Advanced Technology and
Intelligent Operations centers. With 513,000 people serving clients
in more than 120 countries, Accenture brings continuous innovation
to help clients improve their performance and create lasting value
across their enterprises. Visit us at www.accenture.com.
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Aleks Vujanic Accenture +44 7500 974 814
aleks.vujanic@accenture.com
Tara Burns Accenture +44 7850 435 158
tara.burns@accenture.com
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