New research highlights how retail and
consumer goods companies must adjust their product and service
portfolios to meet consumers locally
TORONTO, Sept. 9, 2020 /CNW/ - 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).
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:
- 70% of Canadian respondents expect to do most of their
socializing over the next six months either in their home, a
friend's home or virtually;
- 52% of Canadians who never worked from home previously now plan
to work from home more often in the future;
- 54% of Canadian consumers said that the pandemic has caused
them to shop in closer neighborhood stores, with three-quarters of
those respondents (75%) saying they plan to continue to do so
long-term;
- 54% of Canadian consumers said they're buying more locally
sourced products, with 86% of those saying they plan to continue to
do so long-term;
- Half of Canadian respondents (51%) cited financial security as
one of their top three concerns over the next six months;
- 44% of Canadians 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, 11% of Canadian consumers said they have
increased premium purchases, with 28% 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 Robin Sahota, a managing
director at Accenture who leads its Retail practice in
Canada. "Companies in all industries will need to think beyond
traditional tactics and be more creative, providing premium or
virtual experiences and tailoring their portfolios to engage
consumers."
The report notes that some brands are reaping the rewards of
adjusting their services to meet the shift in consumer demands. Yet
it cautions that taking advantage of these opportunities will
require ongoing and careful analysis to anticipate which of these
new consumer behaviours 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
Kelly Askew, a managing director
with Accenture Strategy. "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, if they should leverage
some of their store footprint for micro-fulfilment to support
e-commerce growth. 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 behaviour, 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 in Canada — i.e., those who used online channels
for less than 25% of purchases prior to the outbreak — has
increased 176% 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 curbside 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, behaviours 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.
SOURCE Accenture