consumers were more interested in reasonably priced products with core features than in higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. . As mentioned earlier, people are worried about the pandemic's impact on their personal incomes. In most countries, between 30 and 40 percent of consumers are worried about being able to make ends meet; in Thailand, 70 percent of consumers say so. • What's more, consumers are willing to forgo future spending. Up to 50 percent of Chinese consumers surveyed say they were planning to give up a future purchase because of uncertainty related to COVID-19. To address these shifts, food retailers should rethink their promotional calendars to safeguard their marketing spending to use only when it's needed to stimulate demand, either for discretionary products or for postcrisis essentials to meet people's desire for value. - Reimagine loyalty. During the COVID-19 crisis, consumers have been loyal to those retailers and brands who offered essential products in their assortments. Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most countries, promotions or pricing has not emerged as a top three reason for switching to different stores. . Except for in Japan and in South Korea, between 30 percent and 50 percent of customers have shifted from their primary stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported by consumers in China) say they have not switched back. . Except for in Japan and in South Korea, between 30 percent and 70 percent of customers have tried a new brand. Those in China are the most likely across countries to say they have not shifted back to old brands, which 20 percent of consumers there report. To address this "loyalty shock," retailers should determine which stores are being affected disproportionally by customers shifting to other primary stores. Targeted marketing may help bring these customers back, as would retailers finding a way to better communicate the efforts they are taking to support customers and their societies more broadly, so consumers will be likelier to give them a bit more leeway. Once food retailers have reimagined their businesses in these four ways, they will be better equipped to provide employment opportunities to people who are currently out of work, reshape their industry ecosystem, and work closely with business partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being and livelihoods for millions of people.
consumers were more interested in reasonably priced products with core features than in higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. . As mentioned earlier, people are worried about the pandemic's impact on their personal incomes. In most countries, between 30 and 40 percent of consumers are worried about being able to make ends meet; in Thailand, 70 percent of consumers say so. • What's more, consumers are willing to forgo future spending. Up to 50 percent of Chinese consumers surveyed say they were planning to give up a future purchase because of uncertainty related to COVID-19. To address these shifts, food retailers should rethink their promotional calendars to safeguard their marketing spending to use only when it's needed to stimulate demand, either for discretionary products or for postcrisis essentials to meet people's desire for value. - Reimagine loyalty. During the COVID-19 crisis, consumers have been loyal to those retailers and brands who offered essential products in their assortments. Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most countries, promotions or pricing has not emerged as a top three reason for switching to different stores. . Except for in Japan and in South Korea, between 30 percent and 50 percent of customers have shifted from their primary stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported by consumers in China) say they have not switched back. . Except for in Japan and in South Korea, between 30 percent and 70 percent of customers have tried a new brand. Those in China are the most likely across countries to say they have not shifted back to old brands, which 20 percent of consumers there report. To address this "loyalty shock," retailers should determine which stores are being affected disproportionally by customers shifting to other primary stores. Targeted marketing may help bring these customers back, as would retailers finding a way to better communicate the efforts they are taking to support customers and their societies more broadly, so consumers will be likelier to give them a bit more leeway. Once food retailers have reimagined their businesses in these four ways, they will be better equipped to provide employment opportunities to people who are currently out of work, reshape their industry ecosystem, and work closely with business partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being and livelihoods for millions of people.
Chapter1: Making Economics Decisions
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