Facebook-BCG report on new path-to-purchase

28 May,2020

FB-BCG Guidance bo Brands based on Report Findings

 

By A Correspondent

 

Facebook India in association with Boston Consulting Group has released a report titled ‘Turn the Tide’ that focuses on how Covid-19 has dramatically changed consumer behaviour and altered the path-to-purchase. The report also shares actionable guidance for brands to build for the new consumer journeys in times of Covid -19 and beyond.

 

Sandeep Bhushan

Said Sandeep Bhushan, Director and Head, Global Marketing Solutions, Facebook India: “As business after business joins the dots to understand consumer shifts in both mindsets and behaviours as a result of COVID-19, we have invested in studying the new paths to purchase in continuing our commitment to enabling growth for businesses both large and small. The ‘Turn the Tide’ report outlines the opportunities that businesses need to embrace in the context of new consumer journeys and category needs. In response to consumers embracing the digital medium, brands need to focus on solutions that are relevant for the new normal such as hyper-localization, creating virtual experiences, re-looking at the media-mix to build efficiency, or building messaging around new habits such as DIY and the increased focus on health and hygiene.”

 

Facebook and Boston Consulting Group are also expected to share vertical-specific insights to help businesses gain almost real-time insights, enabling them to ‘Turn the Tide’.

 

The report delves into key consumer-shifts based on three societal-truths that have emerged as a result of the pandemic – social distancing, increasing focus on health and hygiene, and increasing income uncertainty. Within each of these shifts, the report finds that there are three kinds of behavior change movements that are being observed – reversal of past trends, acceleration of existing trends, and formation of new habits.

 

Nimisha Jain

Added Nimisha Jain, Managing Director and Partner, Boston Consulting Group: “We are experiencing unprecedented shifts in consumer attitudes and behaviors – 80%+ consumers will continue to practice social distancing and are bringing the outside inside, over 40% of consumers are dialing up on health and wellness spends, e-commerce adoption has already advanced by 2-3 years – to name a few. These aren’t just temporary surges, and many will last longer and become more defining traits. Our analysis reveals that only one in six companies emerged stronger in past crises – players who show the agility to reinvent their value propositions, go-to-market plans and business models to address these demand shifts will be the ones that set themselves apart from the pack”

 

The reports especially calls out the massive acceleration in digital led by social media, the emergence of micro-market opportunities, an increase in value consciousness leading to more utility-led shopping, consumers embracing digital even in historically offline categories such as education, health, and fitness, the increase in spend on e-commerce in the coming months even for traditionally offline categories, a definite increase in spends on health, hygiene and wellness, and a rise in do-it-yourself (DIY) trends.

 

Executive Summary of Turn The Tide report

The COVID-19 outbreak has proven to be a global pandemic of an unprecedented scale impacting people, communities, and businesses across nations. In India, as with the rest of the world, the first few weeks of the lockdown saw the industry in a wave of panic and uncertainty as the disruption in business continuity threatened to potentially destabilize the economy.

 

Facebook has always been committed to developing and sharing industry-leading full-funnel solutions for brands across all categories. As India opens up to limited business activity, this joint collaboration with the Boston Consulting Group  – a consumer sentiment survey, titled  ‘Turn the Tide’ – aims to serve as a reference point on consumer insights, trends, and guidance for the industry, brands, and agencies as they begin to negotiate the commencement of operations.

 

What’s different about this report is that it’s not just a research study but that it also provides actionable guidance that brands can deploy right away. It brings together the expertise of BCG’s deep insights and years of consulting experience with Facebook’s experience across thousands of campaigns run on its platforms.

 

Covid-19 has impacted lives in 3 big ways:

:: Social Distancing

:: Health & Hygiene

:: Income Uncertainty

 

Key points:

:: Consumer journey has altered; brands need to urgently identify opportunities to build for new consumer journeys.

:: COVID-19 has fueled the digital medium in an unprecedented manner. Some of these consumer trends are here to stay.

:: Brands are already leveraging social media platforms to build for the new consumer journeys.

 

Consumer Behavior has fundamentally changed: Emerging Trends (11 Uber themes)

A. Reversal of Past Trends

1. Bringing the outside inside: 79% people are not going out of house, except work

2. Trust in Brand above all else: 63% people are paying more attention to origin of product

3. Trading Down and Bargain Hunting: 43% people are expecting decrease in overall spend in next 6 months

4. Shopping for Utility: Purchase triggers expected to become more “functional”

 

B. Acceleration of Existing Trends

1. Embracing digital services & experiences: 51% consumers saw an increase in payment via digital wallets

2. Accelerated adoption of e-commerce and O2O: 50% of all consumers expect to increase e-commerce spend in next 1 month

3. Strive for Health & Wellness: +40% may increase spend on Health and Wellness

4. Rise of Smart Shoppers: Informed purchase decision; High salience of digital research

 

C. New Habits:

1. Remote way of living: The new normal

2. Do It Yourself: Spike in new hobbies and habits

3. Superior Hygiene and Clean Living: 91% Indian households washing hands more often

 

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