Velocity MR study shows 77% Indians intend to use Arogya Setu App; E-Commerce & Digital Payments to be among the biggest gainers post Lockdown
More than 70% will avoid public transport, while 62% will avoid using Ola, Uber, others, post lockdown, probably leading to a negative impact on cab aggregators in coming days but automobile sales to see an upward trend
Bengaluru, May 2020: Velocity MR, leading market research and new age insights provider, conducted a pan India study to understand consumer sentiments towards COVID-19 and their behaviour during & post the lockdown period. The study was conducted to understand the mid and long-term impact of COVID 19 on the average Indian. It is no surprise that awareness levels are high, and there is a perceptive fear in the country regarding the Pandemic. The study titled ‘Surviving COVID 19 and beyond: A consumer Perspective- Part 1’ covers several categories including Shopping habits, Purchase Habits, Travel, Social Activities, Investments, Social Responsibilities, etc during this epidemic.
The study has a sample size of 3,000 and was conducted in April 2020. The study was implemented through an online survey using the Markelytics consumer panel (Velocity MR is the full-service arm of Markelytics). The national study was conducted in both metro and non-metro cities in India.
The study reveals that Indians are highly concerned about this global Pandemic and are willing to follow the government’s guidelines to prevent getting infected.
More than 57% will maintain social distancing and washing & sanitizing hands at regular intervals as a significant change in social behaviour even after the end of the Pandemic. The study also revealed that 71% would reduce shopping in malls and supermarkets, however, 80% will continue online shopping, suggesting a positive impact on the e-commerce industry. Banks can also get a major boost through their digital payment services as close to 90% of respondents are most likely to shift from cash to digital payments.
Many believe that the lockdown has brought in some benefits like work from home and non-availability of alcohol. 80% consider the non-availability of alcohol and cigarettes as one of the major benefits, and 74% consider work from home advantage and not a disadvantage. However, many also feel that lockdown has disadvantages, as 50% anticipate an increase in unemployment, followed by a lack of job security in the private sector (53%).
Jasal Shah, Managing Director & CEO, Velocity MR, adds, “The Pandemic continues to have an unfavourable impact on consumers’ 2020 plans, food habits, social habits, etc. However, there has been some favourable impact on financial investments. Our study shows in the next 6 months to 1 year, 47% are planning to invest in Mutual Funds followed by Stock/Shares (33%) and Gold (30%). More than the business owners, it is the salaried individuals that are likely to invest in Mutual Funds and Gold. With the virus outbreak and possible health-related uncertainties, more non-insurers are also willing to invest in Health Insurance.”
Highlights of the Study-
COVID-19- The level of concern among Indians
3/4th of the Indians claimed to be quite concerned about COVID-19 and willing to follow the government of India’s guidelines to prevent getting infected or coming in contact with the virus
COVID-19 and its likely impact on consumer plans for 2020
The majority of Indians had plans for 2020 of traveling, buying a new car, buying consumer goods. But in the current scenario plans are likely to change their plans for the following categories-
- Buying consumer goods for the household (Air-conditioner, refrigerator, washing machine, etc.)
- Plans for job change/career change
- Buying a new two-wheeler – Bike/ Scooter
- Plans for buying a new car
- Property Related
- Investing in new property
- Renovating/ re-furnishing their house
- Selling old properties
- Plans for buying gold jewelry
- Wedding plans (including destination wedding)
- Applying for international universities/ Immigration/ PR
- International travel holidays and domestic travel will take a backseat
COVID-19 and its likely impact on consumer food habits
- Eating out to largely reduce (with more than half the Indian consumers claiming to do so), consumers are most likely to switch to healthier and balanced meals
- What will become part of their meal, for Indian consumers
- Fruit Juices, most citrus fruit juices for increasing immunity
- Salads (more fresh fruits/vegetables)
- Herbal/ayurvedic ingredients like Turmeric, Ginger, etc.
- Dried fruits & Nuts
- Healthier snacks like roasted makhana etc.
- Non-Vegetarian food/dishes may be found less in Indian dining tables at least for the next few months
- Consumption of alcohol & smoking may not mostly decline. It looks like those consuming it only occasionally or at social events may reduce it even further while regular or heavy consumers may continue to do so
- Consumption of Rice, Dairy products also to remain stable – very few plan to start using other healthier alternatives for better immunity/health
COVID-19 and its likely impact on consumer social behavior
- Indians will continue maintaining social distance, washing hands frequently, maintaining hygiene in public places and wearing masks when they step outside after the lockdown
- Travel – both International & domestic to reduce
- Entertainment avenues which call for large social gatherings like pubs, discos, cinema halls may see a decline in footfall in the next few months
COVID-19 and its likely impact on consumer travel/shopping habits
- Those owning a car are likely to use their vehicles for commuting within the city and outside the city
- Usage of public transport (both air-conditioned/non-conditioned) to reduce
- More than 30% of those not owning a car claim to be planning to buy a car to reduce public transport usage
- Online shopping to increase
- Malls/Retail outlets to witness a lower footfall
- Digital transaction to be more preferred than ever
COVID – 19 and its likely impact on consumer investment habits
- Mutual Funds are the most preferred investment platform for a majority (relatively lower among unmarried Indians and lower-income households)
- About 1/3rd of Indian consumers claim that they will not make any new investments in the 6 months – 1 year (likely to continue with the old investments)
- 2/5th of consumers claim that they or someone in their household do not have health insurance, and most of them plan to get a health insurance
- Health insurance offered by banks are most preferred followed by brands like Star Health & Bajaj Allianz
COVID – 19 and its impact on the social responsibility of individuals & Brands
- More than 2/3rd claim to have donated to the PM cares fund
- Among the brands that have contributed to the cause, donations by Tata, Reliance are well recognized followed by Mahindra & Mahindra and Infosys
Consumer Opinion about the subsequent lockdown due to COVID -19
- Non-Availability of cigarettes & alcohol is considered one of the major advantages of lockdown
- Work from home is also considered to be one of the key advantages of lockdown
- Not able to visit Temples/Churches/Mosques are considered to the major disadvantage of lockdown
- People anticipate considerable spikes in unemployment due to lockdown and those working in the private sector fear for job security
- Other economic consequences of the lockdown are anticipated to be inflation/price rise of essential goods, daily wages to decline for laborers & self-employed, etc.
Lockdown – What consumers did (Personal Behaviour)
- Watching TV/Browsing through or spending time on social media and watching movies on online streaming apps are the top activities done by people during the lockdown
- Apart from entertainment, the majority claimed that the lockdown enabled them to spend more time with family and take care of their health, which they are mostly unable to do otherwise
- Most popular activities started during the lockdown
- Making videos/vlogs for social media
- Cooking/trying out new recipes
- Enrolling in online courses
- Close to 70% claim to have started doing exercises/workouts during this lockdown and about 50% have made changes to their regular diet – either cutting down on meals/quantity of food and eating healthy food
- Very few (about 1/5th) claim to have started indulging more on food/fried snacks
About Velocity MR
Velocity is a tech-savvy insights provider with a Global Presence, providing Proprietary Panels, Real web-based CATI, a Strong Field Force, Responsive Client Servicing capabilities, and is armed with sophisticated Research Capabilities. Velocity is today one of the youngest and highly tech-oriented research companies globally. In a world where unstructured data is flowing in all directions, understanding distinctive consumer behavior towards brands is getting tougher and tougher. The company while being part of Cross Marketing Inc. Tokyo has some of the finest brains in the industry along with the best available technology platforms to deliver world-class research solutions to clients. The integration of technology coupled with high-quality data imparts speed, providing a ‘Quick turnaround time’ in collating, analyzing, and interpreting research data.