This is an extract that I have taken from a McKinsey quantitativemarket research report that was published this month on consumer sentiments
across the globe. The survey was done by McKinsey across the globe in different
continents. This post will cover countries across the geographical spectrum
that includes Europe, Americas, Middle East and Asia. The 5 countries that will
be covered in today’s post are: France, Brazil, US, Saudi Arabia, India.
France
Increasing percentage of the respondents in France expects that
the current situation in France will last for more than 2 months. Except in-home
entertainment French consumers are cutting their expenses across categories.
Even basic categories such as groceries or household supplies have started to
slip in consumer spend index which can be a reason for worry for b2c or
consumer goods companies. The data was collected from April 2–5, 2020. If
market research data keeps this trend that can be worrying for large French companies
like Carrefour. The key findings from the French study are:
1.
15% of the respondents are optimistic that the economy will
rebound within 2-3 months; 50% think that the economy will be impacted for 6-12
months and will stagnate or slow thereafter; 35% feel that the economy will
stagnate and go for a prolonged recession.
2.
At this point in time, 43% of the respondents have not been
impacted so as to have challenges to make ends meet; 41% of the respondents
have been somewhat affected to meet their financial obligations while 16% have
been severely affected.
3.
34% of the respondents are definitely cutting down on spending;
57% are somewhat cutting down on their spending while 9% are not cutting down
on their spending.
4.
88% believe that it will take 2+ months before routines can return
to normal.
5.
The most important figures are related to grocery delivery,
restaurant delivery and Meal-kit delivery. 53% of the respondents are saying
that they have started using more of grocery delivery, 46% say that they have
started using more of restaurant delivery while 39% of people say that they
have been using more meal-kit delivery.
Brazil
Brazil is the most important economy in South America. Here also
people are feeling increasingly impacted by the Corona virus. However, unlike
France the household and groceries categories are expected to grow. The key
points from the Brazilian survey are as follows:
1.
23% of the respondents are optimistic that the economy will
rebound within 2-3 months; 59% think that the economy will be impacted for 6-12
months and will stagnate or slow thereafter; 19% feel that the economy will
stagnate and go for a prolonged recession.
2.
At this point in time, 9% of the respondents have not been
impacted so as to have challenges to make ends meet; 38% of the respondents
have been somewhat affected to meet their financial obligations while 52% have
been severely affected. This is in stark contrast to the French survey where
the numbers were in the opposite direction. This gives us a clear picture how a
developed country like France and a developing country like Brazil gets impacted
by the pandemic.
3.
35% of the respondents are definitely cutting down on spending; 26%
are spending at the same level as they did while 35% are slightly increasing their
spending. This data is for 2 weeks ahead of the week of April 2-5 so exactly at
this present time. Further update to this data needs to be checked.
4.
88% believe that it will take 2+ months before routines can return
to normal.
5.
The most important figures are related to grocery delivery and
restaurant delivery. The buying of grocery is moving towards online channel for
a very large percentage of the respondents while food delivery has also moved
online for a significant percentage of respondents.
US
US is the largest economy in the world. Here also people are
feeling increasingly impacted by the Corona virus with 59% of the people being
cautious about spending their money. Household, groceries and in-home
entertainment spending is expected to grow and the channel will be mostly
online.
1.
39% of the respondents are optimistic that the economy will
rebound within 2-3 months; 46% think that the economy will be impacted for 6-12
months and will stagnate or slow thereafter; 16% feel that the economy will
stagnate and go for a prolonged recession.
2.
At this point in time, 27% of the respondents have not been
impacted so as to have challenges to make ends meet; 40% of the respondents
have been somewhat affected to meet their financial obligations while 32% have
been severely affected. The data is somewhere between France and Brazil and is
a very strong indicator of the economic condition of the people.
3.
47% of the respondents are definitely cutting down on spending; 38%
are spending at the same level as they did while 15% are slightly increasing their
spending. This data is for 2 weeks ahead of the week of April 6-12 and we are
already completing 1 week of that period.
4.
92% believe that it will take 2+ months before routines can return
to normal.
5.
The most important figures are related to grocery delivery and
restaurant delivery. The buying of grocery is moving towards online channel very
strongly for a very large percentage of the respondents while food delivery has
also gravitated towards online but not as significantly as grocery.
Saudi Arabia
Saudi Arabia is one of the largest economies globally and the
sheer power of their wealth comes from oil. Saudi consumers are optimistic
about a quick recovery but they are still holding on their spending. The key trends
that the McKinsey survey has brought out are as follows:
1. 64% of the
respondents are optimistic that the economy will rebound within 2-3 months; 32%
think that the economy will be impacted for 6-12 months and will stagnate or
slow thereafter; 4% feel that the economy will stagnate and go for a prolonged
recession.
2.
At this point in time, 22% of the respondents have not been
impacted so as to have challenges to make ends meet; 42% of the respondents
have been somewhat affected to meet their financial obligations while 36% have
been severely affected. The data is closer to US.
3.
31% of the respondents are definitely cutting down on spending; 27%
are spending at the same level as they did while 42% are slightly increasing their
spending. This data is for 2 weeks ahead of April 3-6 we are already completing
that period.
4.
83% believe that it will take 2+ months before routines can return
to normal.
5.
The buying of grocery is moving towards online channel very strongly
for a very good percentage of the respondents while food delivery has also gravitated
towards online but not as significantly as grocery.
India
50% of Indian consumers who took the survey are optimistic about a
quick recovery but they are still holding on their spending except for
groceries and at-home entertainment. The key trends that the McKinsey survey
has brought out are as follows:
1. 56% of the
respondents are optimistic that the economy will rebound within 2-3 months; 33%
think that the economy will be impacted for 6-12 months and will stagnate or
slow thereafter; 11% feel that the economy will stagnate and go for a prolonged
recession.
2.
At this point in time, 13% of the respondents have not been
impacted so as to have challenges to make ends meet; 39% of the respondents
have been somewhat affected to meet their financial obligations while 48% have
been severely affected.
3.
38% of the respondents are definitely cutting down on spending; 21%
are spending at the same level as they did while 41% are slightly increasing their
spending. This data is for 2 weeks ahead of April 3-6 we are already completing
that period.
4.
88% believe that it will take 2+ months before routines can return
to normal.
5.
The buying of grocery is moving towards online channel though not
as much as other surveys that we have seen for a very good percentage of the
respondents while food delivery has not gravitated so much towards online unlike
other countries that we have seen.
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