EY: Consumers worldwide choose to live with less and re-evaluate their markets

Some of the behaviors adopted by consumers due to the COVID-19 pandemic – as recorded by the EY Consumer Index’s April 2020 Consumer Survey – are now in place: the majority (63%) of the 16,000 Consumers from 21 countries surveyed say they now perceive the new behaviors they have been forced to develop since the start of the pandemic as “normal”.

Climate change and the search for comprehensive and satisfying experiences are now more important issues. During the pandemic, groups of consumers who prioritize the environment (“planet first”) and experiences (“experience first”) increased – from 16% to 26%, and from 11% to 18%, respectively – according to the eighth edition of the EY Future Consumer Index. At the same time, sustainability is an important purchasing criterion for 85% of consumers.

Consumers choose to live with less

EY’s global survey reveals that consumers are redefining their purchasing decisions and spending less on what they perceive as unnecessary goods, for economic (49%) and environmental reasons (30%). This trend may have a long-term impact on ostentatious consumption. Indeed, brands are a secondary criterion for 44% of consumers worldwide (49% for millennials and 47% for Gen Z).

Similarly, almost half of consumers worldwide (41%) feel less pressured to keep up with the latest technology and gadgets. Only 27% say they buy more things today because it makes them feel happier, while 48% have the opposite view. In addition, almost half of the respondents worldwide (47%) state that they feel more comfortable with themselves, without the need for toiletries.

Overall, the pandemic has helped consumers realize that they can live on less and consume “better”: they feel they have more clothes than they really need (48%) and are more likely to repair than replace (53%). , what spoils.

Return to physical stores this festive season

EY’s global survey shows that younger consumers will lead the festive markets: 71% of Gen Z and 68% of millennials, compared to 37% of baby boomers, plan to participate in the upcoming big shopping season. However, the way they buy has changed from year to year.

Despite the increased share of e-commerce during the pandemic, more than half (51%) of respondents will look for offers in physical stores – 39% more than last year. According to research, this trend can be explained by two factors: in addition to the fact that restrictions have come and stores reopened in most parts of the world, consumers also choose to buy directly from the store, to avoid increased shipping costs and delays caused by disruptions in supply chains. Indeed, for consumers who will shop online this holiday season, the primary concern is high shipping costs (32%), followed by product availability (25%).

The research emphasizes that, in order to alleviate these concerns, companies need to redesign their supply chain, inventory and logistics processes, especially as the quality of the services they offer is becoming more and more important for 57% of consumers. . As consumers are now much more selective about how they spend their money, eliminating any barriers and ensuring a seamless experience between the physical and digital worlds will be imperative for businesses.

Commenting on the findings of the research, Mr. Thanos Mavros, Partner, Consulting Services of EY Greece and Head of Consumer Products and Retail of EY in Southeast Europe, said: “One of the big questions that arose after the outbreak of the pandemic was whether Changes in consumer habits that have been caused will be permanent or temporary.The latest version of the regular global survey of EV comes to reinforce the first view, with the majority of consumers now considering as normal behaviors that they first adopted just a few months ago.

“Businesses will have to adapt to this new regularity, which will be characterized by reduced purchases of non-essential items, less reliance on brands, and a greater emphasis on sustainability. Businesses around the world, as well as in Greece, will be deciphering “These new trends in time and will redesign their strategy based on the new data, will be the ones that will stand out in the coming years.”