- More than half of consumers (54%) expect to participate in
sales events and 42% plan to spend less than a year ago
- 91% of those who will participate will shop for deals
online
- Online shopping adoption differs across markets and
categories
LONDON, Oct. 27, 2020 /PRNewswire/ -- The COVID-19
pandemic has accelerated the transition to online shopping and its
long-term adoption in certain product categories and markets,
according to the fifth edition of the EY Future Consumer Index.
More than a third (37%) of the 14,467 consumers surveyed say
the pandemic will keep impacting their lives for at least another
year. This rises to 43% in Europe
and 66% in Japan, while consumers
in India (19%) and China (18%) are noticeably more optimistic.
Globally, consumer respondents believe the way they shop will
change over the long-term and 39% say they will shop more online
for things they used to buy in stores.
Online shopping adoption varies across markets and
categories
The EY Future Consumer Index finds that consumers in
China and, to a lesser extent, the
UK are far more likely to shop online as their primary channel than
those elsewhere. Those in Germany
and France are less open to the
idea.
Overall, respondents identified appliances and technology (53%)
as a category of products they will primarily buy online, while
beverages and fresh food are categories they will prefer to
purchase in store.
Online grocery shopping penetration continues to be lower in
most markets. But during the pandemic, 55% of consumers have bought
their groceries online at least once. Of those, 42% say they are
now ordering groceries online more frequently because of the
COVID-19 pandemic. Looking to the future, 19% of respondents say
they will primarily shop online for fresh food and 16% for
non-alcoholic beverages, up from 3.4% and 1.6% respectively in
2019. This trend shows that online shopping, even in low
penetration categories, is not only on the rise, but is a trend
that will most likely stick post-pandemic.
The survey also notes that the categories in which consumers are
most likely to buy online are also the categories in which they are
most likely to value service and advice when making a purchase –
technology, beauty and cosmetics, and clothing, shoes and
accessories.
Andrew Cosgrove, EY Global
Consumer Knowledge Leader, says:
"This points to the risk of showrooming, with consumers going to
stores to touch and feel the product for the experience but then
making purchases online where products might be cheaper. Retailers
and consumer product companies will need to ensure they have both
seamless omnichannel experience and the stock and price point
needed to make the sale."
Impact of the COVID-19 pandemic on big sales events
As a result of the COVID-19 pandemic, 40% of respondents have
seen their incomes decrease and a majority (60%) are now thinking
more carefully about how they spend their money. Furthermore, 41%
of consumers have cut spending on non-essentials and 46% are
postponing the purchase or replacement of big-ticket items. These
trends point to a potentially slower end-of-year shopping
season.
Although more than half (54%) of consumers expect to participate
in the next big shopping or sales event, EY Future Consumer Index
data suggests that 42% of consumers globally plan to spend less
during the shopping season than a year ago.
Of those who will participate, 91% will spend at least half of
their shopping spend online, showing the importance of online
retail this season.
Kristina Rogers, EY Global
Consumer Leader, says:
"With such a rapid shift to online shopping, business leaders
must challenge their assumptions about what the digital consumer
wants. Multi-billion-dollar opportunities are emerging from the
pandemic and now is the time to develop a distinctive online
strategy and prioritize the critical moments of truth along the
end-to-end shopper journey."
The latest edition of the EY Future Consumer Index is available
at ey.com/futureconsumerindex5.
Notes to editors
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we deliver
help build trust and confidence in the capital markets and in
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For more information about our organization, please visit
ey.com.
This news release has been issued by EYGM Limited, a member of
the global EY organization that also does not provide any services
to clients.
About the EY Future Consumer Index
The EY Future Consumer Index tracks changing consumer sentiment
and behaviors across time horizons and global markets, identifying
the new consumer segments that are emerging. The Index provides
regular longitudinal indicators and a unique perspective on which
changes are temporary reactions to the COVID-19 crisis, those which
point to more fundamental shifts, and what the consumer post
COVID-19 might be like. The fifth edition of the EY Future Consumer
Index surveyed 14,467 consumers across the US, the UK, Canada, Brazil, France, Italy, Germany, Spain, Denmark, Sweden, Finland, Norway, India, UAE, Saudi
Arabia, China, Indonesia, Japan, Australia and New
Zealand during the week of 29 September through 5 October 2020.
Maya Vautier
EY Global Media Relations
+1 212 773 2181
maya.vautier@ey.com
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