BR/05/2020

Page 30

www.business-review.eu Business Review | May 2020

30 LOCAL ECONOMY

Taking a look at the post-pandemic economy The lockdown caused by the COVID-19 pandemic sent the global economy into crisis. In the second quarter of the year, most of the world’s economies will lose between 10 and 25 percent of GDP, including Romania’s. The recovery should start in the second half of 2020, but it will take many years to get back to pre-crisis levels. By Aurel Constantin

Only a third of consumers are willing to spend the same amounts they did before the crisis or more

T

he first edition of the EY Future

ers in the “Hibernate and spend” segment

to two new segments: “Remain frugal” and

Consumer Index, a survey tracking

(11.4 percent) are spending more across the

“Cautiously extravagant.” The post-COVID-19

consumer sentiment across the US,

board. As we can see, only a third of consum-

consumer segments, detailed in the Index,

Canada, UK, France, and Germany, revealed

ers are willing to spend the same amounts

are summarised as: “Keep cutting” (13.1

how the lockdown-related changes in people’s

they did before the crisis or more. This means

percent), “Stay frugal” (21.7 percent), “Get to

behaviour are influencing the economy. Four

that two thirds will spend less, and that

normal” (31.4 percent), “Cautiously extrava-

major behaviour trends emerged during the

translates into declining sales for many seg-

gant” (24.7 percent), and “Back with a bang”

COVID-19 pandemic: “Cut deep,” “Stay calm,

ments of the economy. “42 percent of those

(9.1 percent).

carry on,” “Save and stockpile,” and “Hiber-

interviewed expect their shopping behaviour

nate and spend.”

to permanently change, a third are willing to

54 percent of consumers would make their

pay more for local products, a quarter would

personal data more available if it helped to

segment (27.3 percent) are spending less

do so trusted brands and a quarter for ethical

monitor and track an infection cluster. It also

across all expense categories as the pandemic

products,” says Cristian Carstoiu, Business

revealed that health care providers are regard-

impacts employment; those representing the

Advisory Services Partner at EY Romania.

ed as the most authoritative organisations,

Consumers that fall into the “Cut deep”

“Stay calm, carry on” category are continuing

The four segments identified by EY could

The EY Future Consumer Index found that

with 47 percent of consumers indicating that

to spend as normal (26.2 percent). Most con-

morph into five very different ones as the cri-

they trust them completely, compared to gov-

sumers (35.1 percent) represent the “Save and

sis abates. For example, the Index currently

ernments (28 percent), brands (17 percent),

stockpile” segment, indicating that they feel

suggests that over time, most consumers in

and media companies (16 percent).

pessimistic about the future, while consum-

the “Save and stockpile” segment will migrate

Consumers could view time, talent, and


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