MarketIssues
MI
MI
MarketIssues
HAS THE PANDEMIC CHANGED CUSTOMER BEHAVIOUR PERMANENTLY IN TISSUE?
As we start to emerge from Covid-19, many aspects of people’s lives are being transformed. McKinsey & Company’s Oskar Lingqvist, Gregory Vainberg, Daniel Nordigarden and Emily Roeper discuss how ways to serve customers are changing fundamentally, and what this means for tissue companies in the post-pandemic world.
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ovid-19 resulted in a shock to consumer demand that sets it apart from past downturns because of the speed and scale of the decline. The pandemic has had a dramatic impact on global consumer behaviour across many areas of life that goes beyond the welldocumented switch to remote work, virtual learning, telemedicine, and the associated significant reduction in travel. We are seeing a real shift in purchasing behaviours in the context of digital engagement and brand loyalty:
Oskar Lingqvist Senior Partner
Daniel Nordigarden Partner
Gregory Vainberg Senior Partner
Emily Roeper Analyst
THREE QUARTERS OF AMERICANS CLAIM TO HAVE CHANGED THEIR SHOPPING BEHAVIOUR SINCE COVID-19 BEGAN; OF THESE, AROUND 40% SAY THEY HAVE SWITCHED BRANDS. A SIMILAR PATTERN HAS BEEN RECORDED IN EUROPE WITH 27% OF CONSUMERS HAVING TRIED NEW BRANDS SINCE THE ONSET OF THE PANDEMIC AND WITH OVER 80% INTENDING TO STICK WITH THE CHANGE. IN BOTH REGIONS, VALUE IS THE MAIN DRIVER FOR SWITCHING.
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Tissue World Magazine | July/August 2021
• Step-change increase in online shopping. In the US, online spending has seen unprecedent growth with a 35% year-on-year rise over the 12 months to January 2021 (via credit and debit card spend). In particular, online shopping for groceries has increased more than 40%, driving strong acceleration of e-commerce shipments. This trend is the same in all major countries. • Shift from brand loyalty to value. Three quarters of Americans claim to have changed their shopping behaviour since Covid-19 began; of these, around 40% say they have switched brands. A similar pattern has been recorded in Europe with 27% of consumers having tried new brands since the onset of the pandemic and with over 80% intending to stick with the change. In both regions, value is the main driver for switching. These far-reaching changes have taken place at a never-before-seen speed equivalent to a “decade of change in days”. Moreover, these behavioural shifts have been reflected in tissue demand and increased volatility with a dramatic shift from AfH to At-Home consumption, along with intensified price sensitivity and an expansion in online shopping for both AfH and consumer tissue. The question now becomes: what behavioural changes will stick and how should tissue players seek to accommodate consumer needs in the postpandemic period?
