Health versus wealth
Shutdowns have had a larger effect on those in lower paid work because so many of their jobs are in sectors hardest hit by the pandemic, such as hospitality. The self-employed are more vulnerable than employees. The accounts manager with an internet-connected computer can work at home with relative ease. The flight attendant? Not so much.
Wealth inequalities are mirrored by decidedly uneven attitudes elsewhere. Most recent Ipsos MORI data – drawn from our weekly Essentials Report – shows that health concerns are running at about half the levels seen in late February and March when around 50% of people polled in Spain and Italy said health was a high or very high personal threat. Around 40% of populations in France and the UK gave the same answers at the same time. By the end of June only around a quarter of people voiced the concern - though worries are running higher in Spain and lower in Germany.9
And the young, as mentioned before, think differently from their parents and grandparents. They are more sanguine about the COVID health risks, but also tend to be more fearful of financial futures.
Balancing act
Balancing key tensions – such as health worries versus stretched personal finances, economic recovery versus climate politics, rising inequality between the haves and the have nots, and the proliferation of data versus privacy concerns – all point to a world where trade-offs will need to be carefully managed if brands are to realise the opportunities and avoid the bear traps.
Expect the unexpected
Alongside all analysis of observed trends, we need to remember that unpredictability is a constant. Who wasn’t surprised by COVID? Only 4% of participants in the 2019 Ipsos MORI Global Trends Survey believed that an infectious disease was the biggest threat to societies.10 In health, wealth and consumer trends, it is as well to expect the unexpected and be ready to adjust, in real time, to surprises.
The short- and long-term trends show that consumers wish to be treated as individuals; that preferences change over time; and attitudes differ in different circumstances.
But ask me if there is a single quality that successful brands can use to tackle the challenges? The answer is empathy.
Q&A with Christine Harb, Vice President, Marketing, CEMEA, Visa.
Do consumers in CEMEA value brands which act responsibly?
Corporate social responsibility is no longer an extension of a good marketing strategy, it’s a critical part of the customer’s journey when choosing a product. Consumers are increasingly favouring companies that align with their ethics and take a stand on the important issues of the day.
In CEMEA, consumers expect brands to push the needle towards social and environmental change and when brands demonstrate genuine and authentic commitment, they outperform those who don’t.
For 20% of MENA consumers, putting society first is their biggest priority. They pay attention to the social impact of what they purchase and consume as well as look for brands that have a clear purpose and align with their own values. In putting society first, 60% of these consumers will be more attentive to the social impact of what they consume for the long term, while 51% will support domestic brands produced locally for the long term.11
Do you think COVID-19 has changed consumer sentiment towards brands?
The pandemic has fundamentally transformed our world. It has changed the way people live, work, interact and buy and has therefore changed the way they think and the decisions they make. The change in shopping behaviour has been reflected in brand loyalties shift as consumers are switching brands at unparalleled rates. This reinforces the need for brands to be agile and adapt their strategy by putting the human at the heart of the trends’ exploration in order to adjust the way they connect with their audience.
While this is true in some sectors, consumers are still paying increased attention to how brands conduct themselves, in such times which will determine if they will continue to engage with these brands after the crises abates.
Aside from empathy, what other qualities would you argue are important for brands to be tackling the current challenges?
Customers, who are demanding more of brands, require a secure, smooth and frictionless commerce experience and are now willing to try new brands and explore new retail channels which poses a challenge and an opportunity at the same time. We are also witnessing a drastic shift in consumer purchasing behaviour, transitioning from emotional to rational, that is mostly driven by value, convenience and purpose.
So, in order to stay top-of-mind, brands need to adjust their message and communication to speak their customers’ language, focus on the product or service’s availability and quality, and constantly improve their customer experience. This is a time for brands to build loyalties with new customers, reinforce them with existing ones, rethink their priorities and focus on forging a path to making an impact that matters.
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