Even as the Indian government is keen to see some kind of economic and industrial activity resumed from Monday, many business sectors are not sure if they will see the kind of activity that they had before the country went into the lockdown in the last week of March. As if confirming their worries, a consumer survey was undertaken by Nielsen on the expected consumer behaviour post lockdown or post COVID-19.and the results it obtained will bring cheer to some and a lot of worries to the others.
The sectors that should be worried are restaurants, hotels and theatres. Nielsen reports that 64% of consumers responded by claiming that they plan to spend less on restaurants and movies. The lockdown has possibly worked towards regenerating the interest towards home cooked meals and the merits in it due to the conditions. While this will cause some concern to the restaurateurs, some, like those into manufacturing of cooking essentials like oils and spices may feel elated. Going to eat out in restaurants or ordering them online are being given less priority. Dine-in is being avoided due to social distancing and fear of being in a crowded place.
Hygiene again is the factor in avoiding ordering food from outside. People have lost the confidence for the time being. Pizza Hut is not entirely in agreement with Nielsen’s report. They say they will be able to convince their customers on the care they take in ensuring 100% reliability on the hygiene front.
Health and hygiene products will definitely top the shopping list of people going forward, the Nielsen survey shows. In the survey, 43% people said they will defer spending on fashion, personal grooming and home décor. Medical needs, fitness and medical insurance will move up the spending charts.
One surprising outcome was that over 50% said they will not be spending on automobiles. The general sense among the analysts was that with social distancing becoming the new normal, more people may avoid the public transport and invest in their own personal vehicles for commute. This survey at least does not appear to bear that out.
The sale of hand sanitizers by 340% in March over the December-January-February period, but that is fully understandable. Similarly, no prizes for guessing that hand wash category grew by 60% and floor cleaners by 24%.
As you would have expected, online purchases are bound to increase, but the neighbourhood kirana store will also find more acceptance, having been the lifeline through these troubled times for many people. Many of them had been compelled into use of technology during these lockdown days and they may now adopt them in a more organized manner and expand their customer base. Services like Dunzo can expect to gain as well.
The online survey was conducted by Nielsen between 10 April and 14 April among 1,330 people in 23 cities.