COVID-19 and the Indian consumer - Responding in a time of crisis - EY
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COVID-19 and the Indian consumer Responding in a time of crisis
Across the globe COVID – 19 has impacted us at a primal level
Protect myself and my family
Protect my livelihood
Protect my way of life
Page 2 10 April 2020 Presentation title
India is grappling with immediate ramifications of this outbreak
Forced to not leave Only essentials Rise in digital
home unless available as India consumption due
absolutely critical entered total to isolation
Social Panic lockdown Digital
distancing buying consumption
Lockdown Restricted Fake
Innovative ways of living Fears and services Rise in fake news news
maintaining social confusion led to and
distancing panic buying misinformation
across social
media platforms
Page 3 10 April 2020 Presentation title
This black swan event has accelerated change on key customer dimensions
1
Digital customer journey
► Digital adoption to increase across all customer journeys - from pre-purchase to post-sales. The impending recession and
consumer reluctance to engage physically will accelerate the evolution of ‘post – Covid digital-only’ models
► Acceleration of new products and services to exploit this increased comfort with digital journeys
2 3
Hyperlocal and online communities Healthy living
► Hyperlocal community interaction to increase ► Greater focus on healthy living and proactive health
maintenance
► Digital person2person interaction
► Increase in consumption of health, fitness, and supplements
► Work from home
► Increase in organic/healthy eating habits
► Growth in the power of digital influencers
► Move to online medical care and assistance
4 5
Digital content consumption Consumers and the State
► News and entertainment ► Greater awareness of security and privacy
► Digital learning ► Set up of state surveillance infrastructure
► Gaming, events and experiences ► Discipline, accountability and traceability
Source: EY research
Page 4 10 April 2020 Presentation title
Consumer behaviour seems to have changed for good across these
dimensions...
Digital customer Hyperlocal and online Healthy Digital content Consumers and
journeys communities living consumption the state
Grofers - New orders up by 14-15%, Post imposition of lockdown, many Cure.fit - “The number of people using Cult-.live Voot - “What we would have expected to do in terms Andhra Pradesh has made a list of
Number of orders from the existing users 2X organisations in India started using will hit 200,000 in the next one week,” said of number of subscribers in 60 days, we have already 25,000 people who are on COVID19 risk
Lockdown situation -
the past week. virtual collaboration tools such as Ankit Nagori, cofounder, Cure.fit. done in the first 10 days.” Ferzad Palia, head of Voot due to their travel history. They are
https://www.businesstoday.in/current/corporate/covid-19-online- Zoom, Slack, Microsoft Teams etc. to https://economictimes.indiatimes.com/news/politics-and-nation/covid- Select, youth, music and english entertainment of tracking them through their mobile
India specific
grocery-platforms-to-benefit-as-consumers-flock-to-shop-
online/story/398600.html
be virtually connected asana-indians-go-big-on-yoga-from- Viacom18 numbers and alerting teams If somebody
home/articleshow/74741684.cms?from=mdr
https://www.zdnet.com/article/effective-strategies-and-
https://www.business-standard.com/article/companies/spike-in-viewership-across- is breaking quarantine.
otts-as-indians-binge-watch-staying-indoors-120031801866_1.html
tools-for-remote-work-during-coronavirus/ Sarva - Rolled out classes on Instagram earlier https://www.businesstoday.in/latest/trends/coronavirus-crisis-
andhra-pradesh-govt-tracking-mobile-phones-of-home-
this week, saw 1,000-1,500 people have been quarantined-people/story/399692.html
Amazon - Change in content formats provided -
attending sessions every day.
Big Basket - There has been a 2x growth in various providers such as Amazon Prime are Karnataka government directive the
https://economictimes.indiatimes.com/news/politics-and-nation/covid-
traffic and revenue and there has been a asana-indians-go-big-on-yoga-from- providing special free catalogue for family and home quarantined coronavirus suspects
15-20 per cent increase in basket value home/articleshow/74741684.cms?utm_source=contentofinterest&utm_
medium=text&utm_campaign=cppst
children to boost consumption & patients will have to send their selfies
https://www.livemint.com/news/india/covid-19-streaming-services-experiment-with- every one hour on
https://www.businesstoday.in/current/corporate/covid-19-
online-grocery-platforms-to-benefit-as-consumers-flock-to- Portea - Live video consulting facility for
free-offers-as-people-stay-home-11585036708397.html the Quarantine Watch, a mobile
shop-online/story/398600.html application developed by government's
physiotherapy a full-fledged service a Unacademy founder and CEO Gaurav Munjal said, "In
revenue department to keep a track of
couple of weeks back. the last three weeks, learners who are watching free
the isolated persons. The government
https://www.thehindubusinessline.com/info-tech/how-online-healthcare- live classes have increased by 3x. We are clocking 30
is-stepping-in-to-serve-non-covid-19-patients-in- warned the home quarantined people
million minutes of watchtime on Unacademy every
india/article31179651.ece that they will be sent to mass quarantine
single day.”
centres if they violate the rule.
https://www.livemint.com/companies/news/covid-19-impact-online-learning- https://economictimes.indiatimes.com/news/politics-and-
companies-see-spike-in-number-of-students-11584724448197.html nation/those-in-home-quarantine-in-karnataka-directed-to-
send-selfies-every-hour-to-
govt/articleshow/74907051.cms?from=mdr
International Market
Learnings From
BAIC BJEV, Jetour - In China, online car DingTalk moved from 40th to 3rd Push Doctor - The pandemic has pushed Yahoo! News unique audience increased by 24% (Daily China has reportedly relied on mass
sales went up in the first weeks of the crisis. position in usage in China as digital health into the mainstream: Push Average - 21,727) in Japan amid COVID-19 concerns surveillance of phones to classify
Baic Bjev and Jetour, the two brands with many companies have asked their Doctor saw a 30% increase in consultations. https://www.nielsen.com/wp-content/uploads/sites/3/2020/03/The-Impact-of- individuals by their health status and
COVID-19-on-Media-Consumption-Across-North-Asia.pdf
digital retail experience have managed to employees to work from home Last week, consultations were up by 70%. restrict their movements.
secure a place among the Top 5 players in https://qz.com/work/1802044/what-its-like-to-work-
https://sifted.eu/articles/digital-doctor-demand-coronavirus/ https://www.sciencemag.org/news/2020/03/cellphone-
from-home-in-coronavirus-hit-china/ tracking-could-help-stem-spread-coronavirus-privacy-price
terms of search volume
https://www.reply.com/en/covid-19-report WeChat Work also saw a 10-fold
increase in usage
https://www.businessofapps.com/data/wechat-
statistics/
Page 5 10 April 2020 Presentation title
…posing unforeseen challenges for businesses across the nation
Closure of front Complete lack of Major supply chain and Working capital Issues regarding No contact with
offices – sales demand apart from logistics issues due to and cashflow employee safety customers who are not
outlet/showrooms etc. essentials items lockdowns issues and losses active on digital channels
Response
examples
Creating awareness among Providing customers with Enabling employees with Pushing/encouraging customers
customers with new additional and emergency required facilities to work to adopt digital modes of
company logos promoting services to help them amid from home purchasing or enquiring about a
social distancing COVID-19 scenario product
Page 6 10 April 2020 Presentation title
Five key action areas emerge as the new epicentres of customer focus
1. Re-baseline consumer insights 2. Empathetic branding
Innovate
Re-learn Personalize (product, pricing, engagement)
New Re-imagining brand in Integrated real time Realign marketing
segments the digital only world marketing communication spend
emerge Health-freaks Remote-workers Neo-digital Hyper-local DIY- enthusiasts
3. Digital-only 4. Remote collaboration
Leap from Redesign all parts of Restructure customer Launch Competitive Incubate cross-functional Evaluate cultural
physical to customer journey to operations for digital collaboration in face of teams (shift from functional aspects of virtual
digital-only enable digital Direct2Consumer products new consumer needs focus to consumer) teaming
5. Virtualized sales and service
Merged frontlines (Sales + Service) e-tail with reduced channel dependence Online consumer community based Proliferation of self-
sales and service service, DIY culture
Page 7 10 April 2020 Presentation title
Planning the now, next and beyond scenarios is critical to survival
Now Next Beyond
High
Consider non-crisis Prepare for Re-align brand
related ‘escapist’ recovery messaging with
Scenario analysis comms campaigns ‘recovery’
to model demand
changes Continued
transparent & Direct-to-Consumer Eliminate / reduce
empathetic comms outreach physical assets
Re-baseline to Ongoing brand
create new sentiment tracking
segments Create, revise &
Customer reach
enhance digital
Research impact Align comms with customer journeys Invest in emerging digital technologies
by customer sentiment analysis
segment
Prepare capacity
Understand Use analytics for and content for
customer liquidity targeted & self-service & Embed automation in Operations (CPQ, Order
impacts “empathetic” digital sales Execution, Fulfilment)
campaigns
Immediate brand
Enable remote
sentiment analysis Expand digital experiences with a
resources & personal touch
access for virtual
Communicate with
sales & service Shore up
empathy & clarity
capability for
Expand network digital payments
Immediate
capacity to handle
mitigation of any
Low
increased digital Customer Behaviour Change
‘tone-deaf’ comms Sustained Capability Build
demand
Time to realise
Re-baseline consumer insights Remote collaboration Digital-only
Source: EY research
Empathetic branding Virtualized sales & service
Page 8 10 April 2020 Presentation title
Call to action: immediate measures to ensure customer excellence in the face of
imminent challenges
Re-baseline Empathetic Remote Virtualized
consumer insights Digital-only
branding collaboration sales and service
► Focus on risk mitigation and ► Engage with customers ► Build and strengthen E-Com ► Enable “Work from home for ► Realigning after-sales service
business continuity through proactive relationships and shift focus sales force” through digital to provide best feasible
Immediate
► Proactively set customer communication and to active channels and means support
action
expectations regarding assistance customer segments ► Review all non value added ► Agile sales team management
changes to product and ► Demonstrate organisation’s ► Monitor regulatory activities to minimize physical through beat restructuring,
service offerings brand and purpose in requirements and approvals movements/use of low cost recrafting of roles and clear
communication with ► Expand network capacity to automation communication
customers handle increased digital ► Explore use of emerging ► Redeploy ASP spends to
► Focus on tracking brand demand technology and automation to promote channel liquidity,
sentiment and conduct ► Pivot to identify and assess reduce people contact and channel partner loyalty and
analysis driven campaigns new revenue streams eliminate risk new channels
► Unlearn pre-COVID customer ► Communicate with empathy, ► Ensure website and digital ► Invest in emerging ► Expand network capacity for
Medium-term
insights and re-learn their be responsible with brand ordering resilience to technologies such as VR for increased digital sales
expectations and needs to promises and promotions eliminate the need of middle- remote product walk-throughs demand
plan
create new segments ► Use analytics for targeted men like dealers, retailers to enhance B2B sales ► Call Centre: Expand
► Deepen customer research and relevant marketing ► Promote self-care and auto- interactions resources & access for
efforts to understand which ► Enhance digital marketing in ticket logging to eliminate ► Call centre: Seek to partner remote workers to enable a
segments are impacted in B2B the need of contact centres with external providers for virtual contact centre
what ways ► Prepare for recovery and a over-flow or accelerated ► Consider AR or visual search
planned digital marketing / capacity. Tap into the gig- in a repair scenario
communication plan economy where appropriate
Enablers
Emergence Pricing Product Household Digital Nano Digital Direct to Drone Remote Gig Chatbots Home Online e-Service
of new innovation innovation view marketing targeting adoption consumer deliveries working culture contact centers sales
segments
Page 9 EY research
Source: 10 April 2020 Presentation title
KEY CONTACTS
Mahesh Makhija Shashank Shwet
Digital & Customer Leader – India Customer & Design Expert
mahesh.makhija@in.ey.com shashank.Shwet@in.ey.com
Ashish Nanda Shilpa Singhai
Consumer Products Leader - India Frontline Expert
ashish.nanda@in.ey.com shilpa.singhai@in.ey.com
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