THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong

 
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
THE NEW
NORMAL
HONG KONG CONSUMERS DURING COVID-19

Ipsos Hong Kong
June 2020

 © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
NEW EXPECTATIONS

                                         THE NEW NORMAL

                                             NEW MINDSETS

2 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
KEY
MILESTONES
                      Wave 1:                                                                                               Sample size:
                                                             Wave 2:
                                                                                                                            - 1,000 interviews per wave
                      Mar 16 – 20                            Mar 28 – Apr 1                                                 - General population aged 18+

                                         Mar 20
                                                                                      Wave 3:
                                         HK recorded 48 new
                                         cases; highest daily tally                   Apr 15 – 19
                                         recorded so far                                                          Wave 4:                     Wave 5:
        Jan 23
                                         Mar 25                                                                   May 1 – 5                   May 21 – 25
        1st confirmed cases in
                                         HK closed its borders to all
        HK
                                         non-residents arriving from    Apr 12
        Feb 4                            overseas                       1st time since March
                                                                        16th that HK recorded
        1st death recorded due           Mar 27                         single-digit number of      Apr 20                      May 5
        to Covid19 in HK
                                         HK banned indoor and           Covid19 cases
                                                                                                                                                     May 31
                                                                                                    1st time in six weeks
                                         outdoor public gatherings                                                              The cap on public    A new cluster of
                                                                                                    that HK recorded no
                                         of more than 4 people                                                                  gatherings raised    local cases in Lek
                                                                                                    new cases
                                                                                                                                from 4 to 8 people   Yuen Estate
                                         Mar 29                                                                                                      reported
                                                                                                                                May 13
                                         HK recorded 82 new
                                         cases of Covid19, the                                                                  A new cluster of
                                         highest tally ever recorded                                                            local cases in Lei
                                         since the beginning of the                                                             Muk Shue Estate
                                         pandemic.                                                                              reported

3 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
NEW
EXPECTATIONS
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
MORE HK PEOPLE BELIEVE
THE PANDEMIC WILL END BY
Q4 2020 ONWARDS

                           30%
                                             24%
    14%                                                 15%
                              12%             18%                 13%

                                                         6%                           6%
         4%                                                      4%
                                                                            2%                 Don’t know
                                                                                               Wave 1: 27%
      Q2 2020                 Q3 2020        Q4 2020   Q1 2021   Q2 2021   Q3 2021   Q4 2021   Wave 5: 25%

5 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
NEAR HALF EXPECT
A RECOVERY WOULD ONLY
HAPPEN IN 2021
                                                                 18%
                                              16%      16%
                                                                  12%
                                             11%        14%                                               10%
                                                                                                                    Don’t know              Don’t know
                             8%                                                  7%                                  when HK                 when the
                                                                                                                     economy                pandemic
                                                                                                                    will recover               end
                                      5%                                                                           Wave 1: 42%             Wave 1: 27%
    2%
                                                                                                                   Wave 5: 37%             Wave 5: 25%
                 1%
    Q2 2020                  Q3 2020         Q4 2020   Q1 2021   Q2 2021      Q3 2021                  Q4 2021

6 ‒ © Ipsos | Covid-19 Webinar | June 2020                                 Denotes significantly higher/lower than the Wave 1 at 95% confidence level
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
MORE ARE PESSIMISTIC
ON THEIR EARNINGS

     Wave 1                                          41%                           29%                29%

                                                                    Remains the same as of now
                                             No major impact                                         Earn less
                                                                    but would expect to be reduced

     Wave 5                                         39%                        26%                   35%

                                                               Expected reduced
                                                                                                         Reduced level of
                                                                level of income:
                                                                                                            income:
                                                                   13%                                           30%
7 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
THE PERCEIVED HEALTH THREAT
LEVEL IS HIGHER TOWARDS
THE WORLD THAN HONG KONG

                                                   Hong Kong                        Your job or business
                                                   High – Very High Threat:   60%   High – Very High Threat:   42%

The world
High – Very High Threat:                     88%   Your personally                  Your family
                                                   High – Very High Threat: 33%     High – Very High Threat: 32%

8 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
THE MAJORITY
REMAINS UNCERTAIN
                                             Mainland China
ON THEIR NEXT TRIP                                        Wave 5
                                              Q3 2020      9%
                                              Q4 2020      10%
                                              Q1 2021      7%
                                              Q2 2021      4%
                                              Q3 2021      3%
            Long Haul                         Q4 2021      3%
                               Wave 5        Don’t know   63%
       Q3 2020                   2%
       Q4 2020                   8%
       Q1 2021                   10%            Short Haul
       Q2 2021                   8%                       Wave 5
       Q3 2021                   11%
                                              Q3 2020      6%
       Q4 2021                   9%
                                              Q4 2020      21%
      Don’t know                52%           Q1 2021      14%
                                              Q2 2021      10%
                                              Q3 2021      8%
                                              Q4 2021      6%
                                             Don’t know   36%
9 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE NEW NORMAL HONG KONG CONSUMERS DURING COVID-19 - Ipsos Hong Kong
THE
NEW NORMAL
SUCCESS CASE
STUDIES DURING
COVID-19

HKTV mall                                                                                      Café de Coral Group
        •    Achieved sales of HKD482 million in                                                        •     Managed to minimize the
             Feb 2020, compared with HKD179                                                                   impact on sales during Covid-
             million in Feb. 2019                                                                             19 by expanding its online
        •    Orders have surged year on year from                                                             delivery option
             an average of 12,300 a day to 32,600

AS Watson                                                                                      Benefit Cosmetics
        •    3 times more online traffic
                                                                                                        •     Launched the Benefit Brow Try-
        •    Up to 3 times more transactions in
                                                                                                              On Experience
             some markets
                                                                                                        •     43% increase in daily usage

                                              Reference:
                                              https://www.essentialretail.com/interviews/non-essential-retail-covid-as/
11 ‒ © Ipsos | Covid-19 Webinar | June 2020   https://www.cosmeticsdesign-asia.com/Article/2020/06/15/Benefit-Cosmetics-to-adopt-more-AR-beauty-tools-in-light-of-COVID-
                                              19?utm_source=newsletter_daily&utm_medium=email&utm_campaign=16-Jun-2020
                                              https://insideretail.asia/2020/03/09/hktv-mall-sets-records-as-hongkongers-move-online-during-coronavirus-crisis/
                                              https://insideretail.asia/2020/06/15/online-move-limits-damage-to-cafe-de-coral-groups-sales/?utm_source=irasia-newsbrief&utm_medium=email&utm_campaign=2020-06-16#daily
MOST ARE
  SPENDING MORE
  TIME ONLINE

                                 Watching TV /        Social media    Browsing online     Purchasing more    e-learning/
                            streaming and following                  shopping platforms   groceries online   e-courses
                                 news/ updates

                                     56%              50%                46%
  Changes in
daily life during                                                                             33%              21%
   COVID-19

                                      44%                                                    44%              44%
 Doing more
    than the                                           35%                39%
outbreak period

  12 ‒ © Ipsos | Covid-19 Webinar | June 2020
MOST ARE                                                  HOUSEHOLD CLEANING
  SPENDING MORE                                             PRODUCTS ARE STILL IN
  TIME ONLINE                                               GREAT DEMAND IN HK
                                                            CATEGORIES BOUGHT
                                                            MORE ONLINE:

                                                            30%            23%         17%        15%          12%

                       Browsing online Purchasing more
                      shopping platforms groceries online
                                                              Household   Frozen food Health     Hand cream/   Organic
                                                               cleaning              supplements moisturizer   products
                                                               products
                              46%
  Changes in
daily life during                               33%
   COVID-19                                                               11%      10%          9%         8%             5%       4%

                                                44%
 Doing more
    than the                  39%
outbreak period
                                                                     RTD drinks Fresh food      Beer       Bottled    Wine and Luxury items
                                                                        (non                                water      spirits
  13 ‒ © Ipsos | Covid-19 Webinar | June 2020                         alcohol)
MOST ARE                                             FREE-TO-AIR TV AND
  SPENDING MORE                                        NEWS PORTALS
  TIME ONLINE                                          REMAIN THE MOST
                                                       POPULAR

                                                      71%
                                 Watching TV /

                                                                         54%                  35%             40%
                            streaming and following
                                 news/ updates                                                                                   17%

                                     56%
  Changes in
daily life during
   COVID-19

                                      44%
 Doing more
    than the                                          Watching free-to- Browsing news       Watching cable/ Watching Netflix      Reading
outbreak period                                           air TV       portals and online    internet TV    or similar content newspapers and
                                                                          newspaper/                            platforms         magazine
                                                                          magazines
  14 ‒ © Ipsos | Covid-19 Webinar | June 2020
MOST ARE                                               FACEBOOK IS VERY
  SPENDING MORE                                          PROMINENT IN THE
  TIME ONLINE                                            SOCIAL MEDIA PLATFORM
                                                            Facebook
                                                                                90%
                                                                   YouTube
                                                                                   65%
                                     Social media
                                                    What does it
                                                                      WhatsApp
                                                                                           76%
                                                    mean to your
                                                      brand?
                                                                             Instagram             41%
                                     50%
  Changes in
daily life during
   COVID-19
                                                                                  WeChat              29%

 Doing more                                                                              Twitter         12%
    than the                           35%
outbreak period
                                                                                               Line         10%
  15 ‒ © Ipsos | Covid-19 Webinar | June 2020
DIGITAL
PERSONAS
Turbocharge your consumer
engagement strategy with behavioral
audience intelligence
CASE STUDY: HK MILLENNIALS

Setting up Target audience and Reference audience

17 ‒ © Ipsos | Covid-19 Webinar | June 2020
HK MILLENNIALS HIGHLIGHT – CATEGORY DEEP DIVE

Balancing practical family needs and self pampering

18 ‒ © Ipsos | Covid-19 Webinar | June 2020
HK MILLENNIALS HIGHLIGHT – MEDIA PREFERENCE
Local Media captures more attention of the millennials

19 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE MOST COMPREHENSIVE VIEW ON YOUR BRAND PERSONAS
BEHAVIORAL DATA-DRIVEN
BRAND AUDIENCE INTELLIGENCE

  NEXT GENERATION                             UNIQUE BEHAVIORAL   DATA-DRIVEN      SHARPEN YOUR
  AUDIENCE INSIGHTS                           DATA UNIVERSE       BRAND PERSONAS   DIGITAL STRATEGY

20 ‒ © Ipsos | Covid-19 Webinar | June 2020
THE UNIQUE DATA ECOSYSTEM BEHIND
CRAFTING DIGITAL
PERSONAS FROM
OVER 15000 BEHAVIORAL
                                                 BEHAVIOURS
DATAPOINTS                                       Purchase behavior ● Car ownership ● Digital activities ●
                                                 Residential profiles ● Seasonal & events ● Travel ● Charitable
                                                 Donations ● Financial behavior ● Media consumption…
       ARTS & ENTERTAINMENT
      Music ● Movies ● Events ● Arts ● Books                    BRAND ENGAGEMENT
      ● TV Shows ● Streaming Services…
                                                               Fashion ● Electronics ● Retail ● Mobility
                                                               eCommerce ● Banks ● Luxury ● Cosmetics
                                                               ● Beauty ● Services ● Durables…
                                          YOUR
                                         BRAND                      SOCIO-DEMOGRAPHICS
                                                                    Age ● Gender ● Relationship ● Life events ●
                                       PERSONA                      Income ● Location ● Education ● Languages ●
                                                                    Parental status ● Work ● Home type…

    LIFESTYLE & INTERESTS                                    MEDIA CONSUMPTION
                Sports ● Home & Gardening ●                  Social Networks ● TV Channels ● Influencers ●
            Technology ● Travel ● Shopping ●                 Device Usage ● Digital Activities ● Apps ●
                Food ● Outdoor Recreation…                   Magazines ● Newspapers ● Gaming ● Radio…
21 ‒ © Ipsos | Covid-19 Webinar | June 2020
DIGITAL PERSONAS (I)
BRAND PERSONAS PEN PORTRAITS

22 ‒ © Ipsos | Covid-19 Webinar | June 2020
DIGITAL PERSONAS (II)
INDIVIDUALISING & REDEFINING THE CONTENT AND MEDIA STRATEGY

23 ‒ © Ipsos | Covid-19 Webinar | June 2020
NEW
MINDSETS
MORE START TO
BUILD UP AN EXERCISE ROUTINE
OR BUY MORE HEALTH SUPPLEMENTS

                               Personal care                                                                      Beauty

  75%                              41%                   35%                  34%                    25%                   19%                   18%

   I have increased                I started to       I have been buying    I currently put          I have been           I have been       I currently don’t
    the number of              exercise/ I exercise       more health      more emphasis on       avoiding the hair     avoiding the hair   wear any make up
   times I wash my               more often at           supplements       my daily facial skin    salon and taking    salon and coloring          at all
  hands and/ or use            home than before                             care cleansing        care of my hair at    my hair at home
  hand sanitizer daily                                                                                  home

25 ‒ © Ipsos | Covid-19 Webinar | June 2020
MORE GO VEGGIE

                                                             Reasons for being vegetarian:

        What does it                                                                                         2019                       2020
        mean to your
                                                                  Environmental
          brand?
                                                                  friendly                                   23%                        43%

                                                                  To preserve health/
                                                                  health care                                37%                        40%

                                              INCIDENCE OF         To reduce carbon                          21%                        38%
                                               VEGETARIAN          dioxide emissions

                                                                   To protect animals                        21%                        33%
                                              4%    9%
26 ‒ © Ipsos | Covid-19 Webinar | June 2020                        Denotes significantly higher/lower than the Wave 1 at 95% confidence level
CASE
STUDY

 OmniPork                                                                     L’Occitane                                                                           Scent by Six
 •    Retail grocery sales increased                                          •     Observed demand for hand                                                       •     Trend of functional fragrance
      by 120% from April 2019 to                                                    washes and hand creams                                                               as more consumers prioritise
      January 2020                                                            •     Plans to develop new products                                                        inner well-being
                                                                                    related to hand care and                                                       •     More natural, green olfactive
                                                                                    personal hygiene to keep up                                                          direction
                                                                                    with the demands of the market
                                              Reference:
                                              https://vegconomist.com/companies-and-portraits/omnifoods-sees-retail-grocery-sales-increase-by-120-continues-its-plant-based-domination-of-asia/
27 ‒ © Ipsos | Covid-19 Webinar | June 2020   https://www.cosmeticsdesign-asia.com/Article/2020/05/20/L-Occitane-International-aims-to-develop-hand-care-category-as-sales-take-off-during-COVID-
                                              19?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright
                                              https://www.cosmeticsdesign-asia.com/Article/2020/05/12/Fragrance-with-benefits-Focus-on-inner-well-being-during-COVID-19-accelerating-scent-
                                              trend?utm_source=MKT_0520&utm_campaign=Monthly_Recap&utm_medium=email
THE NEW NORMAL
                          Review touchpoint strategy
                          for micro-targeting

                          NEW MINDSETS
                          Review brands & products
                          profile to capture new health
                          conscious mindsets

28 ‒ © Ipsos | Covid-19 Webinar | June 2020
HONG KONG
CONSUMERS &
COVID-19 STUDY                                Key questions:
                                              • Social responsibilities
Upcoming waves:                               • Media: Changes in traditional media & social media
• Wave 6                                        habits
   • FW: Jun 18-22                            • Category Spending: Changes in spending in categories
   • Report: Jul 3                              including food & drinks, luxury, household cleaning, health
• Wave 7                                        supplements
   • Cutoff: Jul 7
                                              • Dining Habits: Ordering and eating habits, channels &
   • FW: Jul 9-13
                                                brands
   • Report: Jul 22
                                              • Beauty: Beauty & health habits & changes
Investment (HKD):                             • Investment: Impact on income, changes in investment
• $15K                                          plans & saving strategy
• $5K for one previous wave’s data            • Expectations: End of pandemic, recovery of HK
• $1K for each exclusive question               economy, next travel

29 ‒ © Ipsos | Covid-19 Webinar | June 2020
THANK
 YOU
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