'Post-Corona' Consumers Prioritize 'Cost-Effectiveness' and 'Health'

EY 'Future Consumer Index' Report... Survey of 14,000 People Worldwide
53% Say "Values Have Changed"... Market Reshaped into 5 Major Consumer Groups

[Asia Economy Reporter Minji Lee] It has been revealed that the COVID-19 pandemic has increased global consumers' price sensitivity and interest in health. In the ‘post-COVID’ era, the market is expected to be led by five major consumer groups centered around consumers who prioritize health along with the price of goods or services, that is, ‘value for money (performance relative to price).’

According to EY Han Young, a global accounting and consulting firm, on the 19th, EY Global conducted a survey of 14,074 people living in 18 countries worldwide, revealing this phenomenon. The survey results are included in the third report of the ‘EY Future Consumer Index.’ EY has been developing the Future Consumer Index since April, starting with the first report, to monitor changes in consumer psychology and behavior caused by COVID-19.

According to the third EY Future Consumer Index report, 53% of global consumers said that their experience with COVID-19 has changed their lives and values. The market is showing signs of major changes, as 50% of global consumers responded that they plan to reduce spending on non-essential goods.

EY analyzed that due to these changes, the market will be reorganized into consumer groups with clear consumption values and tendencies after the COVID-19 pandemic. EY specifically stated that five core future consumer segments will be formed, prioritizing health, environment, society, experience, and price reasonableness. According to the report, 62% of all consumers said they will pay more attention to health management in the future. Additionally, 58% said they will focus on cost-effectiveness, or ‘value for money,’ when making future purchases.

The consumer group emerging as the most core segment in the future is the price-prioritizing group. According to EY’s survey, the largest portion, 30% of global consumers, want to consume according to their economic capacity. This means they prioritize price and performance over brand when purchasing products. They are the most pessimistic about the economic downturn caused by COVID-19 and the possibility of national economic recovery. More than half (54%) of the price-prioritizing consumers said that price is becoming increasingly important in their purchasing decisions.

The health-prioritizing consumer group is also emerging as a major consumer segment in the ‘post-COVID’ era. Twenty-six percent of global consumers said they prefer safe brands and products that minimize unnecessary risks. Among the health-prioritizing consumers, 57% said they pay attention to whether the products they purchase contribute to their health.

Along with these, the environment-prioritizing (17%), society-prioritizing (16%), and experience-prioritizing (11%) consumer groups are expected to form the remaining five major future consumer groups.

Environment-prioritizing consumers are the group most likely to change their existing consumption tendencies to purchase products that meet conditions such as high quality, eco-friendliness, and sustainability. In particular, 40% of the environment-prioritizing consumers are willing to pay more than before to use such products and services. Additionally, 59% of environment-prioritizing consumers said they will purchase products produced and sold in their residential areas in the future.

Among society-prioritizing consumers, 73% said they are willing to change their personal tendencies and behaviors for the public good. For them, ethical and transparent companies’ products and services are the priority in consumption. Experience-prioritizing consumers are a group that consumes faithfully according to personal tastes and preferences. They prioritize personal satisfaction over health or economic power. Among the experience-prioritizing consumer group, two-thirds (66%) said they would not hesitate to visit shopping malls within days or weeks once the COVID-19 situation calms down.

Christina Rogers, EY Global Consumer Sector Leader, emphasized, “Companies need to prepare strategies to respond not only to consumers with clear values and health sensitivity but also to consumers demanding products and brands reflecting individual environmental and social values.” She added, “Corporate executives should focus on reorganizing portfolios targeting future consumer segments and securing transparency necessary to gain consumer trust.”

Kim Hyung-min, EY Consulting Retail Consumer Goods Sector Leader, explained, “The longer the COVID-19 pandemic lasts, the more voluntary changes in values will occur beyond involuntary consumption changes. Companies must also reorganize customer channels and customer experiences to respond to this huge change.” Partner Kim continued, “It is necessary to establish a foundation to satisfy consumers’ new needs through the development of products and services and innovation in supply chains that support this.”

Meanwhile, EY’s survey results showed that global consumers hope to return to the pre-COVID-19 state but recognize that permanent changes are inevitable. In the survey included in the third Future Consumer Index report, 40% of consumers said they want a normal and stable life unaffected by COVID-19. However, half (50%) of all respondents said they do not change their prediction that their lives will significantly change after COVID-19.

This content was produced with the assistance of AI translation services.