Notably, Indian respondents were less likely than those elsewhere to say that they would forego their purchases at this point-a sentiment that could change should economic conditions decline. By comparison, just 13 percent of Chinese respondents and 7 percent of those in Indonesia said they are delaying or canceling plans to purchase skincare items. Fifty percent of Chinese respondents and 61 percent of Indonesian respondents who, before the outbreak, planned to buy cars said that they will forego those purchases this year, and 59 percent in China and 39 percent in Indonesia said the same about planned jewelry purchases. Respondents were more likely to indicate plans to indefinitely postpone or cancel purchases for bigger-ticket items such as jewelry, vehicles, and home construction or renovation than for smaller ones. Meanwhile, responses show an accelerating intent to use digital channels while visiting physical stores to experience products. At the same time, some are grappling with guilt about spending in more conspicuous categories. Yet while about two-thirds of respondents in India and Indonesia expected to recover income or savings lost during the lockdown by the end of the year, many respondents in each of the three countries surveyed are planning to delay or forego bigger-ticket purchases, seeking to find better value, and strengthening their desire to purchase from brands they trust. Overall, the survey results suggest there is cautious optimism in the surveyed countries. These shifts will require retailers to make strategic changes-and in some cases, accelerate the changes they have already made in response to the crisis. Yet the survey findings point to shifts seen across them, which could remain in place long after the public-health crisis ends. 1Īt the time the survey was conducted, these countries were in different stages of the pandemic’s progression and economic reopening. Between April 28 and May 10, 2020, we surveyed more than 3,600 consumers across 91 cities about their pre- and midpandemic purchases and postpandemic plans in a broad range of categories, including apparel, personal electronics, domestic appliances, and vehicles. Given that discretionary spending comprises roughly one-fifth to one-fourth of many countries’ GDP, we sought to understand how consumers in the most populous countries in Asia-China, India, and Indonesia-are thinking about such expenditures, as portions of these economies begin to reopen. By Stephanie Chan, Mahima Chugh, Felix Poh, and Simon Wintelsĭiscretionary spending in some retail categories plummeted by as much as 90 percent at the peak of COVID-19 lockdown efforts aimed at easing the spread of the virus.
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