The COVID-19 crisis is being defined by four distinct consumer behavior segments, according to the first edition of the EY Future Consumer Index, a survey of 4,859 people tracking consumer sentiment and behavior across the US, Canada, the UK, France and Germany.1 These are “Cut deep,” “Stay calm, carry on,” “Save and stockpile” and “Hibernate and spend”.
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Consumers that fall into the “Cut deep” segment (27.3%) are spending less across all expense categories as the pandemic impacts employment; others representing the “Stay calm, carry on” category are continuing to spend as normal (26.2%). Most consumers (35.1%) represent the “Save and stockpile” segment, indicating that they feel pessimistic about the future, while consumers that fall into the “Hibernate and spend” segment (11.4%) are spending more across the board.
Overall, 42% of respondents believe that the way they shop will fundamentally change as a result of the COVID-19 outbreak. When it comes to brands and products, 34% of consumers indicate that they would pay more for local products, 25% for trusted brands and 23% for ethical products.
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Kristina Rogers, EY Global Consumer Leader, says:
“Looking beyond the immediate effects of COVID-19, few consumers expect to revert back to pre-crisis behaviors any time soon. In these uncertain times, no one knows how long the transition will take or whether different consumer trends will emerge. The EY Future Consumer Index, paired with analysis around the EY FutureConsumer.Now, will continue to provide a perspective on the changing consumer and help consumer-facing companies stay relevant and plan for the future.”
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