Jon Moeller, the company ’s chief financial officer, said on the earnings conference call last month: “We need to pay more attention to consumers and their habits, needs and desires than we do now.”
Early evidence suggests that the shift to online purchases is accelerating, consumers are buying more products for health and households, and they are becoming more and more cost-conscious while choosing to save more.
Schneider said: “For me, this is very interesting work, because obviously this will not recover soon.” “This will be a quarter or even a few years of the process, you can safely expect some category changes. “
In an environment where almost everything changes overnight, consumer goods companies need to figure out which new purchase models are temporary, may end with lock-in or vaccines, and will continue to exist, thus changing consumers Ways to spend money over the years.
She told CNN Business that there is no “script” for this decline. “This will require us to become extremely agile and flexible for the foreseeable future.”
Their research found that the top three grocers in the UK have added more than 500,000 new delivery positions in just a few weeks, an increase of more than 30%.
Nestlé’s global e-commerce sales soared by 30% in the first three months of this year, while Procter & Gamble reported that online sales increased by 35% during the same period.
Jack Neele, portfolio manager of Dutch financial services company Robeco, said that e-commerce is unlikely to remain at the current high level, but “we have reached a higher growth platform.”
Health and hygiene
Alan Jope, CEO of Unilever, told analysts last month: “We are very confident that anything in the health and well-being area will continue to grow.”
Faber said Unilever ’s products are sold more, such as Lipton immune support and drinks containing zinc and vitamin C. She added that the company is rapidly taking steps to promote these products around the world, and health remains a top priority for product innovation.
Procter & Gamble’s Mueller said: “We will provide services that may change the focus of health, hygiene and cleaning forever.” He pointed out that American consumers are washing clothes more and more frequently, adding more laundry capacity each month.
Nest at home
Even if the blockade is lifted, restaurants, bars and cinemas are reopened, people will still not rush out again.
Mueller said: “People may be more and more concerned about the family: more time at home, more meals at home, more cleaning at home.”
For those who spend time and money to transform houses and gardens, or start a new hobby, the prospects that remain are more attractive than before.
The McKinsey report said: “Check-in is a new way out.” “Once the restrictions are lifted, we expect consumers to continue to spend more time at home, driven by savings, continued security issues, and the discovery of nested new pleasures. “
Growth of bread machine online sales United States Data collected by retail technology company Stackline shows that it was second only to disposable gloves in March, a year-on-year increase of 652%. Online sales of weight training equipment (+ 307%), craft kits and items (+ 117%) and table tennis tables (+ 89%) reflect that many consumers are looking for new ways to entertain themselves at home.
To cater to this trend, Nestlé launched a series of health-conscious ready-to-eat foods last week. Faber, a Unilever executive, described this trend as “cannibalization.”
Value and trust
Unilever’s Qiaopu said that even in rich countries, value and affordability will become increasingly important. He pointed out that the company’s ability to provide “incredibly low-priced” products in countries such as India with “great power.”
He said: “In Europe, as the economy … falls into a downturn, we can count on increased negative pricing pressure.”
Similarly, Procter & Gamble said that because its product portfolio is mainly focused on daily necessities, it is more resistant to the impact of the economic downturn. “We have never encountered the level of unemployment we want to see in this country [the United States] There may even be other situations, and we don’t know how long it will last. “
But, at least so far, Nestlé, Unilever and Procter & Gamble are confident that consumers will strike a balance between price and value, choose well-known brands they are familiar with, and reduce their attempts.
Faber of Unilever said: “People will return to the big trusted brands.” “They simply can’t afford to buy uncertain products.”