As China and other markets across the Asia-Pacific (APAC) region continue to adapt and react to the COVID-19 pandemic, there has been a noticeable shift in spending over the first half of 2020. With the economic landscape looking grey, GlobalData advises that retailers must instil confidence amongst consumers, to not only remain relevant but to also operate smoothly in this new normal.
According to GlobalData, the leading data and analytics company, 97 percent of people all over the world are concerned about the economic situation in their country, and 89 percent of the respondents agreed to have particular concerns about their financial situation. Consumers are continually limiting their expenses and are reluctant to spend high on non-essentials.
In China, consumers spend more on premium health and hygiene-related products than beauty, grooming and alcoholic drinks.
"Retailers have a lot to learn from consumer spending in China and should draw insights from this market. Similarly, growing concerns over COVID-19 has developed the habit of shopping online to avoid social gathering and to lower the chances of virus exposure," said Hrishabh Kashyap, Retail Analyst at GlobalData.
In India, another key APAC market, 28 percent of respondents agreed that they prefer online channels instead of physical channels.
"Despite several countries across the APAC region relaxing lockdown measures, the psychological impact of the virus still prevails. As a result, majority of the consumers are actively preferring digital channels for shopping. This digital trend resonates well with the millennials and gen Z shoppers. In light of the heightened concerns over hygiene, retailers must maintain the required safety norms to assuage apprehensions among the consumers and stay relevant in the evolving retail environment."