This archive report was first published on 2 July 2020.
Published on July 2, 2020, a report by SCANAD, a marketing agency, highlights the drastic shifts in consumer spending habits and routines as they cope with the economic effects of COVID-19.
The report, titled 'Understanding the New Normal Consumer', aims to help brands navigate the changing consumer environment and maintain demand in these unprecedented times.
According to the report, 84% of consumers are facing financial uncertainty, with 40% being financially vulnerable. Less than 30% are hopeful of a financial rebound in three months, while the rest look at 6-12 months.
The report also shows that a decline in economic activity in Kenya's main hubs has put immense financial pressure on households and businesses. Over half of the employed population has received a salary cut, and an estimated 435,000 Kenyans have lost their jobs, with 47% relying on food donations to survive.
SCANAD Chief Executive Officer Sandeep Madan noted that social disruption, business closures, mass unemployment, and an uncertain future are preoccupying the minds of Kenyans. This has triggered bulk buying and adventure as consumers try out new products and brands.
Madan emphasized that different social classes are experiencing the effects of COVID-19 in varying ways and intensities. For those at the top of the economic pyramid, the pandemic has disrupted their lifestyles, while for those at the bottom, it has threatened their survival.
Madan concluded that marketers are dealing with a new breed of consumers, and brands must take responsibility to lead and serve, rather than capitalizing on the crisis. This calls for them to act beyond communication, serve new needs, and maintain brand momentum.
