MUMBAI: The Covid-19 pandemic has overwhelmed the lives and livelihoods of people around the globe and put unprecedented pressure on the economy. Businesses and individuals are struggling to mitigate the crisis, which has not only impacted consumer sentiments, but altered their purchase habits, and demand for products and services.
According to a new report released by the Data Sciences Division of dentsu India, over 70 per cent of millennials and Gen Z consumers in Urban India are now willing to purchase products from a lesser-known brand. It also found that close to 60 per cent of transactions of its surveyed audience claim was fulfilled via virtual wallets- 23 per cent via credit and debit cards and the remaining through cash. Google Pay continues to enjoy a lion’s share followed by Paytm.
The latest Insights report titled ‘The Next Normal: The Rise of the Contactless Economy' was released under the agency’s specialist consumer insights wing dentsu Marketing Cloud (DMC) Insights. It covered deep findings of the impact of a zero-touch world on consumer behavior and sentiments with a focus on millennials and Gen Z consumers in Urban India.
The findings of the report also showed a boom in online certificates. As many as 59 per cent of people claimed to have done an online certification- a trend which is likely to continue post the pandemic, according to the agency. There was a growing preference for Ayurvedic products, as 49 per cent of the surveyed pool said they relied on Ayurveda to meet their immunity needs.
“There is widespread uncertainty as the world grapples with the impact of the pandemic. But, in case of ‘at home’ economy, the only assurance is that a ‘next normal’ is being created with the help of a hyper-connected world,” said dentsu Programmatic chief data officer (Asia Pacific) & CEO Gautam Mehra, highlighting that ‘at home’ consumption economy is pegged to reach a $3trillion size globally by 2025. “This will be fuelled by the need for consumers to look at digital channels to maintain normalcy in their lives whether it is to connect with friends and family virtually, purchase necessities, subscribe to content, or discover and learn new skills. Millennials and Gen Z consumers, being digital natives, have been better equipped in adapting to a virtual world by demonstrating a greater adoption of cashless payments and an openness to discover and try new brands."
According to dentsu International VP (Asia Pacific) and head of DMC Insights Abhinay Bhasin, Gen Z and millennials will form a cornerstone of new-age marketing and brand engagement given their growing spending power and digital literacy. “A virtual world has given rise to human experience platforms. With the virus hitting home, there has been a hyper-awareness of health and safety amongst Millennials and Gen Z audiences. This report builds on our commitment to deliver industry leading insights on this demographic covering their impact on various aspects of consumption and growth," said Bhasin.
