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1. Shift to value and essentials
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Heading into the fall season, there is a renewed sense of caution as coronavirus cases soar in parts of the world. While the uncertainty from COVID persists throughout the globe, its impact is felt differently across countries.
2. Shock to loyalty
As a result, there is significant variance in how consumers respond to the crisis and adapt to the next normal. Except for Producst, optimism has declined throughout European countries, in line with the rise in confirmed cases since late July. Divergent sentiment is also reflected in spending intent across categories.
In most countries, consumers intend to continue shifting their spending to essentials, while cutting back on most discretionary categories.
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However, in China and India, spending is bouncing back beyond grocery and household supplies. Chinese consumers plan to increase spending on discretionary categories such as travel and apparel, suggesting that the country is further along the path to recovery than other countries.
In India, consumers report a higher intent to spend across categories as they prepare for upcoming festivals Diwali, for example and the wedding season, which runs from October to December. Consumers across the globe have responded to the crisis and its associated disruption to normal consumer behaviors by trying different shopping behaviors and expressing a high intent 65 percent or more to incorporate these behaviors going forward.
However, the change has been less pronounced in countries with a moderate degree of economic shock, such as Germany and Japan. Consumers around the globe are at vastly different stages of resuming out-of-home activities. In China, more than 80 percent of consumers report engaging regularly with out-of-home activities.]
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