The point is that in fighting the spread of the virus , how people live has been impacted and the hunger for information that supports return to some form of normalcy will persist . We have seen , in the recent past , protests against government restrictions - a sign of people feeling loss of control , enjoyment , security .
However , the need for security will still keep us in the space of hand washing and social distancing until the relevant authorities tell us otherwise . These dynamics have implications - the government and other public and private authorities need to change their messaging to ‘ reminding ’ the public about the virus and its persisting presence .
Businesses , especially the ones in high contact sectors like hospitality and transportation would have to consider routines of ensuring the safety protocols are followed , monitoring the adherence levels and communicating safety standards to stakeholders including customers to create a difference and avoid losing business . In one of our recent studies , 32 % of shoppers claimed they would not return to the shops because they felt unsafe .
Economically , there is no doubt that the pandemic has had extraordinary impact - positive and negative . There are sectors that have gained - especially those in the digital space . Overall though , the global economic slowdown has been evident and estimated to be worse than the impact of the 2008 financial crisis . A report by
In fighting the spread of the virus , how people live has been impacted and the hunger for information that supports return to some form of normalcy will persist . We have seen , in the recent past , protests against government restrictions - a sign of people feeling loss of control , enjoyment , security .
On the social front and perhaps the most prominently impacted area of how lives have been affected , there has been major shifts in social interactions partly driven by the need for social distancing and isolation . These have had some adverse effects on overall well-being and balance for people - calling for the need for innovations in products & solutions that support well-being & affirm new social norms .
World bank and povcalnet estimates that for the first time in decades , extreme poverty is rising around the globe . Most of the major economies in the world , apart from China were hit hard in 2020 . Only China , according to OECD , returned a 1.8 % growth in GDP . It is anticipated by the World Bank that the recovery from this slowdown in global output will take a while to return to the pre-pandemic levels - not until after 2022 at minimum .
Locally , the effects of the economic slowdown are evident - the job losses estimated at 1.7m as of September 2020 is the most obvious . With this , financial distress became more common and in reaction , consumers have changed the way they behave in order to survive - most prominently , there is more cautious consideration and buying of categories and brands mainly guided by price . This partially means that loyalty to brands got questioned as consumers started trying out offers outside their usual list .
Also observed is the rise of side small businesses or ‘ hustles ’ - mainly driven by the significant job losses - many have moved to alternative sources of income to keep their families going . These and many other observations not listed here , mean that support for economic relief will be required for a while from both public and private players to give the general public some sense of control - this may include government ’ s continuous review of its list of restrictions that have direct and indirect impact on economic activities .
We also know that during these difficult times , in line with conviviality and belonging as core social motivations , there has been increased sense of togetherness as families and loved ones reached out to financially help each other . Businesses need to consider these dynamics in planning out 2021 and beyond - the pandemic ’ s impact on consumers ’ financial lives and ability to spend has created new behavior that will require an evolved way of connecting with them . These effects are likely to last well into 2021 and perhaps beyond . Big question is ‘ Do you know your new consumer ?’
On the social front and perhaps the most prominently impacted area of how lives have been affected , there has been major shifts in social interactions partly driven by the need for social distancing and isolation . These have had some adverse effects on overall well-being and balance for people - calling for the need for innovations in products & solutions that support well-being & affirm new social norms . The dynamics here have impacted both social and personal dimensions of motivation - the need for enjoyment , belonging , vitality and conviviality .
We have observed more attention to health and wellness routines even locally - people are watching their diet , claim to exercise and engage in personal development routines like reading and reflection more than before . On the flipside , there is increased concern over mental health issues .
The other clear observations that are both positive and negative include ; closer family bonding , fractured relationships & divorce , virtual social interactions , physical ‘ social bunching ’, contraction of social circles , digital entertainment ( Videos , Netflix etc ), blurred work / life boundaries due to work from home , shared social roles at home , comfort in DIY e . g . in hair & personal care , discovery of new hobbies / talents and partial movement to other towns due to effects of financial strain in the main cities and the adoption of remote working .
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