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consumers were more interested in reasonably priced products with core features than in higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. . As mentioned earlier, people are worried about the pandemic's impact on their personal incomes. In most countries, between 30 and 40 percent of consumers are worried about being able to make ends meet; in Thailand, 70 percent of consumers say so. • What's more, consumers are willing to forgo future spending. Up to 50 percent of Chinese consumers surveyed say they were planning to give up a future purchase because of uncertainty related to COVID-19. To address these shifts, food retailers should rethink their promotional calendars to safeguard their marketing spending to use only when it's needed to stimulate demand, either for discretionary products or for postcrisis essentials to meet people's desire for value. - Reimagine loyalty. During the COVID-19 crisis, consumers have been loyal to those retailers and brands who offered essential products in their assortments. Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most countries, promotions or pricing has not emerged as a top three reason for switching to different stores. . Except for in Japan and in South Korea, between 30 percent and 50 percent of customers have shifted from their primary stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported by consumers in China) say they have not switched back. . Except for in Japan and in South Korea, between 30 percent and 70 percent of customers have tried a new brand. Those in China are the most likely across countries to say they have not shifted back to old brands, which 20 percent of consumers there report. To address this "loyalty shock," retailers should determine which stores are being affected disproportionally by customers shifting to other primary stores. Targeted marketing may help bring these customers back, as would retailers finding a way to better communicate the efforts they are taking to support customers and their societies more broadly, so consumers will be likelier to give them a bit more leeway. Once food retailers have reimagined their businesses in these four ways, they will be better equipped to provide employment opportunities to people who are currently out of work, reshape their industry ecosystem, and work closely with business partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being and livelihoods for millions of people.

consumers were more interested in reasonably priced products with core features than in higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. . As mentioned earlier, people are worried about the pandemic's impact on their personal incomes. In most countries, between 30 and 40 percent of consumers are worried about being able to make ends meet; in Thailand, 70 percent of consumers say so. • What's more, consumers are willing to forgo future spending. Up to 50 percent of Chinese consumers surveyed say they were planning to give up a future purchase because of uncertainty related to COVID-19. To address these shifts, food retailers should rethink their promotional calendars to safeguard their marketing spending to use only when it's needed to stimulate demand, either for discretionary products or for postcrisis essentials to meet people's desire for value. - Reimagine loyalty. During the COVID-19 crisis, consumers have been loyal to those retailers and brands who offered essential products in their assortments. Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most countries, promotions or pricing has not emerged as a top three reason for switching to different stores. . Except for in Japan and in South Korea, between 30 percent and 50 percent of customers have shifted from their primary stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported by consumers in China) say they have not switched back. . Except for in Japan and in South Korea, between 30 percent and 70 percent of customers have tried a new brand. Those in China are the most likely across countries to say they have not shifted back to old brands, which 20 percent of consumers there report. To address this "loyalty shock," retailers should determine which stores are being affected disproportionally by customers shifting to other primary stores. Targeted marketing may help bring these customers back, as would retailers finding a way to better communicate the efforts they are taking to support customers and their societies more broadly, so consumers will be likelier to give them a bit more leeway. Once food retailers have reimagined their businesses in these four ways, they will be better equipped to provide employment opportunities to people who are currently out of work, reshape their industry ecosystem, and work closely with business partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being and livelihoods for millions of people.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 17.1IP
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consumers were more interested in reasonably • Except for in Japan and in South Korea, priced products with core features than in between 30 percent and 50 percent of customers have shifted from their primary higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported • As mentioned earlier, people are worried by consumers in China) say they have not about the pandemic's impact on their personal switched back. incomes. In most countries, between 30 and 40 percent of consumers are worried about • Except for in Japan and in South Korea, being able to make ends meet; in Thailand, 70 between 30 percent and 70 percent of percent of consumers say so. customers have tried a new brand. Those in China are the most likely across countries to • What's more, consumers are willing to forgo say they have not shifted back to old brands, future spending. Up to 50 percent of Chinese which 20 percent of consumers there report. consumers surveyed say they were planning to give up a future purchase because of To address this "loyalty shock," retailers should uncertainty related to COVID-19. determine which stores are being affected disproportionally by customers shifting to To address these shifts, food retailers should other primary stores. Targeted marketing may rethink their promotional calendars to help bring these customers back, as would safeguard their marketing spending to use retailers finding a way to better communicate only when it's needed to stimulate demand, the efforts they are taking to support either for discretionary products or for postcrisis essentials to meet people's desire customers and their societies more broadly, so consumers will be likelier to give them a bit for value. more leeway. Reimagine loyalty. During the COVID-19 crisis, Once food retailers have reimagined their consumers have been loyal to those retailers and brands who offered essential products in businesses in these four ways, they will be better equipped to provide employment opportunities to their assortments. people who are currently out of work, reshape their industry ecosystem, and work closely with business • Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being countries, promotions or pricing has not and livelihoods for millions of people. emerged as a top three reason for switching to different stores. * Betsy Bohlen, Steve Carlotti, and Liz Mihas, "How the recession has changed US consumer behavior," McKinsey Quartery, December 2009, McKinsey.com. Dymfke Kuijpers is a senior partner in McKinsey's Singapore office, where Simon Wintels is a partner. Naomi Yamakawa is a partner in the Tokyo office. The authors wish to thank Stephanie Chan, Abhishek Malhotra, Mahima Chugh, Younghoon Kang, and Thomas Rüdiger Smith for their contributions to this article. Designed by Globadtor Services Copyright e 2020eraay & Company Allrighta ree Reimagining foed retail in Asia after COVID-19
Transcribed Image Text:consumers were more interested in reasonably • Except for in Japan and in South Korea, priced products with core features than in between 30 percent and 50 percent of customers have shifted from their primary higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported • As mentioned earlier, people are worried by consumers in China) say they have not about the pandemic's impact on their personal switched back. incomes. In most countries, between 30 and 40 percent of consumers are worried about • Except for in Japan and in South Korea, being able to make ends meet; in Thailand, 70 between 30 percent and 70 percent of percent of consumers say so. customers have tried a new brand. Those in China are the most likely across countries to • What's more, consumers are willing to forgo say they have not shifted back to old brands, future spending. Up to 50 percent of Chinese which 20 percent of consumers there report. consumers surveyed say they were planning to give up a future purchase because of To address this "loyalty shock," retailers should uncertainty related to COVID-19. determine which stores are being affected disproportionally by customers shifting to To address these shifts, food retailers should other primary stores. Targeted marketing may rethink their promotional calendars to help bring these customers back, as would safeguard their marketing spending to use retailers finding a way to better communicate only when it's needed to stimulate demand, the efforts they are taking to support either for discretionary products or for postcrisis essentials to meet people's desire customers and their societies more broadly, so consumers will be likelier to give them a bit for value. more leeway. Reimagine loyalty. During the COVID-19 crisis, Once food retailers have reimagined their consumers have been loyal to those retailers and brands who offered essential products in businesses in these four ways, they will be better equipped to provide employment opportunities to their assortments. people who are currently out of work, reshape their industry ecosystem, and work closely with business • Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being countries, promotions or pricing has not and livelihoods for millions of people. emerged as a top three reason for switching to different stores. * Betsy Bohlen, Steve Carlotti, and Liz Mihas, "How the recession has changed US consumer behavior," McKinsey Quartery, December 2009, McKinsey.com. Dymfke Kuijpers is a senior partner in McKinsey's Singapore office, where Simon Wintels is a partner. Naomi Yamakawa is a partner in the Tokyo office. The authors wish to thank Stephanie Chan, Abhishek Malhotra, Mahima Chugh, Younghoon Kang, and Thomas Rüdiger Smith for their contributions to this article. Designed by Globadtor Services Copyright e 2020eraay & Company Allrighta ree Reimagining foed retail in Asia after COVID-19
consumers were more interested in reasonably • Except for in Japan and in South Korea, priced products with core features than in between 30 percent and 50 percent of customers have shifted from their primary higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported • As mentioned earlier, people are worried by consumers in China) say they have not about the pandemic's impact on their personal switched back. incomes. In most countries, between 30 and 40 percent of consumers are worried about • Except for in Japan and in South Korea, being able to make ends meet; in Thailand, 70 between 30 percent and 70 percent of percent of consumers say so. customers have tried a new brand. Those in China are the most likely across countries to • What's more, consumers are willing to forgo say they have not shifted back to old brands, future spending. Up to 50 percent of Chinese which 20 percent of consumers there report. consumers surveyed say they were planning to give up a future purchase because of To address this "loyalty shock," retailers should uncertainty related to COVID-19. determine which stores are being affected disproportionally by customers shifting to To address these shifts, food retailers should other primary stores. Targeted marketing may rethink their promotional calendars to help bring these customers back, as would safeguard their marketing spending to use retailers finding a way to better communicate only when it's needed to stimulate demand, the efforts they are taking to support either for discretionary products or for postcrisis essentials to meet people's desire customers and their societies more broadly, so consumers will be likelier to give them a bit for value. more leeway. Reimagine loyalty. During the COVID-19 crisis, Once food retailers have reimagined their consumers have been loyal to those retailers and brands who offered essential products in businesses in these four ways, they will be better equipped to provide employment opportunities to their assortments. people who are currently out of work, reshape their industry ecosystem, and work closely with business • Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being countries, promotions or pricing has not and livelihoods for millions of people. emerged as a top three reason for switching to different stores. * Betsy Bohlen, Steve Carlotti, and Liz Mihas, "How the recession has changed US consumer behavior," McKinsey Quartery, December 2009, McKinsey.com. Dymfke Kuijpers is a senior partner in McKinsey's Singapore office, where Simon Wintels is a partner. Naomi Yamakawa is a partner in the Tokyo office. The authors wish to thank Stephanie Chan, Abhishek Malhotra, Mahima Chugh, Younghoon Kang, and Thomas Rüdiger Smith for their contributions to this article. Designed by Globadtor Services Copyright e 2020eraay & Company Allrighta ree Reimagining foed retail in Asia after COVID-19
Transcribed Image Text:consumers were more interested in reasonably • Except for in Japan and in South Korea, priced products with core features than in between 30 percent and 50 percent of customers have shifted from their primary higher-priced, cutting-edge products. Now, the consumers we surveyed expect times will only get tougher. stores, largely based on the availability of fresh food and the location. Depending on the country, up to almost 50 percent (reported • As mentioned earlier, people are worried by consumers in China) say they have not about the pandemic's impact on their personal switched back. incomes. In most countries, between 30 and 40 percent of consumers are worried about • Except for in Japan and in South Korea, being able to make ends meet; in Thailand, 70 between 30 percent and 70 percent of percent of consumers say so. customers have tried a new brand. Those in China are the most likely across countries to • What's more, consumers are willing to forgo say they have not shifted back to old brands, future spending. Up to 50 percent of Chinese which 20 percent of consumers there report. consumers surveyed say they were planning to give up a future purchase because of To address this "loyalty shock," retailers should uncertainty related to COVID-19. determine which stores are being affected disproportionally by customers shifting to To address these shifts, food retailers should other primary stores. Targeted marketing may rethink their promotional calendars to help bring these customers back, as would safeguard their marketing spending to use retailers finding a way to better communicate only when it's needed to stimulate demand, the efforts they are taking to support either for discretionary products or for postcrisis essentials to meet people's desire customers and their societies more broadly, so consumers will be likelier to give them a bit for value. more leeway. Reimagine loyalty. During the COVID-19 crisis, Once food retailers have reimagined their consumers have been loyal to those retailers and brands who offered essential products in businesses in these four ways, they will be better equipped to provide employment opportunities to their assortments. people who are currently out of work, reshape their industry ecosystem, and work closely with business • Location and availability of goods (often, fresh products) are the primary reasons why consumers have changed stores. In most partners on how to operate in a new normal. Their mission is broader than meeting consumer demands-it involves supporting the well-being countries, promotions or pricing has not and livelihoods for millions of people. emerged as a top three reason for switching to different stores. * Betsy Bohlen, Steve Carlotti, and Liz Mihas, "How the recession has changed US consumer behavior," McKinsey Quartery, December 2009, McKinsey.com. Dymfke Kuijpers is a senior partner in McKinsey's Singapore office, where Simon Wintels is a partner. Naomi Yamakawa is a partner in the Tokyo office. The authors wish to thank Stephanie Chan, Abhishek Malhotra, Mahima Chugh, Younghoon Kang, and Thomas Rüdiger Smith for their contributions to this article. Designed by Globadtor Services Copyright e 2020eraay & Company Allrighta ree Reimagining foed retail in Asia after COVID-19
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