According to KPMG International’s Consumers and the New Reality report, a new is emerging – one that is financially constrained, more advanced in their use of digital technologies, more thoughtful and selective in their decision-making, and keen to see COVID-19 as an opportunity to reset values in the world.
Based on data from over 12,000 consumers around the world, the findings revealed that the three most prominent purchase drivers influencing consumers’ decision-making are: value for money (63%), ease of buying (42%) and trust in brand (41%).
KPMG’s Head of Consumer, Industrial Markets & Manufacturing in Malaysia, Siew Chin Kiang, observed: “Consumers’ spend is impacted by both the decrease in disposable income and the psychological impact of COVID-19. We see new segments arise, separated by their need to group products and services into categories of necessity, with spending behaviors moderated by financial attitudes. Overall, four in 10 are financially worse off, with another 13 percent deferring major purchases.”
He urged retail executives to focus on four main areas in order to build enough business resilience to see their companies through to recovery and sustainable growth.
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