The tide may be turning for the ailing retail and travel industries, with global consumers indicating a strong desire to get back to normal life, and returning to malls and shopping centres – and potentially travel – once they are vaccinated, reveals a new study.
The findings of new global consumer study from IBM’s Institute for Business Value (IBV), shows global consumer optimism is high, with more than half of respondents surveyed saying that they expect a Covid-19 vaccine to keep them protected. While many consumers may not abandon the online shopping options they’ve become accustomed to using during the pandemic just yet – as at least one in five respondents surveyed stating that they plan to continue shopping primarily online – many expect to buy items in-store much more often once vaccinated.
The biggest categories that may see shifts towards in-person shopping are toys, games and hobbies, (+121%) and apparel, footwear and accessories (+76%), according to the IBV study. With convenience indicated as the main reason global consumers surveyed continue to shop online, followed by value and the wide variety of products available online, to lure consumers back to physical stores, retailers can look to in-store promotions and local products.
POTENTIAL RECOVERY
In-store promotions were the top factor that could drive consumers to shop in a physical store, especially for Gen X (54%) and Boomers (52%), revealed the study. Additionally, local products that are not available online, such as small batch food products and hand-made apparel, may attract nearly 50% of Millennials, Gen X and Boomers, to shop in person.
While consumer travel has yet to rebound, there are promising signs on the horizon. The study showed plane travel may see an uptick in demand, with 30% of people planning to fly more often; though this is offset by the 23% of respondents surveyed that plan to fly less. The study found that roughly 1.5 times more vaccinated consumers expect to take an overnight trip in the next six months. Nevertheless, a sizeable subset of the population plans to stay home indefinitely, with roughly one in four consumers saying that they do not plan to travel in 2021, even after they receive the Covid-19 vaccine.
BUSINESS TRAVEL
The vaccine may also reinvigorate professional travel, increasing the number of respondents comfortable travelling for business two to four times in most countries. However, older business travellers are less confident. Only 8% of respondents over 55 are comfortable travelling for business without a Covid-19 vaccine, and just 25% are comfortable after they’re vaccinated.
The study showed personal automobile continues its prominence, both during the pandemic period and after people receive the Covid-19 vaccine. While 10% of respondents plan to use a personal vehicle less often after getting the shot, 47% say they will use it more. The survey showed that other forms of transportation may either see a very slight increase or a net reduction in demand as more people become vaccinated. The cruise industry may experience the most significant net decline, with 26% of people saying they will use cruise ships less and only 17% planning to use them more.
GENERATIONAL DIFFERENCES
Post-Covid-19 vaccine outlook varies widely across surveyed consumers by generation, according to the study. Most Gen Z respondents (people aged 18-24) want to spend time with people outside of their households once they get the shot. Around 27% of Gen Z said they will increase outside interaction, compared to just 19% of Gen X; and only 16% of those over 55.
However, with the exception of restaurants and free venues like beaches and public parks, Gen Z finds the return to some large crowd social venues, such as live sporting events, amusement or theme parks, museums and art galleries, live theatre events and cinemas, less appealing than other generations.
On average, 60% of Gen Z respondents plan to visit venues such as restaurants and bars, salons and barbershops once vaccinated, compared with 71% of Millennials and 69% of Gen X. This appears to be the continuation of a trend, as Gen Z also reported visiting venues less frequently than those in other age groups during the Covid-19 pandemic.
Image credit: Pexels
INVESTING IN PERSONALISED EXPERIENCES
The study of more than 15,000 adults surveyed globally, found most people are confident in the safety, effectiveness and distribution of Covid-19 vaccines; and more than half expect the vaccine to keep them protected. Economic progress can now happen gradually; however, most respondents indicated that vaccination levels will need to exceed 70% in order for them to feel comfortable returning to life as it was before the pandemic. If current vaccine rollout rates continue, it purports that most people may not regain pre- Covid-19 pandemic comfort levels until well into 2022. Amidst this uncertainty, consumers are rethinking the way they want to work, socialise, travel and shop, concluded the study.
“Habits formed during the Covid-19 pandemic have raised consumers’ expectations of digital engagement, especially in service industries like retail, travel & transportation,” said Jesus Mantas, Senior Managing Partner, IBM Global Business Services. “As we anticipate the ‘post-Covid-19 pandemic normal,’ businesses should accelerate their digital evolution with AI and Cloud based solutions to help remain competitive. Investing in hybrid physical and digital experiences can help provide a more personalised experience.”
Hiring optimism has also returned in many markets worldwide. Click here to read more.
Sign up for our newsletter
