MANAMA: As many as 60 per cent of respondents to a survey plan to work from home more in the future, posing more challenges for businesses to keep pace with shifting consumer demands.
The study by KPMG International also found that two in five (43pc) consumers are worried about their financial security in 2021.
Analysing the findings in a report titled ‘Responding to consumer trends in the new reality’, the audit and advisory firm said Covid-19 is having a lasting, worldwide impact on consumer needs, preferences and behaviours.
Among key findings are that more than one-third (36pc) are prioritising savings over spending, and ‘value for money’ is ranked by 63pc as the top purchase criteria.
Net spend is expected to be 21pc less over the next 6-12 months, versus pre-Covid-19, whereas close to half (45pc) predict digital channels will be their main connection to brands.
About a third of respondents (37pc) are working from home more, while one in five (20pc) want to stay home as much as possible.
Confidence in public transportation has declined 37pc compared to pre-pandemic levels.
There is a dichotomy in how consumers have been affected economically.
While 41pc report being worse off financially, nearly half, 45pc, feel financially comfortable which could mean opportunities for business that are able to meet the new consumer’s expectations.
Regardless of how financially secure they feel, all consumers predict they will spend less in the next 6-12 months and all are prioritising savings.
Perhaps not surprisingly, ‘value for money’ is ranked as the key purchase driver.
The report tracks the opinions of 75,000 consumers in 12 markets between May and September 2020 across five industry sectors: consumer and retail (grocery and non-grocery), banking, insurance, entertainment and leisure and travel and tourism.
Overall, the survey finds that consumers tend to trust brands less than they did pre-pandemic.
Insurance was the only sector to see a consistent net gain in trust in the May to September period; while travel and tourism and entertainment and leisure suffered the greatest erosion of brand trust.
All sectors generally saw a modest increase in brand trust in September, with the exception of banking, which held even.
KPMG Bahrain Advisory Partner Manav Prakash said, “In Bahrain, there has been a considerable upward trend in consumers seeking out and leveraging digital channels, which is also evident in the significant increase in the use of digital payments. We see significant investments being made in the digital infrastructure across key sectors which augurs well for the resiliency of these sectors in Bahrain. As these investments play out in 1–2 years, we will clearly see potential changes in market share of those players who have made the right investments now.”
avinash@gdn.com.bh
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