Three Trends Define “New Normal” in Brazil, According to Bain Study

RIO DE JANEIRO, BRAZIL – One day this pandemic will end and everyone will be back to their routine activities, but not everything will be as before. The confinement period has spurred the development of new habits in people, and some of them are expected to persist, according to a Bain research study.

The survey, which interviewed 1597 people in various states and income levels on June 30th, shows that this was the month when conditions ceased to deteriorate. The relaxation of measures against Covid-19 added to the feeling of normalcy, and the intention to spend halted in relation to April and May.

“Among the trends we’ve seen emerging, we believe in three as part of a ‘new normal,'” says Federico Eisner, a partner at Bain.

Digital is normal

The first trend is to break the resistance to using digital platforms such as delivery and video conferencing apps. “It’s a strong trend that isn’t going to change, in our opinion,” Eisner says.

The shift from traditional purchasing channels occurs in all income segments. Among the wealthiest, about 83 percent of respondents expect to retain some level of these new purchasing methods. The categories of foods and restaurants show the greatest shift to new channels.

Since quarantine began, delivery apps have seen a 33 percent increase in new users, while online medical appointments have grown 18 percent in the same comparison. The trend is repeated in the entertainment field and with other types of digital amenities.

The winner was e-commerce. iFood and Mercado Livre together account for 40 percent of this increase in new users. But WhatsApp, Amazon, and Magalu are also among the companies that attracted more people to this universe.

“And consumers are having positive experiences and recommending to others, which supports the notion that they won’t fully return to old shopping habits,” he says.

Healthy and healed

The second trend noted by Bain for the ‘new normal’ is the focus on health and wellness. Fresh food was the main target during quarantine. The need to stay home contributed to this, but this concern persisted strongly in June.

From April to June the percentage of people who said they were spending more or much more on items remained high, at around 20 percent. Except for the personal care and home care categories, all the others experienced a drop in consumption intentions, although they are now stabilizing.

In June, the rate of people who said they were spending less on physical activities also dropped by seven percentage points. The trend has also been seen in China, where consumers have been more demanding with their health after two months of quarantine in the country.

More value

Bain’s search also shows a value redefinition trend. “People believe they should spend more for better products,” says the expert.

The consumers shift to higher-value brands increased significantly during the crisis and was sustained in June. Among those with a higher income, the trend was uneven among the categories.

Negative trends come to an end

The data shows that the worst time for activity occurred in April and May. This perception also begins to grow among the population from June onwards, when some negative trends begin to spread. One such trend is the improved consumer confidence.

“People are still spending less in relation to the pre-crisis period, naturally, but a stabilization has started,” he says.

While from April to May several categories continued to experience significant drops in spending intentions, by June they were all virtually stable.

Source: Exame