Issue link: https://maltatoday.uberflip.com/i/1312948
4 NEWS 26.11.2020 AS we enter the critical 'golden quarter' of 2020, retailers face a peak Christmas selling period like no other before. TO maximise their opportunities, re- tailers need a thorough understanding of how consumers are making changes to their lives as a result of the pandem- ic, and the actions they must take in re- sponse. EY Malta's latest Future Consumer Survey, which tracked consumer sen- timent since August, shows consumer behaviour evolve from anxious to adap- tation. It is positive to note that respondents have a relatively better financial outlook today compared to our initial survey back in August 2020, where 12% of re- spondents had a negative perception now, compared to 19% previously. Consumers are still proceeding with caution, as 57% are concerned about their spending compared to 67% in Au- gust. 20% plan to postpone major pur- chases compared to 45% in August. Retailers must note that, while there is a reluctance to spend, there is still de- mand. Our survey indicates that 37% of respondents do not plan to participate in shopping events such as Black Friday and during the festive season. e majority of those that will partic- ipate, at 35%, plan to do their shopping online rather than in-store. 31% plan to spend less than in previous years dur- ing these events, while 10% will spend more. Retailers are going to have to work harder than ever to capture a reluc- tant consumer spend over December. Second wave fears and the imposition of restrictions mean the excitement of the instore Black Friday and Christmas experience will be partly lost this year. Getting online right will be critical for retailers. But this means very different things for different consumer segments, and across different product categories. For example, there is a significantly higher propensity towards online shopping among respondents with the highest level of disposable income (73%) and millennials (64%) compared to 51% across the sample. ere is an increased level of consum- er anxiety since our previous survey dated August 2020, which seems to be impacted by second wave fears. While respondents are generally comfortable to carry out various activities such as shopping for essential items, personal care and for medical purposes, there has been a deterioration in the number of people exhibiting this behaviour. 65% of respondents were comfortable going to a restaurant in August - this number decreased to 54% in November. Similarly, 47% of respondents are com- fortable to go to a shopping mall, com- pared to 56% in August. Marketing is key In the short-term, retailers need to review their marketing strategies to en- sure they can maximise the opportuni- ties of what could be a dramatic reduc- tion in spending. Online campaigns and capacity need to be maximised; and the technological and fulfilment infrastruc- ture needs to adequately support online demand. In the longer term, the online expe- rience needs to be enriched with easy access to expert advice so that retailers can replicate the in-store benefits of physical engagement with both prod- ucts and staff. Fashion retailers, for ex- ample, have started to respond to this trend with online stylist advice. Cate- gories such as technology have an even greater opportunity to engage their customers through tactics such as vid- eo calls with consumers to help them choose the right product. Retailers cannot afford to stay still in this constantly changing consumer market. What would have been a 10-year tran- sition has happened in less than a year, and retailers need to act now with agili- ty and focus. Doing so now will maxim- ise their chances of thriving into Black Friday and Christmas and taking advan- tage of future growth opportunities as we head into 2021. Why retailers must act now to capture sales in the 'golden quarter' EY MALTA'S FUTURE CONSUMER SURVEY How long will it take you to feel comfortable doing the following?