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15.4.2021 6 NEWS Perspectives from EY Malta's Future Consumer Survey AS Covid-19 continues to have a trans- formative impact on the lives of con- sumers, the ramping up and rollout of vaccines across several nations over the past few months are seen as an impor- tant step closer to the end of the pan- demic era. e previous edition of the EY Future Consumer Survey was completed in November 2020 ahead of a critical pe- riod for retailers and businesses. e indications at the time were that, while there was a deterioration in general anxiety levels to carry out a number of activities, consumers were generally more positive towards their personal fi- nancial outlook and spending abilities. Consumption shifts persisted in favour of home improvements, personal care, delivery and subscription services. What has changed in terms of local consumer behaviour and spending pat- terns since November 2020? e third survey cycle completed in April 2021 finds that consumers are in- creasingly yearning for an improvement in their lifestyle. e number of people who would forgo an international vaca- tion is at its lowest since EY has been running the survey (33% in April 2021 compared to 47% in November 2020). e number of people who say they will work from home more often has re- duced to 35% of respondents compared to 51% in November 2020, while 60% of people plan to eat out more frequent- ly now compared to 39% in November 2020. It is encouraging to note that 59% of respondents have a significant level of trust in healthcare providers – crucial for the broader success of the vaccina- tion programme. At the same time, despite the increas- ing number of vaccinations that are be- ing administered, we note that consum- ers today are significantly more anxious and concerned than at any point during our previous survey cycles. e longer-term financial perception seems to be relatively positive as only 4% of respondents are concerned about their employment status beyond the next 12 months and 8% believe they will be worse off financially in the next year (12% in November 2020). e current perspective among re- spondents remains that the pandemic will keep impacting our lives for some time depending on the type of activity. How can businessses adjust for the future consumer? Business models will need to change and adapt as new trends and behaviours keep manifesting themselves. Here are some key actions that businesses can consider to adjust for the demands of the future consumer: 1. Redesign your business around how people live, not what consumers buy While the boom in at-home consump- tion is unlikely to last, other consumer changes will only accelerate. It is also worth noting that subdued consumer spending may persist for some time as 70% of respondents say they will be cau- tious about their spending compared to 57% in November 2020. Businesses need to remain ahead of the curve and make sure that their businesses have adequate capabilities to make the right use of data and in- formation. Businesses need to become listening organisations, and leverage analytics tools to manage data reposi- tories that provide important insights for each consumer served. A listening organisation has the agility to meet constantly changing consumer needs and can adapt products and services for segments it wants to engage. 2. Compete for shoppers wherever and whenever they are 45% of respondents plan to switch to online shopping in the future and 32% will use online channels for the pur- chase of durable goods and products. e digitisation of customer journeys and business processes will be key to establish a market share in this trend. It is also key for businesses to under- stand how their online presence can be improved. 3. Look at your operating model from a different perspective Many businesses have experimented with outsourcing and partnering during the pandemic, often as an agile response to supply-chain disruption. is should continue and accelerate, as it's the only way to meet changing consumer expec- tations with the speed and efficiency the future demands, without taking on excessive risk. is is the "'asset right" model that will give businesses the ideal blend of in-house, outsourced or part- nered capabilities. Additionally, companies need to look beyond siloed profit measures and at the wider impact on their business. For example, consumers have embraced home delivery, but they don't like pay- ing for it. is is one of the key frustrations with online shopping. Given the rapid growth of e-commerce since the begin- ning of the pandemic, the business case for re-evaluating an existing e-com- merce model to create profitable cost to serve has never been more important. e fact that most consumers are will- ing to share personal data makes the e-commerce business case even strong- er. EY's survey keeps highlighting the im- portance that technology will have on current and future consumers as 29% of respondents say that the way they use technology will change over the long- term – the highest proportion tracked locally. How long will it take you to feel comfortable doing the following? COVID-19 will stop impacting my life when…

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