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maltatoday | SUNDAY • 19 DECEMBER 2021 14 COMMERCIAL Perceptions from the EY Future Consumer Survey as we head into the festive season EY Malta's 5th edition of the EY Future Consumer Survey indicates that attitudes towards out-of-home entertainment, especially travelling related ac- tivities, are perceived more pos- itively today than at any other point since the outbreak of the pandemic. The number of re- spondents who would not seek an international vacation has decreased to 25% compared to 46% last July. Similarly, the pro- portion of respondents who are comfortable to go on a cruise in- creased to 42% from 18%. There is also improvement in consumers' financial optimism across the board, with 11% of respondents expecting to delay spending on big-ticket items compared to 28% in the previ- ous survey. Consumers around the world want to get back to a feeling of normality, but what will that normal look like? Consumers have indicat- ed that they expect to change the way they carry out various activities, from the way they travel, shop, work and social- ise. Many consumers want and expect at least some of their forced changes to stick. As a result of the pandemic, they are enjoying the chance to live and work more flexibly, they have a better work-life balance, and they have saved money. Look- ing to the future, 35% want to keep working more flexibly, while 53% say that they have changed the way they look at life. These local trends are very much aligned with a global survey conducted by EY across thousands of consumers. After two years of instability due to the COVID-19 pandemic, con- sumers in various countries seem to have come to expect uncertainty and disruption. They now want to make con- sumption choices that are less influenced around affordability and own health considerations, and more around quality of experience and broader value considerations. Overall, EY's research identi- fies three underlying consider- ations that consumers will have as they shape their new version of normal: • Risk and threat have be- come everyday concerns: This "always on emergen- cy" mindset is not only a result of living under COVID-19. The geo- political and economic landscape has become increasingly unstable and unpredictable. Concerns about inflation are grow- ing. Supply chains contin- ue to be fragile. Climate change is increasingly be- coming a priority. Finan- cial and mental well-be- ing has also been under stress, which affects how consumers feel about spending money. 35% of local consumers con- tacted say that they will decrease non-essential spending. • People value quality more – of product, experience and time: Many learned to live with less during the pandemic and now are seeking to buy bet- ter rather than more. Consumers are avoiding spending on unnecessary products and experienc- es, not just because it's good for their finances, but because it's good for the planet. Our respond- ents tell us that 43% will focus on value from mon- ey in the future. • Digital is becoming life's default channel: tech- nology was and is likely to remain a key enabler for consumer behaviours going forward. As many shifted to home or hybrid working, people leaned on online channels and remote interactions. The capability existed before COVID-19, but its adop- tion has been massively accelerated. As COV- ID-19 evolves and new crises emerge, consumers will continue to rely on digital to stay safe as well as manage their person- al and professional lives. 40% of local consumers expect to keep using on- line channels for their shopping needs. The festive shopping season will give us valuable insights into how fast consumer senti- ment and behaviour is chang- ing. Pent-up demand could drive sales higher with con- sumers looking to make up for lost time, but this must be balanced against the prevailing economic headwinds and con- tinued supply chain shocks. For consumer products companies and retailers, this is a key chap- ter in the COVID-19 story. Will your business rebound? Can you reimagine your strat- egies for long-term value crea- tion, aligning your purpose and portfolio around the consum- er's emerging post-pandemic priorities? This is an opportu- nity to become a relevant part- ner in the consumer's effort to shape a new life. For many, this will require a profound trans- formation: 1. Analyse your festive sales season data with a differ- ent lens: Better analysis now will help businesses deliver against consumer and investor expectations in 2022 and beyond. 2. Invest in the data and technologies that can make you a trusted part of the consumer's life: Companies that win and secure trust will become an integrated part of the consumer's life. 3. Make it easy for people to move back and forth be- tween physical and digital channels: Creating a co- hesive experience and re- moving any points of fric- tion will be fundamental to success. 4. Transform your business model for an age where people want to consume better, not buy more: More people are reshap- ing their consumption habits. Understanding what's driving customers' purchase behaviour could require a radical response from you. Methodology The 5th EY Future Consum- er Survey Malta was carried out in October and November 2021 across a stratified random sample of 716 participants. The survey is conducted peri- odically to capture changes in consumption and consumer behaviour. Gilbert Guillaumier is an As- sociate Partner at EY Malta within the Strategy and Trans- actions team. Gilbert Guillaumier