Covid-19 Behaviors & The Impact on Beauty

Some of the behaviors adopted by consumers during the covid-19 pandemic have become embedded within mindsets, according to data tracked by the EY Future Consumer Index. And there’s some interesting—and somewhat concerning—news for beauty brands in this latest edition of the report.
 
According to EY, 63% of the 16,000 consumers surveyed for this latest index say the new behaviors they had to adopt now feel “normal.” 
 
Climate change and pursuing fulfilling experiences have become more important, according to  EY. The “planet first” and “experience first” consumer segments—rather than the society, health and affordability first segments identified in the Index—grew during the pandemic, rising from 16% to 26% and from 11% to 18% respectively, according to the eighth edition of the EY Future Consumer Index. Sustainability is important when making purchase decisions for 85% of respondents.
 
The EY Future Consumer Index finds that respondents are reprioritizing their purchase decisions and are spending less on what they perceive to be unnecessary goods for financial (49%) and environmental (30%) reasons. This is likely to have a longer-term impact on attitudes to conspicuous consumption, said EY. 
 
According to EY, when it comes to purchase decisions, brands are less of a factor for 44% of global consumers (49% for millennials and 47% for Gen Z) and they are even less of a factor for Chinese respondents (59%). 
 
Digging deeper, there’s data that beauty brands should ponder.  Nearly half of global respondents (47%) also now say they feel more comfortable in their own skin, without the need for beauty products. The number rises to 51% in the US, 57% in Brazil, 60% in China and 73% in India. It remains low in some parts of Europe (37% in France and 43% in Germany), according to EY.
 
Overall, the pandemic has helped consumers realize they can live with less and consume “better”: they feel they have more clothes than they really need (48%) and are more likely to repair things instead of replacing them (53%), said EY.
 
“Many people have learned to live with less, a trend that will likely stick beyond the COVID-19 pandemic. Saving is the top reason for this shift, but environmental concerns, spending on better quality items that will last longer, or pursuing experiences rather than things are also important drivers. Consumers are bringing new values into this shopping season and into 2022,” noted Kristina Rogers, EY Global Consumer Leader. “Companies will have to analyze these new shopping behaviors, rethink the way they engage with a consumer who lives, works and plays from home more, and enable seamless and consistent physical and digital brand experiences.”
 
Good news for brick and mortar retailers: while increased e-commerce penetration has been a major theme since the onset of the pandemic, 51% of global respondents are planning to look for deals in-store, up from 39% last year. According to EY, this could be fueled by consumers who are choosing to shop at the store more to avoid increased shipping costs and delays caused by supply chain disruption.