Impact of COVID-19 on Consumer Behaviour

Impact of COVID-19 on Consumer Behaviour

April 2020

Our Proprietary Panels

Japan (JP)2,200,000

Taiwan (TW)120,000

Thailand (TH)550,000

Vietnam (VN)300,000

China (CN)3,204,500

Hong Kong (HK)52,000

Malaysia (MY)196,000

India (IN)650,000

South Korea (KR)640,000

Singapore (SG)80,000

Indonesia (ID)550,000

Philippines (PH)315,000

• Markets: China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, United States, Vietnam

• Sample size: 1,000 respondents per market, 13,000 in total

• Profile of respondents: 20+ y.o. respondents from Rakuten Insight proprietary panels, with good distribution on age, gender, region & occupation

• Survey timingApril 2020

Survey Methodology &

Notes

Sources of information

News on traditional forms of media, TV, radio continues to be a highly trusted source of

information even in the digital age

Korea relatively low trust in many sources of information with the most highly trusted

source being TV news (71%)

Consumers from around the world rely on information from TV news & government

websites. A slight decrease can be observed in trusting the information on social media

Marked contrast between Japan & China when it comes to trusting experts & influencers on social media with trust

much higher in China & lower in Japan

While people spend more time watching TV news or reading news websites, the time spent on following influencers or celebrities on social media is less than usual

These times of uncertainty & gravity appear to have led to consumers to spend their time on more serious & reliable

sources of information

74%

61%

57%

66%

35%

52%

46%

66%

44%

62%

61%

46%

51%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN71%

66%

68%

76%

79%

83%

74%

41%

56%

80%

74%

77%

88%

VN

US

TW

TH

SG

PH

MY

KR

JP

IN

ID

HK

CN

87%

47%

35%

66%

67%

73%

68%

65%

48%

72%

62%

56%

89%

VN

US

TW

TH

SG

PH

MY

KR

JP

IN

ID

HK

CN

79%

72%

67%

77%

87%

88%

81%

57%

74%

91%

83%

77%

88%

VN

US

TW

TH

SG

PH

MY

KR

JP

IN

ID

HK

CN

81%

69%

57%

70%

80%

89%

84%

60%

61%

83%

81%

72%

78%

VN

US

TW

TH

SG

PH

MY

KR

JP

IN

ID

HK

CN

How much do you trust the following sources of information? International consumers rely on information from Government websites and TV news. A slight decrease can be observed in terms of trusting the information on social media.

TV News TV programs/talk shows

Newspapers Government Website

News websites Post by experts on social media Radio

86%

71%

82%

83%

85%

87%

82%

62%

72%

83%

81%

71%

92%

VN

US

TW

TH

SG

PH

MY

KR

JP

IN

ID

HK

CN96%

79%

84%

87%

77%

71%

88%

90%

90%

92%

73%

70%

94%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

I trust them/I somewhat trust them13,000 Rakuten Insight Panelists Polled

Change in the amount of time spent watching/listening to different sources compared to last year

While people spend more time watching TV news or reading news websites, the time spent on following influencers or celebrities on social media is less than usual.

Time spent increased/increased

somewhatCN HK ID IN JP KR MY PH SG TH TW US VN

TV news 69% 50% 55% 66% 35% 50% 59% 62% 55% 60% 36% 39% 68%

Government websites 55% 28% 47% 46% 20% 27% 51% 57% 50% 47% 33% 34% 52%

News websites 66% 47% 53% 54% 29% 42% 56% 58% 53% 58% 37% 35% 53%

Time spent decreased/decreased

somewhatCN HK ID IN JP KR MY PH SG TH TW US VN

Posts or reposts by influencers or celebrities on social media 24% 20% 31% 27% 18% 31% 30% 32% 30% 20% 27% 24% 26%

13,000 Rakuten Insight Panelists Polled

Consumer Behaviour

Increase in online shopping across all markets but especially in China & India, indicating huge potential for online retailers in those markets

Decrease in visits to department stores / shopping malls indicating that consumers are

seeking to avoid potentially crowded places

Consumers everywhere increase frequency of supermarket shopping to ensure their homes

are well stocked

In India, consumers are tending towards supporting their local communities by shopping more frequently at local

stores, mom and pop stores

As might be expected, lower emphasis on spending on luxury items especially in China & Hong Kong as

consumers avoid excessive spending in uncertain economic conditions

More emphasis placed on core product attributes such as quality, durability & price when choosing products to

purchase. More developed markets like Japan, Korea & US expecting less impact in terms of these hygiene factors

Change in shopping frequency at Online Shopping Sites

33% 52% 34% 50% 40% 18% 32% 39% 41% 33% 44% 58% 40%Net

increase


6% 3% 1% 4% 6% 7% 5% 8% 6% 3% 3% 2% 5%

7%6%

4%6%

8%15%

14% 8% 8% 10% 10%6%

8%

24%

16%

9%

17%19%

23%18% 19% 18% 22%

17%14%

19%

47%

45%

41%

47%44%

32%

30%

45%44% 37%

43%

34%

40%

17%

29%

45%

26% 23% 24%34%

21% 24% 28% 28%

44%

27%

JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

Change in shopping frequency at Department Stores/Shopping Malls

-47% -54% -21% -51% -53% -7% -22% -39% -17% -43% -16% 28% -34%Net

increase

18%10%

3%9%

2% 1% 2% 2% 1% 3% 2% 2%11%

25%34%

27%

32%

33%

20%

32%24%

17%

31%

14% 10%

26%

39% 38%

32%

39%43%

33%

28% 45%

41%

39%

27%25%

36%

15% 16%

23%

16% 19%

31%22%

23%

28%

17%

34%34%

18%

2% 2%

15%4% 4%

15% 16%7%

13% 10%

23%29%

10%




Change in shopping frequency at Supermarkets

25% -10% -4% -1% 43% 46% 0% 31% 22% -12% 34% 26% 16%Net

increase

3% 2% 1% 2% 0% 0% 1% 1% 1% 1% 1% 3% 2%6%

15% 15% 16%8% 6%

22%

8% 11%19%

12% 10% 12%

30%

39%31%

34%

21% 21%

27%

26%28%

36%

21% 26%29%

51%

37%

36%

41%

55%

42%

32%

52% 45%

31%

41%38%

43%

10% 7%17%

8%17%

31%

17% 13% 16% 12%

26% 24%14%




Change in shopping frequency at Local stores, mom and pop stores

-49% -54% -40% -23% -48% -5% -16% -35% -14% 6% -2% 16% -16%Net

increase

35%

7% 5% 6% 4% 8% 5%11%

6% 2% 2% 6%

22%

24%

30% 29%19% 24% 15% 24%

18%

16%

12% 13%11%

18%

33%

44%38%

40%

48%

34%32%

44%

38%

34% 37%29%

29%

7%

17%

19%28%

21%

32% 27%

23%

31%

39% 35%

35%

23%

1% 3%8% 8% 3%

12% 13%4% 9% 13% 13%

21%

8%




Change in shopping frequency at Drugstores

20% 3% 7% -34% 9% -7% 39% -28% -14% 5% -3% 9% -19%Net

increase

5% 3% 5%10%

4% 1% 3%9% 8%

2% 2% 6%11%

7%14% 14%

22%

12%7%

21%15% 15%

14% 13%11%

18%

31%

33% 30%

40%

32%

23%

31%

44%38%

33% 38% 30%

36%

47%39%

36%

24%

44%

47%

33%

26%32%

38%36%

36%

27%

11% 11% 15%4% 9%

22%12%

5% 7%14% 12% 17%

8%




Change in shopping frequency at Convenience Stores

-20% -10% -3% 0% -11% 15% 25% -22% -2% -8% 29% 18% -26%Net

increase

6% 4% 3% 1% 4% 1% 1% 6% 2% 2% 2% 4%

18%18%

17% 17%14%

16%12% 13%

15%12% 16%

10% 10%

20%

39%36% 33%

36%38%

30%24%

43%

38%37%

25%29%

34%

30%35%

33% 39%37%

37%36%

30%

37% 35%

45%40%

22%

7% 8%14% 11% 6%

20%26%

6%11% 10%

19% 17%6%




Change in shopping frequency at Food Delivery Services

-21% 12% 24% 27% 44% 17% 34% 24% 27% 20% 30% 41% 11%Net

increase

54%

7% 10%

31%

8% 13%19% 18% 19%

8% 11% 8%

40%

13%

13%12%

7%

7%

13%11% 8% 9%

13% 11%10%

10%

21%

28% 21%

14%

17%

22% 13% 21% 18%23% 19%

16%

15%

11%

38%34%

32%

47%

32%31%

38% 36% 34%36%

31%

22%

2%15%

23%16% 21% 20%

27%15% 18% 22% 24%

36%

14%




25%

32%

15%

11%

12%

15%

18%

15%

16%

14%

10%

13%

9%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

77%

61%

77%

77%

33%

53%

72%

74%

55%

80%

56%

43%

69%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

75%

60%

77%

74%

34%

54%

70%

73%

52%

81%

55%

41%

66%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

Compared to last year, has the emphasis you place on the following items when choosing products to purchase changed?

Quality Durability Functionality Sense of luxury

81%

61%

80%

78%

35%

55%

73%

73%

56%

82%

58%

43%

73%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

somewhat less/less emphasis

Discounts

75%

60%

77%

74%

34%

54%

70%

73%

52%

81%

55%

41%

66%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

more/somewhat more emphasis

Perceptions on Coronavirus impact

Consistently high concern about contracting the coronavirus across all markets, especially in SEA & Japan

Japan, for many cultural reasons, struggle more with the transition to working from home (20% compared to 80% in India or Malaysia). Taiwan appear to rely on wearing masks (72%) when continuing to work at the office

The increase in working from home leads to more time spent at home with the family across all markets. Even in JP, where traditionally male workers do not spend so much time at home

Uncertainty on the future and limitations on activities is leading to more stress, especially in Japan, Korea & the Philippines. In Japan, culturally many want to feel secure about what will happen to be able to act appropriately without causing offence

Consistently across our markets, people believe the corona virus will impact the way we will work in the future which

could be a positive amongst the gloomy economic forecasts

Most markets believe there will be more working from home in the future which will increase family bonds. Lower confidence in

Japan, Korea, Hong Kong & Taiwan that family bonds will improve as a result of telecommuting

Concern about contracting the novel coronavirus

30%

28%

47%

55%

59%

42%

56%

67%

34%

47%

45%

36%

55%

46%

48%

42%

34%

34%

47%

37%

27%

53%

46%

48%

45%

35%

22%

23%

10%

8%

6%

10%

5%

5%

11%

6%

6%

15%

9%

2%

1%

1%

3%

1%

1%

2%

1%

2%

1%

1%

5%

1%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

I am very worried

I am somewhat worried

I am not very worried

I am not at all worried

How do you feel about the risk of contracting the

novel coronavirus?

Consistently high concern about contracting the coronavirus across all markets, especially in SEA & Japan


Coronavirus countermeasures effect on Work Habits

Japan, for many cultural reasons, struggle more with the transition to working from home (20% compared to 80% in India or Malaysia). Taiwan appear to rely on wearing masks (71%) when continuing to work at the office


Coronavirus countermeasures effect on Day to Day Life (1)

The increase in working from home leads to more time spent at home with the family across all markets. Even in JP, where traditionally male workers do not spend so much time at home during the week


Coronavirus countermeasures effect on Day to Day Life (2)

Uncertainty on the future and limitations on activities is leading to more stress, especially in Japan, Korea & the Philippines. In Japan, culturally many want to feel secure about what will happen in order to act appropriately and not cause any offence


61%

58%

86%

80%

26%

24%

79%

78%

68%

72%

67%

60%

76%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

26%

48%

42%

55%

40%

21%

47%

49%

46%

54%

40%

48%

34%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

82%

64%

46%

54%

59%

59%

52%

61%

53%

72%

64%

49%

77%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

How do you think the world will change as a resultof the novel coronavirus? (1)

The economy will get worse

Environmental pollution will

improve

The public order will worsen

The way people work will change

People will become more interested in

politics and the economy

85%

77%

86%

85%

73%

69%

90%

92%

85%

91%

85%

78%

89%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

76%

88%

77%

85%

85%

81%

84%

75%

86%

91%

90%

73%

67%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

I strongly agree/I agree

64%

45%

61%

69%

28%

47%

65%

64%

61%

75%

66%

51%

70%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

78%

51%

86%

84%

38%

47%

81%

92%

67%

76%

47%

70%

81%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

69%

43%

67%

72%

19%

34%

64%

77%

58%

56%

46%

56%

63%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

How do you think the world will change as a resultof the novel coronavirus? (2)

More people will start telecommuting to

work or taking online classes

VR technology will advance

Family bonds will grow stronger

More people will move out into the suburbs or

the countryside

People’s ties to their communities will grow stronger

38%

24%

48%

51%

23%

24%

35%

48%

31%

64%

39%

35%

49%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

90%

77%

87%

80%

77%

78%

85%

88%

85%

91%

87%

76%

90%

CN

HK

ID

IN

JP

KR

MY

PH

SG

TH

TW

US

VN

I strongly agree/I agree13,000 Rakuten Insight Panelists Polled

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Documents

Impact of COVID-19 on Consumer Behaviour