Study finds SG consumers to be undergoing 'reset of mindset'

As we start moving into a new stage of normalcy, majority of Singaporeans (59%) are expecting and want for brands to continue engaging with them. On top of that, people in Singapore want to see brands taking an active role in supporting the community in the face of COVID-19.  Approximately 62% think more of brands that donate time, money and products to those in need and 57% would be favourable to brands that offer discounts during this period, said a recent report by Dentsu Aegis Network (DAN) Singapore.

Titled "Taking the Pulse: COVID-19 Crisis Recovery”, the report highlighted that consumers are actively investing more time and money on digital platforms with a focus on of health, career and emotional well-being. The survey, which ran between 13 and 14 May 2020, the mid-point of the Circuit Breaker in Singapore, identified the concerns and behaviours across various stages of the pandemic recovery process while mapping it to brand actions that can make a difference. While spending increased across categories with families spending the most, consumers have also indicated that they are more cautious with their purchases (83%) and are postponing big purchases (74%). Most respondents (56%) prefer to rely on familiar brands especially in banking services (65%), telecommunications (64%) and personal care (64%).

Prakash Kamdar, CEO of DAN Singapore, said what the study poignantly highlights is “a reset of consumer mindsets” and behaviours as people in Singapore cope through different stages of the COVID-19 recovery process.

“A diversity of needs means that marketers now have less cluttered avenues to connect with their target consumers. People in Singapore have higher expectations of the trusted institutions and brands to guide their personal journey to normal. Therefore, brands need to get ahead of the changes in media landscape behaviours to respond to newly adopted consumer behaviours, that will continue even after the Circuit Breaker is lifted. This is the perfect opportunity to step in to help, lead, and inspire consumers as they continue to seek security through the uncertainty of the pandemic,” he said.

As people in Singapore remain cautiously optimistic about the COVID-19 situation, the survey reflected more conservative consumer mindsets and behaviours as well as more favourable attitudes towards brands that go beyond to do more for the greater good.

The study showed that the majority of people in Singapore are in the middle stages of crisis recovery with 31% just coming to grips with it, 26% adapting to the new normal, and 20% feeling that they are moving into recovery. Correspondingly, of those coming to grips with the crisis, 95% were concerned of the Singapore’s future economic situation. Majority of those (91%) who have adapted to the new normal were preparing for potential extensions to the Circuit Breaker, while 79% of those who felt that they are moving into recovery were more concerned with long periods of screen time of themselves and their families.

Amid continued uncertainty, the survey reflected a return to basic human needs, with respondents strongly prioritising security, reassurance and stability ahead of psychological and self-fulfilment needs. These needs reflect the large majority of concerns over the long-term impact of COVID-19 on the economy (97%).

Despite the focus on a basic need state, people in Singapore are positive and resilient while preparing for the long term impact of COVID-19 on the economy, with male and youth respondents showing more positivity about the overall situation.

Sonya David, strategy director, creative group at DAN Singapore, added: “It is clear that consumer mindsets and needs in Singapore are diverging beyond a common need for security. The study has highlighted new perspectives on existing media as well as growing interest in immersive and real experience. This is a window of opportunity for brands to address specific expectations in order to connect with their target audiences in a purposeful manner. Ultimately, marketers that plan for both shorter and longer-term responses will be most effective in reaching consumers’ shifting needs and maintaining lasting relationships.”