The Covid-19 pandemic reshaped consumer behavior around the globe, but nowhere was the shift more dramatic than in South Africa. As part of my portfolio, I developed and wrote this press release for Nielsen on behalf of MediaInk, highlighting how the pandemic altered spending patterns, priorities, and perceptions of value. This release positioned Nielsen as a thought leader by offering timely, research-driven insights into how both constrained and insulated consumers were redefining consumption.
The Press Release
Nielsen: How Consumers Reset Their Consumption Choices under Covid-19
Johannesburg, 22 September 2020 – South African consumers have faced a series of life-altering events since the onset of the COVID-19 pandemic and subsequent lockdown in March ,which has had a profound impact on what, where, and why they shop. These insights stem from a new Nielsen report The Covid-19 Behavioural Reset, which dissects how shoppers are redesigning their product choices and predicts that many pandemic consumption patterns are set to become entrenched essential routines.
Nielsen Retail Intelligence Kelly Arnold explains, “Since the onset of the COVID-19 pandemic, many consumers now find themselves in a radically adjusted financial position, with 41% of South Africans saying they have been personally impacted by job losses under COVID-19 lockdowns. These massive and sudden shifts in unemployment rates are among the many factors driving the declining spending power of numerous South Africans.
“As a result, things that may have been bought in a panic during February or March fall under greater scrutiny today. This has seen consumers prioritise in-home spending over discretionary out-of-home expenses and become more risk averse, driving them to seek products and services that deliver value, quality, and peace of mind.”
The Nielsen Covid-19 Behavioural Reset Report identifies four behavioral changes which make sense of today’s fundamentally altered shopping landscape as they apply to two distinct types of South African consumers; namely Constrained Consumers who are stretched financially due to factors such as job losses and compressed income; and Insulated Spenders who are the more financially sound of the two groups having managed to retain their job and therefore sustained their income.
A reevaluated shopping basket
Delving into the details of each behavioral shift, the Basket Reset relates to the product choices South African consumers will make when fundamental consumption is taking place. The report states that as more and more consumers become unable to maintain their peak COVID-19 spending levels, the consideration set for what is “essential” will shrink. Even insulated spenders are likely to scrutinise the contents of their above-norm purchase habits formed at the onset of the pandemic.
Expanding on this, Arnold comments, “As emerging essentials, such as face masks which were not historically a part of budgets become mainstays and new preferences emerge among retail channels, consumers, especially constrained consumers, will seek justification for every purchase moving forward.”
Consumers, whether employed or not, however are less optimistic about what the future holds. This cautiousness will impact where and how households continue to pad their pantries and shelves amid COVID-19 protocols. Decisions will need to be made to reconcile purchase habits which consumers have had in place for years alongside today’s new reality where health and value priorities now compete side by side.
Home is where the wallet is
The second Homebody Reset reveals where consumption will occur. South African consumers have formed a new DIY mentality with respect to consumer goods during the months they spent at home during the lockdown. However, even though many lockdown restrictions have lifted some aspects of consumers’ ‘self-care and self-service’ attitude, some have remained.
Arnold explains; “What’s clear is that the homebound economy is here to stay. Within that, the constrained consumer will seek out self-fulfilment of needs, limit their exposure to prices and look for cost savings, whereas for insulated spenders this means creative exploration and trial of new products.”
Overall consumers continue to prioritise in home spend, with spend on food and beverages being maintained or even increased compared to the end of 2019. This is borne out by 79% of South African shoppers who say they bought treats or indulgent categories; with the top 3 product types being juice, carbonated soft drinks and chocolates. This is important to note, particularly during current times where household expenditures are being minimized in many other ways.
Downsized luxuries
The third Rational reset looks at how consumers will justify their purchases. This reset focuses on the fundamental shift in how products are used, what needs they fulfill and the new or altered occasion they have become part of.
“Consumers still want to find enjoyment in life, and we anticipate that they will re-imagine the role that certain goods and services play in their routines. As a result, there will be room to grow the purchases of “small luxuries” particularly as bigger rewards and entertainment budgets are slashed within homes.
“For constrained consumers, it could be something as simple as a box of biscuits that now represents a significantly greater portion of a tightened budget and may well signify more of a reward than it ever would have before. For insulated consumers, there is more discretionary spending that could be directed to FMCG. For example, in lieu of a dining experience that is forgone due to COVID-19 concerns, the purchase of premium cuts of meat to be cooked at home, will equate to a safer, customizable, modern-day luxury.”
A new era for promotions
Analyses into the fourth Affordability reset reveals that consumers with less disposable income in their pockets, will search for ways to optimize their basket spend. Nielsen has observed a historically low level of trade promotion activity across various countries. Channel preferences are also shifting in tandem with the criteria for affordability which continues to evolve in the minds of today’s consumers.
A recent Nielsen study found that South Africans have had to adjust their promotion obsessed purchasing habits during the COVID-19 lockdown, with R14-Billion fewer goods being sold on promotion during April and May 2020 compared to the same time last year. This has led to a perception of price increases largely due to a reduction in promotions with an average of 64% of offline and online shoppers saying that prices are going up and 33% saying less promotions are available.
Arnold comments: “We see early indication that the promotional baseline has been reset, prompting a huge opportunity to transform consumer behavior around affordability. The recent lack of ‘normal’ promotional activity leads to an important and perhaps historic moment where companies can reset their approach to affordability in ways that offer greater efficiency than before.”
Issued on behalf of Nielsen Africa (@NielsenAfrica):
ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units. Nielsen Global Media provides media and advertising industries with unbiased and reliable metrics that create a shared understanding of the industry required for markets to function. Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and insights and a complete picture of the complex and changing marketplace that companies need to innovate and grow. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.
Results & Impact
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The release was widely circulated across retail, marketing, and business media channels, helping Nielsen establish authority on post-Covid consumption.
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It positioned the Covid-19 Behavioural Reset Report as a must-read for FMCG companies and retailers navigating consumer uncertainty.
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The behavioral reset framework — basket reset, homebody reset, rational reset, and affordability reset — became a useful lens for interpreting shifting market dynamics.
Releases like this demonstrate the power of turning data into narratives that inform and influence. If your organization is working with insights or research that deserves wider visibility, I can help shape it into messaging that resonates with both the media and your audience.