During a webinar held on May 13, Kantar sought to shed light on the current situation facing various players operating on the African continent and guide their decisions and strategies for the future. The Covid-19 health crisis has led to a change in consumer behavior, which is having a direct impact on companies and brands that are facing a real dilemma, particularly in terms of how they communicate. To this end, Kantar's teams in Senegal and Côte d'Ivoire have formulated recommendations to help brands and companies reinvent themselves, maintain their activities, and nurture their relationship with consumers.
A very real reaction
Covid-19 has been a source of real concern on the African continent, as it has been in the rest of the world. This concern is particularly pronounced in Senegal and Côte d'Ivoire. Lifestyles have been greatly impacted across all social classes, given the series of measures taken by governments to combat the spread of the virus.
Looking to the future, the proportion of the population that is very concerned remains high in Senegal, with 56% of the sample responding positively. These concerns are based on fear of the disease, but also on the financial strain generated by the crisis. The concern is therefore very real.
New consumer behaviors
The coronavirus crisis has therefore had a major impact on consumer habits, particularly purchasing habits.
At the beginning of the health crisis, purchasing habits were mainly focused on stockpiling and emergency purchases, due to fears of shortages. This was particularly noticeable in Côte d'Ivoire, where the population remains more wary. For brands, the Kantar study reveals a global need to reassure consumers about the availability and accessibility of consumer products throughout the crisis period.
Buying more with less"
is
the new norm
Consumption has been largely linked to the various statements and measures put in place by governments. Indeed, peaks in the purchase of consumer goods have been recorded in connection with the various restrictive measures. This has forced companies to be flexible and agile in their various actions (supply, distribution) as well as in their communication.
Eating habits have remained the same, but the gradual decline in purchasing power is having a significant impact on consumer purchasing behavior, with consumers preferring cheaper products, in smaller quantities, and considered non-essential, without compromising on quality. Cosmetics brands, for example, will therefore have to rethink their strategies.
In terms of brand choice, the Kantar study reveals a return to local brands, with consumers tending to favor local brands over global giants.
Covid-19, an accelerator of digital transformation
Before the health crisis, e-commerce was growing on the continent, even though the various players, notably the leader Jumia, faced numerous obstacles.
In Senegal and Côte d'Ivoire, even though travel was greatly reduced during this period of crisis, e-commerce platforms were unable to "take advantage" of the context to boost their sales. On the contrary, online sales declined. A change in purchasing habits has yet to take place.
In these uncertain times, Kantar recommends that brands make their products more accessible by diversifying their distribution channels, particularly by incorporating home delivery. Online sales are also a segment to consider in order to attract more consumers. In addition, to meet essential needs, digital communication channels should be integrated into strategies because, according to the study, social media has a greater reach than traditional sales platforms.
Finally, there is the question of payment methods. Throughout the health crisis, mobile money providers have taken measures to encourage consumers to make greater use of their services, even though cash remains the preferred method of payment. The conditions were in place for mobile money to take off, but it still faces many challenges:
- There are still few points of sale offering this payment solution.
- Mobile money payments have not yet become completely integrated into everyday life.
Mobile money players could, however, see an opportunity in the current context and continue to promote their services in response to new health constraints.
Brands need to rethink their actions
How should brands deal with this health crisis?
Since the beginning of the crisis, we have seen different communication strategies implemented by brands around the world. Some advertisers have rethought their communication strategy by favoring new channels, while others have opted to postpone their campaigns.
According to the Kantar study, only 6% of consumers think that brands should stop communicating during this period, but 72% of them think that brands should not take advantage of the situation.
So how can brands communicate appropriately? Kantar took advantage of this webinar to make a few recommendations.
Communication strategies recommended by Kantar
Convinced that economies and businesses will recover, Kantar emphasizes that the strongest brands will be those that recover most quickly.
Here are the recommendations:
- Companies must continue to invest in their brands because media investment is essential to maintaining market share.
- Companies must remain present during this period of crisis
- Companies must optimize the impact of their investments: "do more with less."
- According to Kantar, in times of crisis, the majority of consumers favor traditional national media for reasons of trust. During this period, consumers have shown an increased need for information about the crisis at the national level. Consumption of national media, particularly television, has risen sharply during this period in Senegal and Côte d'Ivoire.
- It is important for brands to understand the overall role of the various points of contact with consumers. Companies must rethink their strategies and reallocate their resources to ensure their positioning during this period by emphasizing non-paid media and favoring their own media channels (website, in-store product presentations, customer experience, recommendations) rather than opting for a total halt to investment.
- They should also increase their presence on social media, which has become indispensable, even vital, during this health crisis.