Coronavirus Outbreak Forces New Shopping Patterns Among Consumers

Image
Nigerian Consumers Shoppers

As the world grapples with the effects of the COVID-19 pandemic and African countries such as Nigeria announce their country-specific responses to the outbreak Nielsen has found that global consumers are adapting their purchase behaviour to cope with this rapidly evolving situation.

This insight stems from the identification of six key consumer behaviour threshold levels that tie directly to concerns around the novel coronavirus (COVID-19) outbreak. These thresholds offer signals of spending patterns, particularly for emergency pantry items and health supplies with these patterns being mirrored across multiple markets.

Nielsen’s Global Intelligence leader Scott McKenzie says the spending patterns identified across the various thresholds will be critical to understand as stores work to maintain supply levels of in-demand items. “As patterns begin to emerge in response to news events of this nature, it will be imperative for companies to learn from these scenarios so they can sustain growth even in times where COVID-19 is deeply impacting people’s lives. These patterns will help provide leading and trailing indicators to those trying to understand how people will respond as developments continue to play out at different times in different countries,” says McKenzie.

Key purchase indicators

When reviewed across impacted countries these patterns (though still evolving), provide a set of leading indicators for packaged goods manufacturers and retailers faced with supply issues as they race to meet record levels of demand and changing purchase habits.

Nielsen has therefore developed six threshold levels, based on these indicators across markets which are detailed below. Each one correlates with different levels of consumption, but there are some common timing elements, which are primarily driven by news cycles.

Nielsen Six Consumer Behaviour Thresholds of Covid-19 Concern

Threshold Levels 1-4 show predictable signs of spending from consumers. In other words, depending on what stage any particular country is in, there are signs that spending occurs in a common way that may make it possible to predict what might happen next at a country level.

Overall, the world is largely past the first two stages of proactive health-minded buying that drove only minor changes to sales patterns.

As news reports detailed the continued and quick spread of the virus around the world, consumers in many countries jumped to threshold level 3: pantry preparations – where countries such as Nigeria currently are. By this stage, consumers begin developing stockpiles of food and emergency supplies. These spending spikes lessen in the weeks after panic buying but spiked on subsequent news events or developments.

Pantry panic

In many countries, localized COVID-19 news developments have ignited consumer demand to the “pantry preparation” threshold. Reports of local transmission (and even deaths from COVID-19 in some markets) and government enforced containment measures drive consumer interest toward necessities one might need at home in times of ongoing crisis. Some of the more affected markets, such as Italy and South Korea, are, however, well past the mid thresholds of “pantry preparations” and even “quarantined living prep” moving onto the more advanced consumer thresholds of “restricted living”.

Looking ahead, learning from the purchase habits that were adopted in countries where consumers have progressed through the threshold levels, may help supply chain management in the countries entering the earlier threshold stages, particularly as governments enact more aggressive protocols as they learn more about the virus and its spread.

These public efforts also appear to shorten the time it takes for some countries to move through each threshold. As it stands, China is the only country with large levels of its population impacted to reach level 6 and begin returning to normal ways of living. After extended periods of isolation, many Chinese workers have returned to offices and factories, with the exception of areas hardest hit, such as Hubei province.

Changed shopping behaviour

In the coming days, Nielsen will gain further visibility into how consumers behave during threshold levels 5 and 6. For example, Italy’s decision to lock down the country in a bid to stem a rising number of cases, for example, will be a key case study of how consumers react through the ‘quarantine living preparations’ and ‘restricted living’ thresholds.

McKenzie comments; “Similar to experiences in China, we anticipate difficulties in online order fulfilment and supply chain constraints affecting those both inside and outside Italy, as consumers contend with extended periods of isolation and lack of normal access to shops.

“The outbreak has already caused an array of changes in shopping behaviour and we’re focused on understanding the ones that will come next, how long they’ll last—and whether any will stay with us after the outbreak is behind us,” he adds.

As this global health crisis continues to evolve, Nielsen will provide ongoing updates on the impact COVID-19 is having on consumer purchasing.

Share
Related Stories
Image
06-October-2023

Jailed Iranian Activist Narges Mohammad Wins Nobel Peace Prize

By Adedapo Adesanya The Nobel Committee has awarded the 2023 Nobel Peace Prize to jailed Iranian activist, Ms Narges Mohammadi, for her fight against the oppression of women in Iran and her fight to promote human rights and freedom for all. In a statement announced on Friday, Ms Mohammadi was recognised for her brave struggle which has seen her arrested 13 times, convicted five times, and sentenced to a total of 31 years in prison and 154 lashes. As of the moment of her recognition for the prize, Ms Mohammadi is still in prison after her role in the largest

Image
27-November-2023

Grey Rebrands in Global Expansion Push

By Adedapo Adesanya A cross-border fintech company, Grey, has embarked on a significant global brand rebranding initiative, revealing a fresh logo and website design as part of moves to expand its footprint in the global market. The company’s transformation was unveiled on its social media platforms on Monday, November 27, 2023, and follows closely on the heels of Grey celebrating a milestone achievement of surpassing 500,000 users. Grey, which was founded in mid-2020 by Mr Idorenyin Obong and Mr Femi Aghedo, aims to leverage this fresh identity to reach a broader audience and solidify its international presence. The updated brand

Image
02-November-2023

South Africa’s AGOA Forum Aims at Strengthening US-Africa Trade Relations

By Kestér Kenn Klomegâh South Africa prepares to host the African Growth Opportunity Act (AGOA) forum to review critical challenges and obstacles adversely impacting trade opportunities and economic cooperation between the United States and Africa. The United States first introduced the African Growth and Opportunity Act (AGOA) in 2000. It is the 20th AGOA forum scheduled from November 2 to 4 in Johannesburg, South Africa. The AGOA Trade and Economic Cooperation Forum seeks to expand and deepen trade and investment relationships between the United States and Sub-Saharan Africa. It also encourages regional integration and further reaffirms Africa’s position as a

More Stories
Image
07-March-2021

New FX Policy Will Cut Cost Burden of Remitting Funds—CBN

By Dipo Olowookere The Central Bank of Nigeria (CBN) has explained the reason it came up with a new foreign exchange (FX) policy on diaspora remittances. On Saturday, the apex bank, under the leadership of Mr Godwin Emefiele, announced a new forex promo tagged CBN Naira 4 Dollar Scheme, an incentive for senders and recipients of International Money Transfers. The campaign, which will last for two months from March 8 to May 8, 2021, will enable “all recipients of diaspora remittances through CBN licensed IMTOs [to] be paid N5 for every $1 received as remittances inflow.” After the circular was

Image
25-January-2022

Buhari Not Creative, Result-driven—Afegbua

By Modupe Gbadeyanka A former Commissioner for Information in Edo State, Mr Kassim Afegbua, has said President Muhammadu Buhari lacks creativity and is not result-oriented, ostensibly because of his age, urging Nigerians not to accept people of his age bracket to govern the nation. While speaking on Monday, the chieftain of the Peoples Democratic Party (PDP) urged former Vice President, Mr Atiku Abubakar, to consider shelving his ambition to become the president of Nigeria next year. According to him, “President Buhari has not helped matters. He has raised very curious remarks about the sanctity of travelling the road of the

Image
08-September-2021

NNPC Gets DPR Support to Strengthen Energy Sector

By Adedapo Adesanya The Department of Petroleum Resources (DPR) has pledged to support the Nigerian National Petroleum Corporation (NNPC) to deliver value to Nigerians in the energy sector. The Director/Chief Executive Officer of the DPR, Mr Sarki Auwalu, gave this assurance when a delegation of the NNPC management team led by the Group Managing Director, Mr Mele Kyari, visited his office in Abuja on Tuesday. The DPR chief said that as a regulator, it does not stand to look for faults, rather, it helps operators to deliver on business mandates to boost economic activities. “Being a regulator is trying to

Image
04-April-2022

SEC Fixes April 6 for First CMC Meeting of 2022

By Aduragbemi Omiyale The first Capital Market Committee (CMC) meeting in 2022 will hold on Wednesday, April 6, 2022, the Securities and Exchange Commission (SEC) has announced. Expected participants at the CMC meeting include Chief Executive Officers (CEOs) of all registered capital market firms (i.e. broker/dealers, investment advisers, custodians, fund/portfolio managers, receiving banks, issuing houses, rating agencies, registrars, reporting accountants, trustees, and capital market consultants, etc.); CEOs of the Nigerian Exchange (NGX) Group, National Association of Securities Dealers (NASD); FMDQ Group Plc; Africa Exchange Holdings (AFEX); Nigeria Commodity Exchange (NCX); Central Securities Clearing System (CSCS); as well as representatives of

Image
25-January-2018

ISA, CAMA Bills Will Attract More Investments Into Nigeria—Saraki

By Dipo Olowookere Senate President, Mr Bukola Saraki, on Wednesday received report of the Technical Committee on the Investments and Securities Act (ISA) and the Companies and Allied Matters Act (CAMA). The two bills, according to the Senate President, form the core of the upper parliament’s mandate and promise to Nigerians that “we will improve the economy.” Speaking while receiving the report in Abuja yesterday, Mr Saraki said further that the CAMA and ISA bills were two of the last Economic Priority Bills of the Senate and the National Assembly. He commended the committee for their diligence in contributing to

Image
26-January-2017

Niger Delta Villagers Lose Oil Spill Case Against Shell

By Modupe Gbadeyanka A British court has ruled that some Nigerian villagers from the Niger Delta cannot institute a legal action against oil giant, Royal Dutch Shell, in the United Kingdom for an alleged offence committed in Nigeria. At the ruling on Thursday, the court held that the two groups of Nigerian villagers cannot sue the oil company in London. Royal Dutch Shell was sued by the villagers over oil spill allegations in Nigeria. Residents of Bille and Ogale communities had claimed that they were affected by pollution allegedly caused by the firm. But in its ruling, the court held

Image
05-July-2019

Court Convicts First Bank Agent for PoS Fraud

By Modupe Gbadeyanka The Economic and Financial Crimes Commission (EFCC), Makurdi Zonal Office on Wednesday, July 3, 2019 secured the conviction of a First Bank Point of Sales (PoS) agent (First Moni), Mr Eze Shedrach, before Justice Mobolaji Olajuwon of the Federal High Court, Makurdi, the state capital on a one-count charge that bordered on cybercrime. Trouble started for Mr Shedrach, when one of his customers collected N105,000 from him and issued him an ATM card with which he made an electronic replacement of the sum through his PoS machine. He effected the transfer not knowing that the ATM card

Image
04-June-2018

Nigerian Records World’s ‘Longest Officially Released Song’

By Modupe Gbadeyanka Nigerian youth continue to show that despite being described as lazy by their President, Mr Muhammadu Buhari, they are resourceful, vibrant and productive. Recently, a Nigerian gospel singer named Chika Nwaogu, otherwise known as St. Chika, officially broke the Guinness World of ‘the longest Officially Released Song.’ The former record was held by PC III Label Pipe Choir from USA in 2015, but was most recently broken by Dominican Republic rapper Henry G with a 3 hours 26 minutes, 22 seconds long song. However, the Nigerian gospel singer broke the record with his 4 hours, 2 minutes,

Ad
Ad
Recent Stories
Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the

Image
01-December-2023

IFC, ACP to Scale Emerging Market Climate Investments

By Adedapo Adesanya  The International Finance Corporation (IFC) has announced a collaboration with Allied Climate Partners (ACP) that will help create a pipeline of viable climate investments in emerging markets including Southeast Asia, Africa, the Caribbean and Central America, and India. ACP’s new platform is backed by philanthropic capital and designed to mobilize investment in climate-related projects in emerging economies to create significant environmental, economic, and social impact. In a statement seen by Business Post, the parties said the collaboration with IFC will provide advisory and structuring support, technical assistance, and sustainability and impact-management support as needed to help bring

Image
01-December-2023

Obaseki Wishes Rema Speedy Recovery

By Bliss Okperan The Edo State Governor, Mr Godwin Obaseki, has wished Afrobeats singer, Divine Ikubor, popularly known as Rema, a speedy recovery. In a message via his X (formerly Twitter) handle on Thursday, the Governor said the people of Edo State, where the singer hails from, are proud of him and remain behind him every step of the way. “We are extremely proud of you and remain behind you every step of the way,” a part of his post read. Mr Obaseki said the remarkable achievements of the artiste “over the years fill us with immense pride and joy.”

Image
01-December-2023

Nigeria Customs Service Develops App to Automate Transire

By Bliss Okperan The Tincan Island Port (TCIP) Command of the Nigeria Customs Service (NCS) has created a mobile application to automate its bond and license unit, Transire. At the unveiling of the app on Thursday, the Customs Area Controller, Comptroller Dera Nnadi, said the need to automate the Bond and License Unit had become imperative for administrative and procedural ease of doing business in the command. Speaking at a sensitization program on the automation process, Mr Nnadi informed participants that the application was developed by Superintendent of Customs Samuel Bello, to reduce the volumes of documents being deployed in

Image
01-December-2023

Nasarawa Assembly Elects New Speaker, Deputy

By Bliss Okperan The Nasarawa State House of Assembly has announced its election of Danladi Jatau, representing Kokona West Constituency, as the new Speaker. The state parliament also disclosed on Friday that it now has a new Deputy Speaker, who is Mohammed Oyanki, the lawmaker representing Doma North Constituency. The election of the two principal officers of the legislative arm of the state followed the sacking of its former Speaker, Mr Ibrahim Abdullahi, by the Appeal Court sitting in Abuja on Tuesday. While the new Speaker is a member of the All Progressives Congress (APC), his deputy is a member

Image
01-December-2023

Nico Williams Signs Contract Extension With Athletic Bilbao

By Bliss Okperan A 21-year-old Spanish international winger, Nico Williams, has extended his current deal with Athletic Bilbao, which expires in June 2024, by three seasons. He agreed to remain with the Spanish football outfit until 2027, the La Liga club confirmed this action on Friday. Nico Williams, whose elder brother, Inaki Williams, also plays for Athletic Bilbao, scored nine goals in 43 games in all competitions for the club last season. He represented Spain in the last World Cup in Qatar, while his brother played for their home country, Ghana. The younger Williams has reportedly been targeted by league

Image
01-December-2023

12 LASTMA Officials Face Disciplinary Panel

By Bliss Okperan Twelve officials of the Lagos State Traffic Management Authority (LASTMA) have faced a disciplinary panel constituted to look into the allegations of unethical misconduct against them. The Acting General Manager of LASTMA Mr Olalekan Bakare Oki, confirmed on Thursday that the affected personnel of the agency could be dismissed or demoted if found guilty. He disclosed that the disciplinary panel was statutorily constituted with three Permanent Secretaries as guided by the Lagos State Civil Service Rules and Regulations. Mr Oki said one of the 12 persons was exonerated, while the others have been recommended for dismissal and