INDUSTRY INSIGHTS FOR WHEN THE WORLD

EMERGES FROM COVID-19

ABOUT THIS REPORT

Creative transformation has never been as important as it is now. The scale and impact of COVID-19 has been unprecedented

and while business, the government and society grapple with the current reality, we are also anticipating the impact and

opportunities of a post-COVID world.

We have asked a selection of our own sector experts to provide their insights on the current situation and consider the opportunities that might emerge. This has formed the WPP’d

Smart Series. These are not intended as academic “white papers”; rather, they offer some key insights and actionable opportunities in a concise, digestible form that might trigger

some new thinking for your business or organisation. If you would like to discuss these further please contact the authors directly -

you can find their details on the last page.

INSIGHT FROM COVID-19 OPPORTUNITY

TREND 1: FOR THE HOARD.

Australia led the way in stockpiling behaviour, fuelled by an impending lockdown and scarcity concerns with pasta, toilet paper and facial tissues all seeing sales volumes double. Google Trends showed Australian searches for ‘toilet paper’ was higher than worldwide volumes at its peak.

Crisis buying habits will become the new normal for essentials such as pasta, rice, tissues and toilet paper. Permanent shifts in purchase intervals and volumes will have long-term impacts on your promotional calendars and supply chains.

TREND 2: DELIVER UNTO ME.

Digitisation of purchase behaviour is likely to be permanent as shoppers futureproof against grocery store shortages. Amazon has seen its Australian volumes almost double since the COVID-19 outbreak. This shift to online sales has been observed across all generations with fastest growth in the over-60s. (GroupM 2020)

Online players like Amazon and direct-to-consumer (DTC) subscriptions will become more significant gatekeepers to FMCG shoppers (WARC 2020). Your brand needs to reconsider the importance of subscription offers while shifting attention to trade terms and search rankings as these smaller online players become increasingly important.

TREND 3: TIGHTEN YOUR BRAND BELT.

Most FMCG brands have pulled media budgets and stopped spending (GroupM & AQX 2020).

Brands that keep the branding light on are primed for faster recovery because reducing budgets during a recession doesn’t work in the medium to long term (WARC 2020). How can you beat the crowd to gain an unfair share of voice?

FAST MOVING CONSUMER GOODS

Catherine Rushton

AUTHOR

21 May 2020

DATE

INSIGHT FROM COVID-19 OPPORTUNITY

TREND 4: LOOK WHAT WE CAN DO.

Market leaders with agile responses have been best received by consumers. LVMH committed to making hand sanitisers through its perfume and cosmetics production facilities, with large quantities delivered free of charge to French health authorities. Think about what your brand can do to make people feel better. What problems can you help solve?

TREND 5: BOOST BRANDWIDTH.

Isolation has increased media consumption across most channels including television, radio and newspapers as well as video and audio streaming. Cinema and out of home advertising are significantly down.

During the crisis, brands must reshape the media mix to take full advantage of the new indoor media habits. But shifts to online content consumption across screens and audio have not reversed as Chinese consumers come out of lockdown. FMCG brands must adapt to this new normal with an audience-first, data-led approach.

As we head into recovery mode, it will be about using increased desire for digital experiences to create valuable consumer exchange programs. There will be out of home, cinema and live communication opportunities as people enthusiastically return to normality. How can your brand capitalise on behaviour shifts among high-value segments like the over-60s moving online? Which new methods of communication and sales make sense for your audiences? (GroupM 2020)

CATHERINE RUSHTONHead of StrategyMindshare

A strategist at heart with a curiosity for how people work, Catherine is Head of Strategy at Mindshare Sydney. For over 10 years she has led the strategic media product across some of

the biggest global and local brands including Unilever, Chanel, Kimberly Clark, Foxtel, NRMA and HSBC. She has also gained

invaluable insight into the needs of her clients during her role at Unilever as Senior Brand Manager for Dove Masterbrand, ANZ. In this role she unlocked Dove as a true beauty Masterbrand

growing both penetration and market share.

CATHERINE.RUSHTON@MINDSHAREWORLD.COM

INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM COVID-19

Fast Moving Consumer Goods | 21 May 2020

THE STORY BY THE NUMBERS:

1 Kantar Barometer, March 2020. 2 Kantar Barometer, April 2020.

of Aussies say that easy availability of products and

services is the most important focus for FMCG brand1

of Aussies say they prefer shopping for groceries in

supermarkets close to home since coronavirus2

of Aussies agree that they pay more attention to products

on sale when shopping since coronavirus2

of Aussies say that after the crisis, they will continue to

visit online stores discovered during the crisis2

of consumers believe that brands should

stop advertising during COVID-191