Non-metros expected to lead towards recovery faster than metro markets: EY Survey
By M4G Bureau - July 24, 2020
However, OOH media consumption will take longer duration to come in terms of pre-COVID scenario
In the wake of unprecedented economic disruption caused by the COVID-19 pandemic, non-metro markets are likely to recover faster than metro markets according to an EY survey.
The report named ‘Will non-metro markets propel India's recovery’ reveals that a higher percentage of respondents from non-metro markets expect to spend more than before on several categories, compared to metro markets. This indicates that when the lockdown ends, green shoots of recovery would probably sprout faster from the non-metro markets.
Due to the increasing fear of catching the COVID19 infection, more people will consume in home entertainment as compared to out of home entertainment options for some time to come indicates the report under alternative consumption options.
While COVID-19 has impacted overall consumption, categories like health (household products, hygiene products, vitamins and supplements, etc.) and online services (gaming, home entertainment, online education, online banking etc.) are expected to benefit.
Non metro respondents stated lack of knowledge of how to use digital services, absence of smart phones and fewer language interfaces as some of the obstacles they faced. While newspapers continue to remain the most trusted news source.
Time spent on digital and electronic media is expected to increase on account of COVID -19. COVID -19 could have some significant and even permanent change to consumption patterns.
“The COVID-19 pandemic has radically shifted our way of life. However, despite uncertain and challenging conditions, our research shows that non-metros express a higher degree of resiliency and a resolve to bounce back quicker compared to metros. We may see long-term and even permanent changes in consumption patterns”, says Ashish Pherwani, EY India Media & Entertainment Leader.
The survey covered a varied demographic mix of more than 4,000 respondents (2,000 each from metro and non-metro markets) to understand the potential impact of the pandemic from the consumer sentiment perspective. It covered key aspects linked to the current and expected attitudes, behaviours and spending trends of consumers as they adapt to the new reality.