ASIA & AUSTRALASIA

McKinsey zeroes in on ‘Zero consumers’: What they want and why it matters

Prevalent in Asia and now spreading globally 'zero consumer" has different to traditional consumer shopping patterns: demand the full “phygital” experience, evaporating mid-range brands, personalisation across online and physical shopping and societal values.

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McKinsey zeroes in on ‘Zero consumers’: What they want and why it matters. Read in full 

Key takeaways: 

• Who is ‘zero consumer”: they’re omnichannel shoppers, they scrimp and splurge at the same time, they’re not loyal to brands, and they care about health and sustainability (even though they aren’t always willing to pay for it). 
• Consumers demand the full “phygital” experience—that is, they want retailers’ physical and digital offerings to be consistent and seamless. 
• Midrange brands suffer the most – The zero consumer scrimps in some categories and splurges in others. This scrimp-and-splurge behavior puts pressure on midpriced brands as consumers flock to either cheaper or more premium brands
• Consumers are now looking for value, quality, variety, and, increasingly, purpose. Value is especially important to consumers today accross India, China, South Korea. 

4 routes to succeed with ‘zero consumer’: 

• become a part of ecosystem – you’ll need to expand beyond just selling products; you’ll need to become part of (or perhaps create) an ecosystem that provides products, services, and experiences to consumers.
• revamp “essentials range” – “essentials” range: frequently purchased products at very competitive prices, with consistently high quality.
• personalisation in physical stores and online 
• reshape your societal footprint – and be vocal about your values

Read in full