COVID-19: What are the consumption prospects of the Dominican?
- 86% of consumers in the Dominican Republic will continue to change the priority of non-essential products
The study carried out by the EY firm, through the EY Parthenon tool, with a sample of more than 7,600 consumer responses in Costa Rica, Panama, and the Dominican Republic, reveals that consumers have significantly changed their consumption preferences towards reduction, the purchase of low-priced products and the focus on essential products.
In the short and medium-term, as consumers continue to face headwinds, they will continue to maintain cautious consumer behaviors, including downsizing, purchasing low-priced products, and changing the priority of nonessential products.
- The reduction is likely to continue as the majority of consumers will continue in “savings mode” and reduce the costs of non-essential products.
- The purchase of low-priced products will continue as most of the people whose income has been affected will continue to buy more accessible brands (or substitutes).
- Consumers will continue to prioritize essential products in their spending, and retailers will follow consumers as they have up to now.
- Online delivery platforms are likely to remain as consumers have tried them and enjoyed their convenience.
In the medium term:
- Switching to higher-priced products will require a “persuasive” effort since the longer the pandemic lasts, the more satisfied consumers will be with their new (cheaper) brands; Even if their wages return to their normal amount, they will continue to buy cheaper brands.
- Non-essential product categories will require strong incentives and campaigns to resume purchases on everything from electronics to cosmetics.
- As consumers continue to enjoy the “new” digital channels, they will continue to purchase most of their products online.
- 36% of consumers in the Dominican Republic will continue in savings mode for the next 6 months.
- 86% of consumers in the Dominican Republic will continue to change the priority of non-essential products.
- 87% of consumers in the Dominican Republic are satisfied with their online shopping experience and will continue to use this mode of purchase.
- 63% of consumers in the Dominican Republic have said that they will continue to buy products online in the short and medium-term.
Beyond the Covid-19
- Trading will require a persuasive effort.
- Non-essential categories will require strong initiatives.
- The digital trend is here to stay