Financial health beats well-being as top fear in Asia

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SINGAPORE, Mar. 2, 2020 /PRNewswire=KYODO JBN/ --

- 60% of Asians are worried about what COVID-19 means for their financial security

- 48% of people in Asia are 'hugely concerned' about the impact of the virus

- People are turning to online shopping and avoiding travel to minimise risk

Despite the increasing numbers of cases of COVID-19 across Asia, the top fear

is not falling sick but the threat that the virus may hurt individuals' financial health,

according to a recent study conducted by Kantar, the world's leading data, insights

and consulting company. As the global financial markets plummet in what seems to be

the worst since the Global Financial Crisis, 60% of people across Asia are worried for

their financial security. Followed by 46% who are worried about catching the virus,

while the fear of falling sick is highest in Japan (68%). Over a third of Asians (34%)

fear COVID-19 could push economies to the brink of recession. Koreans are most

concerned about their financial health (77%) and job losses (61%).

Almost half (48%) of consumers in the region are 'hugely concerned' about the

impact of COVID-19 on their day-to-day lives. Understandably, people living in

countries with the highest number of cases are feeling most vulnerable to the

virus, with 75% in Korea and 60% in Japan saying that they are concerned, and

their lives have been disrupted. The level of trust in the way the government

is handling the crisis is very low in Korea (39%) and Japan (9%). In Singapore,

where only 33% are concerned, 78% say that they trust in the government's

approach to handling the crisis.

The study used survey data from 3,000 respondents in Indonesia, Japan, Korea,

Philippines, Singapore and Thailand along with panel data and in-depth social

media analysis to understand how the virus is affecting people's attitudes and

behaviours across the region.

In addition, Kantar analysis covering the stock price evolution of over 100 consumer

goods companies across Asia shows that only a small group of corporations managed

to improve their value since COVID-19 started spreading uncertainty across the region.

Consumers and markets are waking up to the economic threat posed by COVID-19,

as attested by global stock markets including Asia sinking even deeper in recent days.

Changing consumption and lifestyle behaviours

The study shows how people are adjusting their lifestyles to reduce the risk

from COVID-19. The industry that has been hardest hit by the outbreak is travel,

with 59% of people saying that they have decided to travel less to stay safe.

This is followed by 52% saying that they are less likely to eat out, and the same

number (52%) saying that they are avoiding socialising outside of the house.

Instead, people are choosing to stay in, with 42% streaming more content,

33% hosting get-togethers at home and 30% ordering in food.  

Purchase behaviours have also shifted as the threat from the virus has grown.

The most apparent development has been the rise in 'panic purchases' in many

countries, with around one in three (30%) saying that they worry about running

out of essentials and buy more than usual, leaving shelves empty. This is highest

in Japan where 64% of people admit to this behaviour.

The study (https://go.tnsglobal.com/covid-19-impact-asians-financial-health )

also reveals a 32% increase in online shopping across these markets over the

past two months as people avoid crowded supermarkets or use ecommerce channels

to get their hands on items that are out of stock in physical stores. Koreans

have the highest increase in online shopping (41%). Online grocery platforms

and food delivery services saw the highest increase, resulting in many providers

having to adjust their strategies to deal with the demand. In contrast, shopping in

retail outlets has been reduced by 35% over the same period.

Predictably, categories associated with hygiene and health have seen the

biggest rise in purchases, with 48% of people saying they are buying more

personal hygiene items such as face masks and hand sanitiser, 45% buying more

health and nutritional items such as vitamins to improve immunity, and 40%

reporting that they are spending more on home cleaning products. On the other

hand, people are spending less on alcoholic beverage (30%), a trend also seen

during the SARS epidemic. In addition, fewer people are buying luxury items

(27%) and meat and seafood (21%).

The study highlights how COVID-19 is resulting in consumers with a heightened

focus on products and services that are 'safe to use', especially when it comes

to the food and beverage category and consumer goods. In addition, they are

looking for brands that have enhanced health and wellbeing benefits to help

build a strong defence against the virus. There is also demand for the insurance

sector to create more products geared at covering health and wellness in times of crisis.

Adrian Gonzalez, CEO of Kantar in Northeast Asia, Southeast Asia and Pacific,

says: "As the Coronavirus intensifies and continues to spread across the world,

our findings show the extent to which it is affecting people's daily lives.

People are understandably alarmed and doing what they can to stay safe. Many

are changing what they are doing and the things they are buying and some admit

to panic buying. But what people worry about the most is what COVID-19 will

mean for their financial security as it potentially impacts longer-term economic health.

This poses an added problem that the choices people make may continue to change

well after the epidemic comes to an end. How to deal with this seems to be a matter

of trust. For example, Singapore is currently on high alert with 'Code Orange', yet

people seem less concerned because they trust the government's handling of the crisis.

People will likewise look for trust in brands and their supply chains as they make choices

as to what they may or may not buy."

Stephane Alpern, Managing Partner, Southeast Asia at Kantar Consulting, adds:

"People do not expect all brands to save the world, but to deliver real value, act

responsibly and do right by the community, including their employees. UOB in

Singapore allocated SGD$3 billion for its affected local corporate and SME clients and Grab,

rolled out a dedicated 24-hour service for healthcare professionals travelling home from work.

By focusing on problems they can fix, these brand actions are incredibly powerful."

Notes to editor:

About the study

The study (https://go.tnsglobal.com/covid-19-impact-asians-financial-health ) is

based on an online survey of 3,000 consumers between the ages of 18 and 60

across six countries in the region: Singapore, Indonesia, Philippines, Korea, Japan,

Thailand. Fieldwork was conducted between 25 and 27 February 2020.

Kantar's panel data and social media analysis over the period between 18 Dec

and 27 February 2020 complements the survey. Download the infographic here

(https://www.tnsglobal.com/sites/default/files/COVID-19%20NASEAP%20Infographic%202020_0.pdf ).

About Kantar

Kantar is the world's leading evidence-based insights and consulting company.

We have a complete, unique and rounded understanding of how people think, feel

and act; globally and locally in over 90 markets. By combining the deep expertise

of our people, our data resources and benchmarks, our innovative analytics and

technology, we help our clients understand people and inspire growth.

source: Kantar