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Team PSP | 11/07/2020
We are now seven months into 2020, and the “temporary” disruptions we expected in March have fundamentally rewritten the rules of business. As the COVID-19 pandemic continues its unpredictable path, leaders are finding that yesterday’s playbooks are obsolete.
In this climate of daily instability, Market Research has shifted from a “luxury insight” to a survival necessity. With consumer behavior changing at a record pace, staying in touch with the pulse of the market is the only way to keep your business afloat.
The Great Consumption Shift
The pandemic has created a radical “split” in the economy. While some sectors are struggling for air, others are seeing unprecedented booms. Market research helps identify these shifting tides before it’s too late:
- The Skyrocket Effect: Between March and June 2020, global demand for disinfectants, sanitizers, and PPE reached fever pitches. Even the humble biscuit industry saw profits jump over 100% in Q1 as people hunkered down for lockdown.
- The Standstill: Conversely, the automotive and travel sectors have witnessed a sharp negative trajectory as mobility remains restricted.
Organizations must ask: Is my product still relevant today? A strategy designed in 2019 is a relic; a “post-coronavirus” strategy requires a total recalibration of how you serve your audience.
Why the Interest in Research is Surging Right Now
Market research firms are seeing a spike in activity. This isn’t just a coincidence—it’s driven by several key factors unique to this moment:
- Higher Survey Participation: With “Work From Home” as the new standard and a rising unemployment rate, more people are available and willing to participate in research studies. This provides a goldmine of data for companies looking to understand the new consumer psyche.
- Identifying “New Life” Opportunities: People are changing how they live, eat, and communicate. Research identifies the gaps in the market—like the need for better home-office tech or immunity-boosting nutrition—allowing companies to pivot quickly.
- Risk Mitigation: Entering a new segment during a recession is dangerous. Data-backed market analysis helps identify potential “loopholes” and risks before they lead to massive financial losses.
- Competitor Tracking: In a race for survival, knowing how your competitors are adjusting their supply chains or pricing helps you find the weaknesses in their armor and capture their displaced customers.
Essential Questions for Business Pioneers
To navigate the path ahead, every business leader should be able to answer the following:
- Does our product resonate with a population currently prioritizing health and safety?
- Should we pivot our launch to “low-impact” regions, or tailor products specifically for “worst-hit” areas?
- Do we have the infrastructure to meet a sudden surge in demand if a new trend takes hold?
The Path Ahead: Modern Solutions for Modern Problems
As we move further into the second half of 2020, the uncertainty remains high. However, we are no longer flying blind. Through depth interviews, telephone surveys, and focus groups, market research is lending a helping hand to a world in transition.
Without these insights, businesses are simply guessing. In 2020, a wrong guess can be fatal; an informed decision, backed by market analysis, is the key to resilience.