A black swan event like the pandemic has dramatically changed consumer lives. As the outbreak is gradually brought under control, daily life is returning to order. However, during the pandemic, being confined at home has led to many changes in consumers' living conditions and needs, which are likely to continue influencing their choices.

During the pandemic, consumers had to solve the problem of eating at home. Many tried and got used to buying groceries online, and with a focus on health, they paid more attention to food safety and quality. What opportunities will these changes bring to the food and food e-commerce industries?

-01- Four Consumer Keywords During the Pandemic: Safety, Convenience, Immunity, and Natural

On January 21, it was officially confirmed that the novel coronavirus could be transmitted from person to person; in the early morning of January 23, Wuhan announced a lockdown; from late January to early March, the number of infections rose, and many cities were locked down, with residential communities restricting access.

The pandemic hit quickly and fiercely, causing great panic among consumers. Consumers were passively confined at home for a period exceeding the 21 days typically considered necessary for habit formation in marketing. Therefore, by observing consumers' purchasing habits during the pandemic, we can gain insights into their mindset changes and use this to predict post-pandemic consumption trends and responses.

First, there is a higher demand for food safety. The pandemic has led to a crisis of trust among consumers, making them more inclined to choose big brands and those with quality endorsements. This mindset will continue to influence consumer choices after the pandemic. National brands like Yili and COFCO are more likely to be chosen.

Second, the need for convenience has generally increased. Consumers were isolated at home and had to solve the problem of eating. Given that even young people who rarely cook had to cook, and preparing three meals a day can be tiring, quickly and conveniently solving meal problems became a common need. Sales of instant and convenience foods surged.

According to Alibaba's business advisor data, from January 9 to February 6, 2020, in the category of grains, oils, rice, flour, dry goods, and seasonings, instant noodles/rice noodles/snail noodles, instant hot pot, and pasta, dumplings/wontons ranked in the top six subcategories in terms of sales; the semi-finished dish market also responded well. On JD.com, Xinya Chef's transaction volume during the Spring Festival was more than 40 times the usual, and Wu Niangniang dumplings saw a transaction volume over 45 times that of the same period.

Third, there is a strong demand for boosting immunity. During the pandemic, consumers became more aware of enhancing immunity. Comparing the 90-day WeChat index chart for "immunity," it can be seen that since January 25, the index has risen rapidly. Data from Digital 100 Research Institute shows that over 52% of consumers will pay more attention to health foods after the pandemic, especially products that can enhance their immunity, and will make purchases.

90-day WeChat index chart for immunity. Image source: WeChat official website.

Fourth, there is attention to natural, healthy, and environmentally friendly products. The pandemic originated from eating wild animals. For health reasons, consumers will reduce their intake of animal products and increase consumption of plant-based products. At the same time, the concept of healthy eating will be strengthened, avoiding overly processed foods and pursuing natural foods. The pandemic will also make people think more seriously about the relationship between humans and nature, and pay more attention to environmental protection.

Consumer mindset affects consumer behavior, and consumer behavior forms consumption habits. Brands can combine changes in consumer mindset and habits to explore viable business opportunities for new product development and brand promotion.

-02- Opportunities for New Product Development: Plant-Based, Convenient Foods, and Immunity-Boosting Products

1. Plant-based foods are expected to bring a new wave of growth

During the pandemic, people with weak constitutions and those with chronic diseases such as heart disease, hypertension, and diabetes were more susceptible to infection and even severe illness. These diseases are highly correlated with dietary habits such as high fat and high salt intake. From new product trends in recent years, it can be seen that the trend towards low-fat, low-salt, and vegetarian options is evident.

Consumers are pursuing a healthier lifestyle, making plant-based products a good choice. Replacing animal products with plant-based milk and meat can not only reduce fat intake but also provide high-quality plant protein nutrition, reducing the risk of high blood pressure, high blood sugar, and chronic diseases.

In recent years, the plant-based market has shown rapid growth. According to Innova data, from 2014 to 2018, the average annual compound growth rate of new food and beverage products with "plant-based" claims globally was 68%. Companies such as Yili, Mengniu, and Nongfu Spring have entered the plant-based milk market, launching products like soy milk, oat milk, and plant-based yogurt.

Although the plant-based meat market developed later than the plant-based milk market, it is also warming up. Baicaowei and Starbucks have launched plant-based meat products, and the Chinese artificial meat brand Starfield recently announced a multi-million yuan financing. It can be seen that the plant-based market is being continuously hyped, with some even calling 2019 the first year of plant-based. Innova predicts that 2020 will usher in a "plant-based revolution."

2. Convenience foods see a surge in sales and diversity

After the pandemic, consumers' lives will return to the pre-pandemic tension and busyness, so the need for convenient meal solutions will remain. During the quarantine, consumers gained new awareness of convenience foods.

From simple instant noodles and instant rice noodles to a variety of self-heating foods, semi-finished dishes, and upgraded instant noodles, consumers have formed purchasing habits after more than a month of cultivation. If products meet user requirements and provide a good consumption experience, consumers will continue to buy them after the pandemic.

For consumers, price is no longer the primary indicator; convenience foods must not only be easy to prepare but also have outstanding taste and nutrition. Semi-finished instant noodles and self-heating hot pot products, on the basis of convenience, add large pieces of vegetables, meat, and other ingredients that are visible and have a taste closer to offline Japanese ramen and hot pot. They are a comfort during quarantine and can better serve as substitutes for restaurant meals to satisfy consumers' cravings for delicious food.

Taking self-heating hot pot as an example, since February, the search volume for "small hot pot" on Taobao has increased by more than 30 times. The leading brand of self-heating small hot pot, "Zihaiguo," saw order volume increase by over 200% during the pandemic. Suning big data also shows that sales of the Zihaiguo category increased by 370.27% year-on-year. Self-heating foods are expected to accelerate from niche brands to mass popularity, becoming a track for major manufacturers to compete.

The development of semi-finished products also brings new opportunities for e-commerce platforms. Miss Fresh invited offline restaurant brands to join in developing finished and semi-finished instant foods. JD Fresh also launched the "Catering Retail Development Alliance" to promote the production of semi-finished instant foods by catering brands and expand sales through JD's omni-channel, achieving "supply chain transformation." Currently, more than 100 catering companies, including Haidilao and Xiaonanguo, have cooperated with JD.

It can be said that the strong alliance of e-commerce and catering brands can bring new development channels for catering brands, bring unique competitiveness to e-commerce platforms, and provide consumers with more new choices. It is a win-win-win situation.

3. Immunity-boosting products will become the new "high-end" choice

If masks and disinfectants provided external comfort during the pandemic, then eating for immunity provides internal comfort. Based on experience from the SARS period, consumers will still have safety concerns for a period after the pandemic and will continue to purchase products related to boosting immunity. At the same time, through this pandemic, consumers have also become more aware of the importance of enhancing immunity, making it a long-term topic.

For consumers, food is gentler and easier to obtain than health supplements. Immunity-boosting foods are expected to usher in a new round of development. During the pandemic, dairy products and some high-vitamin C products such as sea buckthorn juice have gained consumer attention.

In addition, nuts are rich in protein and can help the body enhance resistance. Unsaturated fatty acids in nuts like walnuts are beneficial for improving brain immunity and brain power; high-fiber ingredients can help improve intestinal function, and good intestinal function can help resist virus invasion and boost immunity.

Furthermore, there are many types of food ingredients that boost immunity. The person in charge of dairy and nutrition at Firmenich, in an FBIF immune food development course, analyzed the types and properties of immune foods. Ingredients with immune effects such as turmeric, probiotics, peptides, and vitamins can be combined with various product forms such as beverages, dairy products, and powders, strengthening the concept of immunity enhancement in different products and providing consumers with more choices.

-03- How Should Food Brands and Sales Platforms Promote Post-Pandemic?

In addition to new product development, existing products can also fully explore their benefit points during the pandemic to provide consumers with more convincing reasons to buy.

1. Fully explore product advantages and carry out targeted promotion for health products

Dairy products are rich in protein and can effectively enhance resistance. Brands such as Jilinguan and Guanyiru have strengthened this point in advertising to boost sales.

In addition to dairy, many other categories have immunity-boosting effects, such as mushrooms, enoki mushrooms, and bamboo fungus.

Research has found that fungal polysaccharides in various edible fungi have immunomodulatory effects. Fungal polysaccharides can regulate the body's immune function. They are non-specific immune enhancers that can enhance the phagocytic function of the reticuloendothelial system, and through effects on lymphocytes, macrophages, and the reticuloendothelial system, they can improve and regulate the body's immune function.

Therefore, effectively exploring category advantages and conducting targeted promotion is conducive to gaining greater consumer attention and further driving sales growth.

2. Strengthen the parent brand advantage and enhance brand reputation

During the pandemic, consumers have higher trust in national brands, which is also an opportunity to establish brand image and build brand credibility.

Companies can fulfill social responsibility by donating money and goods, or by providing sufficient supply guarantees based on their business, winning consumer trust. Home delivery platforms such as Hema and Miss Fresh have won consumer recognition by ensuring food supply and trying to deliver during the pandemic.

Consumer trust in brands during the pandemic will continue after the pandemic. Digital 100 research data shows that 37% of consumers said they would support brands that showed heartwarming actions during the pandemic after it ends. At the same time, after the pandemic, it is necessary to strengthen communication between brands and consumers to further consolidate the good brand image established during the pandemic.

3. Meet consumers' one-stop shopping needs and provide richer choices

After this pandemic, in addition to the post-80s and post-90s, consumers born in the 60s and 70s have also begun to get used to buying food online. The user resources accumulated during this period can continue to exert purchasing power after the pandemic.

The difference between food products and other daily necessities is that the product differentiation between platforms is low, category control is stronger, and users pay more attention to product quality and price; users have high requirements for product category richness, and they prefer to buy all needed ingredients on one platform rather than splitting purchases across multiple platforms.

Food e-commerce platforms need to strengthen multi-category supply, provide one-stop shopping, meet user needs, and thus better maintain consumer retention.

-04- Conclusion

Although the pandemic has caused huge damage to the national economy, as the situation improves and social life gradually recovers, a new wave of consumption is coming. Seeking opportunities in crisis, combining one's own advantages for product development and brand promotion, is the way to better grasp the post-pandemic recovery opportunity.

The start of 2020 is difficult, but the end of 2020 will still be full of hope.

Source: COFCO Womai (ID: COFCOwomai-)