McKinsey Survey: South African consumer sentiment during the coronavirus crisis

McKinsey & Company 1
We have seen five fundamental shifts in consumer behavior, some
of which will have a lasting impact, as a result of the pandemic
Up to 90%
growth intent in
online on most
categories even
post-COVID-19
2. Flight to digital
and omnichannel
Up to 45%
consumer net intent
to decrease spend
across most
discretionary
categories
1. Shift to value
and essentials
79%
of consumers
have changed
stores, brands,
or the way they
shop
3. Shock to
loyalty
60%
of consumers
are not yet
resuming
“normal” out-of-
home activities
4. Homebody
economy
5. New holiday
outlook
88%
intend to
maintain or
reduce holiday
shopping spend
Source: McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1,000, sampled and weighted to match South Africa’s general population 18+ years

Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; bars may not sum to 100% due to rounding.
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
Spain
9/24–27
UK
9/24–27
Italy
9/24–27
China
9/16–24
Brazil
9/21–25
France
9/24–27
10 8
17 12
20 17
37
26
35
42
31
32 38
38
45 53
52
66
47
60
53
47
62
58 58 53
39 35
28
17 17 14 12 11 7
4
US
9/18–24
S. Africa
9/18–29
Japan
9/22–28
India
9/18–27
28
51
20
Unsure: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
Pessimistic: COVID-19 will
have lasting impact on the
economy and show regression/
fall into lengthy recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or
stronger than before COVID-19
Shift to value and essentials
South African consumers are more pessimistic compared to other
emerging markets
Indonesia
9/21–30
Mexico
9/21–28
Germany
9/24–27

Consumer sentiment in South Africa remains more pessimistic
compared to March
23%
29% 28% 28%
49%
52% 55% 51%
28%
19% 17% 20%
Confidence in own country’s economic recovery after COVID-191
% of respondents
Mixed: The economy will be impacted for
6–12 months or longer and will stagnate
or show slow growth thereafter
Pessimistic: COVID-19 will have lasting
impact on the economy and show
regression/fall into lengthy recession
Optimistic: The economy will rebound
within 2–3 months and grow just as strong
as or stronger than before COVID-19
1 Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1000; 6/1–6/5/2020, n = 511; 4/21–4/24/2020, n = 510; 3/23–3/26/2020, n = 535, sampled and weighted to
match South Africa’s general population 18+ years
Mar 23–26
South Africa
Apr 21–24 Jun 1–5 Sep 18–29
Lockdown begins

South Africans believe that the personal and financial impact from
COVID-19 will last well beyond another two months
13%
24%
15%
28%
20%
0–1 month
4–6 months
2–3 months
7–12 months
More than one year
8%
6%
16%
24%
17%
31%
4–6 months
No impact
More than one year
0–1 month
2–3 months
7–12 months
Adjustments to routines1
% of respondents
Impact on personal/household finances2
% of respondents
~85%
believe it will take
another 2+ months
before routines can
return to normal,
down from 93% in the
last pulse survey
~88%
believe their finances
will be impacted for
2+ months by the
COVID-19 situation,
up from 87% in the
last pulse survey
1 Q: How long do you believe you need to adjust your routines, given the current COVID-19 situation, before things return back to normal in South Africa (e.g., government lifts restrictions on events/travel)?
Figures may not sum to 100% because of rounding.
2 Q: How long do you believe your personal/household finances will be impacted by the COVID-19 situation? Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1000; 6/1–6/5/2020, n = 511, sampled and weighted to match South Africa’s general population 18+ years

Household income1,2
% of respondents
Increase slightly / increase a lotReduce slightly / reduce a lot About the same
34%
4%
28%
Past 2 weeks
68%
Past 2 weeks Next 2 weeks
61%
6%
25%
20%
54%
1 Q: How has the COVID-19 situation affected your (family’s) overall available income, spending, and savings in the past two weeks? Figures may not sum to 100% because of rounding.
2 Q: How do you think your overall available income, spending, and savings may change in the next two weeks? Figures may not sum to 100% because of rounding.
Consumers in South Africa continue to see reductions in income,
spending, and savings
Household spending1,2
% of respondents
Past 2 weeks
13%
37%
50% 52%
Past 2 weeks
27%
21%
22%
48%
31%
Next 2 weeks
June 1–5 Sep 18–29 June 1–5 Sep 18–29
Household savings1,2
% of respondents
19%
Past 2 weeks
8%
75%
17%
73%
Past 2 weeks
8%
20%
40%
42%
Next 2 weeks
June 1–5 Sep 18–29

Change in shopping mindset since COVID-191
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started”;
figures may not sum to 100% because of rounding.
5%
6%
6%
13%
10%
34%
37%
39%
48%
58%
61%
57%
54%
40%
33%
100%
Looking for ways to save money when shopping
Becoming more mindful of where I spend my money
Spending time planning / making lists for shopping trips
Changing to less expensive products to save money
Researching brand and product choices before buying
Doing moreDoing less Doing about the same
South Africans are aggressively adopting habits to save money

Expected spending per category over the next two weeks compared to usual1
% of respondents
1 Q: Over the next two weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3 Based on small subset (n < 30) of sample population.
11
37
32
48
42
53
55
56
48
67
58
20
15
17
35
53
29
11
9
11
12
12
12
14
6
21
12
12
13
11
10
Groceries
Food takeout & delivery
Snacks
Restaurant
Tobacco products
Quick-service restaurant
Alcohol
Footwear
Apparel
10
Jewelry
Accessories
Non-food child products
Household supplies
Personal-care products
Skin care & makeup
Furnishings & appliances
Decrease Increase
Stay the same
21
49
55
48
35
33
33
20
54
45
25
41
39
51
60
51
8
5
8
18
7
21
13
24
11
12
22
16
21
16
14
13
Entertainment at home
Fitness & wellness
Personal-care services
Books/magazines/newspapers
Consumer electronics
Out-of-home entertainment
Pet-care services
Travel by car
Gasoline
Vehicle purchases
International flights3
Short-term home rentals
Cruises
Adventures & tours
Hotel/resort stays
Domestic flights
Net intent2Net intent2
+18
+1
-3
-42
-26
-23
-37
-30
-43
-43
-44
-34
-61
-48
-5
-22
-13
-44
-47
-30
-28
-12
-20
+4
-43
-33
-3
-25
-18
-35
-46
-38
Net intent: Above +1
Net intent: -15 to 0
Net intent: Below -15
Change since
March
Change since
March
Consumers still plan to reduce spending on nonessentials, though net
intent has risen since March
+4
-11
+1
+25
+39
+33
+40
+39
+43
+20
+34
+8
+10
+8
+29
+34
-20
-3
+25
+48
+26
+57
+50
+72
+33
+40
+72
+48
+57
+49
+37
+42

Consumers expect significant increases in online shopping across
categories
Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Includes respondents who chose “some online,” “most online,” and “all online.” Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
11
9
13
11
12
11
12
18
27
26
24
29
28
40
35
38
38
43
40
67
Vitamins/supplements
+13
+19
Household supplies
+11
+16Alcohol
Snacks
+16
Apparel
+11
+16
Groceries
Over-the-counter medcine
+16
+10
Footwear
Tobacco
+16
+10
Skin care & makeup
+14
+18Fitness & wellness
+15Non-food child products
+18
Furnishing & appliances
+20Consumer electronics
Accessories
+16
Entertainment at home
Books, magazines, newspapers
+17
+11Jewelry
+12
Pre-COVID-19 Expected growth after COVID-19
% growth in customers
purchasing category online
+145%
+144%
+123%
+100%
+92%
+91%
+83%
+78%
+70%
+69%
+63%
+62%
+57%
+50%
+46%
+45%
+42%
+37%
+28%
+18%
Flight to digital and omnichannel
Up to 90%
growth in consumers who
purchase online for most
categories

Consumers’ use of online channel before and expected use after COVID-191,2
% of respondents purchasing most or all online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
5
3
3
4
3
3
4
7
11
14
9
9
9
18
19
9
16
18
17
48
+7
Footwear
Furnishings & appliances
Non-food child products
Snacks
+4Alcohol
Groceries
+12
+5
+4
+6
Over-the-counter medicine
+6Tobacco
+12
+4
Books, magazines, newspapers
Household supplies
Accessories
+7Vitamins/supplements
+8Skin care & makeup
Apparel
+11Fitness & wellness
+7
+11
+12
+16
Consumer electronics
+14
+11
+9Jewelry
+15Entertainment at home
Pre-COVID-19 Expected growth after COVID-19
% growth in customers purchasing
category most or all online
+88%
+231%
+142%
+107%
+174%
+169%
+98%
+91%
+76%
+76%
+82%
+120%
+128%
+68%
+67%
+158%
+73%
+90%
+50%
+32%
Up to 150%
growth in consumers who
purchase most or all
online for most categories
Consumers also expect significant increases in online shopping
across categories

Have you used or done any of the
following since COVID-19 started1
% of respondents
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”; “using more
since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
13%
4%
2%
16%
2%
5%
5%
3%
4%
4%
19%
11%
3%
16%
4%
14%
2%
13%
4%
7%
7%
9%
12%
3%
3%
6%
10%
5%
11%
3%
6%
4%
Purchased directly from social media
1%
Meal-kit delivery
Store curbside pickup
Purchased pre-owned products
Restaurant curbside pickup
Grocery delivery
Restaurant delivery
Quick-serve restaurant drive-thru
Buy online for in-store pickup
Used deal-finding plug-ins
Used a new store/restaurant app
Using same/lessJust started using Not usingUsing more
Intent to
continue,2 %
54%
54%
50%
61%
45%
66%
44%
N/A
N/A
N/A
N/A
South Africans have acquired new habits, including increased use
of restaurant delivery, drive-throughs, and click-and-collect buying
Source: McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1,000, 6/1–6/5/2020, n = 511, sampled and weighted to match South Africa’s general population 18+ years

Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
UsergrowthsinceCOVID-192
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Many consumers intend to continue these habits even after
COVID-19 subsides
40 8050 60 70 90
50
0
100
150
Quick-serve
restaurant
drive-thru
Restaurant
delivery
In-store self-checkout
Grocery
delivery
Meal-kit delivery
New store/
restaurant app
Purchased pre-owned products online
Purchased from
social media
Deal-finding plug-ins (e.g., Honey)
Works for now Accelerated shifts
Potentially here to stay

Have you used any of the following since COVID-19 started1
% of respondents
About 79 percent of South Africans have tried a new shopping
behavior and most intend to continue with it beyond the crisis
1 Q: Since the coronavirus (COVID-19) situation started (i.e., in the past ~3 months), which of the following have you done? 23% consumers selected “none of these.”
2 Q: Which best describes whether or not you plan to continue with these shopping changes once the coronavirus (COVID-19) situation has subsided? Possible answers: “will go back to what I did before coronavirus”; ”will keep doing both this and
what I did before coronavirus”; ”will keep doing this and NOT go back to what I did before coronavirus.” Intent to continue includes respondents who selected “will keep doing both this and what I did before coronavirus” and “will keep doing this
and NOT go back to what I did before coronavirus.”
3 “New shopping method” includes curbside pickup and delivery apps.
44%
40%
31%
30%
22%
Different retailer/store/website
New shopping method3
Different brand
New digital shopping method
Private label/store brand
Intent to
continue2
76%
81%
89%
79%
85%
79%
Consumers have tried
a new shopping
behavior
Shock to loyalty

The majority of consumers cite convenience and value as drivers for
trying new places to shop
Reason for shopping at a new retailer/store/website in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you shopped from a new retailer/store/website since the coronavirus (COVID-19) situation started. What was the main reason you decided to try this new retailer/store/website? Select up to 3.
37%
37%
20%
18%
40%
19%
15%
22%
18%
4%
14%
5%
13%
Offers good delivery/pickup options
More easily accessible from my home
Offers natural/organic options
The company treats its employees well
Less crowded / has shorter lines
Products are in stock
Can get all the items I need from one place
Better shipping/delivery costs
Better prices/promotions
Better quality
Better value
Supporting local businesses
Cleaner/has better hygiene measures
Convenience
Purpose-driven
Quality/organic
Health/hygiene
Availability
Value
x% Net % of respondents per
category
59%
76%
22%
17%
20%
13%
Shock to loyalty

Consumers cite value as their main reason for trying a new brand
Reason for trying a new brand in the past three months1
% of respondents selecting reason in top three
1 Q: You mentioned you tried a new/different brand than what you normally buy. What was the main reason that drove this decision? Select up to 3. “Brand” includes different brand, new private label/store brand.
Availability
Value
Health/hygiene
Quality/organic
Purpose-driven
Convenience
x% Net % of respondents per
category
25%
79%
28%
26%
31%
14%
Shock to loyalty
58%
27%
12%
7%
28%
4%
28%
17%
12%
25%
14%
The company treats its employees well
Supporting local businesses
Better quality
Better prices/promotions
Is available where I’m shopping
Better value
Better shipping/delivery costs
Larger package sizes
Is natural/organic
Products are in stock
Cleaner/has better hygiene measures

Consumers buying based on company behavior1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Consumers are paying increased attention to healthy and hygienic
packaging
8%
7%
11%
9%
14%
57%
62%
63%
67%
68%
35%
31%
26%
24%
18%
Retailers promotion of sustainable solutions
Healthy and hygienic packaging
How companies take care of the safety of their employees
Sustainable/eco-friendly products
100%
Company’s purpose/values
Doing less Doing about the same Doing more
Shock to loyalty

McKinsey & Company 16Source: McKinsey 2020–21 Global Sentiment Survey
Compared to 2019, trade-down behavior has grown 1.5-fold across
all socioeconomic classes
Trade-off behavior in a standard shopping basket1,2
% of purchases, September 2020 and September 2019
22
33
6
2
1.5x
Trade down Trade up
2019
2020
26
37
6
3
22
34
7
1
20
32
6
2
South Africa socioeconomic classes
LSM 9–10LSM 7–8LSM 1–6
1 Q: Please indicate how your buying behavior has changed in a standard shopping basket for the items shown in the past 12 months (since September 2019). Possible mutually exclusive answers: “switching to less expensive brands”; “buying the
same brand as I bought 12 months ago, but at stores with lower prices”; “buying only when on sale or with coupon”; “buying less frequently of lower quantity of the same brand”; “switching to more expensive/premium brands”; “have made some
other change in how I buy these products”; “have not made changes in how I buy these products.”
2 Base for trade-off behavior is consumers who have changed behavior.
Shock to loyalty

Milestones for the South African population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
Most South Africans are still waiting to see indicators beyond lifting of
restrictions before engaging in ‘normal’ out-of-home activities
1 Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already participating in these activities and those who do not deem any of these items important.
6018
22
Only once there’s a
vaccine or treatment
Government lifts
restrictions + other
requirement
Government lifts restrictions
Medical authorities deem safe 26%
Stores, restaurants, and other indoor
places start taking safety measures 26%
I see other people returning 8%
Government lifts restrictions and…
60%
of people are not
currently engaging
in “normal” out-of-
home activities, up
from 56% in the
last survey
Homebody economy
~11% of South Africans will
not engage in “normal” out-of-
home activities until there is a
vaccine or treatment

Most South Africans are most concerned about public transport,
attending large events, and visiting crowded outdoor public spaces
Consumers’ level of concern undertaking various activities1
% of respondents
1 Q: How worried would you be if you were to do the following activities in the next two weeks? Possible answers: “not worried at all”; “not very worried”; “somewhat worried”; “very worried”; “extremely worried.”; figures may not sum to 100%
because of rounding.
2 Level of concern is calculated by subtracting the % of respondents stating they would be “not worried at all” and “not very worried” from “very worried” and “extremely worried.”
Level of concern2
42
42
33
28
26
19
24
10
2
2
11
3
-1
-19
-27
-27
-28
-3551%
47%
48%
50%
43%
38%
32%
35%
34%
33%
29%
31%
27%
25%
23%
25%
20%
18%
18%
34%
33%
32%
27%
33%
36%
34%
31%
30%
31%
31%
29%
27%
27%
26%
24%
27%
23%
22%
15%
20%
20%
23%
24%
26%
34%
34%
36%
36%
40%
40%
46%
48%
51%
51%
53%
59%
60%
Shop for groceries/necessities
Work outside my home
Drive more than 2 hours from home
Get together with family
Attend a large event
Shop for non-necessities
Get together with friends
Go to a shopping mall
Go to a hair or nail salon
Dine at a restaurant or bar
Worried
Rent a short-term home
Go out for family entertainment
Stay in a hotel
Go to the gym or fitness studio
Use ride-sharing service
Somewhat worried
Travel by airplane
Use public transportation
Use a clothing rental service
Visit a crowded outdoor public place
Not worried
Homebody economy
-12

Cleaning and sanitization continue to be a priority to consumers as
they decide where to shop—up 4 percentage points since June
Top priorities when deciding where to shop in-store1
% of respondents for whom this criterion is the most important2
1 Q: Once restrictions lift, which of the following factors will be most important to you as you decide which of these places to visit in person? Respondents were asked to select the most important.
2 The following categories are included in each bucket: Cleaning and sanitization—increased cleaning, improved air filtration, availability of sanitizing supplies throughout the store; Health checks—customer wellness check (e.g., temperature) on
entry, employees' wellness check (e.g., temperature) on entry; Masks and barriers—customers and employees wear masks, customers and employees provided masks and gloves, plastic barrier with cashier; No-contact purchasing—curbside
pick-up, cashier-less checkout, no contact delivery, buy online for pickup in store; Physical distancing—customer number limit, distancing in customer line, reduced employee activity during shopping hours; Store regulations—no customer product
testing, one-way store aisles, special hours for high-risk shoppers.
Homebody economy
Change since the
first measure, pp.
+4
+1
-4
+1
0
-2
29%
26%
15%
14%
9%
7%
Health checks
Masks and barriers
Cleaning and sanitization
Physical distancing
Store regulations
No-contact purchasing

Consumers expect more engagement with activities outside the home,
including getting together with family
Consumers’ engagement with activities outside home1,2
% of respondents
1 Q: Did you leave your house for the following activities over the past two weeks? Chart represents the percentage of respondents who indicated that they left home at least once during the past week to do this activity.
2 Q: For which of the following activities do you intend to leave your home to do in the next two weeks? Chart represents % of respondents who intend to leave their home to do this activity during the next two weeks.
92%
59%
58%
58%
37%
38%
31%
40%
35%
22%
22%
22%
23%
15%
9%
Past 2 weeks Next 2 weeks
Homebody economy
90%
53%
53%
43%
33%
32%
32%
31%
27%
22%
18%
11%
11%
6%
4%
Get together with family
Work outside my home
Shop for groceries/necessities
Travel on public transportation
Dine at a restaurant or bar
Drive more than 2 hours away from home
Use ride-sharing service
Go to the gym or fitness studio
Attend a large event
Travel by airplane

Somewhat
unsafe
20%
51%
Feel safe
29%Feel unsafe
Top activities eager to get back to2
% of respondents for whom the activity is in their top 3 choices
17%
30%
25%
49%Get together with family
41%
Dine indoors at a restaurant/bar
23%
Interact with coworkers in person
23%Attend a concert, sporting event, movie, etc.
19%Go to gym or fitness studio
15%Travel by airplane
15%
at shopping mall/department store
13%
South Africans are most eager to get together with family and
friends, and return to indoor dining at restaurants
Homebody economy
Source: : McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1,000, sampled and weighted to match South Africa’s general population 18+ years
Level of comfort with out-of-home
activities,1 % of respondents
1 Q: What best describes your comfort participating in activities you did prior to COVID? Figures may not sum to 100% because of rounding.
2 Q: What best describes your comfort participating in activities you did prior to COVID? If answered somewhat unsafe or unsafe, Q: Which of the following activities are you most eager to get back to on a regular basis? Select up to 3.

South Africans have acquired at-home alternatives to out-of-home
activities, such as remote learning, videoconferencing, and cooking
13%
3%
6%
6%
4%
3%
4%
28%
7%
5%
5%
21%
13%
29%
17%
18%
15%
8%
1%
10%
8%
50%
12%
10%
8%
46%
17%
9%
11%
8%
14%
13%
8%
7%
3%
6%
10%
4%
6%
7%
TikTok
1%
1%
Wellness app
Remote learning: myself
Cooked regularly for myself/
my family
2%
1%
Video chat: personal
Online streaming
2%
Telemedicine: physical
Watching e-sports
Remote learning: my children
Digital exercise machine 2%
Social media
1%
1%Telemedicine: mental
Personal care/grooming
at home
Online fitness
Videoconferencing:
professional
Playing online games
Not using Using less / the same Using more Just started usingHave you used or done any of the
following since COVID-19 started1
% of respondents
Intent to
continue,2 %
60%
61%
59%
74%
64%
74%
73%
80%
47%
67%
45%
86%
65%
46%
49%
61%
2 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; “will reduce this”; “will keep doing what I am doing now”; “will increase
this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
Homebody economy

Works for now
Accelerated shifts Potentially here to
stay
UsergrowthsinceCOVID-192
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; “will reduce this”; “will keep doing what I am doing now”; “will increase this.”
Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less).
Remote learning, online fitness, and videoconferencing are likely to
remain after COVID-19
Homebody economy
40
150
100
7010
0
300 5020
50
60 80 90 100 110
Wellness app
Telemedicine:
physical
Cooked regularly
Online fitness
Telemedicine:
mental
Digital exercise
machineOnline streaming
Used social media
Playing online
games
Video chat:
personal
Remote learning:
myself
Watching
e-sportsPersonal care/
grooming at home
Remote learning:
my children
Videoconferencing:
professional
TikTok

Many new activities adopted during COVID-19 have accelerated since
April
2 Change since first survey is calculated by dividing the difference in % new/increased users between Sep’20 and Apr’20 by the Apr’20 figure.
Have you started/increased usage since COVID-19 started1
% of respondents
38
28
23
28
28
27
21
24
19
10
10
7
21
18
12
18
15
3
2
Playing online games
Grocery delivery
Online streaming
Restaurant delivery
Remote learning: myself
Videoconferencing: professional
Video chat: personal
Remote learning: my children
Quick-serve restaurant drive-thru
In-store self-checkout
TikTok
Watching e-sports
Online fitness
Wellness app
Telemedicine: mental
Telemedicine: physical
Change since
April survey,2 %New/increased users
Source: McKinsey & Company COVID-19 South Africa Consumer Pulse Survey 9/18–9/29/2020, n = 1,000; 6/1–6/5/2020, n = 511 , sampled and weighted to match South Africa’s general population 18+ years
-10%
153%
538%
69%
-21%
33%
-15%
8%
34%
-9%
6%
3%
-10%
1%
-23%
-10%
-11%
-51%
67%
Homebody economy

37%
9%
54%
Online only
Hybrid
In-person only
1 Q: What education format is your child/children’s school primarily using today? Figures may not sum to 100% because of rounding.
2 Q: Please indicate how strongly you agree or disagree with each of the following statements. Statements include: “I expect remote learning to be a key education format for formal and/or informal education for the next 3 months”; “given
the uncertainty of school openings, I am planning to spend more on at-home learning tools and equipment (e.g., tutoring services, desk equipment, electronics)”; “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from 1 “strongly disagree” to 6 “strongly agree.” Figures may not sum to 100% because of rounding.
Hybrid learning is widespread; many families in remote learning
expect this to continue, and many are making changes to adapt
Education format1
% of respondents
Homebody economy
41
39
33
Expect online to
continue for 3+ months
Invest in at-home
learning tools
Reduce work hours
Agree/Strongly agree
Change in beliefs/behaviors for those with children in remote
learning,2 % of respondents
~63%
of children in
some form of
remote learning

1 Q: Please indicate how strongly you agree or disagree with each of the following statements: “I have cut back my work hours given my child/children’s at-home
learning needs.” Rated from 1 “strongly disagree” to 6 “strongly agree.” Figures may not sum to 100% because of rounding.
Overall
LSM 7–8
LSM 1–6
33
LSM 9–10
Agree/Strongly agree
28
37
34
Reduction in work hours for those with children in remote learning1
% of respondents
A third of families with children in remote learning have reduced
work hours to meet at-home learning needs
Homebody economy
33%
of families have
reduced work hours

1 Q: How do you think your spending for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “significantly decrease” to 5 “significantly increase.” Figures may not sum to
100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
58% 62% 66%
28% 26% 23%
14% 13% 11%
LSM 1–6 LSM 7–8 LSM 9–10
Most South Africans, including those in higher socioeconomic
groups, plan to reduce holiday shopping
New holiday outlook
~88%
of households plan
to maintain or
decrease their
holiday spending
63%
25%
12%
Overall
Spend less
Spend more
About the same
Overall By socioeconomic group
Net intent2
-51 -44 -49 -55
Holiday shopping spending intent1
% of respondents

29%
34%
37%More online
Overall
About the same
More in store
1 Q: How do you think the way you shop for the upcoming seasonal holidays (e.g., Singles Day, Black Friday, Christmas) may change compared with last year? Rated from 1 “shop significantly more in-store/in-person” to 5 “shop significantly more
online.” Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to spend more in store from the % of respondents stating they expect to spend more online.
Holiday shopping channel preference1
% of respondents
About 37 percent of consumers expect to shift to online for holiday
shopping, with younger consumers more likely to shift online
New holiday outlook
40%
28%
44%
Millennials
30%
29% 30%
Gen Z
38%
36%
26%
50%
Gen X
26%
24%
Baby Boomers
+9 +9 +12 +2
Overall By generation
~44%
of Gen Z plan to do
more of their
holiday shopping
online
Net online
intent2 +15

Disclaimer
McKinsey does not provide legal, medical, or other regulated advice or
guarantee results. These materials reflect general insight and best practice
based on information currently available and do not contain all of the
information needed to determine a future course of action. Such information
has not been generated or independently verified by McKinsey and is
inherently uncertain and subject to change. McKinsey has no obligation to
update these materials and makes no representation or warranty and
expressly disclaims any liability with respect thereto.

McKinsey Survey: South African consumer sentiment during the coronavirus crisis

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