How Covid changed our lives, mental health and shopping habits

Remember when the country was locked down for the first time in 2020? When we could not buy cooked chicken, sandals and short-sleeve T-shirts? Do you remember how many people had family members in hospitals whom you could not visit to keep Covid-19 in check? Although the lockdowns and the strange shopping rules are long gone, everyone will agree that the pandemic changed our lives.

Some of those changes are still around, such as online shopping. As well as loneliness and mental health issues. A new report reveals exactly what changed in the lives of consumers since the pandemic, which is especially important as businesses prepare to weather potential stormy economic conditions due to geopolitical and global economic trade uncertainty.

Now is the time for them to be highly relevant and responsive to grab the attention of increasingly discerning consumers.

The Up&Up Group and KLA have released a white paper detailing exactly what changed and what stayed the same in the lives of South Africans to help businesses gain a better understanding of their consumers. It shows that despite grappling with mental wellness, South Africans are more hopeful than ever.

For the white paper The Up&Up Group and KLA analysed more than 4 000 South Africans’ perspectives across three personal income groups, low (earning less than R8 000 per month), mid (earning between R8 000 and R40 000 per month) and affluent (earning more than R40 000 per month).

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Interesting trends in how we changed after Covid

The analysis showed some interesting trends. Robert Grace, chief strategy officer for The Up&Up Group, says while mental illness replaced the coronavirus as the country’s new pandemic, the biggest change was that 66% of South Africans are willing to pay more for luxury brands, one of the largest increases across income groups.

“South Africans’ appetite for premium products is more than double that of Americans. At the same time, value-for-money concerns are increasing, with an increase of 8% in people willing to pay more for quality.”

Grace says this kind of detail is particularly important in an era where most marketing budgets are wasted. “Dr Karen Nelson-Field from Amplified Intelligence shared a research study in 2023 about digital advertisements that did not reach the attention threshold of 2.5 seconds.

“In essence, 85% of digital spend is poured down the drain. This, together with many other post-pandemic data points, is bringing about a new wave of questioning the status quo and what marketing effectiveness truly requires today.”

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Businesses must ensure marketing is in line with changes

He says businesses can only be precise with their positioning and their marketing can only resonate with audiences of today if they know what, if anything, changed since the lockdown so that they can build closer relationships with their customers to increase market share, brand loyalty and their bottom line.

Jenni Pennacchini, managing partner at KLA, says that while the research shows that the stigma around mental health conversations has decreased, with 54% of South Africans now feeling comfortable about discussing it (which is up 14% since lockdown), modern life feels increasingly alienating for more than half of South Africans, a significant increase of 10% across all income levels.

“Despite recognising the importance of mental well-being, few consumers make it a priority. Our increasingly busy lives, hybrid work pressures and financial struggles make self-care difficult. This is where businesses can make a meaningful difference and build longer-lasting equity by taking an active role in fostering holistic well-being, ensuring their employees, stakeholders and customers feel supported.”

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How we changed since the pandemic started

Some other key findings include:

• South Africans experience growing feelings of alienation, with 70% worrying about excessive social media use. Coupled with this, nearly half of the population say they are bored a lot of the time, with social media and influencer culture fuelling an increase in lifestyle envy across all segments, possibly contributing to growing anxiety.
• While online shopping has made life easier, the middle and affluent segments still value in-store experiences. “Brands must understand that affordability is not the priority. Delivering the best value is,” Pennacchini says.
• Interestingly, 68% of South Africans feel better off than a year ago, compared to only 47% of Americans. However, this confidence is primarily among the affluent, while lower-income earners remain deeply uncertain about their future.
• Political disillusionment is growing, Grace points out, with 60% of respondents agreeing that “this country is going to the dogs,” a 7% increase since the pandemic. However, the affluent segment feels less affected, likely due to greater financial security and access to alternative living options.
• Fewer South Africans believe they have the power to effect change, with the biggest decline (8%) among lower-income earners.
• Trust in advertising also decreased by 8%. Despite the claim that 71% appreciate brands that engage in social issues, over half still feel underrepresented in advertising, highlighting a disconnect. “Consumers are longing for acknowledgement and empowerment and brands must bridge this gap by fostering genuine representation and engagement,” Pennacchini says.

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Complex picture five years after start of Covid pandemic

Grace says five years after the start of the pandemic a complex picture has emerged that businesses must navigate. “While online shopping thrives, concerns grow about how much time we spend on screens. While our aspirations soar, financial caution prevails. It is clear that consumers want value, not just low prices.”

Increasing anxiety, apathy and scepticism underscore a longing for confidence and empowerment, he says. “Businesses that navigate these contradictions effectively, meeting aspirations while easing concerns, will emerge as market leaders. The key question remains: How can brands alleviate pain points and elevate lives?”