WEBVTT

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The Delta variant of COVID-19

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disrupted plans for a smooth recovery.

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In places such as the US,

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it caused dips in consumer confidence,

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while the emerging markets,
interestingly enough,

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have remained relatively positive,

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despite this prolonged pandemic.

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Globally, many first-time
users have rapidly increased

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the adoption of digital
tools and services,

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with sticky behaviors emerging,

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similar to lasting
e-commerce adoption in China

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after SARS in 2003.

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Further, the pandemic
has accelerated behaviors

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that have become habits:

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hybrid working, moving outside of cities,

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and home exercising, to name just a few.

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It's the adoption of these new habits

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that is driving long-lasting
shifts toward e-commerce,

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digital, and in-home activities.

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For example, consumers
seeking companionship

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during the pandemic
increased pet adoption.

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That has driven structural
increase in demand

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for pet supplies and services,

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that we're likely to see
for a long time to come.

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But increased demand in a given space

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also is giving rise to shifts in scale

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in supply-side economics,

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and that in turn can reinforce
the customer proposition.

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We see this in places
such as dark kitchens

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and home delivery of food.

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This creates a new environment

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which businesses need
to learn and play in.

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Instead of adopting back

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to the prepandemic ways of doing business,

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executives must reset their
assumptions for the categories,

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and re-establish new
baselines in their business.

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And so the opportunity for executives

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is to accelerate growth by
embracing these new trends,

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deeply understanding customer needs,

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employing new sophisticated
forms of demand sensing,

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and then finally, innovating on product,

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service, and channel offerings

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to align to these new behaviors.

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There's a new consumer out there.

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The opportunity presents to go get them.