Kantar - Pakistan Trend Report 2020

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Pakistan

trend report
2020

1
Understand People. Inspire Growth.

Dear reader,
Welcome to our Pakistani Trends report for 2020.

There’s no denying the current COVID-19 global pandemic has shaken the
world as we know it, with lockdown restrictions and the resulting shift in
consumer mindset and behaviour leading to a state of business as unusual.

As we work towards reaching a new normal, the Kantar Pakistan team has
cherrypicked 10 of the top trends of the moment to help get your business
back on a first footing, touching on everything from the rise in health
consciousness to digital entrepreneurship and shifts in influencer marketing
and meme culture.

Special thanks to the team at Unilever Pakistan, particularly Ayesha Athar,


Head of CMI, for initiating the idea and providing ample guidance during the
shortlisting process.

Enjoy and let us know how we can help your business adapt to these
changing times.

Best regards,

Managing Director,
Pakistan Insights Division,
Kantar

2
Contents
4 7 9 11
Health Fusion Consumers Digital
conscious going green entrepreneurship

13 15 17 19
Freelancing Search online, Connecting Impatience
buy offline

21 22
Meme culture Influencer Kantar Pakistan
marketing trend writers

Ahsan Butt
Arfa Syed
Ch. Ali Abid
Monis Khan
Saba Shah
Saeed Mazhar
Syed Ahmer Tameez
Syeda Nisar
Tooba Kamil
Unaizah Ali
Zulfiqar Aleem

3
Pakistanis are becoming
more health conscious

COVID-19 has largely This rise in health-consciousness and This exercise trend in turn encourages
exposure to an endless stream of a flourishing population, meaning the
accelerated the world’s drive information means many have also economy will be on firmer footing once
to become more health changed their dietary habits. We’re we enter the COVID-19 recovery phase,
conscious, with a core both demanding fresh, nutritious food with less burden on the medical sector.
and veering towards better methods As a result of awareness of overall
focus on what we consume of preparing it. Gone are the days of wellness issues, a positive trend in
and how these products are oily gravies and fried foods for this new, organic food has emerged, as consumers
made. Coupled with this health-conscious lot. Grilling and boiling demand that their food not be polluted
are the cooking methods of choice for by the potentially harmful chemicals
focus on wellness is a those who select snacks based on their used in agriculture. Instead, the consumer
renewed sense of keeping nutritional requirements and avoid junk of today wants naturally grown food and
the body fit as we strive for food. As a result, dietary supplements naturally fed animals, with no chemical
and trendy vegetables like kale are in or hormonal interference. This demand
a better tomorrow. Before demand, in turn pushing demand for from the health-conscious segment of
the pandemic reset what new products and allowing for the society has made shops and regular
was once deemed as safe, establishment of companies like Diet markets such as the Khalis Food Market
by Design to cater to this new breed of and the Haryali Store more popular.
there was an increase in consumer, essentially creating a whole
going to gyms after work to new industry. Due to this recent rise of health
keep the body active, with consciousness, new industries catering
weekend activities ranging to such needs have popped up. With a
A health-conscious population good feel for the market, entrepreneurs
from cycling to playing strengthens the Pakistan economy have started ventures that provide
outdoor games and taking convenient, nourishing food. Restaurants
yoga or Zumba classes. This goes hand-in-hand with an increase such as Greenhouse and Grab.Your.Meal
in time spent exercising. This trend provide innovative organic meals, while
means exercise facilities are a top nutritionists are also in high demand and
priority – so much so that when looking gyms offering special classes are also on
for housing, listings like Zameen.com the rise. This recent revival has in turn
help Pakistanis actively search for places bolstered the economy by contributing
with gyms and parks nearby. to a whole new industry.

4
The phenomenon of a health-conscious Fiscal year 2017 saw a considerable increase in budget
population boosts Pakistan’s economy
as much of the population is affected by allocation for health expenditure at
malnutrition due to lack of awareness,

40.7% growth
with cardiac defects, diabetes and high
blood pressure also common. In addition
to affecting individuals’ employment
‘opportunities, these diseases place a
burden on the healthcare system. The
rising health-consciousness trend will Allocating
ease the burden on the economy. It
should be encouraged by launching
awareness programmes at all levels, Rs 384.57 billion Rs 273.34 billion
from schools to mass media, as well as
nutrition and exercise centres in residential
during fiscal year 2017 during year 2016-17
areas to improve access. Public parks
should be well-maintained, with jogging
tracks and basic exercise machines
Table 11.2: Budget allocation health (2015-16 to 2017-18) - (Rs million)
to create a population living a better
Current expenditure Development expenditure Total
lifestyle. Pakistani health-consciousness
2015-16 2016-17 2017-18 2015-16 2016-17 2017-18 2015-16 2016-17 2017-18
should be promoted so more people
61,762 70,060 111,026 29,295 31,774 42,149 91,057 101,834 153,175
become aware of the benefits of lifestyle, Punjab

which will in turn benefit the economy Sindh 54,091 61,760 85,304 12,413 15,000 15,431 66,504 76,760 100,735

and fulfill the WHO’s third Sustainable Khyber


Pakhtunkjwa
16,701 19,775 26,898 12,782 16,362 15,543 29,483 36,137 42,441

Development Goal. Balochistan 15,482 17,368 18,307 3,840 3,536 6,013 19,322 20,904 24,320
Federal 12,108 12,379 12,847 25, 874 25,324 51,051 37,982 37,703 63,898
Total 160,144 181,342 254,382 84,204 91,996 130,187 244,348 273,338 384,569
Health expenditure cumulative,
by numbers

A brief look into the previous year’s Gallup Pakistan’s geographical insights
performance reveals total health
expenditure increased both in terms of The majority of health spend has been in the provinces of Punjab (84.8%), Sindh
growth and as a percentage of GDP. It (41.4%), Khyber Pakhtunkhawa (17.6%) and Baochistan (11.3%).
grew by 29.54 percent, to stand at Rs
291.90 billion during fiscal year 2016-17 Fiscal years Total health expenditure Percentage change
against Rs 225.87 billion in 2015-16.
2012-13 125.96 128.51
Health expenditure also surpassed the
budget allocation of Rs 273.34 billion set 2013-14 173.42 37.68
for 2016-17 and increased to 0.91 percent 2014-15 199.32 14.94
of GDP during fiscal year 2016-17 from
2015-16 225.87 13.32
the 0.77 percent recorded in 2015-16.
During the months of July 2017 to February 2016-17 291.90 29.54
2018, health expenditure consumed 2017-18 384.57 31.75
43.5 percent of the budget allocation,
to reach Rs 167.16 billion against an
expenditure of Rs 121.57 billion in the
comparable period of fiscal year 2016-17, Health expenditure increased to 0.91% during FY 2016-17, from 0.77% as recorded in
showing 37.51 percent growth. From a FY - 2015-16.
GDP perspective, it increased to 0.49
percent from July 2017 to February 2018, Health expenditure as % GDP 1.12%
from the 0.38 percent recorded in the
same period of fiscal year 2016-17. 0.91%

0.73% 0.77%
0.69%
0.56% 0.56% 0.53% 0.56%

0.23% 0.27%

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

5
The Pakistani business booster shot

More health-conscious Pakistanis will


have a direct impact on businesses, as
workers will be more active and vigilant
while on the clock, less affected by
diseases and less likely to feel depressed
or stressed.

The human resources of any business is


its true asset, so regular physical exercises
and living a balanced lifestyle means
our business assets are being taken care
of as we’ll see heightened happiness,
efficiency and productivity levels.

As wellness gains greater importance for


consumers, the brands and companies
that position themselves on health-related
attributes will have better long-term
growth potential. New business
opportunities lie in the organic, dietary
and fitness segments – explore them now
to secure a fitter future for your business.

References

http://blogs.dunyanews.tv/16322/

http://www.finance.gov.pk/survey/chap-
ters_18/11-Health.pdf

https://www.who.int/countries /pak/en/

http://gallup.com.pk/wp-content/up-
loads/2018/12/Short-Report-on-Health-Sta-
tistics-of-Pakistan.pptx-1.pdf

6
Fusion

Innovate or renovate?

Understanding the trend

Despite our Western tastes, Pakistani


culture is deeply rooted to our choices
in everyday life. Music is one of the few
things that binds the nation together as
one. The songs that remind the society
of its culture and beauty are found in
the likes of Nescafe Basement and Coke
Studio. Similarly, while Nescafe basement provides a platform for young and growing singers
and musicians, the platform’s renditions of older songs is what excites the nation.
Haroon’s song “Mehbooba”, for example,
was a hit of the season as the nostalgic With Coke Studio, it’s the songs and the instruments that make an impact on the
melody brought back memories of audience.
simpler times.

The fusion of rock with old cultural


instruments like ‘Sitar’ attracts the
audience based on the heady mix of
cultural essence and nostalgia.

7
The fusion trend is also finding favour in cuisines. Pakistanis
always like their food peppered with a touch of cultural taste,
which may differ from region to ethnicity. However, while we
are open to trying different cuisines, some cuisines only cater
to those with acquired tastes.

Implications

To connect to these
consumers, yearning for
adventure and exploration as
they try out the new, brands
should focus on innovation
that retains a sense of the
familiar, either from culture
or nostalgia.

8
Consumers are
going green

The urban Pakistani consumer


market is dominated by a
a decline as a result of inflation and the
economic downturn. According to Changing lifestyles,
along with increasing
Euromonitor, it’s the growing middle-
fusion of Westernisation with income group in a country, with a median
aspirations of local culture. age of 22, that’s proving most promising
This is evident across for the growth of consumer brands in
the market. If they’re also impacted due
awareness of the
industries ranging from food
and clothing to the choice of
to inflation, premium brands are likely to
decline.
possible side effects
personal care products. Pakistan’s beauty and personal care
of cosmetics across
market is currently dominated by
international brands, primarily due to global markets, is
Brushing up on health consciousness
the variety they offer along with their
vast distribution networks and consistent contributing to the
rise of the natural
promotion and media advertising to
As a result of increased health consciousness keep the brands high in consumer recall.
and better understanding of the benefits Social media use and time spent on
of natural and herbal products, consumers
are increasingly opting for organic
television have further fuelled the
phenomena and have contributed
segment.
food. The COVID-19 pandemic is likely significantly to the infiltration of various
to further fuel this emerging trend as imported beauty and personal care
people seek to keep themselves safe and brands in the country. While some of
healthy by adopting better eating habits. these brands are officially imported by
Along with this increase in demand for beauty specialist retailers and modern
healthy food options, there’s been an retailers such as hypermarkets, a great
upsurge in herbal and natural products contribution in this regard has been
over the years, which is likely to remain a made by ecommerce retailers and
core consumer focus in these COVID-19 Facebook sellers (Euromonitor, 2019).
times of placing health first, so demand Reflections of consumer preferences in
is likely to remain strong in the long-run, global markets are therefore also evident
though premium brands are likely to see among Pakistani consumers.

9
In fact, the use of natural ingredients is Shaikh also cites Euromonitor data that proves:
predicted as a top factor for the global
cosmetics market by 2022 (Rajput, 2016).
A rise in natural and herbal products is
“The beauty and personal care category is considered
therefore also evident across personal inflation resistant. This is primarily because the key drivers
care products in Pakistan. Consumers of shopper conversion in this category are perceived product
are drifting away from products with a
higher chemical composition as they opt effectiveness, the quality of the ingredients and the
for products based on simple, natural emotional need that these products fulfil, rather than price
ingredients.
alone. This explains why, despite rising global inflationary
pressures, the category registers year-on-year growth. In
2017, the beauty and personal care market size was valued
at $455.3-billion, with expected estimates of a 5.9%
compound annual growth rate (CAGR) until 2025.”

(Shaikh, 2018). With consumers’ wallets now squeezed tighter than ever before,
manufacturers need to pay attention and address this new phenomenon now, as it’s
likely to impact the sales of those who fail to address this rising trend in future.

The return to natural ingredients


Over the last few years, the demand for
beauty and personal care brands in
Pakistan has been driven by growing
awareness of brands, rising consciousness
of beauty and personal grooming and
increasing consumer sophistication
(Euromonitor, 2018). While price remains
the dominant determinant of purchase
decisions for commoditised product
ranges like soap and toothpaste, brand
purchase decisions are less based on
price alone where product benefits
are compelling to the more financially
independent female Pakistani consumer,
such as paraben-free shampoos and
anti-ageing BB creams with added sun
protection. (Shaikh, 2018).

References

Euromonitor (2019).
Beauty and Personal Care in Pakistan. Avail-
able: https://www.euromonitor.com/beau-
ty-and-personal-care-in-pakistan/report

Rajput, N. (2016).
“Cosmetics Market by Category and by Distri-
bution Channel - Global Opportunity Analysis
and Industry Forecast, 2014 – 2022” Available:
https://www.alliedmarketresearch.com/cos-
metics-market

Shaikh, A. (2018).
“The business of beauty”. Aurora. Available:
https://aurora.dawn.com/news /1143226

10
Digital entrepreneurship
set to accelerate in 2020

Pakistan is well poised to Multiple factors are fueling this trend. Top of the heap is internet connectivity, which
has laid down the infrastructure needed for digitalisation, a prerequisite anywhere
witness another year of in the world. According to the Pakistan Telecommunication Authority’s 2019 annual
growth in entrepreneurship. report, Pakistan currently has a total of 76.3 million internet users. With a population
of over 210-million, this translates into more than 36.18% internet penetration.

While entrepreneurial activity in the Broadband subscribers (million)


country has accelerated significantly Mobile broadband - Fixed broadband
since 2012, the startup landscape has Mobile boradband Fixed boradband
picked up a rapid pace in the last few
years, with almost 98% of businesses in Nov-19 74.3 2.0 76.3
Pakistan now categorised as Small and 2018-2019 68.9 2.1 71.0
Medium Enterprises (SMEs). However, it’s
2017-2018 56.1 2.3 58.4
the opportunity-driven entrepreneurs
that have been gaining the most traction. 2016-2017 42.1 2.5 44.6
Mostly enabled by technology and usually
2015-2016 29.5 2.7 32.2
referred to as digital entrepreneurs,
they have the potential to contribute to 2014-2015 13.5 3.6 16.2
the health of the economy and provide
employment opportunities to almost two
million working-age people entering the
workforce every year.
The main driver of increased internet
According to McKinsey & Company’s latest
usage is both availability of affordable
report on the Pakistani entrepreneurship
landscape, ~720 startups have been
smartphones and the rollout of 3G
established in Pakistan since 2010, with
67% still active and ~100 successfully and 4G mobile networks.
raising funding. Bykea, Sehat Kahan,
Zameen, TelloTalk, and Daraz are just a With continuous migration towards 4G, 5G trials already underway, and COVID-19
few of the boldest names in this sphere. shaking up the world as we know it in pushing the drive towards life online, 2020 will
only see these numbers go up.

11
Pakistan also harbours a young and of the digital transformation instigated Startup Ecosystem Report, commissioned
technology-savvy population, willing to by COVID-19 in Pakistan can be debated, by Invest2Innovate and supported by the
take risks and start their own ventures. the direction is quite evident from the World Bank, concludes that it’s
“Young people are witnessing startups amplified levels of digital activity.
across the world transform into multi-
billion-dollar enterprises impacting the
“imperative for
lives of millions, and these success stories
are instilling ambition and confidence
Startup ecosystem challenges
intermediaries
to improve the
in them to strike out on their own. The While digital entrepreneurs are sprouting
realisation that there are not enough in Pakistan and have the potential to
well-paying jobs is further fuelling the contribute to the economy significantly,
entrepreneurship drive,” says Badar
Khushnood, VP of Growth at Fishry.com
the startup ecosystem faces some
significant challenges. For example, overall quality
of support
and Bramerz.com. nascent startups generally find it hard to
secure funding in the early stages,
resulting in high attrition rates. This
Digital transformation, demographics,
lockdown and beyond
difficulty is securing funds is further
compounded by the issue of finding provided to
startups via a
quality investors, giving “a disproportionately
The combination of burgeoning internet high amount of equity to investors
penetration and favourable demographics compared to the money they commit.”
has further buttressed the development
of a consumer market for digital services.
In addition, the digital market in the
country is yet to mature as only a small more tailored
curriculum,
The majority of startups in Pakistan tend percentage of the total population
to focus on popular consumer segments regularly shops online. Heavy cash usage
such as ecommerce and delivery, and the limitations of delivery logistics
marketplaces, communications, social
media, and content. The demand for
further compound the ecosystem.
mentor match-
digital services has also allowed more
women to enter the fray than ever
before. They now have the option to
In addition, Pakistan’s regulatory
framework lacks the robustness and
friendliness that would simplify running a
making, and
sell homemade items such as food and
clothes from the comfort of their homes
business, even though Pakistan improved
its position on the World Bank Doing
industry-specific
and market them on social media
channels like Facebook, Instagram
Business Index 2020 by 28 spots, moving
to 108th ranking out of 190 countries. expertise.”
and YouTube. This empowers Pakistani There are also stark gender disparities in
females as they gain independence while the startup ecosystem, with women-led
contributing to household income. businesses lagging businesses led by References
men in terms of numbers, revenue
The current COVID-19 situation is also generated at later stages, and frequency https://aurora.dawn.com/news /1143366/the-
expected to speed up the digital of investment raised. quest-for-pakistans-first-unicorn
transformation of our society. Forced
social distancing measures and lockdown While these challenges pose a substantial https://www.ft.com/content /f1bf5ba5-1029-
regulations are altering consumer risk to the startup ecosystem, adequate 4252-9150-b4440478a2e7
behaviour more in favour of digital identification of these risks along with
adoption than ever before. proper planning, accountable https://www.ft.com/content /ac054397-
implementation, and an equitable eb9a-4198-a050-18961f39feb9
“We’ve seen two years’ worth of digital ecosystem will see digital entrepreneurs
transformation in two months,” said reach their promised potential and https://www.ft.com/content /28d2f611-2e19-
Satya Nadella, Microsoft’s chief executive. contribute to the economy in 2020. 4c7a-8e19-06228f567cb8
The same sentiment has been expressed
by Facebook and Google, platforms that To achieve that goal, multinational https://www.urdupoint.com/en/pakistan/
are extensively used by digital entrepreneurs companies and local brands are women-entrepreneurs-using-social-me-
in Pakistan. Moreover, according to the contributing as supporters and sponsors dia-as-mea-666840.html
results of Kantar’s global COVID-19 of various conferences, competitions,
Barometer, a survey of 36,000 consumers and startup events. Companies like https://dailytimes.com.pk/518058/paki-
across 53 markets, “at-home media Telenor and Jazz have initiated their stani-startup-landscape-in-2019-success-se-
consumption as well as online consumption standalone support programmes, crets-for-promising-entrepreneur/
have grown significantly in lockdown, Telenor Velocity and Jazz xlr8, while
particularly among younger viewing business and industry trade associations https://www.urdupoint.com/en/pakistan/
audiences.” Specifically, 52% of like P@SHA and TiE are advocating and women-entrepreneurs-using-social-me-
respondents in Pakistan mentioned that lobbying government for policy change. dia-as-mea-666840.html
they increased both online shopping But there’s still much to be done to
behaviour and media consumption in create a favourable ecosystem for digital https://www.pta.gov.pk/assets /media/
April 2020. Although the true magnitude entrepreneurship. The latest Pakistan pta_ann_rep_2019_27032020.pdf

12
Freelancing

Hope on the horizon: The working world reinvented Benefits of the freelancing boom

With the impact of COVID-19 and the resulting economic The boom in freelancing is a result of the gig economy, which
impact still being keenly felt, many are worried about economic has taken root all over the world. Here in Pakistan, with some
uncertainty and job cuts. In addition, many have already aspiring for a better lifestyle while others are merely trying to
given up on the prospect of finding a job due to nepotism and regain a firm financial footing as the ‘new normal’ takes form,
corruption. But amid all these issues – some unique to 2020 workers are on a constant quest to explore new avenues that
and some which have plagued Pakistan for decades – there’s a offer independence and flexibility. This is where freelancing
shining ray of hope. comes into play.

Freelancing has taken the country by storm and reinvented As Pakistan’s inflation figures have followed an upward trajectory
the working world. Ranked as 4th in the world and 1st in Asia over the past five years, people have been flocking into
for the fastest growing freelance market, Pakistan has gained freelancing for part-time jobs, while keeping their permanent
impetus from which aspiring job seekers can draw inspiration. employment intact.

Increase in Pakistani freelancers since Q2 2018 [2] Pakistan’s 5-year inflation rate

42%

28%

17%

4%

Q3 2018 Q4 2018 Q1 2019 Q2 2019

[1] Source: Payoneer Source: Tradingeconomics.com

13
Little wonder as freelancing generally offers better pay rates Government has also played a pivotal role in the rise of the gig
than what a typical Pakistani would expect from a traditional economy. Over the years, significant investments have been
job. According to Payoneer’s Freelancer Income Survey, the made to establish incubators and initiate training programmes
average hourly rate for Pakistani freelancers falls in the [5]. Consequently, with a growing number of young freelancers
$20-$22 range [3], which makes this industry a very equipped with the right set of technical skills to take up global
attractive proposition. projects, Pakistan’s economy is benefitting more than ever
from the influx of foreign remittances.
Perhaps the icing on this ‘my work, my way’ cake is the lack of
age limit for self-employed individuals. As a result, freelancing
is an appealing prospect for many retirees of the conventional How should businesses respond to the gig economy?
workforce. They are relishing the opportunity to use the skills
they have honed over decades of professional experience, now There’s no denying that the gig economy has caused quite a stir
on their own terms. in the corporate world. The prospects of enjoying flexible work
hours and multiple income streams have downplayed loyalty to
the traditional employer. That’s why it’s now an uphill task for
What local factors are lending freelancers wings? run-of-the-mill corporations to retain their full-time employees
as they sample the tasty benefits of the freelance life.
Since the end of second quarter of 2018, Pakistan has registered
a staggering 42% increase in freelancers, with most falling in The solution is simple: it’s imperative for businesses to acclimatise
the 25-34 age cohort. With more than 64% of the population to the trend and tap into the informed freelance worker. A shift
under the age of 30 (according to UNDP), the country’s from the traditional hiring policy can pay substantial dividends
demographic structure has provided the perfect platform for to employers. Cost savings can be enhanced, and resources
the freelance industry’s growth [4]. Furthermore, the upsurge freed up as businesses would not need to pay extra benefits or
in broadband access and 3G/4G penetration means that the invest in formal training. More importantly, corporations can
influx of youth in freelancing is not expected to plateau pounce on the opportunity to foray into international markets,
anytime soon. through which a variety of political, social and other macro-
economic risks can be mitigated.
Pakistani freelancer earnings by age
More than this, the global COVID-19 pandemic has now made
working from home a reality for most organisations. While this
is certainly not “business as usual”, most organisations are
3,7 2,3 18-24 slowly recognising the ‘workplace’ not as a physical building
19,7 filled with employees, but rather as a state of mind. The likely
25-34
16,6 outcome is that the current wave of remote work will shift from
35-44 something forced upon us more to the desirable option for
workers worldwide, particularly freelancers.
45-54

55+

57,6

Source: Payoneer

References

[1] https://nation.com.pk/29-Aug-2019/pakistan-outper-
forms-asian-freelance-markets-ranks-4th- globally

[2] https://tradingeconomics.com/pakistan/inflation-cpi

[3] https://blog.payoneer.com/wp-content /uploads /2016/02/free-


lancer-report-en-2015.pdf

[4] https://blog.payoneer.com/wp-content /uploads /2016/02/free-


lancer-report-en-2015.pdf

[5] https://aurora.dawn.com/news /1143296

14
Search online,
buy offline

Marketers have traditionally relied on digital platforms to boost The rise of webrooming in discovery phase
brand awareness and highlight promotions, but as consumers
become more empowered and influenced by technology, As this practice of ‘webrooming’ becomes habitual for Pakistanis,
it’s time for marketers to rethink how, when, and where they they’re spending more sessions online than shoppers who go
engage with the country’s 74-million online consumers. For into a physical store:
example, Pakistan’s online population has grown 68% in the
last three years. As connectivity increases across the country, • Skincare: 30% more online sessions
and lockdown restrictions mean we’re more likely to stay home • Smartphones: 80% more online sessions
and order online than to venture out into the world, Pakistanis
are using digital in new ways to discover, research, and buy • Women’s fashion: 30% more online sessions
products (Anthonisen, 2019).
These statistics show the true opportunity for brands to influence
A recent Pakistani study on path-to-purchase picked smart- customers online compared to in-store. Last year, purchasers
phones, women’s fashion and skincare products as three main made 60% more online visits than offline store visits, highlighting
shopping categories and found that Pakistanis largely search the opportunity for businesses to harness the power of digital
online in the discovery phase to find out information about a platforms to influence consumers (Sachwani, 2019).
product category before making a purchase.

Online customer experience in focus

Anthonisen (2019) found that, “brands are three to four times


more likely to reach Pakistani shoppers online than in stores, as
they get closer to making a purchase. Although most consumers
end up buying offline, many don’t even step into a store until
they’ve made up their minds about what to buy. For instance,

72% 82% 89%


70% of Pakistani shoppers who recently purchased a smart-
phone never visited a physical store until the point of sale.”

Skin care Smartphones Women’s fashion The increasing trend of searching online and buying offline in
Pakistan leaves one question: Why are consumers increasingly
relying on offline purchases when they have the option of
% of shoppers who said they went online to seek out more information about a product in this
category prior to making their purchase
completing the transaction during their online search?

15
Rahool (2019) has identified the most
common reasons as follows:

• Inaccurate product listings;


• Lack of sufficient product information
to make a decision, such as product
descriptions and specifications;
• Improper or duplicate content across
different websites;
• Lack of stock available, leading to
order cancellations and delivery delays;
• Lengthy return policies for defective
items and replicas;
• Negative online store feedback; and
• Lack of proper after-sales service.

Given the above online bottlenecks, it’s


little wonder that Pakistani consumers
rely heavily on online searches yet
complete the purchase in store. This lack
of trust in the sellers proves the importance
of improving consumers’ online experiences.
Businesses need to establish their credibility
and consumer trust to accelerate online
sales and reduce in-market barriers.

COVID-19 has only brought this into


sharper focus, as people are reluctant to
risk their health to visit traditional brick-
and-mortar stores and likely to continue
the discovery phase online, even after
lockdown lifts. Best your brand works on
improving the online customer experience,
so your customers are delighted, wherever
they choose to complete their purchase.

References

Anthonisen, L. (2019).
“Digital is transforming consumer shopping
behaviour in Pakistan. Here’s what that
means for marketers” Available here.

Sachwani, A. (2019).
“Google’s Latest Insights Reveal How Pa-
kistanis Make Purchasing Decisions During
Online Shopping!” Available here.

Rahool, M. (2019). “12 reasons Pakistani’s


avoid buying things online – and how that can
change”. Available here.

16
Connecting during the
global pandemic

Human beings crave social interactions The following adaptations to connectivity Working from home
to feel they belong to a greater community. have been the most prevalent in Pakistan’s
It is difficult to survive in isolation because new normal: As coronavirus cases have increased
from the day we are born to the day we globally, most companies have asked
take our last breath, we long for relationships employees to work from home where
to develop our social narrative, which Virtual parties possible, to ensure their safety. While
develops into our personality, language, working from home does provide that
culture and sense of self. Parties are special. Whether they are sense of security, drawing a clear line
held to honour birthdays, baby showers between what’s seen as ‘professional’
From faxes to telephones and the internet, or simple weekend meetups, the moments and ‘private’ time at home has become
technology has evolved to meet the human are best celebrated with friends and family. an uphill battle.
need for belonging in creating new In the new normal of social distancing,
ways to connect. But 2020 presented a get-togethers both small and large To maintain a balance between couch
new challenge, with the onset of the have been shifted to virtual platforms. and cubicle, many guidelines were
COVID-19 pandemic changing the Families living apart from each other provided across the internet. After initial
meaning of interactions and the way in different time zones are learning to hiccups, people are now generally adapting
we perceive the world. regain close connections through virtual to new ways of working remotely, which
platforms. in turn create a better balance of family
Our ways of interaction were highly and work life.
challenged as social distancing became
a requisite to staying alive. As a result,
humans have crafted innovative ways to
stay connected through online connectivity.

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Online conferences Social networking

COVID-19 also saw most conferences Social media usage has grown during COVID-19 times, as more users go online
and events planned for 2020 suddenly to stay connected with family, friends and colleagues.
moved to online. While virtual conferences
can’t completely replace in-person events,
they do offer advantages, particularly as Facebook 52% 25% 15% 8%
video streaming technology allows
YouTube 53% 22% 14% 10%
businesses to reach wider audiences
and meets them where they are, WhatsApp 51% 27% 16% 5%
across platforms and devices.
Facebook Messenger 39% 29% 15% 16%

Instagram 34% 21% 12% 32%


Tele-clinics
TikTok 24% 16% 14% 45%

As a result of the pandemic’s disruption, Twitter 20% 15% 11% 55%


few physical hospitals could afford to
Snapchat 17% 12% 12% 58%
continue providing safe care for patients,
giving rise to virtual clinics. The service Increased Same Decreased Don’t consume this media
ensures quality care straight from the
doctor’s desk, delivered over the phone
or through online platforms. Source: Pakistan Barometer study 2020

With global connectivity constantly being tweaked and improved, many of these
Online education coronavirus-induced changes may be here to stay post-pandemic.

COVID-19 has resulted in schools being


shut globally, with the World Economic
Forum confirming that more than
1.2-billion children are out of the
classroom, across 186 countries.

As a result,
education has
changed
dramatically, with
a distinctive rise
of e-learning and
teaching remotely
and on digital
platforms.
Research suggests that online learning
increases retention of information and
takes less time than the traditional
classroom format.

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Impatience

Youth and the future. ways to make things smarter and faster,
keeping the ‘impatience’ trend in mind. If
“YouTube and
Aspirations? we take the example of a simple mobile
internet – 4G and the announced date of
Instagram made it
5G internet, which will follow suit in making
things faster for the youth. Doing things
possible for normal
Understanding the trend easier and faster is now so deeply instilled people to be influencers
for millennials and generation X that
As rapidly as technology advances, so they become impatient and even and have their own
the global phenomenon of impatience aggressive when things don’t go to plan.
has grown. As every aspect of life advances, voices and platforms.
from knowledge to access to information,
transportation and communication,
This underlying impatience is now deeply
impacting millennials’ mental state. However, these success
people want to get things done without
hinderance and effort. As we face life
stories might have
under lockdown, this is ever more pertinent
– we’re largely living online and want the
created a huge
experience to be as seamless as possible. amount of anxiety
Before technology took over the world, it for people.
slowly intercepted our everyday tasks, on
the whole making everything effortless
and more convenient for millennials and
generation X, in turn making them more Suddenly, being
impatient where an easy answer was not
in reach. In Pakistan, there have been normal is like you
improvements in brands discovering
are doing something
wrong.”

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The growing influencer culture in our
society has created much of this
individual impatience in terms of how
they envision their future, what they
would want to be, and how they would
want to achieve it.

This impatience builds into anxiety and


mental pressure, now growing in
Pakistan. The picture perfect life most
influencers portray results in wishful
thinking, making these goals harder to
achieve in real life.

Implications

Consumers want everything faster, which


results in a rise of instant gratification.
Brands can gauge this by giving consumers
results faster, through compelling ideas,
which in turn have meaningfully
differentiated communications to build
on trust and affinity.

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Meme culture in times
of COVID-19

Social media is a collective term are dealing with similar struggles and that unites everyone. They serve as
encompassing almost all of our digital challenges and reminds us that everyone’s a source of information and humour
interaction with the world. What miseries are similar and ultimately solvable relevant to these completely unprecedented
started off as a source of information at the end of the day. That’s why we seek times and give us hope that we’ll soon
and entertainment has penetrated far storytelling content that’s relatable and see a return to the world we once knew.
deeper into our lives, as the motivation narrative in nature, as it connects us with
has shifted from initial curiosity and others’ triumphs and hardships.
enjoyment to habit. As social media is a
lens through which we seek out further
clarity on specific events, ideologies, As lockdown sees us staying safe
people and life itself we expect the content apart, memes bring us closer together
we find online to be meaningful and
articulate enough to be able to quench our As a medium, memes swoop in and
constant thirst for the new and unusual. meet these new human needs. As
memes revolve around general topics
There are four major needs that drive our pertaining to events in the world, they
interactions on social media: Knowledge, give people on the same level a sense
catharsis, fun and escape. People see of camaraderie, and a sense that we’re
themselves as individuals stuck in the experiencing life together. As memes are
constant routine of making decisions. even more relatable if they’re meaningful
They need a safe space to branch out to our everyday lives, the viral nature of
for a while, so the content they seek is memes offers brands a unique opportunity
largely humorous. This helps them forget to increase their brand salience, if done
about their struggles and challenges for right.
a while and instead enjoy life in its crudest
form, as a virtual world separated from Since lockdown set in across much of the
the real world. world, overall consumption of social
media has drastically increased. People
Some of us also seek to deal with life’s are looking for ways both to spend their
daily struggles by fully embracing life time and psychologically deal with fear
through shared empathy and solidarity. of the crisis through fun and catharsis.
This is brought to life when we see others This has built the global meme culture

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Influencer marketing:
The trend unpacked

Just a decade ago, who would have expected the overnight paradigm shift where people now spend more time on mobile
transformation of influencer marketing from a mere ancillary phones than they do on television.[1]
activity to a multibillion-dollar industry?
When it comes to Pakistan, numbers suggest that the country’s
Fast forward to 2020 and the tables have turned in the sharpest mobile subscription and social media usage rates are soaring
possible manner. With the consumer as informed as ever, to an exponential level. Last year, the country registered a YoY
brands and agencies have recognised the need to stand out (year on year) growth of 5.6% for unique mobile users, compared
from the clutter and collaborate with influencers to drive to the global average of 2%.[2]
purchase decisions.

The science behind this philosophy is fairly simple: influencers


are real people and can therefore build more trust with the
target audience than the intangible brand can build itself.

Influencers serve as a catalyst to orchestrate the perfect


relationship between the consumer and brand. Known widely
as ‘information brokers’, they have access to first-hand
knowledge in certain fields.

They also have an uncanny ability to harness the power of


social media and establish rapport with their fans. As a result, Source: Hootsuite
influencers can connect with their followers on an emotional
level and their endorsements are held in extremely high regard. Similarly, in 2019, Pakistan also experienced a 13% YoY increase
for mobile social media users, which is higher than the global
figure of 10%.[3]
The trickle-down effect
The upswing of mobile internet in Pakistan can be largely
With all the global hype that influential marketing has garnered, attributed to the recent developments in the telecom industry.
local marketers are now embracing the trend with open arms With the surge in foreign direct investment in the sector,
as there’s significant evidence to back the stance. cellular companies across the nation have ramped up their
investments in 3G/4G infrastructure, thereby ensuring greater
On a global level, the current decade has experienced a accessibility and affordability of mobile internet services.[4]

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Now in 2020, the lockdown rules instigated to halt the spread As attractive as it may seem if done right, if not executed properly
of COVID-19 means more of us are stuck at home and spending influencer marketing may result in significant backlash,
time on social media our mobile devices than ever before. That particularly if these posts are not clearly marked as promoted
makes this the perfect time for brands to engage with influencers or paid-for content. Our latest Dimension 2020 study shows
to spread their messages far and wide. there are numerous benefits and risks of engaging with influencers,
seen as a manifestation of the current media personalisation
Foreign direct investment in telecom sector trend. Brands and organisations are now holding their influencer
partners to account, expecting the same rigour and transparency
as with other more established media forms.

Influencer marketing for the future

All considered, it’s clear that to succeed in the post-coronavirus


future, businesses need to ensure that their brand, influencer,
message and target audience are all operating on the same
wavelength.

When done right, influencers create community-driven buzz


and make the brand more relatable to the target audience.
Having the right influencer onboard changes customer perceptions,
which can pave the way for higher returns on investment. This,
Source: PTA coupled with increased engagement with the brand’s social
media presence, can have a very positive impact on the
company’s bottom line.
How are brands responding?
With the impact of the COVID-19 global pandemic likely to be
As social media acts as the core bridge between influencers felt for a long time to come, there’s an opportunity for influencer
and followers, it’s not surprising that a bright future is predicted marketing to become an important way to engage audiences
for influencer marketing in Pakistan. In fact, many brands have that are flocking to digital platforms amid the outbreak.
already stepped into the limelight. Influencers certainly won’t stop making content, so collaborate
with them to share genuine brand messaging that connects
With many events becoming ‘online only’ affairs as a result with today’s captive audience, to build engagement that will
of COVID-19, the social engagement aspect is becoming ever last long into the future.
more important but remember that influencers will need to be
authentic in how they promote your brand. If it’s a category
that’s been put under wraps for the duration of lockdown, don’t
anger your audience by promoting it.

Last year, Knorr Noodles collaborated with popular comedian


Danish Ali to perform short, humorous skits which featured
renowned celebrities, including Shahid Afridi, Muhammad Amir
and Iqra Aziz. Positioned as a ‘boriyat (boredom) buster’, the
brand was able to gain significant traction as the content was
very relatable to the target market.

References

[1] https://www.bloomberg.com/news/arti-
cles /2019-06-04/americans-are-now-spend-
ing-more-time-on-devices-than-watching-tv

[2] https://www.slideshare.net/DataRepor-
tal/digital-2019-pakistan-january-2019-v02

[3] https://www.slideshare.net/DataRepor-
tal/digital-2019-pakistan-january-2019-v02

[4] https://www.brecorder.
com/2019/06/11/501730/telecom-sector-at-
tracts-2-6bn-fdi-economic-survey/

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Questions?
Get in touch!

Kantar
Pakistan

Phone: Website Email LinkedIn Twitter


+92 21 345 50730

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