* New risks and opportunities are emerging across industries as people avoid public spaces, fly less, and spend differently as a result of COVID-19
The report, titled The Big Value Shift, quantifies the broad impact of long-term changing consumer behaviors and provides actionable insights for companies to build strategies to thrive in the face of disruption. Through a proprietary macroeconomic model that incorporates data from 38,000 companies across 25 industries, as well as household spending data for 15 countries that account for approximately 80% of global GDP, Accenture conservatively found:
More than
Changes in spending may cause a net decline of up to
If current declines in air travel persist into a longer-term shift, up to
"Ripple effects of today's changing consumer behaviors are causing waves that will reshape industries and their ecosystems. Companies must be ready - with responsive business models, technology-enabled operating models that are agile, and a growth mindset rooted in data and advanced analytics - to uncover new value and better meet customer demands as this wave of change approaches their industry," said
According to the latest Accenture Consumer Pulse survey, nearly three-quarters (73%) of respondents expect to feel most comfortable spending their free time at home over the next six months. This shift is impacting the traditional retail and leisure industries with value transferring to companies that offer ecommerce and digital-entertainment options.
"The crisis has forced an uncomfortable reckoning for many brands - but, handled wisely, this will result in new ways of doing business that deliver better experiences for consumers and growth for organizations," said
The highly suppressed demand for air travel has had a profound impact on the travel ecosystem from airlines and airports to aircraft manufacturers, and even further downstream to hotel chains, energy, and resources companies. Data suggests that business travel will be one of the last segments to experience a sustained recovery. As consumers will still have vacation time, value is likely to migrate to sectors like domestic tourism, digital entertainment, and outdoor recreation.
The Big Value Shift is the first in a series of Macroeconomic Insights that looks at major economic and sustainability trends arising from the COVID-19 crisis and offers guidance for business leaders as they strategize and navigate their companies through unchartered business territory.
About Accenture
Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services-all powered by the world's largest network of Advanced Technology and Intelligent Operations centers. Our 506,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.
Accenture Strategy works with boards, CEOs, and C-suite executives to create 360° value for all stakeholders by defining and answering their most strategic business questions - including growth, profitability, technology-driven transformation, mergers and acquisitions (M&A), operating models and sustainability-with insights from AI and data science, combined with deep industry and function expertise. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.
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