TREND VISION 2020 How To Make The Future Manageable - Ipsos

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TREND VISION 2020 How To Make The Future Manageable - Ipsos
TREND VISION
2020

How To Make
The Future
Manageable
TREND VISION 2020 How To Make The Future Manageable - Ipsos
Trend Vision 2020
Russia                                                                        A CRISIS LIKE
                                                                              NO OTHER,
 The world is trying to understand the impact caused by the
 global COVID-19 pandemic. Uncertainty remains. We do not
 yet know if there will be a second wave or further                           AN UNCERTAIN
 consequences, and what our "new reality" will ultimately be.
                                                                              RECOVERY
 In this issue of the annual Trend Vision report we talk about
 trends, signals of change and how to analyze them,
 in order to make the future, in which this crisis is not
 the last one, to be not a frightening «black box», but a
 platform for exciting experiments for successful brands
 and companies focused on long-term sustainability.

                                                                 International Monetary Fund.
2 ‒ © Ipsos | Trend Vision 2020. Russia                          World Economic Outlook. June 24th 2020
TREND VISION 2020 How To Make The Future Manageable - Ipsos
CONTENTS
     1.      ECONOMIC OUTLOOK
     2.      LIFE STAGE. Perception of the crisis
             depending on the stage of life
     3.      THE CREATIVE ROLE OF CRISES
     4.      LOOKING FOR BALANCE
               • Physical security – Digital security
               • Technology – Humanity
               • Online – Offline
               • Accelerate – Slow down
               • Ecology – Economy
     5.      MONITORING OF CHANGES
     6.      GUIDELINES FOR THE FUTURE

3 ‒ © Ipsos | Trend Vision 2020. Russia
TREND VISION 2020 How To Make The Future Manageable - Ipsos
ECONOMIC
 OUTLOOK

4 ‒ © Ipsos | Trend Vision 2020. Russia
TREND VISION 2020 How To Make The Future Manageable - Ipsos
COVID-19 AND ITS CONSEQUENCES
                                                                                                                                Effect of COVID-19 on
 Period of                                   Drop in industrial                                                                 family financial status
 non-working days                            production
                                                                                                                  Got worse significantly                24
                                             The dynamics of the decline in industrial                                  Got a little worse                     40
 To prevent the spread of                    production in Russia in June on an                                             Not changed                   31
 coronavirus pandemic in                     annualized basis remained negative and
                                                                                                                                Improved         4
 Russia, non-working days were               almost unchanged compared to May 2020.*
 announced from March 30 to
                                             The largest decline is in the commodity                            Q: How has COVID-19 / coronavirus affected your family's
 April 5, 2020.                              sector.                                                            financial situation (including all cash receipts - salary,
                                                                                                                pensions, benefits, etc.) over the past 7 days?

 The period of non-working days,                                                                                Due to COVID-19 your salary…
 were workers didn’t work, but                Dynamics of industrial production
 kept their salary, was extended              in Russia, %                                                      remained unchanged                             23
                                                               3,3
 twice before ending on 11 May.                     1,1
                                                                         0,3                                    decreased, but the amount of
                                                                                                                                                                         3
                                                                                                                work has remained the same       27
                                                Jan'20     Feb'20     Mar20     Apr'20    May'20      Jun'20    decreased in proportion to the
                                                                                                                decrease in the volume of work

                                                                                                                increased                                           47
                                                                               -6,6
                                                                                               -9,6   -9,4     Source: Ipsos Adapt! June 2020
                                             Source: Federal Sate Statistics Service, Russia
                                                                                                               Base: 18-65 y.o., cities 1 mln+, N=3000

5 ‒ © Ipsos | Trend Vision 2020. Russia   *Source: Interfax IA based Federal Sate Statistics Service Data
TREND VISION 2020 How To Make The Future Manageable - Ipsos
THE RECOVERY OF THE RUSSIAN
ECONOMY IS PLANNED IN THREE STAGES
The Russian government's economic recovery plan is designed in              Ready to return to “previous life” after            Russia is in top of countries
three stages. It contains 500 new measures with a budget of                 ALL restrictions will be removed, %                 ready to re-engage
approximately RUB 5 trillion over two years.                                                                                             Comfort with Re-engage & Mitigate
                                                                                                                                         Comfort Re-engage only
   First step                                                                     I will not return to most
                                                                                           previous habits
                                                                                                                  9                      Comfort Mitigate only

   Until the end of Q3/2020. Stabilize the situation, prevent a further                                                                  Comfort neither Re-engage nor Mitigate

   drop in household income                                               Only when the vaccine appears           9
                                                                                                                                   Russia             51%              26% 11%12%
   Second phase                                                                  Immediately upon lifting
                                                                                             restrictions
                                                                                                                           44
   Up to Q2/2021. Complete the economic recovery process, reduce                                                                    Japan             53%          7% 30% 10%
   the unemployment rate, ensure the growth of citizens' incomes to                    Within one month               15
   a level comparable to 2019.                                                                                                        Italy         44%          10%
                                                                                                                                                                        33%
                                                                                                                                                                                  13%
                                                                                      Within 1-3 months           11
   Stage three
   Until Q3-Q4/2021. Reaching sustainable economic growth                             Within 3-6 months       7                    France           44%           9%    38%       9%

In July 2020, from the decree on the national development goals of                   Within 6-12 months       4                       USA           41%          11%    42%        7%
Russia until 2030, the goal for Russia to enter the five largest
economies in the world disappeared, which was formulated in the                                                                 Source: Ipsos Global Advisor. Resumption vs Protection
                                                                            Source: Ipsos Adapt! June 2020
decree of 2018. The reason is the unfavorable market conditions.            Base: 18-65 y.o., cities 1 mln+, N=3000
                                                                                                                                      Base: 16-74 y.o. Apr 24 - May 8, 2020. N=19 000

6 ‒ © Ipsos | Trend Vision 2020. Russia
TREND VISION 2020 How To Make The Future Manageable - Ipsos
RETURN TO GDP GROWTH
EXPECTED IN 2021

The fall in GDP in 2020 is greater than in 2014,
but less than 2009
At the end of June, the IMF worsened its forecast for Russia,            GDP Change. Projections for 2020-2021yy
announcing a fall in GDP in 2020 by 6.6% (in April, the forecast         Yearly percent change
was for a fall of 5.5%). In contrast, the forecast for 2021 was
                                                                                                                                                                                        World
raised to 4.1% from 3.5% in April 2020.                                         8,2
                                                                                      8,5

                                                                         6,4                                                                                                            Russia
                                                                                             5,2
The main reason for the decline is crucial                                                                5,4    5,1                                                                      5,4
drop in oil prices                                                                                                                    3,6                      3,8   3,6
                                                                                                                        3,5    3,5          3,4          3,4
The reason for the projected sharp decline in Russia in 2020 is                 5,5   5,6                                                                                  2,9
                                                                         4,9
the significant decline in disposable income due to the rapid                                              4,5    4,3   3,7                                                                 4,1
                                                                                              3                                      0,7           0,3
decline in oil prices.                                                                             -0,1                                                              2,3
                                                                                                                              1,8                              1,6
                                                                                                                                                                           1,3
                                                                        2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
IMF predicts gradual recovery
The COVID-19 pandemic had a more negative impact on                                                                                         -2,5                                 -4,9
economic activity in the first half of 2020 than expected,
according to the World Economic Outlook Update. The
recovery is forecasted to be more gradual than previously                                                                                                                        -6,6
predicted.                                                                                         -7,8

                                                                   Source: International Monetary Fund. World Economic Outlook Update, June 2020
  7 ‒ © Ipsos | Trend Vision 2020. Russia
TREND VISION 2020 How To Make The Future Manageable - Ipsos
CONSUMERS ALSO EXPECT
SITUATION TO BE BETTER IN A YEAR
In May 2020, the negative perception of the current situation in Russia,                                                                       People see the situation around the COVID-19 pandemic as less
which has been growing at an increased rate since the beginning of 2020,                                                                       negative than after the VAT increase and the announcement of the
turned out to be higher than the crisis peak in 2014. Even having                                                                              pension reform in 2018, but more negative than the crisis in 2014.
decreased by 3ppt in June 2020, the value of the negative perception of                                                                        However, in June 2020 there were signs of optimism.
the current situation is still higher than the peak in 2014.
        PERCEPTION OF CURRENT ECONOMIC SITUATION                                                                                                                                              EXPECTATION
                                                  As compared to a year ago, %                                                                                                              changes in one year, %
  100                                                                                                                                          100
                                                                                                                             85
   90               81                                                                                                  82        82           90
                                                                                                                                       Worse
   80                                                                                                                                          80
               69        68             68
   70                         64                                                                                   62                          70
                                   58
   60                                        52                                       51 53 52
                                                                                                              48
                                                                                                                                               60
                                                                                                                                                                                                                          48                               Will be
                                                  46                                               47                                                             46
   50    43                                            42                        42                      42                                    50            41                                                      42        43 42 42 44 45 41 41        worse
                                                            35 36                                                                                    35 35             33 31                                    33
                                                                                                                                                                                                                                                      36
   40                                                                 32 33 30                                                                 40                                   32
                                                                                                                                                                               30        29 29 28 29 29 28 27
   30                                                       19        19 20 19                                                                 30
   20                                        11 13
                                                   15            14              12                                                            20    29 29 23              29                29 27                      12 14 26                           Will be
         11              10        9                                                  8        8     8   7    8                                                      27 29    25 27 27 24 23       26 22                            25
               6     3
                              6          5                                                6                         5                                             17                                                             22                        better
   10                                                                                                                   2    1 2 Better        10                                                        15 13 14 16 13
    0                                                                                                                                            0
        Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 03 04 05 06                                                                Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 03 04 05 06
        2014        2015                2016                2017           2018               2019                 2020                              2014    2015              2016            2017        2018                2019        2020

Q: How the economic situation in Russia has been changed since last year / will be changed in one year?
Source: Ipsos. The “New Reality” Monitoring
 8 ‒ © Ipsos | Новая реальность, 06'20
Base: 18-65 y.o., Russian cities 100 mln+, N=1000
TREND VISION 2020 How To Make The Future Manageable - Ipsos
LIFE STAGE
PERCEPTION OF THE CRISIS
DEPENDING ON THE STAGE OF LIFE

9 ‒ © Ipsos | Trend Vision 2020. Russia
TREND VISION 2020 How To Make The Future Manageable - Ipsos
LIFE STAGE
SEGMENTATION

Years of experience in conducting sociological and
segmentation studies have shown that the most important
differentiating characteristics are age, marital status, the
presence of children and the composition of those living
together in a household.
The Life Stage segmentation is based on these
characteristics. It describes all stages of a person's life
path and can most clearly reflect the reaction of people to
changes in external environment, including crises.
A total of 11 consumer segments have been identified. For
ease of perception, in this review, we have combined
segments similar in type of behavior into five enlarged
groups that have the most striking differences.
Descriptions are on the next slide.

10 ‒ © Ipsos | Trend Vision 2020. Russia
LIFE STAGE SEGMENT PROFILES
AND AGGREGATED GROUPS
Life Stage                                                                                                                                                                         Empty          Single
                                       Young without children                              Middle age                                      Parents                                              pensioners
segmentation                                                                                                                                                                       nests
characterizes a                                                                                                      Parents of   Parents of
                                                                                    Middle-aged                                                  Parents of    Parents of adult
person's needs                    Fledglings    Left the nest   Nest Builders      couples without
                                                                                                     Middle-aged
                                                                                                       singles
                                                                                                                     preschool
                                                                                                                      children
                                                                                                                                   younger
                                                                                                                                   children
                                                                                                                                                 teenagers        children        Empty Nests
                                                                                                                                                                                                  Single
                                                                                                                                                                                                Pensioners
at different                                                                          children
                                                                                                                     (0-5 y.o.)   (6-11 y.o.)
                                                                                                                                                (12-18 y.o.)     (19+ y.o.)

stages of life

                                     7%*            3%                8%                  2%             2%            15%           8%              8%             14%              16%            6%
             Age                    16-39          16-39            16-39               40-54           40-54          18-54        23-59          28-65             35+             45+            55+

                                Not married /   Not married /      Married /          Married /      Not married /                                                                              Not married /
             Family status                                                                                              Any          Any             Any             Any             Any
                                 Divorced        Divorced       Living together    Living together   / Widow(er))                                                                               / Widow(er)

             Children                No              No               No                  No           Yes / No         Yes          Yes             Yes             Yes             Yes          Yes / No

             Who lives                                                                                               Spouses /    Spouses /     Spouses /        Spouses /
                                                                  Spouses /            Spouses /                                                                                   Spouses /
             together in the       Parents            -                                                    -         Parents /    Parents /     Parents /        Parents /                            -
                                                                   Parents              Parents                                                                                     Parents
             household                                                                                                Children     Children      Children         Children

 11 ‒ © Ipsos | Trend Vision 2020. Russia         *Source: Ipsos. RusIndex 2020/I
                                                  Base: Russians 16-75, cities 100K+
PERCEPTION OF THE CRISIS
DEPENDING ON THE STAGE OF A PERSON'S LIFE
Three out of four (75%) agree they live in dangerous and anxious times,                                                             CRISIS BEHAVIOUR PATTERNS DEPENDING
but only 28% do not believe that they can change their lives. How does the                                                                  ON THEIR STAGE OF LIFE
perception of the situation change depending on their stage of life? The
analysis is based on statements that most accurately reflect the behavior                                                Anxious - Active                                                                 Anxious – Passive

                                                                                We live in a dangerous, troubled time
of the population in terms of the level of anxiety and readiness to act.

•    Calm – Active                                                                                                               Parents         110
                                                                                                                                                             Empty nests                              Single
•    Young people are ambitious and do not feel anxious, because they are                                                                                                                           pensioners
     not yet burdened with serious life obligations and have the "safety
     cushion" of their parents, with whom many still live with.                                                         80                             100                       120                             140

•    Anxious – Active
•    Parents, despite mild anxiety, are confident that they are the masters                                                            Young                 Middle age
     of their lives and are active.                                                                                                   without…

•    Anxious – Passive                                                                                                       Calm - Active                                                                      Apathetic
     The Lonely Pensioners and Empty Nests groups are anxious but do
                                                                                                                                                 80
•
                                                                                                                                                       There is little I can change in my life
     nothing.
                                                                                                Source: Ipsos. RusIndex 2020/1. Segmentation Life Stage
                                                                                                Base: Russians 16-75, cities 100K+. Fieldwork: March 16 – May 6, 2020
•    Apathetic
                                                                                                The value on the axes are Affinity Index.
•    Middle-aged people without children are the only one of all segments                       Affinity Index shows the level of significance of a particular statement to the analyzed segments. The average value of
     to change their emotional state from calm-active to apathetic in a year.                   the index is 100 points.
                                                                                                The size of the circle corresponds to the volume of the segment.

12 ‒ © Ipsos | Trend Vision 2020. Russia
YOUNG PEOPLE
ARE MOST SENSITIVE TO CRISIS                                                                                            Adaptation
                                                                                                                        In the past it was better than now
 Comparison of the data of the first wave of 2020 with the same                                                         I'm completely satisfied with my present-day life
 period last year shows that the younger generation is more                   Income
 susceptible to the deterioration of sentiment in connection with the             Faced salary decrease
                                                                                                                                                              ALL 16-75
                                                                                                                                     Single                        46                       Young
 present time.                                                                                                                     pensioners                                              without
                                                                                  Faced layoffs
                                                                                                                                                                  28                       children
 Decreased life satisfaction                                                                      ALL 16-75
                                                                                                                                            55
                                                                                                                                                                                      41
                                                                                                                                                         23                   28
 The share of those who noted that in the past it was better than                                     21
                                                                                                                   Young without
 now increased significantly among young people without children,                                     15             children
                                                                                                                                                                                                Middle age

 from 29% to 41%. And the number of those satisfied with their lives            Single                                              Empty                                    24
                                                                                                                   23                                   31
                                                                              pensioners                      21                    nests        45
 among the young population has decreased from 32% to 28%.                                                                                                        28
                                                                                                                                                                                           50
                                                                                            10 8
 More likely to have suffered fall in income                                                                                                                      47       Parents
                                                                          Empty              9
 Young people without children were more likely to have face layoffs                  15
                                                                                      8,5
                                                                          nests
 - 21%. Also in this group there is a significant increase in the share                                       20
                                                                                                                             Middle age
 of those who faced a decrease in salaries.                                                           15                29
                                                                                                                                           Source: Ipsos. RusIndex 2019/I – 2020/I.
                                                                                                                                                           Segmentation Life Stage
                                                                                                      23                                       Base: Russians 16-75, cities 100K+.
                                                                                                                                                Fieldwork: March 16 – May 6, 2020
                                                                                                   Parents
                                                                                                       23                                                  Agree with statement, %

13 ‒ © Ipsos | Trend Vision 2020. Russia                                                                                         Significantly higher           Significantly lower
                                                                                                                                 2019/1                         2019/1
JOB TROUBLES
    CHANGING THE PRIORITY OF LIFE GOALS
                                                                         ATTITUDE TO WORK                                                                  LIFE GOALS
•    The relevance of job search is growing                                                                                                                    Healthy lifestyle
•    The importance of finding or changing jobs in the next 12            I work primarily for money
                                                                                                                                                              Finding or changing jobs
     months has grown significantly for almost all segments (from         I see my job as a career rather
     17% to 22% ). A healthy lifestyle, the priority of which was         than just a job                                                                                         45 ALL 16-75
                                                                                                                                           Single pensioners                                              Young without
     stated by half of the respondents in 2019/1. Although it is still                                       ALL 16-75
                                                                                                                                                                                                            children
     top, it fell to 45% - mainly down to those for whom it is now                                          61                                  56
                                                                                                                           Young without                                          22
     more important to regain employment and income.                     Single pensioners                                   children                                                                       40
                                                                              5                                                                                                                      29
                                                                                                                              64
•    Income is a bigger priority than career                                        55                      24
                                                                                                                                                                         13
•    The number of those who noted that they go to work primarily                                                     36
                                                                                                                                                                                                                 Middle
                                                                                                                                                                        15
     for money has increased from 55% to 61%. And the number                                           10
                                                                                                                                                                                                 27
                                                                                                                                                                                                                  age
     of people who perceive their work as a career, rather than just                              14             16                         Empty                                                          38
                                                                                                                                                                                  23
     a job, dropped from 27% to 24%.                                                                        24
                                                                                                                                            nests 50
                                                                                     51
                                                                                                                              62
•    Saving income is most important for the young segment and                Empty nests                                   Middle
     parents. In the middle-aged segment, career ambitions have                                                              age                                     Parents
                                                                                                                                                                                  46

     declined.                                                                               Parents        64
                                                                                                                                                        Source: Ipsos. RusIndex 2019/I – 2020/I.
                                                                                                                                                                        Segmentation Life Stage
                                                                                                                                                            Base: Russians 16-75, cities 100K+.
                                                                                                                                                             Fieldwork: March 16 – May 6, 2020
                                                                                                                                                                        Agree with statement, %

    14 ‒ © Ipsos | Trend Vision 2020. Russia                                                                                                  Significantly higher             Significantly lower
                                                                                                                                              2019/1                           2019/1
THE CREATIVE
  ROLE OF CRISES

15 ‒ © Ipsos | Trend Vision 2020. Russia
DUALITY OF CRISES.
CREATION THROUGH DESTRUCTION
                                                                                                                                         Crisis = problem
 Crises associated with the breakdown of familiar patterns and the loss of connections also
                                                                                                                                           I like order and structured habits
 stimulate the creation of something new. Not all people are ready to see crises as a                                                                                                           7,6
 stimulus for development, only 13.6% of residents of cities with a population of one million
 have flexible thinking and are not afraid of the new, in particular, only 0.5% of respondents           23,6%                      I prefer stable life, without much change
                                                                                                                                                                                                 8,6
 say they are looking for a new challenge.                                                                    Tend to a
                                                                                                         predetermined
                                                                                                                                    I am the rational one who seeks to keep
                                                                                                         order of things
 Salvation in creation                                                                                                                              everything under control
                                                                                                                                                                                         4,6

                                                                                                                                         I struggle with stress and pressure
 Creation in a crisis can serve as a way to distract from unfavorable external circumstances,                                                                                      2,8
 and also acts as a protective mechanism.
 Leading brands resist crises by activating co-creation resources, involving employees,                                                   Crisis = opportunity
 customers, like-minded people and partners.                                                                                         I try to find smart ways to solve issues             5,4

           See the bright side                               Rescue in 100 hours                       13,6%                           I like to restlessly explore new things           4,9
                                                                                                         Have flexible
CASE: In the IsoIsolation Facebook group,         CASE: Mercedes created a mass breathing             mind and are not
people created copies of world art masterpieces   apparatus in 100 hours, based on the same              afraid of new               I try to foresees and to be prepared for      2,8
from scratch. The group gathered 600,000          principle that works in racing cars. Drawings are                                                   unpredicted in advance
participants.                                     now available free of charge.
                                                                                                                                           I am looking for a new challenge      0,5
People struggle with social deprivation through   The company moved from a forced shutdown of
an accessible form of creation and through peer   business to creation for the benefit of society.                         Q: Which one of these attributes describes you best?
 16 ‒
approval.
      © Ipsos | Trend Vision 2020. Russia                                                                                  Source: Ipsos Adapt! June 2020
                                                                                                                           Base: 18-65 y.o., Russian cities 1 mln+, N=3000
What will our future look like
What is outside                         A future that
our control                             we can create
                                        Based on four key questions

                                       1                    2                 3                4
                                       How will our         How different     How can I plan   What should I
                                       values change        will the future   for multiple     be monitoring
                                       over time?           be from what      scenarios?       and why?
                                                            went before?

 © Ipsos | Trend Vision 2020. Russia
FUTURES
BUILDING SCENARIOS
           In English, the plural form of the noun Future - "Futures" is used to denote
           the multivariance of the future.
           There is no plural form of the noun "Future" in Russian.
           At the linguistic level, it is predetermined that the future is unique and
           indefinite.
           The scenario-based, multivariate future approach makes uncertainty
           manageable. Tracking signals of change is at the heart of creating
           scenarios.
           In this issue of Trend Vision 2020, we have collected trends and signals that
           the COVID-19 pandemic has brought or increased the relevance of.
18 ‒ © Ipsos | Trend Vision 2020. Russia
WHAT ARE
SIGNALS OF CHANGE?
           Signals of change are what is already happening today and
           may offer an insight into the future.
           A signal can be a new invention or product, a new business,
           or a new behavior.
           A signal can be not only the creation of something new, but
           also the destruction of something existing.
           A signal demonstrates that the order of things or our future,
           can be different.
19 ‒ © Ipsos | Trend Vision 2020. Russia
ANALYZING SIGNALS OF CHANGE
Ipsos TrendTRAC
                                                                                                                    New behaviors, products, services
Changes in crises does not mean a
strict substitution of one for the other.
Violation of the existing order of
things triggers the search
                                                                           R         REVERSE                                                     A            ACCELERATE

                                                                                                                                                                                                                    Expressing underlying values
                                                                           Changes that run counter to basic values or previously                  Some signals seem to ‘double down’ on global values, and

                                            In tension with pre-existing
mechanisms for new equilibrium, as
                                                                           relevant trends. If these changes do not meet the new                   represent new ways of meeting needs which were already

                                               values or social trends
a result, there is a rebalancing of                                                                                                                strongly expressed and dominant. These are trends which
                                                                           needs created by the crisis, these changes will reverse (R)
interrelated things.

                                                                                                                                                                                                                          or social trends
                                                                           over time.                                                              are likely to accelerate (A) values or behaviours which we
But it is important not just to record                                                                                                             saw before the pandemic.
the changes taking place at an early
stage (to see the signals). It is
important to analyze how they can
affect the transition from one state to
another, and what scenarios of the
                                                                           T         TRANSFORM                                                   C            CONSOLIDATE
future will activate or accelerate.                                        Tensions between consumer or social needs point the way to              Some changes will simply allow existing trends to continue (C)
                                                                           potential for transformative (T) new trends. These ideas will           - these should be monitored to identify where reactive change
For this, we rely on the Ipsos                                             need to be monitored. They can be used as stimulus for creative         is not necessary, reassuring you of the areas where
TrendTRAC framework.                                                       strategising, or to inspire innovations which can be piloted.           consistency is required.

                                                                                                                 Existing behaviours, products, services

                                                                                                                                             See for more details: New Futures. Building a world after Covid-19
 20 ‒ © Ipsos | Trend Vision 2020. Russia
LOOKING
  FOR
  BALANCE

21 ‒ © Ipsos | Trend Vision 2020. Russia
A crisis is a loss of balance
                                           between interconnected things

                                           Recovery happens through finding
                                           new principles of balancing

22 ‒ © Ipsos | Trend Vision 2020. Russia
Physical security –
                         Digital security

23 ‒ © Ipsos | Trend Vision 2020. Russia
SECURITY 360˚
AS A KEY VALUE
The pandemic has dramatically reduced the number of places where people feel
safe. The Russian consumer dislikes uncertainty and expects brands and                                  THE LOSS OF A BASIC SENSE
authorities to help overcome anxiety.                                                                   OF SECURITY IS VERY
    The emergence of low-touch economy
    The pandemic has spawned a request for purchases while maintaining
                                                                                                        ACUTELY PERCEIVED BY
    distance and minimizing touch to external objects.                                                  EVERYONE, BECAUSE IN OUR
    New hygiene rituals                                                                                 NOTORIOUS PYRAMID OF
    Revival of hand hygiene. We wash our hands more often. Sanitizers are on
    every shelf, in every purse and in all public places.                                               NEEDS IT IS PRECISELY AT
    Competition for a seat on a mobile phone                                                            THE CORE.
    With the growing trend towards contactless, the smartphone is becoming the
    main tool for interacting with the world. But there are many more brands
    offering their applications than the memory of a consumer's phone can                               AND WHEN WE LOSE OUR
    accommodate.
                                                                                                        SENSE OF SECURITY, WE
    At the peak of online, the level of cyber threat has increased
    Businesses needs to educate their employees on the principles of "network                           COLLAPSE VERY QUICKLY.
    hygiene" and strengthen the protection of customer personal data.

    Safety is an obligatory part of corporate responsibility
    The role of brands is not just to find common values with the consumer, but to
                                                                                     Larisa Pyzhyanova
    become for him/her an island of calmness in the midst of a disturbing world, a   Crisis psychologist of the Ministry of Emergency Situations of Russia,
    guide and mentor in embracing change.                                            psychologist of the children's hospice "House with a lighthouse"
24 ‒ © Ipsos | Trend Vision 2020. Russia                                             Ph.D., author of books and scientific works
THE TOUCH-LESS ECONOMY
BORN OF THE COVID-19 PANDEMIC
Phrase of the Year 2020 – Social Distance (6ft). Even after
COVID-19 is eliminated, other dangerous viruses will remain         Restriction of physical contact because                  TOUCH WITHOUT TOUCHING
in the world. In cities, where objects in public places touch            of the COVID-19 pandemic,%
thousands of hands, low-touch routines become an important
driver of changes in the social environment and the way for                    Avoided close contacts
                                                                                                                        55
                                                                                    with other people
organizations and consumers to interact.
Limited customer care                                                          Tried not to leave home                  52

The consumer seeks a return to a pre-pandemic world, but the                   Tried to avoid travelling
                                                                                                                        51
business is in a situation of survival, subject to the obligatory                   by public transport

observance of official restrictions and can no longer focus only      Avoided handshakes with others                50
on the wishes of the client.
                                                                                                                             SIGNAL A kind of a plaster has been developed,
                                                                           Cancelled plans for visiting                             which helps to feel the touch of a person in
New types of advertising media                                            events with scores of people
                                                                                                                   40
                                                                                                                                    a distance – from anywhere in the world.
Thermal imaging for non-contact temperature measurement                 Replaced a personal trip to the
                                                                                                              18             WHAT IT CHANGES
                                                                       store / cafe with an online order
and contactless terminals for hand disinfection have been                                                                             It becomes possible to transmit tactile
installed in the Moscow metro, which are already beginning to                                                                         sensations to a distance without the need
                                                                                                                                      for expensive equipment.
be equipped with screens for displaying advertising – which         Source: Ipsos Adapt! June 2020
indicates the long-term plans for their usage.                      Base: 18-65 y.o., cities 1 mln+, N=3000

25 ‒ © Ipsos | Trend Vision 2020. Russia
NEW RITUALS OF
THE LOW-TOUCH ECONOMY

Keep distance                                                                                             - Did you wash the                 Food hygiene
                                                                                                            cookie wrapper, too?
In Russia, 75%* of the population lives in cities. In megacities, people are already                                                 Did you treat bought food with antiseptic
                                                                                                                                     before use or immediately after purchase? %
experiencing a shortage of personal space. Social distancing, the transition of                           - Sure.
touching strangers to the status of undesirable behavior, for many will make urban
spaces more comfortable.                                                                                  - It's paper!
                                                                                                                                          Yes, all products            25
                                                                                                          - I'm not under the tap!
Keep your hands clean
                                                                                                         Source:
• Minimum touching of                  • Hand washing, a hundred         • Sanitizers have appeared      social media monitoring                 Yes, partly          22
  external objects in public             years after the recognition       in all public places, in
  places, incl. to pay for               of its usefulness, is             handbags and on
  purchases. After the                   experiencing a renaissance        supermarket shelves.
  COVID-19 pandemic,                     and has gone from a               Cosmetic giants L'Oreal and                                                   No                    53
  there will still be contact-           routine chore to an               Coty began production of
  transmitted diseases                   essential part of daily life.     sanitizers. In the Ipsos
  in the world.                          As of the Ipsos Adapt!            Adapt! survey, 48% of
                                         survey, 68% of respondents        respondents used                                          Source: Ipsos Adapt! June 2020
                                         washed their hands more           antiseptics more often than                               Base: 18-65 y.o., cities 1 mln+, N=3000
                                         often than usual.                 usual.

26 ‒ © Ipsos | Trend Vision 2020. Russia
FIGHT FOR A SPACE
IN A MOBILE PHONE                                                                                 Installed apps (Top-10), %                        vs 2019/I
                                                                                                                                                                MINI APPS BY VK

With the development of the contactless economy, the smartphone                                              Social media                      77    -3,9pp

becomes an important tool for interacting with the outside world. Users
                                                                                                                                                     0,9pp
already have the problem of insufficient memory for the applications                                        Mobile banks                       76
they need. Each new version, often requiring more memory, each new
                                                                                                                                               76    -0,2pp
application forces the user to sacrifice less significant applications ...                       Messangers, video calls

                                                                                                   Maps, GPS-navigators                        74    -3,3pp
  What apps usage is going down?
  Over the year, the share of used applications of social media,                                                                                                SIGNAL The VKontakte social media has launched

                                                                                90 %
                                                                                                                    E-mail                     74    -3,1pp
  maps, e-mail and games has significantly decreased.                                                                                                                  the format of mini-applications that are
                                                                                                                                                                       available via the link and do not require
  Typically, these applications take up a lot of memory space.                                                  Order taxi                59         4,4pp             installation into a mobile phone.
                                                                                   Have
                                                                                                                                          58         -3,2pp     WHAT IT CHANGES
  Which ones are used more?                                                     smartphone*                        Games
                                                                                                                                                                         Mini-apps do not occupy memory space
  Over the year, the share of installed applications for ordering taxis,                                                                                                 and do not compete with other apps on the
                                                                                                          Watching video                  58         1,2pp               phone. They do not pretend to be
  restaurants and food delivery services, and coupon service                                                                                                             multifunctional but have a simple interface/
  applications increased. Dating apps and personal budget                                        Telecom operators apps                   57         1,0pp               At the peak of lockdown, the COVID-19
  management apps have grown equally, with one in 10 having them                                                                                                         mini-app was visited by 1 million people a
                                                                                                                                                                         day.
  installed.                                                                                               Internet shops                 56         0,4pp

                                                       * Source: Ipsos. RusIndex 2020/I          Source: Ipsos OnLife, 2020/I
                                                       Base: Russians 16-75 y.o., cities 100K+   16-75 y.o., active Internet users, cities 100K+
                                                       Fieldwork March 16 – May 6, 2020          N=2500. March 2020
27 ‒ © Ipsos | Trend Vision 2020. Russia
SPEEDING UP THE TRANSITION TO DIGITAL
HAS INCREASED THE LEVEL OF CYBER THREATS
The higher the rate of digitalization, the higher the digital risks for users
                                                                                                                 FOCUS ON CYBERSECURITY
who do not have time to realize new threats
•   Russia is striving to become a leader in the
    implementation of digital services. Digital security    I am concerned about
    will be included in the concept of public security of   how information being
    the Russian Federation.                                 collected about me

                                                                                    69%
                                                            when I go online
•   93% of respondents in Russia believe that in the
    future, with the development of technology, people
                                                            is being
                                                                                                                 SIGNAL A study by Rostelecom showed that during the period
    will lose their privacy (Ipsos Global Trends 2020)      used by…                                                    of lockdown, the number of cases of theft of
                                                                                                                        corporate data increased by 25%. In Q1/2020, global
•   At least once a month, media outlets in Russia                                  Companies                           investment in cybersecurity increased by almost 10%
                                                                                                                        and reached 10.4 billion USD due to the switch to

                                                                  63%
    report leaks of user databases that leave their data                                                                remote work.
    when interacting with organizations.
                                                                                                                 WHAT IT CHANGES
•   At risk are not only those who leave a "digital                                                                       The training of the people in the principles of
    footprint" online, but also those who unwittingly                                                                     cybersecurity will go, first of all, from the employer to
    leave a "digital shadow".                                    Government                           Source:             the employees. As consumers, people will demand
                                                                                     Ipsos Global Trends 2020             that brands protect the data they collect and use it in
                                                                                              Base: 16-74 y.o.            a transparent way.
                                                                                               Russia. N=500

28 ‒ © Ipsos | Trend Vision 2020. Russia
CONSUMER SAFETY IS PART OF
   THE SOCIAL RESPONSIBILITY OF BRANDS

              The role of brands in the post-pandemic world is not just to find                   IT'S SAFER NEXT TO BIG BRANDS
              common values with consumers, but to become an island of
              tranquility in the middle of a disturbing world, a guide and mentor
              in embracing change.
              During the lockdown brands actively helped consumers:
              •    They called to stay at home – Lay’s gave free chips, Lamoda temporarily
                   changed its name to LaDoma, The S7 airline offered consumers to “Fly at
                   home” and gave miles for it.
              •    Free masks and gloves are given out by many online retailers at store          SIGNAL Sberbank and Pyaterochka (retail chain) began to contribute
                                                                                                            to the creation of a safe public environment even before the
                   entrances, and Twitter has promised to create a post editor if everyone puts             COVID-19 pandemic, launching a collaboration with the Lisa
                   on masks.                                                                                Alert project to help lost people

              •    Tables with sanitizers appeared in retail, and Lush invited customers to
                   wash their hands right in stores. The S7 airline and Tinkoff Bank trained      WHAT IT CHANGES
                   clients to wash their hands using an online game.                                        There will be an increase in the number of social projects of
                                                                                                            brands aimed at ensuring consumer safety in a broad sense
              •    Buy only what you need, not to overeat on lockdown – the Perekrestok retail              – offline and in cyberspace
Что делать         chain trained its customers– also through online game.
 брендам

   29 ‒ © Ipsos | Trend Vision 2020. Russia
Ipsos TrendTRAC
Analyzing signals                             R            REVERSE                                                             A             ACCELERATE
CLEAN.                                      SIGNAL     Mass wearing of medical masks and gloves. Bikini turns into           SIGNAL      In June 2020, KFC in Moscow launched a pilot format with
                                                       trikini under the influence of coronavirus                                        orders only through digital kiosks (without cash registers)
LOW-TOUCH.                                                                                                                               and with automatic delivery of orders.
                                            WHAT IT CHANGES
SAFE                                                 Despite the idea of turning a bikini into a trikini, quickly            WHAT IT CHANGES
                                                     distributed via social media, such a fashion, as well as                          Accelerating adoption of technologies that were perceived to be
In a world where social distancing has               voluntarily wearing masks and gloves, is unlikely to take root                    ahead of the time, such as robots in mass service and self-
become a necessity, and physical and                 after the end of the pandemic.                                                    driving cars, are expected to supplant car sharing.
virtual safety are at the top of the
agenda, there is a request to minimize
touching surrounding objects to

                                               T            TRANSFORM                                                          C            CONSOLIDATE
increase the level of public safety and
minimize the spread of viruses - as
COVID-19, the main reason of
changes in 2020, and other viruses.         SIGNAL      Recently, the media did not recommend to give biometrics. With the   SIGNAL      Further spread of QR codes: QR codes are replacing paper
What signals reflect changes in the                     end of lockdown, Sberbank and Visa launched glance payment with                  menus in restaurants.
                                                        the biometric data in the Prime cafe network in Moscow.
perception of security?                                                                                                      WHAT IT CHANGES
                                            WHAT IT CHANGES                                                                           Assigning the function of a "personal control panel" to smartphones
                                                     Consumers do not always meet new technologies with enthusiasm,                   by interacting with commercial and public services. But if this trend
                                                     often preferring to stay in his "analog" world as long as possible.              continues, there will be high competition for space in the
                                                                                                                                      consumer's mobile phone due to limited memory resources. The
                                                        • What physical security challenges can digitalization help solve             solution can be either in reducing the cost of mobile phone memory
                                                          quicker?                                                                    or in returning to online solutions adapted to work from a mobile
                                                        • What digitalization challenges can be accelerated due to the                device.
                                                          growing importance of human physical safety?

 30 ‒ © Ipsos | Trend Vision 2020. Russia
Technology –
                                       Humanity

31 ‒ © Ipsos | Trend Vision 2020. Russia
THE CRISIS HIGHLIGHTED
THE IMPORTANCE OF EMOTIONS IN
                                                                                       WE'RE PRACTICALLY CYBORGS
THE WORLD OF TECHNOLOGY
Adoption of technology between crises makes it easier to survive
                                                                                       ALREADY. THE PHONE, THE
moments of upheaval. People in Russia love technology, but their                       COMPUTER-THIS IS YOUR
favorite brands are still the ones that touch them emotionally.                        CONTINUATION.
   Russia has a high level of technology adoption
   People in Russia have a positive attitude to new technologies, as it                BUT YOUR INTERACTION IS DONE
   opens up new opportunities for them                                                 BY MOVING YOUR FINGERS OR
   Innovation is not the main thing for brands                                         SPEECH, WHICH IS VERY SLOW.
   Brands are based on an emotional connection with the consumer.
   Technology brings the danger of "dehumanizing "– by moving too                      A BRAIN-CONTROLLED INTERFACE
   fast brands can lose sight of consumers' emotions and lose their
   trust. The value of technology through the eyes of consumers is to                  WILL APPEAR, I THINK, IN FOUR
   help people better understand themselves.                                           OR FIVE YEARS.
   The value of empathy and trust is growing
   You need to ask questions about the emotional side of automation in
   advance, so that you don't lose sight of ethics in moments of
   technological acceleration.                                            Elon Musk, inventor,
32 ‒ © Ipsos | Trend Vision 2020. Russia
                                                                          entrepreneur, engineer
                                                                          Tatler.ru
LEVEL OF TECHNOLOGY ADOPTION
IN RUSSIA, IT IS STILL HIGH
                                                                                                                                                           6G IS JUST AROUND THE CORNER
Russia is a country with a high level of technology adoption. Most people
use technical innovations to expand their capabilities, but for young people                              Technical innovations provide
                                                                                                          great opportunities
this factor is not so strong - here devices are already a routine. This group
is interested in gadgets more as a way to make life more interesting and fill                             Technical innovations make life
it with new emotions.                                                                                     more interesting
                                                                                                                          ALL 16-75
Using technology to make life more organized is also widespread,                                                     70
                                                                                               Single                                      Young
especially in categories of Parents and Empty Nests.                                         pensioners                                    without

It is less among young people, since the need to complete                                         67                 36                   65               SIGNAL While Russia is deciding whether to
many tasks at the same time appears in                                                                                              41                            postpone the launch of 5G networks for
                                               74 ALL 16-75                                                    25
the following stages of life. Single                                                                                                                              the sake of economy, Samsung has
                                                                                                                                                                  presented the concept of 6G networks,
                                     pensioners                           Young without      Empty                                                                the commercial and mass use of which is
                                                               49           children         nests        34                   32
                                                                                                                                                                  planned from 2028-2030.
                                              71                            69               73                      37                     74
                                                    44               45                                                                                    WHAT IT CHANGES
                                                                                                                                            Middle age              People and even cars will enable the
   Technology helps me to                                                                                                                                           provision of services such as immersive
                                                                                                                     70
   be more organized                                                                Middle                                                                          augmented reality (XR), high quality
                                                                     46              age                        Parents                                             mobile holograms and digital replication.
  Thanks to technology people                      53
                                             79                               71                                         Source: Ipsos. RusIndex 2020/I.
  communicate better                                                                                                            Segmentation Life Stage
                                                               51
                                     Empty nests                                                                     Base: Russians 16-75, cities 100K+.
                                                                                                                      Fieldwork: March 16 – May 6, 2020
  33 ‒ © Ipsos | Trend Vision 2020. Russia              Parents 77                                                             Agree with statements, %
BRAND INNOVATION
IS NOT THE MAIN VALUE FOR CONSUMERS
Despite being grateful to technology, Russians tend to see brands       I will always choose innovative brands
as a bulwark of tradition and stability. Technical superiority is not   over traditional brands, %
enough to build relationships with consumers. It requires building                                 Agree               Disagree
a close emotional connection.
                                                                                China              50                          39

Internal momentum of changes. Acceptance                                         Italy            40                          44
If the consumer is ready for new technology, buys new devices or
installs applications themselves, they accept technologization with              USA          30                            51
joy, because the impulse comes from within.
                                                                               Russia        28                             50
External momentum of changes. Resistance
If the initiative comes from brands, consumers are faced with the              France       22                           63
fact of imposed changes. Resistance to changes is activated
where you have to rebuild the usual routines.
                                                                               Japan       20                             56

                                                                                                              Source: Ipsos Global Trends 2020
                                                                                         Base: 16-74 y.o., N=500-1000 depending on the country

34 ‒ © Ipsos | Trend Vision 2020. Russia
THE VALUE OF EMPATHY AND TRUST
IS HIGHER THAN EVER
                                                Do you trust the following                                          SERVICE OR CONTROL?
•    Trust is at the heart of the emotional     to treat you fairly? (%)                          Yes          No
     connection between the consumer                    Delivery companies                  69                 21
     and the brand. The pandemic has                         Online retailers           64                    26
     raised lots of emotions and forced                       Supermarkets             52                42
     brands to prove that consumers can
                                                Restaurants (incl. fast food)          51                 37
     trust them.
                                                           Train companies             51                 35
•    When brands go for new technology                                Hotels           50                  30
     and forget about empathy and                      Online marketplaces            49                   31       SIGNAL Amazon drones can monitor the territories they fly
     humanity, they risk losing the trust of                                                                               over and report suspicious situations to the police
                                               Broadband internet providers           49                  40               and responsible services. Meanwhile, Dubai is
     their customers.                                                Airlines      40                     34               already creating drone ports and a dispatching
                                                                                                                           system for drones
It is interesting that delivery services and        Mobile phone operators         39                55
online retail, which combine both                                     Banks       38                 54             WHAT IT CHANGES
                                                                                                                             Drones can observe the behavior of residents
technology and the ability to quickly                Automotive companies         34                      41                 from the air above and give brands new
satisfy the consumer's desire, are on top                          Hospitals     31                 63                       information about consumer behavior and
of confidence in organizations.                                 Car dealers      28                      45
                                                                                                                             lifestyle. However, will consumers like it?

                                                      Insurance companies       26                   57

                                                                                Source: Ipsos Global Trends 2020
                                                                                  Base: 16-74 y.o. Russia. N=500
35 ‒ © Ipsos | Trend Vision 2020. Russia
TECHNOLOGY SHOULD HELP CONSUMERS
BETTER UNDERSTAND THEMSELVES
                                                                                                                                     WIRELESS EMPATHY
Artificial intelligence already helps the consumer             How people see themselves?, %
choose a better product, than a person can do
                                                               I put my family and loved ones on
themselves. For example, it can help you choose                         top of everything                                       55
cosmetics.                                                      I spend a quiet evening at home                            34
                                                                  I seek to maintain good humor
Data profiling helps the customer make a choice                      and harmony with others                          28

The role of technology is not only to streamline and                      I enjoy being an expert                24
speed up the business processes of organizations, but            I am not afraid to be different or
                                                                              unique                             22
also to help consumers understand their own needs and
emotions in order to facilitate the selection and receipt of       I enjoys taking care of others                22
                                                                                                                                     SIGNAL Usually, technological solutions for emotion recognition
goods and services. Using the analysis of transactions of                                                                                   require the user to install an app, wear gadgets on
                                                                                 I value traditions              22
a large number of consumers or through external                                                                                             their head, or be near special devices. But back in
observations of their behavior and emotions,                   I keep away from any obligations           10                                2016, MIT introduced EQ Radio, a radio that
technologies can create a profile of a person and give                                                                                      recognizes emotions using Wi-Fi technology.
                                                                I am spontaneous and impulsive        7
him recommendations based not only on the data of one
                                                                   I want to have as much fun as                                     WHAT IT CHANGES
particular consumer, but also on other data similar to                        possible                7
                                                                                                                                              Emotion recognition technology that doesn't require
his/her profile.                                                I like the adrenaline of risks and                                            users to use special devices and apps can help
                                                                            adventures                6
                                                                                                                                              brands read and manage consumers' emotions. For
                                                               Q: Which attributes describes you best?                                        example, in retail.
                                                               Source: Ipsos Adapt! June 2020
                                                               Base: 18-65 y.o., Russian cities 1 mln+, N=3000

36 ‒ © Ipsos | Trend Vision 2020. Russia
START THINKING ABOUT EMPATHY
RIGHT NOW                                                                                       ZOJIK KNOWS EVERYTHING ABOUT COVID-19
Speed is the main enemy of empathy                          Virtual assistants and chatbots
In crises, when decision making is quick, you risk          are becoming more and more
having no time for empathy.
                                                            like people – they talk and learn
It is important to give yourself time to discuss all the    to recognize emotions. Many
ethical aspects of implementing new technologies in         companies strive to ensure that
order to consider all positive and negative effects of      their chatbot not only knows
innovations and to set clear priorities – while the         everything, but is perceived by
company is not under pressure from time constraints.
                                                            the consumer as a full-fledged      SIGNAL In April 2020, the Russian Ministry of Health
                                                                                                        launched a virtual assistant – the Zojik bot. Bot
Choice and encouragement                                    interlocutor. For example, the
                                                                                                        around the clock answers common questions
Technology adoption is more comfortable where the           soulful chatbot of the Fund                 about coronavirus.
consumer still has the choice to use the new or the old,    “Starost v Radost" Vera
there is no strict time frame and there are incentive       Vasilyevna.                         WHAT IT CHANGES
                                                                                                                                   Чаще, чем обычно,
programs. In a situation where there is external                                                         The emergence of bots from     government
                                                                                                                                   использовали
pressure on the consumer (fines, mandatory passes,                                                       services makes them theантисептики
                                                                                                                                    norm for citizens,
                                                                                                                                                   для
etc.), it is important for brands to act through positive                                                accelerating the mass adoption
                                                                                                                                   рук     of
                                                                                                         technology for consumers and creating a
reinforcements.
                                                                                                         request for similar solutions from
                                                                                                         commercial organizations.

37 ‒ © Ipsos | Trend Vision 2020. Russia
Ipsos TrendTRAC
Analyzing signals                                  R            REVERSE                                                              A             ACCELERATE
THE PANDEMIC                                     SIGNAL To support consumers, brands open access to their services and             SIGNAL Retail chain Magnit offered to employ KFC employees, which was
                                                         give a product. Online cinemas and publishing houses give free                   closed during the pandemic. Retailers Azbuka Vkusa, Perekrestok.ru,
HAS PROVIDED AN                                          access to movies and books; Yelli gives its soups to support those               Ozon, "Dodo Pizza» and Delivery Club teamed up to install a
                                                         whose travel was cancelled due to the pandemic; IKEA shares                      monument in gratitude to the couriers who worked during quarantine.
OPPORTUNITY TO                                           recipes of their branded meatballs.
                                                                                                                                   WHAT IT CHANGES
SHOW HUMANITY                                    WHAT IT CHANGES                                                                           The pandemic encourages brand collaborations to address important
                                                          Promotions operate in the acute phase of the crisis and stop when                social issues. The need for such solutions appeared even before the
Technology makes it easier to get                         the situation is resolved. This improves the brand's reputation and              pandemic, because often brands’ social campaigns can be similar in
                                                          helps to increase its social media subscribers.                                  message and in visuals.
through crises. In difficult situations, it is
easy to focus on optimizing resources,

                                                    T                                                                                C
reducing the cost of what seems
unnecessary, but which is the "soul" of                          TRANSFORM                                                                        CONSOLIDATE
the organization.
Empathy and humanity during crises               SIGNAL      Despite user complaints, the Social Monitoring app will continue to   SIGNAL      The pandemic shows real leaders who are ready to help.
                                                             be installed on the mobile phones of Muscovites who have                          Crocs distributes its brand's shoes to doctors for free. P&G
are especially important – people are in                                                                                                       sends cosmetics and hygiene products to hospitals. Yandex
                                                             contracted COVID-19. Since the end of April 2020, the app does
a state of anxiety and acutely feel the                      not request identification at nighttime (from 22:00 to 9:00), and                 organizes the Help is Near You project. The culinary project
need for support and "friendly shoulder".                    fines issued during the night will be withdrawn.                                  "Dasha's pies" raises money for "suspended dinners" for
What signals reflect the trend for                                                                                                             doctors, while simultaneously saving work for its employees
                                                 WHAT IT CHANGES                                                                               and enabling ordinary people to contribute.
empathy in business?                                      Technical solutions to overcome socially significant problems must
                                                          simultaneously be ethical. Ethics, empathy, and respect for people's
                                                          feelings should be inherent in both the managers responsible for         WHAT IT CHANGES
                                                          implementation and the technical specialists who create the program                The pandemic strengthens the importance of corporate
                                                          code.                                                                              responsibility in business – responsibility not only for their
                                                                                                                                             employees, but also for the well-being of society in general.

 38 ‒ © Ipsos | Trend Vision 2020. Russia
Online –
                                              Offline

39 ‒ © Ipsos | Trend Vision 2020. Russia
TOGETHER, NOT INSTEAD:
ONLINE AS A CONTINUATION OF OFFLINE
During lockdown, people could try to replace real life communication with a virtual
one. The digital environment cannot fully replace live communication and tactile
                                                                                                           WE CAN ASSUME THAT FOR
contacts as people remain the "analog” ones. People and businesses are looking for
an optimal balance between the two environments.
                                                                                                           SOMEONE THIS WILL BE A
  "Remote" work leads to changes in the economy                                                            VALUABLE EXPERIENCE THAT
  Don't waste time on the road to work, save money and have a flexible schedule –
  these are the main advantages for consumers.                                                             SHOWED: DO NOT BE AFRAID OF
  Online learning. Shock and new features                                                                  EVERYTHING RELATED TO
  The adoption of online learning as a format will go through school children and
  students.
                                                                                                           ONLINE.
  Recreation and entertainment. A sample of new formats
  By going online, cultural projects have increased their audience. Users were able                        SUCH A KIND OF TRAINING THAT
  to test new forms of leisure. The request for positivity led to the use of games and
  gamification.                                                                                            CHANGED THE BEHAVIOR MODEL
  Increasing the value of health
  In times of crisis, the value of health increases. The COVID-19 pandemic has
  accelerated the introduction of telemedicine and the spread of fitness online.

  Retail in search of balance
  Retail solves the difficult task of finding a balance between online and offline
  formats, complying with official regulations, and simultaneously caring about the      Andrew Kamenuki
  importance of the consumer experience.                                                 Psychotherapist,
                                                                                         General Director of " Clinic of cognitive psychotherapy»
40 ‒ © Ipsos | Trend Vision 2020. Russia
REMOTE WORK –
FORERUNNER OF ECONOMIC CHANGE

Remote work has become a large-scale consequence of the pandemic, allowing
many businesses to survive, and employees - to save income and "try on"
                                                                                                                 Advantages of
                                                                                                                                          -6%
                                                                                                                                          vs Apr 2020
                                                                                                                                                           41%
                                                                                                                                                         Continued to work in
remote work, even if they never thought about it.
                                                                                                                                                        remote/mixed mode in
                                                                                                                  remote work                                 June 2020
What remote work changes
Taking into account the numerous advantages of remote work (including the possibility of
reducing the space rented by a business), it can be assumed that some enterprises will
                                                                                                              Don’t spend time
                                                                                                              for the road            83%                Intention to return to
                                                                                                                                                        physical workplace, %
continue to work in this mode even after the restrictions are lifted, which could potentially
lead to serious consequences. These include:                                                                  Save money
                                                                                                              (transport, food)       70%
     •    People will migrate from big cities in order to save money and have a greener life;
          business will hire employees from other regions with cheaper labor;                                                                                                34
     •    Development of digitalization and systematization of business processes; the
                                                                                                              Flexible hours          64%               47
          emergence of new video communication services, such as Telemost from Yandex;
     •    Transforming office concepts: Activity-based Working instead of the fading Open
          Space format. With a "mixed" work format, there will be no need to have individual
                                                                                                              Wake up later           55%                               19

          jobs; zoning space for specific offline activities will gain value.                                                                              Don't want
                                                                                                             More time for
                                                                                                             chores                   42%                  Don’t care
                                                                                                                                                           Want

41 ‒ © Ipsos | Trend Vision 2020. Russia                                                        Source: Ipsos Adapt! June 2020
                                                                                                Base: 18-65 y.o., cities 1 mln+, N=3000
ONLINE LEARNING
SHOCK AND NEW OPPORTUNITIES
The transition to online learning has become an exam for students,
                                                                                E-learning, %                                SEAMLESS LEARNING
teachers and parents due to the speed, the inevitability of what
happened and the need to quickly master Skype, Zoom, Discord and
other tools for conducting virtual lessons, creating tests and quizzes.
                                                                                              77                        81
Offline should adapt to online environment
It is necessary to adapt the traditional educational process to the
                                                                                     17
specifics of the Internet: smaller class sizes, pre-recorded lessons, more                                   17
                                                                                      April 2020              June 2020
ways to engage and retain attention, proctoring (monitoring exams
online). The problem arises of providing each family in Russia with a                 A course of supplementary education
computer with Internet access.                                                        Mandatory education                    SIGNAL Offline format "New school" launches the project
                                                                                                                                     "Zaochka", which will combine online and offline
                                                                              Source: Ipsos Adapt! June 2020                         education.                  Чаще, чем обычно,
Schoolchildren and students drive growth                                      Base: 18-65 y.o., cities 1 mln+, N=3000
                                                                                                                                                                   использовали
Further growth in the number of online learners will continue at the                                                         WHAT IT CHANGES                       антисептики для
expense of schoolchildren and students. As they get older, online            Educational projects that were quickly                  Reputable offline schools areрук
                                                                                                                                                                    launching hybrid
                                                                                                                                     online/offline formats. The quality of online
learning or a combination of online/offline will become the norm.            adapted, or were already working online,                education will continue to grow. Basic school
                                                                             were able to expand both their audience                 education will be accompanied by less stress for
Among adults, online supplementary education is not seen as a vital          and the reach.                                          students and provide more opportunities for self
imperative; for them, the lockdown has resulted in an increase in the                                                                development in the direction of interest.
value of live meetings and events, including live learning.

42 ‒ © Ipsos | Trend Vision 2020. Russia
LEISURE AND ENTERTAINMENT
TRY OUT NEW ONLINE FORMATS
The massive transfer of offline entertainment to online helped keep        Watching video content at home, %                   VR IN YOUR HEAD
people at home and relieve them of the burden of having to spend a
                                                                                      69                         66
long time in the same confined space. Unlike the scary news,
entertainment is positive, the value of which will continue after the
pandemic.
                                                                                      April                     June

It fades away
After the first wave of interest in virtual communication, interest in
Zoom parties and FaceTime photo shoots began to decline.                   Video communication
                                                                           on personal matters, %
                                                                                                                               SIGNAL An immersive show is a format where viewers
Culture engages the masses                                                                                                             sit with their eyes closed, imagining a story
                                                                                                                                                              Чаще, чем обычно,
Moving online at lockdown has allowed many cultural projects to               In general      45                 39                    development in their minds. The format
                                                                                                                                                              использовали
significantly expand their audience and offer new formats, for example,       3+ people             29                    25           moved from offline to online during self-
                                                                                                                                                              антисептики для
behind-the-scenes tours.                                                                                                               isolation.
                                                                                               April                  June                                    рук
                                                                                                                               WHAT IT CHANGES
TikTok. A fresh look at the classics                                                                                                    To get a strong emotional impression, a
TikTok, a short video platform aimed at young audiences, during            Watching online performances,                                person just needs to close his/her eyes. No
lockdown was first used by the Ministry of Culture to host online such a   online exhibitions, %                                        need for virtual helmets, halls or quest
classic format as Museum Night. The Ministry of Education, Rosturizm                   15                            13                 rooms. Only Zoom, blindfold, moderator and
                                                                                                                                        viewer imagination.
continue to use TikTok to communicate with young audiences.
Meanwhile, Facebook announced the launch of a TikTok rival.                           April                      June
                                                                           Source: Ipsos Adapt! June 2020
                                                                           Base: 18-65 y.o., cities 1 mln+, N=3000
43 ‒ © Ipsos | Trend Vision 2020. Russia
GAMIFICATION
ESCAPE FROM REALITY TO THE GAME
                                                                                                                                     HSE AND MIT COPIED IN MINECRAFT
The pandemic has accelerated the spread of games and                                  Computer games
increased demand for the gamification of non-game tasks.
In an unstable world, people are looking for a way to                         53% of Russians surveyed play games online
                                                                              or in-app. Since 2016, e-sports has been
escape reality to where they have fun and where the                           officially recognized in Russia and has
development of events can be controlled.                                      already earned the popularity of fans.

Brands and consumers in the game                                                    36%                        40%

•    Participation of people in promotions is growing exponentially –
     this is not only a way to save money, it is a game of “buying a             Played online            Played in apps
     good product at a low price”, “winning” from the seller                                        Source: Ipsos RusIndex 2020/I.
                                                                                                                                     SIGNAL     In the midst of lockdown, the Higher School of
                                                                                                      Russians 16-75, cities 100K+              Economics created a virtual copy of its main
•    Brands actively use online games to engage and educate                                      Fieldwork: March 16 – May 6 2020               building in Minecraft. At the same time, a copy
     consumers on self-isolation: The Perekrestok supermarkets                                                                                  of the famous Massachusetts     Institute
                                                                                                                                                                            Чаще,     чем of обычно,
     teaches how to buy wisely, S7 aircompany+Tinkoff bank                                                                                      Technology (MIT) - Minecraft   Institute of
                                                                                                                                                                            использовали
     teaches to wash hands.                                             Games are serious                                                       Technology appeared in Minecraft
                                                                                                                                                                            антисептики для
                                                                                                                                                                           рук
•    Brands diversified the everyday life of consumers with flash       •   In the NTI 2.0 initiative, which is working on           WHAT IT CHANGES
     mobs and hashtag challenges, in which people did what they             a foresight of the future of Russia until                         Following retail, education is becoming
     were deprived of offline – makeup, outfits, fitness. Examples:         2035, games are highlighted as a separate                         omnichannel, claiming the seamless transition
     #FreelanceFashionWeek from MTS and #plankaspomadoi from                area of GameNet.                                                  from online to offline. At the same time, there is
                                                                                                                                              a growing demand for gamification and
     Maybelline.                                                        •   The international association Games for                           edutainment, without which online education is
•    Perhaps the most striking game case of isolation – everyone            Change promotes gaming tools to solve                             almost unviable.
     could control real inhabitants of the Faroe Islands, like in a         significant social problems.
     computer game.
44 ‒ © Ipsos | Trend Vision 2020. Russia
HEALTHCARE –
ONLINE EXPANDS THE POSSIBILITIES OF OFFLINE
Each crisis increases the value of health – a person                                                                                     SMART HEALTHCARE SPEAKER
can cope with economic problems or take advantage
of new opportunities only if they are healthy.                                       The rise of telemedicine

                                                              48%
                                                                                     The pandemic has accelerated the spread
                                                                                     of telemedicine. Kaluga Region became
Fitness
                                                                                     the first in Russia where telemedicine was
Online fitness has supported people with limited                                     included into the compulsory medical
exercise opportunities in lockdown. But even after the          did sports at home   insurance system. You can now consult a
restrictions are lifted, offline fitness clubs keep online         in June 2020
                                                                                     doctor remotely for free.
programs and are looking for ways to monetize them.
                                                                                                                                         SIGNAL American retailer Walmart has launched sales
During the pandemic, the demand for communication with                                    Contacting a doctor remotely, %                        of HandsFree Health WellBe, a smart healthy
consumers through sports has grown even more – both by                                                                                           lifestyle speaker with voice control. Features
fitness clubs and by companies from other industries. The                                   By phone
                                                                                                                                                 include reminders for medication and doctor's
trend will continue.                                                                                                                             appointments, built-in health tracker,
                                                                                            Via web sites and special apps
                                                                                                                                                 prevention information, and more.
•    #FitnessProtivVirusa is a joint online training project with
     the stars of the World Class Club, Okko, more.tv,                                       10                        15           14
                                                                                                          8
     Sberbank and the Moscow Sports Department.                                                                                          WHAT IT CHANGES
                                                                                                                                                  Smart speakers learn to help keep
•    Examples of the use of fitness by brands from other                                          April                      June                 consumers healthy. The next step is
     industries: workout videos from Wildberries, financial                                                                                       integration with telemedicine systems.
                                                                                       Source: Ipsos Adapt! June 2020
     yoga from Raiffeisenbank                                                          Base: 18-65 y.o., cities 1 mln+, N=3000

45 ‒ © Ipsos | Trend Vision 2020. Russia
RETAIL
LOOKING FOR A BALANCE
The pandemic has presented retailers with the daunting task of finding the                         Shopping for everyday goods          3D ONLINE STORES IN CHINA
optimal mix of offline and online formats, while meeting official distance and                       during self-isolation, %
safety requirements, while also keeping in mind the importance of customer
                                                                                         Bought online
experience.                                                                                                        91            94
                                                                                         Bought offline
Search for matching formats                                                                                              33
                                                                                                          26
X5 Retail Group's emergence as a leader in the e-grocery segment
illustrates the role of brand trust when the consumer opted for online                                     April              June
versions of traditional players over purely online formats. Business models          Source: Ipsos Adapt! June 2020

                                                                                                                        57%
                                                                                     Base: 18-65 y.o.,
are being adapted, for example, Starbucks announced the pre-ordering via             cities 1 mln+, N=3000
an app. However, remember that before the pandemic, Amazon and
Lamoda opened bricks and mortar stores. The search for balance
continues.
                                                                                           +9%                                          SIGNAL Chinese online store Tmall is testing 3D
                                                                                           vs April 2020                 Paid in cash           counterparts of offline stores.
Sensitivity to customer experience increases                                                                            in June 2020
Requirements to wear masks and gloves, and to keep distance worsen the                                                                  WHAT IT CHANGES
customer experience in offline retail. Online also does not yet compensate       Cash is still in use                                            Now, in online retail, a customer cannot
                                                                                                                                                 wander around the store and
for the experience people were getting offline before the pandemic. For          Despite the fact that cash is considered the                    spontaneously take “just something new
example, this concerns the purchase of premium goods, where a high price         dirtiest carrier of a huge number of bacteria, its              for the soul” from the shelf. The 3D
has always determined a high level of customer care. One way to                  use has not decreased during self-isolation, but                simulator solves this problem by bringing
compensate for the lack of customer care online can be a positive delivery       has increased, since the consumer is not always                 the virtual shopping experience closer to
experience. Overall, retailers need to pay even more attention to the            ready to make a prepayment online, and not all                  the real one.
customer experience.                                                             couriers have terminals for paying with a card.

46 ‒ © Ipsos | Trend Vision 2020. Russia
Ipsos TrendTRAC
Analyzing signals                            R            REVERSE                                                             A             ACCELERATE
LIFESAVING                                 SIGNAL      Contactless delivery by couriers                                     SIGNAL      Right before lockdown Yandex.Taxi launched the delivery service,
                                                                                                                                        which allowed customers to quickly send goods to each other – a
DELIVERY                                   WHAT IT CHANGES
                                                     Contactless delivery by couriers as it existed during lockdown is
                                                                                                                                        timely solution that helped customers, taxi drivers and retailers
                                                                                                                                        overcome the coronavirus.
                                                     also likely to be a thing of the past. The service was not tuned
In what the media termed the "sofa                   properly, and if you can move freely, the function of contactless      WHAT IT CHANGES
                                                     receipt of goods is performed by postamats, as well as vending                   Even before lockdown, delivery within a day was a good one. In
revolution“, there was almost a record               machines in residential buildings launched in test mode by retailers             quarantine, retail showed "supersonic speeds" – products appeared
number of changes in the ways to                     Azbuka Vkusa and Vkusvill.                                                       at the customer’s residence 15-20 minutes after they ordered. The
make purchases during the lockdown.                                                                                                   customer would like to keep this speed of delivery.

Consumers definitely like the delivery

                                              T            TRANSFORM                                                          C
not just on the day, but at the hour of
the order.                                                                                                                                 CONSOLIDATE
Along with the delivery couriers,
whose value increased, taxi drivers        SIGNAL      Delivery Club terminated the contract with a partner who did not     SIGNAL      Yandex.Lavka launched delivery of goods to «dachas» (summer
                                                       pay the couriers ' wages and created the threat of a strike.                     houses in suburbs) in the vicinity of Moscow and St. Petersburg.
and consultants of empty stores                                                                                                         After the successful launch of delivery to dachas in the Moscow
functioned as delivery couriers too.       WHAT IT CHANGES                                                                              region, the eCommerce platform SberMarket plans to launch
                                                    The high demand for delivery and the complexity of managing a                       within the summer a similar service for all 1mln+ cities.
                                                    large staff of couriers create prerequisites for replacing couriers
                                                    with ground and air robots. In July 2020, Yandex tested an              WHAT IT CHANGES
                                                    unmanned delivery robot Yandex.Rover. Dodo pizza has been                         Expanding the delivery area to include suburbs. With the departure
                                                    working on the use of contactless air delivery since 2014.                        of the city population to the countryside due to remote work or the
                                                    According to forecasts, in 10 years, the turnover of the contactless              closure of educational institutions for quarantine, the issue of long-
                                                    air delivery market will exceed the turnover of passenger air                     distance delivery became acute. Before lockdown, the delivery
                                                    transportation.                                                                   dachas was performed by a Unkonos, other e-retail players
                                                                                                                                      followed it pushed by the coronavirus pandemic.

47 ‒ © Ipsos | Trend Vision 2020. Russia
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