In March, GeoPoll ran a comprehensive study on consumer behavior and purchasing decisions in Kenya’s FMCG space. As this study occurred before the pandemic spread widely, we decided to utilize that data for a comparison study of the FMCG space and how it has changed during COVID-19. So, we ran the same questionnaire again and analyzed the differences in reported purchase decisions. This report will outline what was found, like an increased influence placed on the quality of disinfectants and more people making purchases based on convenience.

Methodology

This report will compare results from two rounds of survey research that were conducted in Kenya. Both the first round and second round of the study were conducted via mobile web and the questionnaires were identical. Round one of the studies ran from March 10^th to March 16^th, meaning the results reflect purchasing behavior before COVID-19 related stay at home guidelines were enacted by the Government of Kenya. As such, the results from round one will serve as a baseline for purchasing decisions on FMCG products in Kenya before the coronavirus pandemic. The second round ran from October 3^rd through October 6^th and the results from this round will reflect the changes in purchasing behavior of FMCG products due to the coronavirus pandemic.

Both round one and two had 400 respondents located in the following urban centers throughout Kenya: Mombasa, Nairobi, Nakuru, Nyeri, Kiambu, Kisumu, Machakos, Meru, Uasin Gishu, Bungoma, Homa Bay, Kilifi, Vihiga. The gender split was 50% male and 50% female in the first round and 51% male and 49% female in the second round. There were 33% of respondents in each of the following age groups for the first round, 18-24, 25-34, 35+. In the second round, 18% of respondents were 18-24, 42% of respondents were 25-34, and 31% of respondents were over 35.

Most Frequently Purchased FMCG Products in Kenya

Both of the questionnaires began with a list of over 30 FMCG products that fall into seven categories: dental hygiene, soap, hair care, cleaning, beauty, food, and beverages. Respondents were asked to indicate whether or not they had purchased each of the items listed within the past 30 days. The table included above shows the top 10 most purchased items from each of the studies.

The top two most purchased items were toothpaste and bread in both rounds of the study and the percentages did not fluctuate more than 2% each. Although the percentage of respondents that purchased laundry soap within the 30 days preceding the survey remained the same, laundry soap dipped from 3^rd place to 5^th place from pre- to post-COVID. Converse ranking changes occurred for meat purchases from the first to the second round, although meat purchases were made 9% more in the post-COVID round than in the pre-COVID round. Also notable is the increased purchases of grains and beans, which replaced toothbrushes on the top 10 list.

Factors Influencing Purchase Decisions of FMCG Products in Kenya

In past studies on Kenyan consumer behavior, it has been found that consumers are price-aware and brand loyal, yet tend to justify paying higher prices in exchange for quality products. The data collected in both rounds of these studies generally reflect such findings.

Overall, the results of the studies showed that quality was by far the key driver of FMCG purchases. In every product category other than beverages, quality influenced purchases at least 20% more than any other factor in both rounds. When comparing the studies against one another, there was even a slight increase in the role that quality played in the purchases reported in round two, which indicates that quality plays an even more important role in FMCG purchasing decisions in a post-COVID era than the pre-COVID era.

Considering the charts above, the most important factors that influenced purchasing decisions from round one to round two were minimal; however, when the results are looked at by item individually rather than by category, there are some interesting insights about how COVID has changed consumer’s buying behavior.

Within the cleaning category, disinfectant cleaner and floor cleaner had somewhat opposite changes from before the pandemic to after the pandemic. Disinfectant cleaner purchases were driven 5% more by quality after the pandemic than before, while floor cleaner purchases were driven 2% less by quality, 5% less by brand, and 10% more by price. These changes are likely due to the pandemic and consumer’s general concern about killing the coronavirus.

Although the differences were rather small, similar differences in key influences of purchasing decisions before verses after the pandemic began were seen for other products as well. For example, the influence of price increased for non-essential FMCG items, like window cleaner, hair oils, and mouthwash, while the influence of quality increased for health-related items like produce, meat, and disinfectant cleaner. Interestingly, the influence of quality did not increase for one of the most essential items during the COVID pandemic: hand soap. The largest change seen for hand soap was an increase in the influence convenience had on purchases, which is likely due to consumers needing to purchase more frequently than usual due to diligent hand washing practices for virus prevention.

Key Takeaways: GeoPoll Research Solutions for the FMCG Space in Kenya

GeoPoll’s mobile research solutions are a flexible resource for gathering insights on consumer behavior. Data-driven decision making is crucial when adapting to a rapidly changing market, like the market during the ever-evolving coronavirus pandemic. For more information on how GeoPoll can gather valuable data for your team, contact us today.

The post Drivers of FMCG Purchase Decisions in Kenya Before and During COVID-19 appeared first on GeoPoll.

Methodology

This report is a continuation of data analysis from the same study that appears in the FMCG Purchases: Consumer Behavior in Kenya report. This study ran from March 10^th through March 16^th of 2020 via mobile web. Respondents’ answers represent purchases from the 30 days prior to survey participation. It is important to keep this fact in mind because the results of this study reflect purchasing behavior before COVID-19 related stay-at-home guidelines were released by the Government of Kenya. As the COVID-19 outbreak continues to disrupt spending patterns, this data provides a valuable baseline for FMCG purchases in Kenya.

The 400 total respondents were equally distributed among key urban centers in Kenya that are displayed in Figure 1. Each of these highlighted areas were represented by 11% of the respondent base. There was an equal split between males and females, as well as even split between three age groups: 15-24, 25-34, 35+.

Average Purchase Location for FMCG Products

As a part of this study, GeoPoll examined where FMCG products were purchased within the past 30 days. The focus of this was to determine if an item is more often purchased at retail locations that are considered a part of the formal economy or at locations that are considered part of the informal economy. For the purpose of this report, we will consider formal economy purchases to be from supermarkets and online sources. Informal economy purchases will be from dukas, kiosks, wholesalers, markets, hawkers, and “other”.

When the responses across all products were averaged by the indicated purchase location, the majority—57%—of respondents purchased FMCG products through formal retail locations: supermarkets and online. However, certain products and product categories bypass the averages seen across all products from the study. Soap purchases, for example, were mostly made in supermarkets and only a handful were made in dukas and “other” retail locations, while food and beverage purchases were made in various locations.

Purchase Location by FMCG Product Category

Food and Beverage

The variety seen in the purchase location of the food and beverage products starkly contrasts the homogenous nature of supermarket-forward purchase results for most of the other product categories: soap, dental hygiene, hair care, and cleaning products. Although there is more variety seen in the food and beverage category, supermarkets were still a frequent purchase location for many of the items. However, supermarkets were about 30% more popular on average for soap, dental hygiene, hair care and cleaning product purchases than for food and beverage purchases.

Upon a deeper look at the results, there are certain products that have purchase locations that stick out. Soda, for example, is purchased at dukas 16% more than at grocery stores and 33% more than at kiosks, meaning that the majority of soda purchases are occurring in convenient locations like in dukas and kiosks, rather than supermarkets that tend to be more siloed from foot traffic. This is unique even in the beverage category alone, seeing as soda is the only beverage that was purchased more at dukas and kiosks than at supermarkets. For beverage manufacturers, this shows that the majority of the urban Kenyan market for soda retail distribution lives in the informal economy, while other beverage sales (juice, water, liquor, wine, and beer) live more in the formal economy.

As for food products, produce, grains, and beans are more often purchased locally at marketplaces than in supermarkets. The prevalence of produce, grains, and beans in the informal economy is not particularly surprising when the prevalence of smallholder farmers in the area is considered.

Beauty Products

Aside from food and beverages, the other FMCG product category with notable variations in the purchase location was beauty products. Although supermarkets were the most popular purchase location for each of the beauty products, what stood out against all of the other product categories was the high rate of online purchases. An average of only 3% of all of the other FMCG products in this study were purchased online, yet an average of 13% of the products in the beauty product category were purchased online. This may be due to a variety of reasons. For the purpose of this report, however, it is most notable that the beauty products in this study fell into the formal economy more often than the informal economy.

Formal vs. informal economy in Kenya: key takeaways

For the FMCG products included in this study, the majority of purchases on average occurred through formal retail avenues. The informal retail space was most notably seen for soda purchases and natural foods like produce, grains, and beans.

To conduct further research on this topic or one similar, contact us today to learn more about GeoPoll’s capabilities.

Image attribution

Hawker left, hawker right , kiosk , duka , wholesaler, image of a market

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