With the advent of the COVID-19 pandemic having changed people’s ability to not only participate in leisure but also their spending habits, Kalkine Media’s Kunal Sawhney looks at the market forces shaping leisure spending.
He explains “on a micro level: as the COVID-19 pandemic hit the world economy, disposable income got less for many people. As a result, people’s first deduction in expenditure they made was for leisure. On a macro level: mostly sectors were unable to provide services because of the restrictions imposed by the COVID-19 pandemic.
“However, as the world economy comes out of the shackles of the virus, leisure is finally able to resume its business. However, the market isn’t performing the same ways it used to in the pre-pandemic times: new trends have emerged within the sector and while some might fade away with time, many are going to stay in the long run.
Here are few trends that have reshaped the leisure industry in 2021.
• Changes in consumer spending behaviour: Consumer spending behaviour changes over time. As the pandemic arrived, people’s spending behaviour changed globally. People have become more conscious of spending and the trust in savings rather than spending has increased. Additionally, consumer confidence has drastically fallen in the pandemic.
• Online channels are the boost: ‘Lockdown buying habits’' have hugely transformed the leisure industry. The world was progressing towards high-tech at a usual pace; however, the pandemic escalated the transformation. The better the online presence a business has, the more growth prospects it gets in the present world.
• A new spectacle for physical stores: Businesses in the leisure industry that are running in a physical store need to change their spectacle for the store. For a physical store to succeed in the present world, businesses need to merge the physical and the digital realm. Additionally, better use of AI for the store will tap more traction.
• Elimination of middle person: In the pandemic, it has been observed that the brands that connect with their customers directly without any middle person have done substantially better than the latter ones. Direct customer contact is helping brands to increase sales digitally, and the customers feel more confident.
• Environmental, Social and Governance (ESG) credentials: ESG credentials play a crucial role in 2021. Brands with more nuanced sustainable propositions are in demand in the market. With rising awareness and consciousness for the environment, sustainable production and consumption has become a key factor for consumers.
• Locally based supply chains: As international supply chains got disrupted in the COVID-19 pandemic. Tourist companies started relying more on domestic tourists, and vice versa. Thus, the companies inclined more towards locally based supply chains.
New paradigms are settling across the leisure industry. Businesses that can identify and adapt the changes will be able to secure new customers. Conclusively, the above stated trends have largely influenced the leisure industry.
It is yet to be seen which trends are temporary and which are going to stay in the long run.
Source: Kunal Sawhney, Kalkine Media.
About the author
Kunal Sawhney
Chief Executive, Kalkine Group
An entrepreneur with revolutionary ideas, Kunal Sawhney is a financial professional with wealth of knowledge in equities who aims to transform the delivery of equity research through tech-driven digital platforms
With his knowledge, skillset, and overarching vision, Sawhney established Kalkine (a business that is based on Digitally Powered Architecture and Extensive Data Science led Premium Research) that has become one of the fastest growing equity market research firms across Australia in 2014; and subsequently, in other emerging and developed markets.
Sawhney’s entrepreneurial and commercial skills backed by the passion to establish a tech-empowered research platform, helped in building Kalkine’s global presence across diverse geographies - Australia, New Zealand, Canada, and the United Kingdom. Further, the plans for the US launch in 2021, have set the premise for attaining an all-encompassing client reach for Kalkine’s Subscription and Media Operations.
With a Master of Business Administration degree from University of Technology, Sydney; Sawhney’s business acumen has enabled his brainchild, Kalkine, help clients navigate through equity related matters in a proficient and seamless manner.
Sawhney is featured regularly on CNBC, Sky Business, Biz News, Daily Mail, Yahoo Finance, KCBS Radio (Audacy), Bloomberg, Sydney Morning Herald, Global Banking and Financial Review and many more.
Click here to visit the Kalkine website.
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