Save
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact.

The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact.

McKinsey & Company has identified four distinct consumer segments as emerging from the COVID-19 crisis.
That same research revealed price consciousness as being on the rise in Australia, with six in 10 Australians reporting being very or extremely concerned about the economy since early April.
While McKinsey & Company did find each consumer segment to be very distinct, the organisation’s leader of consumer packaged goods and retail practices Australia and New Zealand, Jenny Child, said there has been “a strong intent to pull back spending across almost all segments of consumers”.
“The cautious consumer is not a passing phenomenon, it’s here to stay,” she conceded.
Here are the four different types of consumers in a COVID-19-impacted world, according to McKinsey & Company:
- Making ends meet
This segment was struggling prior to the pandemic and continue to struggle.
- Optimistic but cautious
This group is worried about the health impacts of coronavirus, as well as the economic impacts. In saying this, this group is a more financially secure sector of the population.
- Stable and consistent
McKinsey & Company outlined that this group is the highest income segment. These consumers have experienced a small amount of financial impact but have been able to hold onto a “relatively stable” mindset throughout without too much change to their spending behaviours.
- Income in jeopardy
This segment consists of individuals and families who have already seen a significant change to their household income as a result of COVID-19. They also have a fear it will worsen further.
Despite the recent announcement that JobKeeper and JobSeeker stimulus methods will continue until at least March 2021, albeit at a lower rate, McKinsey & Company said it “will not cushion the full impact of COVID-19 on household incomes”.
“Households are tightening spending in anticipation,” it was reported, meaning that across all four segments, there has been an emergence of “longstanding recession behaviours”.
According to Ms Child, this has meant frugality, reuse and shifts to discounted shopping methods and bargain hunting are very much coming to the fore.
About the author

About the author


Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more

Savings account
What might Virgin’s administration mean for your Velocity points?
Virgin’s administration isn’t likely to spell the end of the airline’s Velocity program, so it’s still worth holding on to those points balances, a credit card expert has advised. ...Read more

Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more

Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more

Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more

Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more

Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more

Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more

Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more

Savings account
What might Virgin’s administration mean for your Velocity points?
Virgin’s administration isn’t likely to spell the end of the airline’s Velocity program, so it’s still worth holding on to those points balances, a credit card expert has advised. ...Read more