Impact of COVID-19 on Consumer Behaviour

April 2020 Our Proprietary Panels

Japan (JP) China (CN) South Korea (KR) 2,200,000 3,204,500 640,000

Taiwan (TW) Hong Kong (HK) Singapore (SG) 120,000 52,000 80,000

Thailand (TH) Malaysia (MY) Indonesia (ID) 550,000 196,000 550,000

India (IN) Vietnam (VN) Philippines (PH) 650,000 300,000 315,000

• Markets: China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Taiwan, Survey Thailand, United States, Vietnam Methodology & Sample size: 1,000 respondents per market, 13,000 in total Notes • • Profile of respondents: 20+ y.o. respondents from Rakuten Insight proprietary panels, with good distribution on age, gender, region & occupation

• Survey timing April 2020 Sources of information

News on traditional forms of media, TV, radio Marked contrast between Japan & China when it comes to continues to be a highly trusted source of trusting experts & influencers on social media with trust information even in the digital age much higher in China & lower in Japan

Korea relatively low trust in many sources of While people spend more time watching TV news or information with the most highly trusted reading news websites, the time spent on following source being TV news (71%) influencers or celebrities on social media is less than usual

Consumers from around the world rely on These times of uncertainty & gravity appear to have led to information from TV news & government consumers to spend their time on more serious & reliable websites. A slight decrease can be observed in sources of information trusting the information on social media How much do you trust the following sources of information? International consumers rely on information from Government websites and TV news. A slight decrease can be observed in terms of trusting the information on social media. TV programs/talk Government Post by experts TV News Newspapers Radio News websites shows Website on social media

CN 96% CN 89% CN 88% CN 78% CN 92% CN 88% CN 74%

HK 79% HK 56% HK 77% HK 72% HK 71% HK 77% HK 61%

ID 84% ID 62% ID 83% ID 81% ID 81% ID 74% ID 57%

IN 87% IN 72% IN 91% IN 83% IN 83% IN 80% IN 66%

JP 77% JP 48% JP 74% JP 61% JP 72% JP 56% JP 35%

KR 71% KR 65% KR 57% KR 60% KR 62% KR 41% KR 52%

MY 88% MY 68% MY 81% MY 84% MY 82% MY 74% MY 46%

PH 90% PH 73% PH 88% PH 89% PH 87% PH 83% PH 66%

SG 90% SG 67% SG 87% SG 80% SG 85% SG 79% SG 44%

TH 92% TH 66% TH 77% TH 70% TH 83% TH 76% TH 62%

TW 73% TW 35% TW 67% TW 57% TW 82% TW 68% TW 61%

US 70% US 47% US 72% US 69% US 71% US 66% US 46%

VN 94% VN 87% VN 79% VN 81% VN 86% VN 71% VN 51%

13,000 Rakuten Insight Panelists Polled I trust them/I somewhat trust them Change in the amount of time spent watching/listening to different sources compared to last year While people spend more time watching TV news or reading news websites, the time spent on following influencers or celebrities on social media is less than usual.

Time spent increased/increased CN HK ID IN JP KR MY PH SG TH TW US VN somewhat

TV news 69% 50% 55% 66% 35% 50% 59% 62% 55% 60% 36% 39% 68%

Government websites 55% 28% 47% 46% 20% 27% 51% 57% 50% 47% 33% 34% 52%

News websites 66% 47% 53% 54% 29% 42% 56% 58% 53% 58% 37% 35% 53%

Time spent decreased/decreased CN HK ID IN JP KR MY PH SG TH TW US VN somewhat Posts or reposts by influencers or celebrities on social media 24% 20% 31% 27% 18% 31% 30% 32% 30% 20% 27% 24% 26% 13,000 Rakuten Insight Panelists Polled Consumer Behaviour

Increase in online shopping across all markets In India, consumers are tending towards supporting their but especially in China & India, indicating huge local communities by shopping more frequently at local potential for online retailers in those markets stores, mom and pop stores

As might be expected, lower emphasis on spending on Decrease in visits to department stores / luxury items especially in China & Hong Kong as shopping malls indicating that consumers are consumers avoid excessive spending in uncertain seeking to avoid potentially crowded places economic conditions

More emphasis placed on core product attributes such as Consumers everywhere increase frequency of quality, durability & price when choosing products to supermarket shopping to ensure their homes purchase. More developed markets like Japan, Korea & US are well stocked expecting less impact in terms of these hygiene factors Change in shopping frequency at Online Shopping Sites

Net 33% 52% 34% 50% 40% 18% 32% 39% 41% 33% increase 44% 58% 40%

17% 23% 24% 21% 24% 29% 26% 28% 28% 27% 34% 45% 44%

47% 32% 44% 45% 44% 37% 40% 47% 30% 43% 45%

34% 41% 23% 18% 24% 19% 19% 22% 18% 17% 19% 16% 17% 15% 14% 14% 8% 7% 9% 8% 8% 6% 10% 10% 8% 6% 6% 6% 4% 6% 7% 8% 6% 3% 1% 4% 5% 3% 3% 2% 5% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Department Stores/Shopping Malls

Net -47% -54% -21% -51% -53% -7% -22% -39% -17% -43% increase -16% 28% -34%

2% 2% 4% 4% 7% 10% 10% 15% 15% 16% 13% 15% 16% 16% 23% 19% 29% 23% 17% 18% 23% 22% 28% 31% 39% 38% 39% 34% 43% 39% 34% 36% 28% 45% 32%

33% 41% 25% 27% 34% 32% 25% 26% 27% 33% 32% 31% 24% 20% 17% 18% 14% 10% 10% 9% 11% 3% 2% 1% 2% 2% 1% 3% 2% 2% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Supermarkets

Net 25% -10% -4% -1% 43% 46% 0% 31% 22% -12% increase 34% 26% 16%

7% 8% 10% 12% 17% 17% 17% 13% 16% 14% 26% 24% 31%

37% 41% 31% 32% 51% 36% 43% 52% 45% 55% 38% 41% 42%

27% 36% 39% 34% 31% 29% 30% 28% 26% 26% 21% 21% 21% 22% 16% 19% 15% 15% 12% 6% 11% 12% 10% 8% 6% 8% 3% 2% 1% 2% 0% 0% 1% 1% 1% 1% 1% 3% 2% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Local stores, mom and pop stores

Net -49% -54% -40% -23% -48% -5% -16% -35% -14% 6% increase -2% 16% -16%

1% 3% 3% 4% 8% 8% 9% 8% 7% 12% 13% 13% 13% 17% 21% 21% 23% 19% 23% 28% 33% 31% 32% 27% 39% 35% 35% 44% 38% 29% 48% 44% 24% 40% 32% 38% 34% 37% 34% 29% 18%

30% 29% 18% 35% 24% 19% 24% 15% 16% 11% 22% 12% 13% 11% 7% 8% 6% 5% 6% 4% 5% 2% 2% 6% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year 13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Drugstores

Net 20% 3% 7% -34% 9% -7% 39% -28% -14% 5% increase -3% 9% -19%

4% 5% 7% 8% 11% 11% 9% 12% 12% 15% 14% 17% 22% 24% 26% 27% 32% 39% 33% 36% 44% 38% 47% 36% 36%

47% 40% 44% 36% 31% 38% 33% 30% 32% 33% 38% 30% 31% 22% 23% 18% 15% 21% 15% 14% 14% 11% 7% 12% 14% 13% 11% 10% 7% 9% 8% 6% 5% 3% 5% 4% 1% 3% 2% 2% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Convenience Stores

Net -20% -10% -3% 0% -11% 15% 25% -22% -2% -8% increase 29% 18% -26%

7% 8% 6% 6% 6% 14% 11% 11% 10% 20% 19% 17% 26% 22% 30% 30% 37% 35% 35% 33% 39% 37% 37% 40% 45% 36% 34%

39% 43% 36% 33% 38% 37% 36% 38% 30% 29% 20% 24% 25%

18% 17% 15% 17% 16% 16% 14% 12% 13% 12% 10% 10% 18% 6% 6% 4% 3% 1% 4% 1% 1% 2% 2% 2% 4% JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Change in shopping frequency at Food Delivery Services

Net -21% 12% 24% 27% 44% 17% 34% 24% 27% 20% increase 30% 41% 11%

2% 11% 15% 16% 15% 14% 21% 20% 18% 22% 23% 27% 24% 36% 21% 22% 32% 38% 32% 38% 36% 34% 34% 13% 31% 36% 47% 15% 31% 14% 10% 22% 13% 21% 18% 28% 7% 21% 23% 19% 54% 16% 17% 11% 8% 9% 13% 40% 12% 31% 13% 11% 13% 7% 10% 19% 18% 19% 13% 7% 10% 8% 8% 11% 8%

JP KR CN TW HK PH TH SG MY ID VN IN US

Increased Increased somewhat Decreased somewhat Decreased I haven’t shopped at this type of location either this year or last year

13,000 Rakuten Insight Panelists Polled Compared to last year, has the emphasis you place on the following items when choosing products to purchase changed?

Quality Durability Functionality Discounts Sense of luxury

CN 81% CN 77% CN 75% CN 75% CN 25%

HK 61% HK 61% HK 60% HK 60% HK 32%

ID 80% ID 77% ID 77% ID 77% ID 15%

IN 78% IN 77% IN 74% IN 74% IN 11%

JP 35% JP 33% JP 34% JP 34% JP 12%

KR 55% KR 53% KR 54% KR 54% KR 15%

MY 73% MY 72% MY 70% MY 70% MY 18%

PH 73% PH 74% PH 73% PH 73% PH 15%

SG 56% SG 55% SG 52% SG 52% SG 16%

TH 82% TH 80% TH 81% TH 81% TH 14%

TW 58% TW 56% TW 55% TW 55% TW 10%

US 43% US 43% US 41% US 41% US 13%

VN 73% VN 69% VN 66% VN 66% VN 9%

more/somewhat more emphasis somewhat less/less emphasis Perceptions on Coronavirus impact

Uncertainty on the future and limitations on activities is leading to Consistently high concern about contracting the more stress, especially in Japan, Korea & the Philippines. In coronavirus across all markets, especially in SEA & Japan, culturally many want to feel secure about what will Japan happen to be able to act appropriately without causing offence

Japan, for many cultural reasons, struggle more with the transition to working from home (20% Consistently across our markets, people believe the compared to 80% in India or Malaysia). Taiwan corona virus will impact the way we will work in the future which appear to rely on wearing masks (72%) when could be a positive amongst the gloomy economic forecasts continuing to work at the office

The increase in working from home leads to more Most markets believe there will be more working from home in the time spent at home with the family across all future which will increase family bonds. Lower confidence in markets. Even in JP, where traditionally male Japan, Korea, Hong Kong & Taiwan that family bonds will improve workers do not spend so much time at home as a result of telecommuting Concern about contracting the novel coronavirus

Consistently high concern about contracting the coronavirus across all markets, especially in SEA & Japan

CN 30% 46% 22% 2%

HK 28% 48% 23% 1%

ID 47% 42% 10% 1% How do you feel about the risk of contracting the IN 55% 34% 8% 3% novel coronavirus? JP 59% 34% 6% 1% I am very worried KR 42% 47% 10% 1% I am somewhat worried MY 56% 37% 5% 2% I am not very worried PH 67% 27% 5% 1% I am not at all worried SG 34% 53% 11% 2%

TH 47% 46% 6% 1%

TW 45% 48% 6% 1%

US 36% 45% 15% 5%

VN 55% 35% 9% 1%

13,000 Rakuten Insight Panelists Polled Coronavirus countermeasures effect on Work Habits

Japan, for many cultural reasons, struggle more with the transition to working from home (20% compared to 80% in India or Malaysia). Taiwan appear to rely on wearing masks (71%) when continuing to work at the office

9,731 Rakuten Insight Panelists Polled Coronavirus countermeasures effect on Day to Day Life (1)

The increase in working from home leads to more time spent at home with the family across all markets. Even in JP, where traditionally male workers do not spend so much time at home during the week

13,000 Rakuten Insight Panelists Polled Coronavirus countermeasures effect on Day to Day Life (2)

Uncertainty on the future and limitations on activities is leading to more stress, especially in Japan, Korea & the Philippines. In Japan, culturally many want to feel secure about what will happen in order to act appropriately and not cause any offence

13,000 Rakuten Insight Panelists Polled How do you think the world will change as a result of the novel coronavirus? (1) People will become Environmental The public order more interested in The economy will pollution will The way people work get worse will worsen politics and the will change improve economy

CN 76% CN 61% CN 26% CN 82% CN 85%

HK 88% HK 58% HK 48% HK 64% HK 77%

ID 77% ID 86% ID 42% ID 46% ID 86%

IN 85% IN 80% IN 55% IN 54% IN 85%

JP 85% JP 26% JP 40% JP 59% JP 73%

KR 81% KR 24% KR 21% KR 59% KR 69%

MY 84% MY 79% MY 47% MY 52% MY 90%

PH 75% PH 78% PH 49% PH 61% PH 92%

SG 86% SG 68% SG 46% SG 53% SG 85%

TH 91% TH 72% TH 54% TH 72% TH 91%

TW 90% TW 67% TW 40% TW 64% TW 85%

US 73% US 60% US 48% US 49% US 78%

VN 67% VN 76% VN 34% VN 77% VN 89%

I strongly agree/I agree How do you think the world will change as a result of the novel coronavirus? (2)

More people will start People’s ties to More people will move telecommuting to VR technology will Family bonds will their communities out into the suburbs or work or taking online advance grow stronger will grow stronger the countryside classes

CN 90% CN 64% CN 78% CN 69% CN 38%

HK 77% HK 45% HK 51% HK 43% HK 24%

ID 87% ID 61% ID 86% ID 67% ID 48%

IN 80% IN 69% IN 84% IN 72% IN 51%

JP 77% JP 28% JP 38% JP 19% JP 23%

KR 78% KR 47% KR 47% KR 34% KR 24%

MY 85% MY 65% MY 81% MY 64% MY 35%

PH 88% PH 64% PH 92% PH 77% PH 48%

SG 85% SG 61% SG 67% SG 58% SG 31%

TH 91% TH 75% TH 76% TH 56% TH 64%

TW 87% TW 66% TW 47% TW 46% TW 39%

US 76% US 51% US 70% US 56% US 35%

VN 90% VN 70% VN 81% VN 63% VN 49%

13,000 Rakuten Insight Panelists Polled I strongly agree/I agree For more details, please reach out to: [email protected]