McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis

McKinsey & Company 1
Five emerging consumer themes in October 2021
1 2 5
4
3
Slow recovery
expected
Only 14% of consumers
in Japan expect a
rebound within two to
three months
Spending intent has
increased since
February 2021; intent to
splurge remains flat,
with majorities planning
to spend the same
Omnichannel is
ascendant
Most consumers
research/purchase
product categories in an
omnichannel way
Few consumers report
recent use of digital
services or alternatives
to in-store shopping;
those consumers are
using them more often
Subdued holiday
planning
More than half of
consumers report
neutral sentiment for
the holidays and 70%
plan to spend about the
same amount as last
year.
A modified return
to out-of-home
Out-of-home activities,
especially working
outside the home and
shopping for
necessities, rebound
modestly with modified
behavior
Home-related
investments remain
small and flat since
February 2021
Consumers divided
on loyalty
Over half (54%) of
consumers facing a
stockout report either
not making a purchase
or waiting for stock at
the same retailer
One in ten say they’ve
tried a new retailer, and
only 9% a new brand in
the past three months

Confidence in own country’s economic recovery after COVID-191
% of respondents
15 14 13 17 17 22
22 32
41
49 52
50 50
46
74
67
44
37 35 33 33 32
5
India China
1
21
65
14
Mixed: The economy will be
impacted for 6–12 months or
longer and will stagnate or show
slow growth thereafter
Pessimistic: COVID-19 will
have lasting impact on the
economy and show regression
or fall into lengthy recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or
stronger than before COVID-19
Japan’s consumers continue to be the least optimistic among
researched countries
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Bars may not sum to
100% due to rounding.
Slow recovery expected| Current as of October 2021
Germany
10/15–22
UK
10/15–22
US
10/9–15
India
10/18–25
China
10/17–22
Italy
10/15–22
Spain
10/15–22
France
10/15–22
Change in optimistic vs
Feb survey, percentage points
2 3 6 3 13 18 3
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
16 14
Japan
10/18–10/20

41
46
42
35 31 33
21 21
53
49 53
60
62 60
67 65
6 5 5 5 7 7 12 14
June 2020
Apr 20202
Mar 20202 May 2020 Sept 2020 Nov 2020 Oct 2021
Feb 2021
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Figures may not sum to
100% because of rounding.
2. Average of weekly pulse surveys shown for Mar–April 2020.
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before
COVID-19
Mixed: The economy will
be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression or fall
into lengthy recession
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014; 11/9–11/15/2020, n = 1,039; 9/22–9/28/2020, n = 1,034; 6/19–6/22/2020,
n = 664; 5/22–5/24/2020, n = 600; 4/17–4/19/2020, n = 600; 4/10–4/12/2020, n = 600;4/3–4/5/2020, n = 600;3/28–3/29/2020, n = 600, sampled and weighted to match Japan general population 18+ years
Confidence in Japan’s economic recovery has held steady since
February 2021
Confidence in own country’s economic recovery after COVID-19,1 % of respondents

Lower-income consumers are less optimistic than higher-income
groups
5
8
9
8
16
9 8
17
18
10
0
5
25
20
45
15
30
35
40
50
55
Feb 2021
14
Sept 2020
7
5
Nov 2020 Oct 2021
Low (<4M yen) Medium (4M–8M yen) High (>8M yen)
35 36
24
26
28
17
27
31
16
18
20
0
30
5
10
25
15
35
40
50
45
55
Oct 2021
20
Sept 2020
31
Nov 2020 Feb 2021
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.”
Optimism by income Pessimism by income
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014; 11/9–11/15/2020, n = 1,039; 9/22–9/28/2020, n = 1,034, sampled and
weighted to match Japan general population 18+ years
Confidence in own country’s economic recovery after
COVID-19 by income level,1 % of respondents

Pessimism about Japanese economic recovery varies by generation
but is not affected by vaccination status
Confidence in own country’s economic recovery after COVID-191
% of respondents
20 24
66
63
14 13
Vaccinated Unvaccinated
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.”
2. Baby boomers includes silent generation.
16
26 26
13
70
59 63
72
14 15 11 15
Gen Z Millennials Gen X Baby boomers2
Optimistic Mixed Pessimistic
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014, sampled and weighted to match Japan general population 18+ years
By generation By vaccination status

21
14
19 19
1
1
2 3
78
85
79 78
Baby boomers3
Gen Z Gen X
Millennials
16
29
2
71
82
Unvaccinated
Vaccinated
18
2
80
Overall
1. Q: When do you expect your routines will return to normal? Figures may not sum to 100% because of rounding.
2. Q: Which best describes your vaccination status?
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey 10/18–10/20/2021, n=1,014; sampled and weighted to match Japan general population 18+ years
In or after 2022 In 2021 Not affected/already returned
By generation By vaccination status2
Expectations are
similar across the
generations,
although millennials
are somewhat more
likely to expect a
long wait for normal
routines
About 30% of
unvaccinated
consumers have
been unaffected or
are back to engaging
in normal routines
Overall, 80 percent of consumers say normal routines will return in
2022 or later
Expectations on routines returning to normal,1 % of respondents

Perceived impact of COVID-19 on consumers’ income, spending,
and savings has been limited and improved slightly in October
26 26 24
72 71 73
2 3
Past 2 weeks Past 2 weeks
3
Past 2 weeks
65
Past 2 weeks
27
8
Past 2 weeks
65
24
11 9
68
23
Past 2 weeks
70
13
19
18
68
Past 2 weeks Past 2 weeks
19
63
12
18
Past 2 weeks
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014; 11/9–11/15/2020, n = 1,039, sampled and weighted to match Japan
general population 18+ years
1. Q: How has the coronavirus (COVID-19) crisis affected the following over the past 2 weeks? Figures may not sum to 100% because of rounding.
Household income Household spending Household savings
Nov 2020 Feb 2021 Oct 2021
Nov 2020 Feb 2021 Oct 2021
Nov 2020 Feb 2021 Oct 2021
COVID-19 impact on household finances,1 % of respondents Reduce slightly/a lot Increase slightly/a lot
About the same

Almost 40 percent of consumers expect their finances will return to
normal in 2022 or later
56 55 54
62
42 43 44
36
Gen Z Gen X
2
Baby boomers3
2
Millennials
2 2
57 59
41 40
2
Vaccinated
1
Unvaccinated
In 2021
In or after 2022 Not affected/already returned
57
41
2
Overall
1. Q: When do you expect your personal/household finances will return to normal? Figures may not sum to 100% because of rounding.
2. Q: Which best describes your vaccination status?
By generation By vaccination status2
Baby boomers are
the most positive
about when their
finances will return
to normal
Expectations for
finances returning
to normal are
unrelated to
vaccination status
Expectations on personal/household finances
returning to normal,1 % of respondents

Intent to splurge is greatest among higher-income Gen Z
consumers; intent for high-income Gen X has dropped 13 points
1. Q: With regard to products and services you will spend money on, do you plan to splurge/treat yourself in 2021? For example, are there categories of products or services you have spent less on over the last year and half which you feel you
will spend more on now?
2. Baby Boomers includes silent generation.
3. Small sample size (n < 25)
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014, sampled and weighted to match Japan general population 18+ years
Feb 2021
73
72
28 27
Oct 2021
Plan on
splurging
Do not plan
on splurging
Millennials
Gen X
Baby boomers2
44%
4
26%3
−20
Gen Z 52%
−6
40%
11
32%
−4
34%
−1
16%
3
19%
2
28%
1
26%
9
27%
−3
20%
−13
Generation
2
Respondents who plan/do not plan to
splurge/treat themselves in 20211
% of respondents
Low
(<4M yen/year)
Middle
(4M–8M yen/year)
High
(>8M yen/year)
>70%
<30% 50–70%
30–50% p.p. change from Feb 2021
XX
Respondents who plan to splurge, by household income, %
Change < −10 pp
.

Tourism is the biggest category driven by baby boomers; younger
generations want to splurge on fashion and cosmetics
Categories where consumers intend to treat themselves1
% of all respondents with intent to splurge
1. Q: You mentioned that you plan to splurge/treat yourself in next 6 months. Which categories do you intend to treat yourself to? Please select all that apply.
43
34
32
22
15
15
11
10
9
7
5
5
4
Personal services
Travel, lodging, and vacation
Electronics
Apparel, shoes, accessories
Items for your home
Restaurants, dining out, bars
Out-of-home entertainment
Makeup and skin care
Sports apparel and equipment
Outdoor living
Fitness, sports, and outdoors
Household essentials
Pets
Millennials Gen X
Gen Z
Baby
boomers2
24 37 45 60
49 42 28 24
19 35 25 43
30 34 15 9
14 15 19 12
16 13 15 16
11 15 9 9
8 16 8 7
11 12 9 4
By generation
5 12 5 3
5 9 3 3
11 8 1 1
8 8
Change from
Feb 2021,
percentage points
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014, sampled and weighted to match Japan general population 18+ years
Between −3 and 3
< −3 >3
−6
−4
−7
N/A
9
−1
−7
N/A
N/A
N/A
−3
−2
N/A
Categories
Difference from all respondents,
percentage points

Though still negative, net spending intent has increased for fashion
and self-care since February 2021
Net intent >1
Net intent −15 to 0
Net intent: < −15
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey. 10/18–10/20/2021, n = 1,014; 2/24–2/27/2021, n = 1,014; sampled and weighted to match Japan general population 18+ years
12
12
13
19
31
15
19
34
23
11
7
11
14
12
6
8
16
11
8
15
7
12
7
7
11
6
Groceries
Quick-service restaurant
Restaurant
Alcohol
Tobacco products
Toys and baby supplies
10
4
Food takeout and delivery
3
Footwear
Apparel
2
Jewelry
4
Accessories
2
Household supplies
4
4
Personal-care products
Skin care and makeup
5
Home and furniture
10
Kitchen and dining
Sports and outdoors
Home improvement, garden
Decrease Stay the same Increase
6
9
11
25
6
16
12
16
12
15
55
32
52
33
35
6
23
6
7
16
6
12
16
8
16
16
18
20
16
12
Travel by car
Consumer electronics
Books, magazines, newspapers
Vehicles
Pet food and supplies 5
5
4
1
Vitamins and OTC medicine
Entertainment at home
Out-of-home entertainment
Pet-care services
Fitness and wellness
Personal-care services
Gasoline
10
Short-term home rentals
Cruises3
Adventures and tours
10
International flights
Hotel/resort stays
Domestic flights
Net
intent2
22
-3
-4
-9
0
-4
-8
0
4
1
-37
-12
-42
-17
1
-2
1. Q: Over the next 2–3 months, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3. Small sample size (n < 25) in Oct 2021 survey.
4. Small sample size (n < 25) in Feb 2021 survey.
Expected spending per category over the next 2–3 months vs usual1
% of respondents who bought these categories at least once since 2019
-3
-3
-10
0
+13
+27
+10
+14
+13
+13
+9
+3
0
+8
+3
+12
-6
+4
Change since
Feb 2021
percentage points
Change since
Feb 2021
percentage points
-1 -2
-1
+3
0
+6
+24
+17
+13
+13
+8
+7
+374
+8
+134
+45
+29
+37
-23 +32
Net
intent2
-32
6
1
5
-6
-4
4
-2
-11
-16
-12
-12
-19
0
0
-4
-1
0

0
−40
10
−50
−30
−10
−20
20
Mar 2020 Apr 2020 May 2020 June 2020 Sept 2020 Nov 2020 Feb 2021 Oct 2021
Expected spending per category over the next 2–3 months vs usual1
Net intent2
n = 664; 5/22–5/24/2020, n = 600; 4/17–4/19/2020, n = 600; 4/10–4/12/2020, n = 600;4/3–4/5/2020, n = 600;3/28–3/29/2020, n = 600, sampled and weighted to match Japan general population 18+ years
Increased spend intent expected across most categories over next
several months
Groceries
Household supplies
Fitness and wellness
Apparel
1. Q: Over the next 2–3 months, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2. Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.

1. Q: Which best described how you have researched the following categories over the last 3 months?
2. Q: Which best describes how you have purchased the following categories over the last 3 months?
24
2
Meal at quick-service restaurant
51
58
Alcoholic beverages
12
Books, magazines, and newspapers
2
44
Over-the-counter medicine
54
Food takeout/delivery
1
Household supplies
44 3
12
53
Tobacco products and smoking supplies
58
59
4
39
40
Groceries
59
4
57
61
39
61
Footwear
Meal at restaurant
13
4
38
Home improvement, gardening supplies
37
23
31
Kitchen and dining
3
61
36
18
Pet food and supplies 27
51
61
27
Apparel
66
15
27
61
26
47
9
10
18
59
68
23
Home decoration and furniture
19
59
Accessories
16
62
22
Sports and outdoors equipment, supplies
16
63
21
22
In store Omnichannel Online
In each product category, about 50 to 60 percent of consumers use
omnichannel to search for and purchase products
Omnichannel is ascendant | Current as of October 2021
Product searches1 and purchases2 by channel
% of respondents who purchased and searched these categories in the last 3 months
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014, sampled and weighted to match the Japan’s general population 18+ years

In nine of 16 categories, more than one in five consumers, mainly
younger generations, say they were influenced by social media
Omnichannel is ascendant| Current as of October 2021
1. Q: Think about the purchases you have made in the following categories over the past 3 months. Were you influenced toward a certain brand by a post on social media in the following categories?
3. Small sample size (n < 25).
28
28
25
24
24
23
22
22
21
19
18
16
16
15
Books, magazines, and newspapers
Toys and baby supplies
Home improvement and gardening supplies
Accessories
Meal at restaurant
Meal at quick-service restaurant
Sports and outdoors equipment, supplies
Food takeout/delivery
Apparel
Home decoration and furniture
Vitamins, supplements, and over-the-counter medicine
Alcoholic beverages
Millennials Gen X
Gen Z
Baby
boomers2
353 37 183 163
413 36 193 143
47 38 17 133
52 30 18 15
47 28 17 17
313 323 153 213
403 31 123 153
By generation
353 38 16 11
323 33 153 16
423 29 153 113
293 243 153 93
Between −3 and 3
< −3 >3
Categories
Categories where respondents were influenced by social media1
% of all respondents who purchased in these categories in the last 3 months
133
263
203
303
163
18
73
133
14
173
18
113
percentage points

44
59
3
52
62
25
58
31
6
7
61
35
40
7
40
0
66
3
31
56
2
38
53 44
6
8
39
36
54
7
48
32
42
10
61
58
39
61
0
3
0
52
3
49
11
36
73
71
21
39
17
Consumers having used alternatives to normal in-store shopping
report using them as often or more frequently in the last three months
Frequency of using/doing1
% shown among consumers who have participated in the activity in the last 3 months
Drive-thru line for a fast-food restaurant
Curbside pickup from a restaurant
Used a food delivery provider
Self-checkout or scan-and-go at a physical store
Buy online, pick up in store
Curbside delivery at a store
Purchased secondhand products online
Downloaded/used deal-finding plug-ins
Downloaded/used a new store/restaurant app
Purchased directly from social media
Used an app/website for same-day delivery
Used an app/website for delivery within 2 hours
Shopped at a store I had not shopped at before for groceries
Changed my primary grocery store
Cooked regularly for myself/my family
Personal care/grooming at home
Tried making something myself/DIY project
Using less Using more
Using same
14
5
12
35
10
5
12
3
10
4
3
3
7
6
38
14
5
Used or did in last 3 months
% of total respondents
1. Q: And have you used or done any of the following in the last 3 months? If yes, Q: Which best describes when you have done or used each of these items?

Few consumers indicate recent use of most digital services, but
consumers who have used them report more frequently usage
46
62
59
6 35
37
0 80
3
20
50
4
73
29 67
4
30
63
34
3
55
57
43
2
2
78
72
21
0
1
26
2
56
44
0
43
0
1
47
3
53
30
25
67
67
45
53
2
Frequency of participating1
% shown among consumers who have participated in the activity in the last 3 months
Wellness app2
Online personal training/fitness
Grocery delivery
Restaurant food delivery
Meal kit delivery
Online streaming
Video conferencing for professional use
Virtual hangouts and video chats for personal use
Telemedicine for physical health care2
Telemedicine for mental health care2
Playing online games
Watching online games
Remote learning for myself
Remote learning for my kids
Used social media
Used TikTok
2
2
10
14
3
25
14
5
1
4
3
2
8
4
43
5
Used or did in last 3 months
% of total respondents
Using less Using same Using more
1. Q: Have you used or done any of the following since the coronavirus (COVID-19) crisis started? If yes, Q: Which best describes when you have done or used each of these items?

When a product was unavailable, over 40 percent of consumers in
that situation did not buy anything
Divided loyalty | Current as of October 2021
1. Q: Over the last 3 months, have you wanted to buy something and not been able to purchase it because it was out of stock or otherwise not available?
2. Q: The most recent time this happened (when you wanted to buy something and it was not available), what did you do?
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 10/18–10/20/2021, n = 1,014; sampled and weighted to match Japan general population 18+ years
78
22
Could not purchase
at least 1 item
Able to purchase
all items
Oct 2021
Respondents who planned to purchase
something but could not, due to unavailability1
% of respondents
29
12
5
11
43
Bought the product
at a different retailer
Did not buy anything
Bought a different brand or similar
product at a different retailer
Bought a different product
at the same retailer
Waited until the product was
available at the same retailer
Consumer responses to stockouts2
% of respondents who could not make a planned purchase

27
11
9
8
7
7
Any new shopping behavior
Different retailer/store/website
Different brand
New shopping method2
New digital shopping method
Private label/store brand
Gen Z Millennials
49 37
16 17
24 13
22 12
11 9
19 14
By generation
All consumers
Between −3 and 3
< −3 >3
1. Q: Over the past 3 months, which of the following have you done? 73% replied “None of these.”
2. “New shopping method” includes curbside pickup and delivery apps.
Behaviors in past 3 months1
% of respondents
Less than one-third of Japanese consumers report having tried out
new shopping behaviors in the past three months
percentage points
Gen X Baby boomers3
20 19
7 10
5 5
7 3
5 4
4 2

Reason for trying a new brand since COVID-19 began1
% of respondents who tried a new brand since COVID-19 began
1. Q: You mentioned you tried a new/different brand than what you normally buy. What were the main reasons that drove this decision? Select up to 3 relevant reasons. “Brand” includes different brand, new
private label/store brand. Overarching reason based on % of individual respondents responding to at least 1 reason in the group.
Better prices/promotions
Cleaner/has better hygiene measures
Better shipping/delivery cost
Better value
Is natural / organic
Larger package sizes
20
Wanted to try a type of product I’ve never tried before
Better quality
Wanted to try a new brand I found
Wanted variety/a change from my normal routine
27
Wanted to treat myself
3
Shares my values
16
The company treats its employees well
Is more sustainable/better for the environment
Supporting local businesses
20
Is available where I’m shopping
31
Products are in stock
25
12
8
9
24
4
3
1
13
6
6
Purpose-driven
Convenience
Quality/organic
Personal choice
Availability
Health/hygiene
Novelty 38
Value 43
37
32
30
6
6
13
Baby
boomers2
Gen Z and
millennials Gen X
21 24
32
10 20
8
8 4
12
0 4
8
33 28
16
12 36
20
29 40
28
13 4
4
19 4
36
25 12
0
25 36
8
6 0
4
2 0
8
0 4
0
8 12
24
4 4
12
10 4
0
All consumers
Between −3 and 3
< −3 >3
For the 9 percent of respondents who tried a new brand, value and
novelty seem to be the key drivers
x Net % of respondents per category
percentage points

Modified return to out-of-home | Current as of October 2021
24
15
29
27
19
Jun 2020
Oct 2021
Feb 2021
Nov 2020
Sep 2020
Overall
23%
28%
Gen Z Millennials Gen X
19%
Baby boomers
34%
26% 25%
24%
Low
(<4M yen)
22%
High
(>8M yen)
Medium
(4M–8M yen)
28%
1. Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart shows those already participating in these activities.
2. Gen Z are people under 25 years old, millennials are 25–44 years old, Gen X are 45–54 years old, and baby boomers are 55 years old and above, including silent generation.
n = 664, sampled and weighted to match Japan general population 18+ years
By
generation2
By
vaccination
adoption
By income
34%
of Gen Z are doing out-
of-home activities
28%
of higher income
households are doing
out-of-home activities
28%
of people that are
unvaccinated are doing
out-of-home activities
Consumers engaging in ‘normal’ out-of-home activities,1 % of respondents
About one-fourth of consumers, including one-third of Gen Z
consumers, say they have returned to normal out-of-home activities

Out-of-home activities done in the past 2 weeks1
% shown for respondents who engaged in the activity at least once prior to COVID-19
1. Q: Did you leave your house for the following activities over the past 2 weeks?
Social
Personal
care
Entertain-
ment 53
15
10
11
18
35
48
20
21
Get together with family
Attend an indoor cultural event
Dine indoors at a restaurant or bar
Go out for family entertainment
Go to a hair or nail salon
Attend an outdoor event
Go to the gym or fitness studio
Visit a crowded outdoor public place
Get together with friends
86
93
71
46
28
56
28
10
49
13
44
Go to a shopping mall
Work outside my home
Shop for groceries/necessities
Shop for non-necessities
Travel by airplane
Use a ride-sharing service
Travel more than 2 hours by car
Use public transportation
Travel by train
Stay in a hotel
Rent a short-term home
Work
Shopping
Transport/
travel
≥50%
<50%
A high percentage of consumers now work outside of home; more
than half of consumers shop, eat out, and use public transportation

1. Q: With the rise of the Delta variant of COVID-19, how, if at all, has your out-of-home behavior changed?
20
18 14
28
29
29
49 52 55
Medium
(4M–8M yen)
Low
(<4M yen)
3 1 2
High
(>8M yen)
16
21
29
28
53 48
3
2
17
29
52
Engage less
Engage more
Overall
2
Engage with
adjusted behavior
Engage same as
before Delta
By income By vaccination status
Lower-income
consumers are the
likeliest income group
to indicate they
engage the same as
or more than before
Delta
Vaccinated consumers
are likelier than
unvaccinated to report
adjusting their
behavior
Adjustments to out-of-home behavior due to prevalence of Delta variant,1 % of respondents
About half of consumers reduced engagement in out-of-home
activities due to the Delta variant; 30 percent engage differently

1. Q: Which best describes how you are engaging in each of these activities? Possible answers: “Not doing this at all”; “Doing this in the same way as pre-COVID-19, but less often”; “Doing this in a modified way vs. pre-COVID-19”;
“Doing this just as much and in the same way as I did pre-COVID-19.”
Work
Shopping
Transport/
travel
Social
Personal
care
Entertain-
ment
65
30 70
Dine indoors at a restaurant or bar
35
Go out for family entertainment
34 66
Attend an indoor cultural event
57
43
Attend an outdoor event
70
49
Visit a crowded outdoor public place 68
32
51
Go to a hair or nail salon
36
30
64
Go to the gym or fitness studio
69
31
Get together with family
Get together with friends
64
47
81
Work outside my home
36
Shop for groceries/necessities
53
42
Shop for non-necessities
41
46
68
34
33
Go to a shopping mall
66
19
Rent a short-term home
54
Use public transportation
58
41
59
Use a ride-sharing service
Travel by airplane
57
43
Travel by train
63
37
Stay in a hotel
59
Travel more than 2 hours by car
Doing less, doing in a modified way
Doing as much as and in the same way as pre-COVID-19
Japanese consumers are likeliest to have modified out-of-home
behavior for work and fitness; social activities are priorities
Out-of-home activities engagement1
% of respondents engaging in these activities today

Main life events done in the last 12 months as a result of COVID,1 % of respondents
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey 10/18–10/20/2021, n=1,014; 2/24–2/27/2021, n = 1,014; sampled and weighted to match Japan general population 18+ years
Change >3 pp
10
4
2
3
2
2
2
2
1
2
1
Worked more from home
Got a new pet at home (eg, dog, cat)
Moved into a smaller home
Decided to change jobs
Renovated/remodeled my home
Started homeschooling children
Set up a specific work-from-home space
Set up a gym at home
Moved into a bigger home
Bought a property
Sold a property
Work/study
change
Oct 2021
Pet adoption
House move
Home
renovation
Investments/
divestments
Total2
Change from
Feb 2021,
percentage points
0
−1
0
0
0
1
0
0
−2
1
1
2
14
3
6
2
1. Q: Which of the following have you done in the last 12 months as a result of the COVID-19 crisis?
2. Total percentage of people who choose option(s) in the category.
Few consumers made major changes to their living environment
due to COVID-19

Over half of consumers are neutral toward the 2021 holiday
shopping season; Gen Z are more excited, millennials more anxious
Holiday Outlook | Current as of October 2021
23
37
30 29
48
47 58 65
29
16 12
6
Baby
boomers2
Gen Z Millennials Gen X
1. Q: Which best describes your general attitude toward the holiday shopping season? Selected from "Anxious," "Stressed," "Neutral," "Eager,“ "Excited," and "Other."
31
57
12
Stressed/
anxious
Overall
Excited/
eager
Neutral
Consumer attitudes toward the 2021 holiday shopping season1
% of respondents
By annual income By generation
33 28 31
55 60 55
12 12 14
Low
(<4M yen)
Medium
(4M–8M yen)
High
(>8M yen)

Majority of consumers plan to spend about the same as last year
across categories during 2021 holidays
15
Gifts (for
myself and
others)
20
65
Large
household
appliances
3
6
Personal
travel2
26
Out-of-
home eating
60
17
65
18
88
6
70
20
27
Redecorate my
home, put out
seasonal items
20
Family travel
4
70
1. Q: If you compare the upcoming holidays 2021 with the ones last year, how much do you plan to change your spending level in the following categories?
Will spend more Will spend about the same Will spend less
2021 holiday spending plans vs spending in 20201
% of respondents who spent on the category during the holidays in 2020
Almost 90% of consumers do not
intend to change their gif- buying
behavior for the holidays this year
Home-related purchases see the
largest share of consumers
reporting they will spend less

Half of consumers plan to browse in stores for the holiday season;
younger consumers over-index on using social media and websites
50
28
25
22
20
15
5
4
3
Browsing in stores
Browsing through holiday markets
Offline advertisements2
Social media
Retailer websites
Brand websites
Advertisements on TV or streaming media
Emails from relevant retailers
Browsing in pop-up stores
By generation
Gen Z
48
20
Millennials
51
25
Gen X
54
20
Baby
boomers3
46
8 7 2 1
7 3 5 5
26 12 15 16
19 17 25 40
17
46 38 21 15
4 5 5 1
24 30 23 16
Research channels
Between −3 and 3
< −3 >3
Difference from all respondents, percentage points
1. Q: Which channels are you planning to use to get new ideas and do research for your holiday shopping? Please select top 3.
2. Offline advertisements include catalogs, fliers, magazines, and newspaper advertisements.
Consumer research plans by channel for holiday 20211
% of all respondents

In all but the oldest generation, over half of consumers expect social
media to influence their purchase decisions
1. Q: How much influence do you expect social media to have on your holiday purchase decisions this season? Selected from "Significant influence," "Some influence," and "Will not influence."
2. Q: Which channels do you think will influence your holiday purchase decisions? Asked of respondents indicating social media will influence their 2021 holiday purchases.
Expected influence of social media on 2021 holiday
purchases,1 % of respondents
44
28
37
47
52
56
72
63
53
48
Baby boomers3
Gen Z
Overall
Millennials
Gen X
Will not influence Will influence
52 48
63 5 16 2 0
56
46 47 13 5 4 2
23
47 27 19 2 3 0
8
32 14 13 0 1 0
33
43 32 14 4 2 1
Respondents who expect social-media influence2
% of respondents
YouTube Instagram Twitter Facebook TikTok Pinterest Snapchat
Top 3 platforms by %

Three-quarters of Japanese consumers plan to avoid travel and
limit the size of social gatherings for the upcoming holiday
1. Q: What best describes what you expect to do for the holidays this year [2021]? Figures may not sum to 100% because of rounding.
2. Q: What best describes your holiday get togethers last year [2020]? Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey 10/18–10/20/2021, n = 1,014, sampled and weighted to match Japan general population 18+ years
4
9
11
76
Do not plan to travel and will limit getting
together to immediate family only
Will not travel but will have a family/friends
get-together outside my immediate family
Will travel to and attend a large get-
together with family and friends
Will travel to a limited family get-together
By annual income By generation
5 4 6
0 1 3 6 1
4 10 14 12 12 10
3 6
8 13 12 23 13 7
2 8
87 74 69 60 71 77
−5 85
Medium
(4M–8M
yen)
Low
(<4M yen)
High
(>8M yen) Millennials Gen X
Gen Z
Baby
boomers3
Change
from 2020,2
percentage
points
Holiday plans in 20211
% of respondents
< −3 Between −3 and 3 >3

Consumers across all generations expect fewer in-person holiday-
related events than before COVID-19
1. Q: About how many in-person holiday-related events do you attend in a typical year without COVID-19?
2. Q: Compared with the number of in-person events you attended pre-COVID-19, about how many in-person events do you expect to attend over the holidays this coming year [2021]?
2.2
0.6
0.5
Family gatherings
Parties with friends
Work-related gatherings
Event type
Between −1 and 1
< −1 >1
Millennials Gen X
Gen Z
Baby
boomers3
By generation
1.9 2.3 2.4 2.1
1.5 1.0 0.5 0.3
0.7 0.7 0.8 0.2
Difference in
number vs
pre-COVID-19
−1.2
−1.4
−1.2
Holiday-related events consumers attended1 or expect to attend2 in 2021
Average number of events

1. Q: Do you plan to shop for the holidays earlier or later in 2021 compared with last year’s holiday season [2020]? Possible answers: “significantly earlier”; “slightly
earlier”; “starting at about the same time”; “slightly later”; “significantly later”; “I am not planning to do any holiday season shopping.” 18% of Japanese consumers
indicated they do not plan to shop for the holidays. Figures may not sum to 100% because of rounding.
2. Income levels: low, <4 million yen; medium, 4 million–8 million yen; high, >8 million yen per year.
4. Q: What are the primary reasons you plan to shop earlier for the holidays in 2021?
5
78
17 16
Low
5
79
2
Medium
19
79
High
17
Overall
78
5
Earlier
Later
About the
same time
Overall By income2 By generation
9
Gen Z
82
20
5
Gen X
71
27
5
68
Millennials
16
2
83
13
Baby
boomers3
Roughly 80 percent of consumers report no plans to change the
start of their holiday shopping
Main reasons for consumers
to start shopping earlier4
% of respondents who plan to shop
earlier in 2021
27%
21%
18%
52%
Holiday shopping start vs last year1
% of respondents who plan to shop for the holidays this year
of Japanese consumers
are concerned about
availability
are concerned about
shipping lead time
want to do something
fun right now
are concerned about
unexpected challenges
due to COVID-19

Eighty percent of consumers indicate they will start holiday
shopping in December this year
4
14
80
2
In December
I already started
In November
In January
60%
25%
15%
75–100% of my shopping
1. Q: When do you plan to start your shopping for the seasonal holidays this year? Figures may not sum to 100% because of rounding.
2. Q: How much of your holiday season shopping have you done so far? Question asked of respondents who have indicated they already started. Small sample size (n < 25).
Timing of holiday shopping, 20211
% of respondents who plan to shop for the holidays this year
Status of holiday shopping, 20212
% of respondents having already started

Just 14 percent of consumers plan to shop at a different place than
last year for the holidays; safety is their top reason to change
6
5
5
Safety
More value for money
Check more things
off my list at once
44
21
14
10
8
6
Shop earlier
Any change of shopping behavior
Shop more online
Shop more in person
Shop at a different place
Shop more at local/independent stores
1. Q: Please select all the ways you anticipate your holiday shopping might be different from last year. Figures may not sum to 100% because of rounding.
Anticipated different holiday shopping behaviors1
% of respondents who said they would shop differently than last year
Reasons to change place to shop during holiday
season
% of respondents who said they will do holiday shopping this year

One-fifth of consumers plan to shop more online this year; intent is
greatest for younger and higher-income consumers
21
10
8
Shop more online
Shop more in person
Shop earlier
By income
Gen Z
Millen-
nials Gen X
Baby
boom-
ers2
Shopping behaviors
Between −3 and 3
< −3 >3
1. Q: Please select all the ways you anticipate your holiday shopping might be different compared to last year. Figures may not sum to 100% because of rounding.
Anticipated shopping behavior change for Holiday
20211, % of all respondents By generation
31 20
34 13
13 10 9 9
6 13 8 3
16 23 27
4 12 13
6 8 9
Medium
(4M–8M
yen)
Low
(<4M
yen)
High
(>8M
yen)

Consumers say value and convenience are the top two
considerations driving their decisions of where to shop
37
26
34
19
39
26
8
5
16
7
3
5
Companies treating its employees well
Convenience
Better prices/promotions
Better shipping/delivery costs
Easy to shop across store and online
Offers unique items
Ability to purchase most gifts from 1 place
Ability to see products in person
Better quality
Product availability
Cleaner/better hygiene measures
Supporting local businesses
By generation
45
32
23
33
34
7
2
5
20
5
10
Gen Z
38
38
20
34
24
9
6
6
7
4
3
21
Millennials
31
37
30
32
20
11
3
5
16
4
5
22
Gen X
37
41
27
36
25
8
2
4
13
5
6
17
Baby
boomers2
17
1. Q: Please tell us what your primary considerations will be when deciding where to shop. Please select up to 3.
2. Baby boomers includes traditional or silent generation.
Between −3 and 3
< −3 >3
Primary considerations when deciding where to shop1
% of respondents
Availability
Value
Convenience
Quality
Purpose-driven
Uniqueness
Health/hygiene
48
52
x Net % of respondents per category
36
39
16
9
5

McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis

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