McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis

McKinsey & Company 1
Six emerging consumer themes in March 2022
1
Slow return to
normalcy
Only 6% of
consumers in Japan
expect a rebound
within two to three
months
Splurging intent has
decreased since
October 2021; travel
is the biggest
spending category
2
Digital is
ascendant
Social-media influence
is rising, especially
among Gen Z and
millennials; around
72% of consumers
engage with a social-
media platform
Intention to use digital
services post-COVID-
19 remains high
5
Divided loyalty
Over half (58%) of
consumers facing a
stockout either did
not purchase or
waited for the
retailer to restock
12% say they tried a
new retailer and
11% tried a new
brand in the past
three months
4
Modified return
to out-of-home
Work, shopping, and
personal-care
services rebounded
with modified
behavior
Travel, entertain-
ment, and social
activities have yet to
rebound; no behavior
change is expected
3
Low spending
intent
Net intent1 of spending
for all categories other
than tourism is negative
Decrease in income is
the primary reason for
decrease in spend for
most categories
6
Subdued
holiday outlook
Consumers expect
to spend less than
last year in all
categories during
this year’s Golden
Week
Responses
suggest that travel
is the most popular
spending category
1. 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.

Confidence in own country’s economic recovery after COVID-19,1 % of respondents
11 15 15
21
14
29 32
20 29
34
46
56
51 63
48 47
75
68
55
38
28 27
23 23 21
5 3
29
59
12
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
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.
Change in Optimistic vs.
last wave survey, percentage points
Source: McKinsey & Company COVID-19 Consumer Pulse Survey
India
3/11–24
+1
Oct 2021
China
3/11–20
-12
Oct 2021
US
3/1–25
-6
Oct 2021
Japan
3/16–26
-2
Oct 2021
Indonesia
3/16–26
+15
Sept 2020
Australia
3/16–25
-10
Nov 2020
Korea
3/19–26
+15
June 2020
Germany
3/22–28
-10
Oct 2021
France
3/23–28
-9
Oct 2021
UK
3/22–29
-12
Oct 2021
Japanese consumers are the least optimistic geographic segment
Slow return to normalcy | Current as of March 2022

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 March and 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, 3/16–3/26/2022, n = 1,018; 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
Pessimism has seen a marked increase, while optimism has
decreased slightly
Confidence in own country’s economic recovery after COVID-19,1 % of respondents
41 46 42
35 31 33
21 21
29
53
49 53
60
62 60
67 65
59
6 5 5 5 7 7 12 14 12
Nov 2020 Oct 2021
Feb 2021
Apr 20202
Mar 20202 May 2020 June 2020 Sept 2020 Mar 2022

Lower-income consumers are more pessimistic than higher-income
groups
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, 3/16–3/26/2022, n = 1,018; 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
5
8
10
8
15
9 8
17 18
13
35
0
30
5
20
10
15
25
40
45
50
55
Oct 2021
7
Sept 2020
5
Nov 2020 Feb 2021
14
Mar 2022
9
16
Low (<4M yen) Medium (4M–8M yen) High (>8M yen)
35 36
24
26
34
28
23
27
31
16
18
26
0
30
15
10
55
5
20
25
35
40
45
50
31
Sept 2020
17
Nov 2020 Oct 2021
20
Feb 2021 Mar 2022

The older the generation is, the less pessimistic respondents are
about Japanese economic recovery
Confidence in own country’s economic recovery after COVID-191
% of respondents
28
33
61 50
11 18
Unvaccinated
Vaccinated
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.
36 33 30
24
52 54 60
63
13 12 10 13
Gen Z Millennials Gen X Baby boomers2
Mixed
Optimistic Pessimistic
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 3/16–3/26/2022, n = 1,018, sampled and weighted to match Japan general population 18+ years
By generation By vaccination status

23 25 29
19
2
2
2
77 73 69
79
Gen Z Millennials Gen X Baby boomers3
0
21
40
2
2
77
59
Vaccinated Unvaccinated
23
2
75
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?
After June 2022
By June 2022
Not affected/already returned
By generation By vaccination status2
Expectations are
similar across the
generations,
although baby
boomers expect a
slower return to pre-
COVID-19 routine
~40% of
unvaccinated
consumers are
engaging in pre-
COVID-19 routines
Key findings
Overall, 75 percent of consumers expect pre-COVID-19 routines will
return after June 2022
Expectations on routines returning to pre-COVID-19,1 % of respondents

Perceived impact of COVID-19 on consumers’ income, spending,
and savings has been limited and improved slightly in March 2022
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 1 month/2 weeks? Figures may not sum to 100% because of rounding.
COVID-19 impact on household finances,1 % of respondents
26 26 24 20
72 71 73 77
2 3 3 3
Past 2 weeks Past 2 weeks
Past 2 weeks Past 2 weeks
27 24 23 23
65
65 68 71
8 11 9 5
Past 2 weeks Past 2 weeks Past 2 weeks Past 2 weeks
19 19 18
13
68
63
70
73
13
18
12 14
Past 2 weeks Past 2 weeks Past 2 weeks Past 2 weeks
Household income Household spending Household savings
Nov 2020 Feb 2021 Oct 2021
Reduce slightly/a lot Increase slightly/a lot
About the same
Mar 2022 Nov 2020 Feb 2021 Oct 2021 Mar 2022 Nov 2020 Feb 2021 Oct 2021 Mar 2022

Almost two-thirds of Japanese consumers say their finances have
returned to ‘normal’ already
61 65 63 64
7
32 32 35 34
Gen X
Gen Z Baby boomers3
Millennials
3
2 1
63
68
35
29
2
3
64
34
Overall
2
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
Expectations are
similar across
generations
Unvaccinated
respondents are
more positive than
the vaccinated
about when their
finances will return
to ‘normal’
Expectations on personal/household finances
returning to ‘normal,’1 % of respondents
After June 2022 Not affected/already returned
By June 2022

Intent to ‘splurge’ is greatest among higher-income Gen Z
consumers; intent for middle-income Gen Z has risen 17 points
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 3/16–3/26/2022, n = 1,018; 10/18–10/20/2021, n = 1,014, sampled and weighted to match Japan general population 18+ years
24
27
73
Do not plan
on splurging
Oct 2021
76
Plan on
splurging
Mar 2022
Millennials
Gen X
Baby boomers2
41%
−4
42%
17
Gen Z 55%
3
36%
−1
23%
−10
39%
7
15%
−1
23%
2
38%
10
20%
−8
17%
−6
19%
−2
Generation
Respondents who plan/do not plan to ‘splurge’
or ‘treat themselves’ in 20221
% of respondents
Low
(<$50K/year)
Middle
($50K–100K/year)
High
(>$100K/year)
>70%
<30% 50-70%
30-50% p.p. change from Oct 21
XX
Respondents who plan to splurge, by household income, %
1. Q: With regard to products and services you will spend money on, do you plan to splurge/treat yourself in 2022? For example, are there categories of products or services you have spent less on over the last year and a half which you feel
you will spend more on in the next 3 months?
2. Baby Boomers includes silent generation.

Tourism is the biggest category driven by baby
boomers; younger generations want to splurge on
fashion, entertainment, 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 3 months. Which categories do you intend to treat yourself to? Please select all that apply.
48
40
22
20
13
10
8
8
7
7
6
5
2
Electronics
Sports apparel and equipment
Items for your home
Travel, lodging, and vacation
Restaurants, dining out, bars
Apparel, shoes, accessories
Outdoor living
Out-of-home entertainment
Makeup and skin care products
Household essentials
Personal services
Fitness
Pets
Millennials Gen X
Gen Z
Baby
boomers2
43 46 32 62
43 39 40 40
31 30 17 15
25 22 19 18
24 14 15 7
7 12 11 9
12 13 10 3
10 8 6 8
7 12 6 5
Generational cut
8 11 7 2
5 14 4 2
5 9 5 3
0 5 2 1
Change from
Oct 2021,
percentage points
Between −3 and +3
< −3 > +3
5
8
−12
5
−9
−5
−3
−1
2
−3
−1
0
−2
Categories
Difference from all respondents,
percentage points

Social media has the strongest influence on Gen Z and millennials
purchasing across all categories
Digital is ascendant | Current as of March 2022
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?.
31
30
26
26
23
23
21
15
14
13
11
11
10
10
8
8
Vitamins, supplements, and over-the-counter medicine
Accessories
Apparel
Home decoration and furniture
Jewelry
Consumer electronics
Sports and outdoors equipment and supplies
Fitness and wellness services
Skin care and makeup
Groceries, food for home
Footwear
Kitchen and dining
Pet food and supplies
Personal-care products
Home improvement and garden supplies
Household supplies
Millennials Gen X
Gen Z
Baby
boomers2
44 28 0
39 44 11 33
37 36 18 19
52 30 21 8
59 32 24 7
35 41 26 15
58 33 13 10
54 23 12 6
47 22 9 5
Generational cut
26 21 11 9
30 18 7 8
23 22 8 6
36 15 6 5
Between −3 and +3
< −3 > +3
Categories
Categories where respondents were influenced by social media1
% of all respondents
25
32
56
23
19
13
14
7
8
5
4
6
5
percentage points

About 70 percent of consumers engage on a social-media platform
at least once a week
Frequency of engagement with social-media platforms1
% of all respondents whose purchases were influenced in last 6 months (across any product category)
1. Q: What social media platforms do you engage with, and if so, how frequently?
72
61
37 35
24
10 4 3 3 2
28
39
63 65
76
90
96 97 97 98
YouTube
Overall Pinterest
Twitter Instagram Facebook TikTok Reddit LinkedIn Snapchat
Never/less than weekly
Weekly or more

Intent to use when the COVID-19 crisis subsides2
% of new or increased users who intend to keep doing activity
User
growth
since
COVID-19
1
1. User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same, or using less) on Q: Which best
describes when you have done or used each of these items?
2. Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am
doing now”; “will increase this.” Number indicates percent who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
Consumers have made shifts in loyalty and shopping behavior
and intend to maintain changes in the next phase of COVID-19
76
10
52 92
86
54
18
94
68 70 88
72 74
22
8
12
60
14
78
16
90
80
0
84
56
20
58 82
2
4
6 Personal care/grooming at home
New store/restaurant app
Purchased
pre-owned product
Drive-thru lane
Buy online, pick up in store
Downloaded/used
deal-finding plug-ins
Paid more for same-day delivery
Grocery delivery
Meal kit delivery
Purchased directly from social media
Restaurant food delivery
Shopped at a new store
Changed my primary store
Paid more for 2-hour
or 1-hour delivery

Intent to use when the COVID-19 crisis subsides2
% of new or increased users who intend to keep doing activity
User
growth
since
COVID-19
1
1. User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same or using less) on Q: Which best
describes when you have done or used each of these items?
doing now”; “will increase this.” Number indicates respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
Intent to use digital services after the next phase of COVID-19
remains high for all service categories
81 96
51 62 92 93 95
50 64
52 97 99
98
61 85
63 100
65
3
70 74
0
67
66 77 79
68
6
69 84
71 72 73 75 82
76 78 80 83
9
86 94
87 88 89 90 91
Remote learning: myself
Watching e-sports
Social player/video app
Playing online games
Online fitness
Wellness app
Online streaming
Videoconferencing: professional
Remote learning: my children
Social media
Video chat: personal

5
32
6
56
3
26
4
60
29
2
3
12
11
0
9
43
4
12
2
36
46
24
45
69
3
27
13
13
3
78
42
50
2
39
17
6
5
40
58
8
30
15
4
55
44
46
5
29
50
40
0
20
21
76
3
0
8 14 64 14
6 6 46 42
10 15 35
4 12
2
54
70
55
15
22
A drive-thru line for a fast-food restaurant
Curbside pickup from a restaurant
Curbside delivery at a store
Buy online, pick up in store
Self-checkout or scan-and-go at a physical store
Downloaded/used deal-finding plug-ins
Downloaded/used a new store/restaurant app
21
Purchased secondhand products online
Used an app/website for delivery within 2 hours
Used an app/website for same-day delivery
Bought or sold a cryptocurrency
Bought or sold an NFT
Used an augmented-reality/virtual-reality headset
Changed my primary grocery store
Shopped at a store I had not shopped at before for groceries
Cooked regularly for myself/my family
Personal care/grooming at home
Tried making something myself/DIY project
Purchased directly from social media
Intent to
continue2
Consumers who use alternatives to in-store shopping report using
them as often or more frequently in the last three months
88
78
81
79
74
68
93
53
83
90
50
70
95
92
97
88
88
Which best describes when you have done or used each of these items?1
% of respondents who have used in the last 3 months
Just started using Using less Using more
Using same
96
89
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? Possible answers: “just started using since COVID-19 started”; “I have not used in
the last 3 months”; “I have used in the last 3 months at the same rate as before”; “I have used this more in the past 3 month than before”; “I have used this less in the past 3 months than before.”
2. Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) ) crisis subsides (ie, once there is herd immunity)? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I
am doing now”; “will increase this.” Number indicates % of respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.

Digital services are being used more frequently, and there is strong
intent to continue this behavior
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? Possible answers: “just started using since COVID-19
started”; “using more since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
doing now”; “will increase this.” Number indicates % of respondents who chose “will keep doing what I am doing now” and “will increase this” among new or increased users.
2
59
61
14
42
5
6
7
0 35
5
60
36
0
40
50
0
0
2
10
20
39
1
75
1
0
Online streaming
4
1
4
45
0
55
2 41
75
45
5
21
0
0
55
0
64
36
0
54
39
57
1
48
7
69
31
0
0
47
50
0
73
34
63
3
0
Online fitness
Wellness app
Meal-kit delivery
Restaurant delivery
Grocery delivery
3
Video chat: personal
Telemedicine: physical
Telemedicine: mental
Watching e-sports
Playing online games
Remote learning: myself
Remote learning: my children
Social player/video app
Social media
Videoconferencing: professional
67
100
61
78
81
88
76
62
89
96
51
81
100
90
80
97
Intent to
continue2
Which best describes when you have done or used each of these items?1
% of respondents who have used in the last three months
Just started using Using less Using same Using more

With increasing out-of-home activities, the in-store channel is
seeing a rise, followed closely by omnichannel
1. Q: Which best describes 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?
85
80
77
77
72
72
68
63
60
54
53
53
52
48
47
47
46
42
40
32
14
18
18
18
22
20
27
27
33
30
36
29
28
34
34
30
28
28
35
45
1
2
5
5
6
8
5
10
7
16
11
18
20
18
19
23
26
30
25
23
Tobacco products and smoking supplies
Books, magazines, newspapers
Food takeout/delivery
Home improvement and gardening supplies
Groceries/food for home
Household supplies
Alcoholic beverages
Pet care services (eg, walkers, grooming)
Kitchen and dining
Fitness and wellness services
Home decoration and furniture
Apparel
Accessories (eg, handbags, sunglasses)
Vitamins, supplements, and over-the-counter medicine
Sports and outdoors equipment and supplies
Toys and baby supplies
Research and purchase only in stores Omnichannel Research and purchase only online
Product searches1 and purchases2 by channel
% of respondents who purchased and searched in these categories in the last 3 months

Expected spending per category over the next 2–3 months vs usual1
Net intent2
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 3/16–3/26/2022, n = 1,018; 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, sampled and weighted to match Japan general population 18+ years
Spending intent is gradually recovering but expected to be lower
than usual across most categories over next several months
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.
Low spending intent | Current as of March 2022
0
−40
−50
20
−30
−20
−10
10
May
2020
Feb
2021
Mar
2020
Apr
2020
June
2020
Sept
2020
Nov
2020
Oct
2021
Mar
2022
Household supplies
Groceries
Fitness and wellness
Apparel

Consumers report negative net intent to spend for all categories
except tourism, which saw an increase since October 2021
Net intent >1
Net intent −15 to 0
Net intent: < −15
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 3/16–3/26/2022, n = 1,018; 10/18–10/20/2021, n = 1,014, sampled and weighted to
7
8
18
13
15
21
27
19
33
31
14
6
13
26
19
10
10
8
2
8
6
6
7
13
4
14
16
11
2
Alcohol
Quick-service restaurant
Footwear
Restaurant
Jewelry
Accessories
Toys and baby
Household supplies
Home and furniture
Sports and outdoors
Kitchen and dining
Home improvement, garden
5
3
Apparel
Groceries
12
11
5
Tobacco products
6
Food takeout and delivery
6
Increase
Decrease Stay the same
10
12
10
25
18
12
10
12
14
16
15
17
21
19
21
15
5
11
15
20
23
28
100
21
21
25
16
5
Vehicles
Vitamins and OTC medicine
Entertainment at home
Books/magazines/newspapers
Pet care services
3
Personal-care services
Gasoline
Hotel/resort stays
Short-term home rentals
13
5
3
Cruises 0
4
4
Adventures and tours
International flights
12
Domestic flights
Travel by car
Net
intent2
−1
−6
−20
−2
−8
3
−10
5
8
11
100
1
2
4
−4
−4
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.
3. Sample size < 30.
Expected spending per category over the next 2 weeks vs usual1
% of respondents
−5
−2
−14
−6
2
6
−10
−1
N/A3
−5
−2
−8
−3
−8
−6
1
2
−8
Change since
Oct 2021
Change since
Oct 2021
−2 −1
−5
−23
−3
−16
7
−8
7
−2
5
−2
N/A3
10
N/A3
13
N/A3
21
1 24
Net
intent2
−22
1
−1
−3
−12
−6
−10
−8
−9
−10
−22
−13
−24
−3
−8
−3
1
−8

Net intent to spend is expected to decrease across most categories,
but vaccinated respondents are more likely than others to spend
2. 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?
+4
percentage points
Likelihood of
vaccinated vs
unvaccinated people
to spend
For selected categories
Net intent1 for expected spending per category over the next 2–3 months vs usual2
Unlikely Cautious Interested Vaccinated
Groceries
Food takeout and delivery
Restaurant
Quick-service restaurant
Home decor
Home and garden
Personal-care items
International flights
4
−7
−12
−4
14
−20
−6
−31
−6
0
−3
−1
−12
−18
0
0
−11
0
21
0
−16
−22
−49
−13
−49
−14
−13
−17
19
0
1
−11
−9
−9
−14
3
−2
5
−3
2
Between −3 and +3
< −3 > +3

Increase in price and shift to premiumization are the major factors
across categories where spend has increased
4
6
5
4
16
7
11
35
8
3
9
12
15
22
20
16
5
15
10
33
25
33
37
18
19
20
40
18
25
27
16
33
14
7
13
37
16
15
19
30
32
32
31
62
36
43
46
46
35
33
57
79
48
33
47
32
56
40
33
40
26
11
27
15
32
18
49
29
14
Footwear
Pet care services
Groceries
Meal at restaurant
Meal at quick-serve rest
Household supplies
Vitamins & supplements
Vehicles
Apparel
Accessories
Home and decoration
0
Kitchen and dining
Increase in income
Larger quantity Increase in price
Premium brands/products
1. Q: Please indicate the main reason for planning to spend more on the following categories.
Reasons for increase in spend1
% of respondents who increased spend

Decrease in income and quantity are the major reasons across
categories where spend has decreased
43
21
27
28
32
40
40
40
39
34
26
42
26
41
30
62
38
49
31
33
26
26
12
27
26
24
28
26
45
23
34
9
25
20
27
28
11
18
18
15
19
20
14
12
11
16
7
8
7
24
10
8
12
9
14
28
29
30
18
13
18
12
19
24
19
24
30
25
30
10
23
14
1
19
2
11
3
1
4
3
3
5
Meal at quick-serve rest
Kitchen and dining
Groceries
1
0
Meal at restaurant
Household supplies
Pet care services
Vitamins & supplements
Apparel
Footwear
0
Accessories
0
Vehicles
Home and decoration
Switch to less expensive
Decrease in income
Spend more on other categories
Smaller quantity
Reduced price
1. Q: Please indicate the main reason for planning to spend less on the following categories.
Reasons for decrease in spend1
% of respondents who decreased spend

Modified return to out-of-home | Current as of March 2022
Overall
14
25
18
Millennials
Gen Z
20
18
Gen X Baby boomers3
12
Low
(<4M yen)
High
(>8M yen)
Medium
(4M–8M yen)
16
16 16
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 26 years old, millennials are 26–41 years old, Gen X are people 42–57 years old, baby boomers are 58 years old and above.
11/9–11/15/2020, n = 1,039; 9/22–9/28/2020, n = 1,034; 6/19–6/22/2020, n = 664, sampled and weighted to match Japan general population 18+ years
By
generation2
By
vaccination
adoption
By income
~20%
of Gen X are doing out-
of-home activities
~16%
of households across
income levels are doing
out-of-home activities
~25%
of people who are
unvaccinated are doing
out-of-home activities
Consumers engaging in out-of-home activities,1 % of respondents
About one-sixth of consumers say they have returned to out-of-
home activities
16
24
15
29
27
19
Nov 2020
Mar 2022
Sep 2020
Oct 2021
Feb 2021
Jun 2020

Social
Personal
care
Entertain-
ment 80
57
59
51
60
93
62
78
55
Get together with family
Attend an outdoor event
Dine indoors at a restaurant or bar
Go out for family entertainment
Attend an indoor cultural event
Go to the gym or fitness studio
Visit a crowded outdoor public place
Go to a hair or nail salon
Get together with friends
82
99
97
84
71
53
89
36
51
58
57
Use public transportation
Shop for non-necessities
Work outside my home
Use a ride-sharing service
Shop for groceries/necessities
Rent a short-term home
Go to a shopping mall
Travel more than 2 hours by car
Travel by airplane
Travel by train
Stay in a hotel
Work
Shopping
Transport/
travel
−4
26
6
38
−3
61
26
2
45
43
13
42
49
40
27
42
58
14
58
34
50% and above
Less than 50%
Change >10 pp
Change from
Oct 2021,
percentage points
Change from
Oct 2021,
percentage points
Consumers have increased most of their out-of-home activities
since last year
Out-of-home activities currently engaging1
% of respondents who reported doing this in the same or a modified way
1. Q: Which best describes how you are engaging in each of these activities? Possible answers: “Not doing this 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”

1. Q: With the rise of the omicron variant of COVID-19, how, if at all, has your out-of-home behavior changed?
20
16 14
27
30 28
51 52 54
Low
(<4M yen)
1
Medium
(4M–8M yen)
High
(>8M yen)
2 4
8
16
30
28
27
55
36
1
18
28
52
Engage less
Overall
Engage with
adjusted behavior
Engage more
Engage same as
before omicron
2
By income By vaccination status
Lower-income
consumers are the
likeliest income group
to indicate they
engage the same as
or more than before
omicron
A third of
unvaccinated
consumers have not
reduced or changed
their out-of-home
behavior, despite
omicron variant
Key findings
Adjustments to out-of-home behavior due to prevalence of omicron variant,1 % of respondents
About half of consumers reduced engagement in out-of-home
activities due to the omicron variant; 28 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
89
Visit a crowded outdoor public place
11
9
15
Dine indoors at a restaurant or bar
91
10
85
15
Go out for family entertainment
85
Attend an indoor cultural event
10
90
Attend an outdoor event
Go to the gym or fitness studio 53
90
84
48
52
16
Go to a hair or nail salon
47
Get together with family
Get together with friends
48
Work outside my home
52
84
45 55
Shop for groceries/necessities
Shop for non-necessities
82
21
79
Go to a shopping mall
20
80
0
58
18
42
82
Use public transportation
23
77
Use a ride-sharing service
19
81
Travel by airplane
18
Travel by train
16
Stay in a hotel
100
Rent a short-term home
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
Out-of-home activities engagement1
% of respondents having engaged in activity pre-COVID-19
Japanese consumers modified their out-of-home behavior for all
categories except working and grocery and non-essential shopping

Main life events done in the last 12 months as a result of COVID,1 % of respondents
Change >3 pp
6
4
1
3
1
1
2
1
1
1
1
Worked more from home
Renovated/remodeled my home
Got a new pet at home (eg, dog, cat)
Set up a specific work-from-home space
Decided to change jobs
Started homeschooling children
Set up a gym at home
Moved into a bigger home
Moved into a smaller home
Bought a property
Sold a property
Work/study
change
Mar 2022
Pet adoption
House move
Home
renovation
Investments/
divestments
Total,2
%
Change from
Oct 2021,
percentage points
-1
-1
0
0
0
-1
0
-1
-4
-3
2
2
10
2
4
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.
Fewer Japanese consumers are investing in their home
environment due to COVID-19 than in October 2021

Milestones for the Japan population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
10
33
15
42
Government
lifts restrictions
COVID-19 no
longer spreading
Vaccination
coverage
Government lifts
restrictions and
other requirements
84%
of people are not
currently engaging
in ‘normal’ out-of-
home activities
Vaccination coverage
Government lifts restrictions and…
1. Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already
participating in these activities and those who do not deem any of these items important. Figures may not sum to 100% because of rounding.
13%
Medical authorities deem safe
9%
Stores, restaurants, and other
indoor places start taking safety
measures
12%
I see other people returning
11%
Vaccine is widely distributed
3%
I have been vaccinated
1%
Family member(s) vaccinated
Cautious consumers cite spread of COVID-19 and
government restrictions as primary reasons for
not yet engaging in out-of-home activities

26
12
11
10
7
5
New digital shopping method
Different retailer/store/website
Any new shopping behavior
Different brand
Private label/store brand
New shopping method3
Divided loyalty | Current as of March 2022
Source: McKinsey & Company COVID-19 Japan Consumer Pulse Survey, 3/16–3/26/2022, n = 1,018; 10/18–10/20/2021, n = 1,014, sampled and weighted to
83 −9
96 13
90 2
84 −6
High
(>8M yen/year)
Gen Z Millennials
33
35 37
16
88 −2 11 16
17
17 16
10
8 17
12
15 11
8
7 12
Income cut
Generational cut
All consumers
% of
respondents
Change from Oct
2021, percentage
points
Intent to continue behavior2
Between −3 and +3
< −3 > +3
1. Q: Over the past 3 months, which of the following have you done? 74% replied “None of these.”
2. Q: Which best describes whether or not you plan to continue with these shopping changes? Possible answers: “will go back to what I did before 3 months ago”; ”will keep doing both this and what I did before 3 months ago”; ”will keep doing
this and NOT go back to what I did before 3 months ago.” Intent to continue includes respondents who selected “will keep doing both this and what I did before 3 months ago” and “will keep doing this and NOT go back to what I did before 3
months ago.”
3. “New shopping method” includes curbside pickup and delivery apps.
Behaviors since COVID-19 started1
% of respondents
Changes in consumer behavior have been more extensive among
younger and higher-income consumers
percentage points

Consumers facing a stockout of a planned purchase are most likely
to not buy anything, followed by buying at different retailer
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?
76
24
Could not purchase
at least 1 item
Able to purchase
all items
Mar 2022
Respondents who planned to purchase
something but could not, due to unavailability1
% of respondents
24
9
10
14
44
Bought the product
at different retailer
Bought a different product
at the same retailer
Bought a different brand or similar
product at a different retailer
Waited until product was available
at the same retailer
Did not buy anything
All consumers who could not make a planned
purchase2
% of respondents

Reason for trying a new brand since COVID-19 began1
% of respondents selecting reason in top 3
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.
Supporting local businesses
Better value
Is available where I’m shopping (ie, in-store or online)
Larger package sizes
Products are in stock
Better prices, promotions
21
More sustainable, better for the environment
Better shipping, delivery cost
Shares my values
6
The company treats its employees well
3
Cleaner, safer
37
4
2
5
3
3
3
7
19
Using recyclable packing materials
Wanted to try a new brand I found
Better quality
Is natural/organic 5
19
Wanted to try a type of product I’ve never tried before 25
26
7
Wanted to treat myself
Wanted variety/a change from my normal routine 9
Novelty
Personal choice
Purpose-driven
Quality/organic
Convenience
Health/hygiene
Availability 7
Value 56
14
23
42
19
3
17
Baby
boomers2
Gen Z/
millennials Gen x
20 21
25
36 26
57
6 4
9
4 2
6
23 33
20
26 24
22
15 33
3
5 4
6
24 15
15
6 8
9
13 6
6
1 4
0
6 2
0
6 0
0
1 11
3
6 2
0
8 4
10
All consumers
Between −3 and +3
< −3 > +3
Value was a primary reason for brand switch; novelty came next for
older consumers, and convenience for younger consumers
x Net % of respondents per category
percentage points
5 2
0

Out of non-daily-life categories, travel seems to be the most popular
spending category for the new season
Subdued holiday outlook | Current as of March 2022
1. Q: For the new season starting this spring, do you plan to spend money this year on each of the following items?
5
20
31
24
67
51
12
30
83
50
44
46
20
29
61
43
12
30
25
30
14
21
27
27
Gifts for others
Clothes
House-moving
Furniture and home appliances
Daily necessities
Travel
Special dinners at restaurants
Luxury goods
Don’t know
Yes No
Spending for new season starting this spring1
% of respondents who plan to spend money on each of the following items

Across categories, Japanese are generally willing to spend less than
last year
74
36
39
35
10
14
48
32
2
8
8
10
5
9
9
7
3
10
10
12
7
13
10
8
18
43
35
39
77
61
32
50
2
2
8
5
1
3
2
2
1
1
2
1
1
House-moving
Luxury goods
Special dinner at restaurants
Travel
Daily necessities
Gifts for others
Clothes
Won’t spend any Will spend about the same amount
Will spend significantly less
Will spend less
Will spend more
Will spend significantly more
Change in spending for new season starting this spring1
% of respondents who plan to change spending vs 2021
1. Q: If you compare the upcoming new season starting in this spring with the one last year, how much do you plan to change your spending level in the following categories for each of the items?

Out of non-daily-life categories, travel and special dinners at
restaurants are the most popular spending categories
1. Q: We would like to ask you questions about your plans for Golden Week this year. Do you plan to spend money this year on each of the following items?
4
9
19
17
40
23
6
14
83
61
55
54
36
47
69
60
13
30
27
29
24
30
25
26
Gifts for others
House-moving
Travel
Daily necessities
Clothes
Luxury goods
Yes No Don’t know
Plan to spend in Golden Week1
% of respondents who plan to spend during golden week

Japanese consumers are expected to spend less across all
categories during this year’s Golden Week, compared with last year
1. Q: If you compare the upcoming Golden Week this year with the one last year, how much do you plan to change your spending level in the following categories for each of the items?
77
55
52
45
26
36
59
51
60
2
5
5
7
6
6
5
5
5
3
6
6
7
5
8
6
6
4
17
32
30
36
62
48
28
36
26
1
1
5
4
1
2
2
2
3
1
1
1
1
1
1
2
Other special expenditure
Luxury goods
House-moving
Travel
0
Daily necessities
Clothes
0
Gifts for others
Won’t spend any Will spend about the same amount
Will spend significantly less
Will spend less
Will spend more
Will spend significantly more
Plan to change spending from last year during Golden Week1
% of respondents who plan to change spending level

McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis

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McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis