The document summarizes findings from PwC's Global Consumer Insights Survey regarding changing consumer behaviors and expectations during the COVID-19 pandemic. Some key findings include: - Nearly half of global consumers reported reduced income due to the pandemic, leading more to expect decreased spending. - Apparel and footwear saw the largest cuts in household spending of all categories. - Consumers now prioritize safety, sustainability and accountability from businesses and expect a more digital customer experience. - Younger consumers especially demand transparency from brands regarding environmental and social impacts.

1. 3 - 4 October 2020
The consumer transformed - Changing behaviours
are accelerating trends along a reinvented customer
purchase journey
Circular Fashion Summit 2020
Erika Andreetta | Partner PwC

2. 24° Beauty Summit Pambianco
2.448
46%
54%
Millennials (25 – 40 anni)
Generation Z (18 – 24 anni)
23.545
50%
50%
Observatory
Millennials & Gen Z
Global Consumer
Insights Survey
M
Z
11° 5°
Italy
27
Countries
Before COVID-19 After COVID-19
19.098
Respondents
27
Territories
74
Cities
4.447
Respondents
9
Territories
35
Cities
Respondents
Jan – Jun 2020
Respondents
Jan – Jun 2020
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3. PwC
Global consumers who will spend less in the
«New Normal» have almost doubled
Which of the following have you encountered as a result of the current
COVID-19 (Coronavirus) situation? * Includes the answers: "a reduction in
family income due to job loss / reduction of hours" and / or "a reduction in
family income due to illness / care for others»
Question, 2019: in terms of personal spending for the next 12 months, do
you expect to ... Base: 19.098
Question, 2020: Due to the COVID-19 (coronavirus) situation, how do you
expect your family's spending to change in the coming months? Base:
4,447
Source: PwC, Global Consumer Insights Survey 2020
+ 89%
40% of global consumers
suffered a reduction in
income due to the
COVID-19 emergency - 28%
Middle East 49%
China 43%
France 49%
Spend
more
Spend
less
Spend
the same
46% 33%
33% 32%
19% 36%
Before
COVID-19
After
COVID-19
Spain 56%
UK 43%
Italy 42%
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4. PwC 4
Cuts in household expenses: fashion is the most affected sector by the
discount mindset in all countries
Health & Beauty
products
Office tools
Restaurants
(pick up/ delivery)
Sport
equipment
Apparel and
footwear
51%
46%
41%
36% 35%
Spain 61%
Italy 57%
ME 53%
Spain 62%
UK 58%
China 49%
ME 50%
Spain 49%
Italy 44%
ME 45%
UK 44%
China 42%
Spain 70% | Italy 65% | UK 60%
51%of global consumers
will spend less in
apparel and
footwear
Just 10% of them
will increase their
Fashion purchases
Top 5 areas of decreased household spend
How have household expenses changed in the following categories, if not entirely, following the removal / social isolation measures COVID-19 (Coronavirus)? It includes the% of those who declared "decreased" - excludes those who declared "I don't spend in this
category - excludes those who said" I don't spend in this category “. Base range: 3158 - 4094
Source: Global Consumer Insight Survey Pulse 2020

5. PwC
49%
safety & security are
the most important
features of their city
(vs 27% pre-
COVID-19)
Changing behaviours are accelerating trends along a reinvented
customer purchase journey
5
How do you expect your household spend to change over the next few months? Base: 4447
Thinking about your city, which of the following features are the primary reasons why you live there? (Ranked Top 3) Base: 4447
Thinking about your consumer data, to what extent do you agree or disagree with the following statements in relation to sharing it
with organizations? (Please select ONE option)
For each of the following product categories, how many of your purchases have you made online over the last 12 months?
43%
expect businesses to
be accountable for
environmental impact
42%
are open to share
their data to get a
better customized
experience
36%
spend less
Expect market
volatility and price
sensitivity
78%
made purchases
by mobile
Consumer experience
must be rooted in safety
and accessibility
Digital engagement
will be robust and
diversified
Customers will
become
longtime
advocates if
you prioritise
sustanaibility
and innovation
86%
Made online fashion
purchases over the last
12 months
(Please select ONE option) Note: not considered «have not purchased in the last 12 months»
How often do you buy products (e.g. clothes, books, electronics) using the following shopping channels?
(Please select ONE option)
Please indicate which statements best reflect your actions and expectations on sustainability (Please select ALL that apply)
Source: PwC, Global Consumer Insights Survey 2020 Base 19,098

6. PwC
Consumer look to their
government to drive
sustainable behaviors,
but in some countries
greater responsibility is
attributed to
brands/retailers
In your opinion, who should take the biggest responsibility for
encouraging sustainable behaviors and/or lifestyle practices in your
city/country?
Note: exclude the answer “don’t know”
Source: PwC, Global Consumer Insights Survey 2020 Base 19,098
34
The Government
21%
Me, the consumer
The Government was
cited top by 20 territories
Mexico 40%
Indonesia/Malaysia 35%
Thailand 32%
Russia 45%
Spain/ Singapore/ Philippines 42-44%
China/ HK/ Malaysia 37-38%
22%
The
manufacturer
or retailer
Germany 33%
Canada/ UK 27%
USA/ China 25-26%
The
Manufacturer
/ retailer was
cited top by
Germany/
USA
Me was cited
top by Mexico,
Indonesia and
Thailand
35% Millennials
36% Generation X
34% Greatest
generation
27% Baby boomers
35% Greatest generation
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7. PwC
Urban consumers are
conscious of the need to
reduce plastic use and
expect brands/ retailers
to support this
Please indicate which statements best reflect your actions and expectations
on sustainability (Please select ALL that apply)
Source: PwC, Global Consumer Insights Survey 2020 Base 19,098
Quale informazione riflette meglio il suo comportamento d'acquisto in termini
di sostenibilità?
Fonte: PwC Millennials vs Generation Z 2020
In 2020 only 6% declare not to be interested in sustainability (vs 13% in 2019)
Brand expectations
Conscious
consumption
Personal behavior
China 39%
China 47%
Spain 47%
UK 44%
China 40%
China 34%
Germany 43%
Spain 43%
Spain 51%
Also MZ pay attention to
sustainability, they choose:
• 63% Ecological products
• 28% Conscious brands
• 9% Personal behavior
45% Business accountable for environmental impact
28% Consider environmental/social effort of retailer
41% Retailer to eliminate plastic bags / wrapping
37% Buy items with less packaging
32% Consider sustainability in my food choices
19% Reconsider amount of air travel
32% Choose sustainable ways to travel
45% Avoid use of plastic
30% Buy from brand that promote sustainability
28% Choose products with traceable origin
PwC 7

8. 84° Beauty Summit Pambianco
M&Z in Italy are looking for:
Even post COVID-19, consumers are looking
for natural, sustainable and ethical Fashion
products, less than 10% do not recognize a
small premium price
In which of the following cases are you willing to pay a higher price for the purchase of clothing, accessories or beauty products?
Source: PwC Millennials vs Generation Z 2020
53% Natural
products
50%
36%
28%
Eco-friendly products
Ethical products
Brands known for
sustainable practices
A parità
di prezzo
PwC 8

9. PwC
As a personal commitment they are inclined
to "share"
Q24 Please indicate which of the following product categories you currently rent or use a sharing service for, or would be willing to in the future? (Please select ONE option)
Source: PwC, Global Consumer Insights Survey 2020 Base 19,098
Z: 24% M22%
Z: 21% M21%
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10. PwC
The choice of supplies
and raw materials is
fundamental for the
sustainable reputation
of companies ..
To consider a company “sustainable”, what is more important to you?
Select up to three answers
Source: PwC Millennials vs Generation Z 2020
Z: 36% M: 44%
Z: 62% M: 57%
Z: 34% M: 42%
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Sustainable reputation:

11. PwC
Over 90% are ready to
change their mind
about the sustainability
of a company ...
11
What can change your opinion on the sustainability of a company or a
brand?
Source: PwC Millennials vs Generation Z 2020
73%
The perception of the
company's concrete
commitment to improve
its sustainability
practices
20%
The positive opinion of
the people I trust
11PwC

12. PwC
Do companies
communicate product
information
transparently?
In your experience, do companies communicate transparently
where, by whom and how the product is processed? (Fashion
and Accessories)
Source: PwC Millennials vs Generation Z 2020
Trend in slight improvement for fashion and accessories
Companies communicate in a fairly / very
transparent way how the product is processed
In 2020 due to the
COVID-19
pandemic there is
a discontinuity
PwC 12

13. PwC
Young Italians are
sensitive to "Animal
Free“ topic …
For which category do you buy animal free products? Beauty - Fashion and
Accessories
Which of the following statements best defines your product purchasing behavior?
Fashion and Accessories - Beauty
Note: Multiple choice answers
Source: PwC Millennials vs Generation Z 2020
66%
chooses clothing,
footwear and
accessories made with
non-animal materials
66%
I choose beauty
products "not tested on
animals", "cruelty-free"
and / or "100% vegan"
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14. PwC 14
…primary driven by
concern for animal
well-being
What is the main reason that drives you to buy an Animal Free product?
Source: PwC Millennials vs Generation Z 2020
57%
is driven mainly by
concern for animal
well-being
34%
Is concerned for the
environment
9%
Pay attention to their
health / well-being
M+Z
14
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15. PwC
In your opinion, which of the following tools are most effective in communicating
information about sustainability by companies? Fashion and Accessories
Note: Multiple choice question
Source: PwC Millennials vs Generation Z 2020
Label
1°
M Gen Z
70% 64%
Website
3°
M Gen Z
46% 44%
2°
M Gen Z
58% 63%
Social
+76% vs 2019
For the first time, the product label goes beyond social
media as the most effective tool to communicate
information on the sustainability of fashion companies
15PwC

16. PwC
M&Z expect to find on
the label the
information regarding
ingredients and
product origin, to
assess its actual
sustainability
What information do you think should be indicated on the
packaging / labels of a product to assess its sustainability? Select
up to three answers
Source: PwC Millennials vs Generation Z 2020
66%
Type of product
materials
63%
Origin of raw materials/
country of manufacture /
product processing
Instructions on
recyclability / disposal
of the product /
packaging
Sustainability
related
certifications
56% 37%
16PwC

17. 174° Beauty Summit Pambianco
What’s next? Growing desire of transparency, sustainability,
cleanliness, community living and social consciousness
Greater attention to
health and well-being
Medical needs
Health and well-being
Diet and nutrition
Mental health
64%
69%
63%
69%
New habits post COVID-19
74%
36%
44%
59%
35%
45%
Smartworking (at least sometimes)
Increased spending on entertainment
and online media
Amazon Prime memberships
Increased use of video chat apps
Buying groceries online/by phone
Willingness to share own information to
improve the environment
Avoid use of plastic
49%
Source: PwC, Global Consumer Insights Survey 2020
China 80%
MZ 80%
M 52%
China 75%

18. 18
Erika Andreetta
Partner PwC
Consumer Markets Consulting Leader
erika.andreetta@pwc.com
Erika Andreetta, PwC Partner, is responsible for consulting
services in the Retail & Consumer Goods world
Management engineer, she joined PwC Consulting in 1999
and has always been involved in Fashion and Food, first at
European and then international level
She personally followed important internationalization
processes of primary groups in the Chinese market, and was
an active member of the CINDIA Desk of PwC from 2000 to
2006.
At the moment she is supporting high potential companies in
promoting Made In Italy worldwide, developing systemic
project focused primarily on reshoring and sustainability
She is also a member of Get it Fair, the first international
certification system for textile and clothing supply chains in
emerging countries for responsible labeling.
Careful observer of consumer evolution, over the last five
years she has been studying the impact of omnichannel in
Made In Italy sectors, through the Global Consumer Insight
Survey (27 countries, 21,000 consumers) and Italian insights
on Millennials and Generation Z.
18PwC

19. pwc.com/it
Thank you
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