As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. Through a series of regular, global surveys,1 we are tracking how customers’ expectations, spending, and behaviors are changing throughout the crisis across multiple countries over time. Please check back regularly for updates.
Unveiling the Soundscape Music for Psychedelic Experiences
McKinsey Survey: Brazilian B2B decision maker response to COVID-19 crisis
1. McKinsey & Company 1
Optimism is relatively low and waning: One-third (37%) are
optimistic about the economy, down from 47% two weeks ago
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
9 12
45
51
47
37
April 6 April 27
Optimistic: The economy will rebound in 2–3 months and grow
just as strong as or stronger than before COVID-19
Neutral: 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 will
show regression/fall into lengthy recession
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
2. McKinsey & Company 2
Brazil is less optimistic compared to other regions, trailing only
Japan, South Korea, and Spain
12 11 9 12
18
12 10
41
13 12 10
43 47 47
50
49
50
29
19
48
58
51
41
45 42 43
37
33
39
68 71
10
30
37
50
ItalyFrance UKSpainAll
countries
Germany
2
China India Japan S. Korea Brazil US
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
Optimistic: The economy will
rebound in 2–3 months and grow
just as strong as or stronger
than before COVID-19
Pessimistic: COVID-19 will have
lasting impact on the economy and
will show regression/fall into
lengthy recession
Neutral: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Percentage-
point change
in optimism
between April
1–9 surveys
and April 20–
28 surveys
Europe APAC
1% -9% 4% 7% 0% 0% 12% 3% 2% 8% -10% -5%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
3. McKinsey & Company 3
Brazilian companies’ budget declines decelerating to near the
global average; near-term spend reductions are also slowing
59 55
21 24
20 21
April 6 April 27
Company’s budget (changes already made)2 Expected in the next two weeks3
Brazil
Global4
55 54
26 24
19 21
April 9 April 28
Spend shifts as a result of COVID-19
% of spend changes
54 44
24 31
22 25
April 6 April 27
50 42
28 32
22 27
April 9 April 28
1About the same” refers to ±3% change in budget.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Percentages may not add to 100 because of rounding.
3Q: How do you think spending on the following may change in the next two weeks? Percentages may not add to 100 because of rounding.
4“Includes survey respondents from (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443), (South Korea n = 200), (Japan n = 202), (India n = 411), (U.S. n = 607), (Brazil n = 419).
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
IncreasedAbout the same1Reduced
4. McKinsey & Company 4
Respondents report downward budget shifts across all categories,
with software and telecom the least affected to date
56
45
57
54
58
54
61
57
62
58
50
61
57
27
26
22
20
32
23
21
21
21
20
26
23
32
17
29
22
26
11
23
18
22
17
23
24
16
11
Energy
Distribution and transportation
Capital equipment
Specialty inputs
Software and telecom
Packaging
Banking and insurance
Vehicles
Commodity inputs
Processing supplies
Finished goods
IT hardware
Real estate
IncreasedReduced About the same3
Budget changes due to COVID-19 (changes already made)1
% of respondents
Net
intent2
Services
Inputs
Capex
-39%
-17%
-35%
-27%
-47%
-31%
-42%
-35%
-46%
-35%
-26%
-45%
-46%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
1Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Figures may not sum to 100% because of rounding.
2Net 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“About the same” refers to ±3% change in budget.
5. McKinsey & Company 5
The advanced industries industry is experiencing the most
significant decline in budget across categories
1Budget net intent is described as the % of budget decreases subtracted from the % of budget increases.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas?
3“About the same” budget changes are those that are +/- 3%.
Budget net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
21 22 28 29 25 22 23
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
6. McKinsey & Company 6
In the next two weeks, pockets of near-term spend increases are
likely to emerge across industries
1Net intent is described as the % of spending decreases subtracted from the % of spending increases.
2Q: How do you think spending on the following may change in the next two weeks?
3“About the same” spending changes are those that are +/- 3%.
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
Next two-week spending net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
27 26 40 44 31 27 32
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
7. McKinsey & Company 7
Global energy
and materials
Travel,
Transport,
and logistics
Advanced
industries
Technology,
media, and
telecom
Consumer/retail
Pharma and
medical products
Global finance,
banking, and insurance
All industries are shifting capacity down in light of tempered
demand; advanced industries and consumer seeing sharpest declines
Flat
-15%
Demand
for
products/
services
Operational capacity (eg, production)3 Flat-15%
Impact of COVID-19 on demand and capacity1,2
% change due to COVID-193
1Q: How has the coronavirus (COVID-19) situation affected your company’s production (operation) capacity? Percentages may not add to 100 because of rounding.
2Q: How has the coronavirus (COVID-19) situation affected demand for your company’s products/services? Percentages may not add to 100 because of rounding.
3Weighted average uses following midpoints: “increased/reduced 25+%” is +/- 30%, “increased/reduced 11–25%” is +/- 18%, “increased/reduced 4–10%” is +/- 7%, “About the same (+/- 3%)” is 0%.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
8. McKinsey & Company 8
Companies are reducing marketing spend in all regions; nearly 60
percent of Brazilian B2B companies have reduced their marketing
62 63 58 56
68 71
62
69 65 71
58 57
18 19
21 23
18 14
19 8
26 20
16 20
20 18 21 21
14 15 19 24
8 10
26 23
SpainAll
countries
Germany ChinaFrance USItaly UK India S. KoreaJapan Brazil
Europe APAC
Marketing spend change1
% of responses
1Q: How has the coronavirus (COVID-19) situation affected your company’s marketing spend across all channels? Percentages may not add to 100 because of rounding.
2“About the same” refers to ±3% change in budget.
IncreasedAbout the same2Reduced
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
9. McKinsey & Company 9
The importance of digital sales has increased to 2.7 times that of
traditional sales interactions since the onset of COVID-19
Importance of digital vs traditional to
B2B buyers themselves1,2
Points allocated out of 100
1Q: Prior to COVID-19, how important were each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more points to the method that you believe is more important to
you personally when interacting with your suppliers.
2Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to you personally when interacting with your suppliers.
3Q: Prior to COVID-19, how important was each method in delivering an overall outstanding sales experience? Distribute 100 points across these items, giving more points to the method that you believe is more important to your customers.
4Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to your customers.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
Importance of digital vs traditional to
B2B company customers3,4
Points allocated out of 100
44
73
56
27
Before COVID-19 April 27
+65%
47
69
53
31
Before COVID-19 April 6
+45%
Traditional Digital
10. McKinsey & Company 10
Supplier website and posts on social media/online are now seen as
the most beneficial channel for researching suppliers
23
13
20
9
15
28
19
8
12
24
14 14
19
21
33
11
26 26 25
21 20
22
18
9
20
19
14
11 11
20 19
10
Google/web
search
Supplier
website
Post on
social
media/online
Trade
show
Text from
sales rep
Referral
from
someone
in my
industry
Info on
mobile
app
Email from
sales rep
Online
material
from
supplier
Live chat Referral
from a
customer
Industry
publication
Print
material
from
supplier
Call from
sales rep
Meeting
sales rep
in person
Direct
mail from
sales rep
10% 97% 25% -22%123% -8% 15% 64% -5% -42%-20% -4% -23% -45% -7%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400), McKinsey Global Omnichannel B2B Sales Survey, 2019 (n = 510)
1Q: What ways of interacting with a supplier would be most beneficial to you when researching/considering suppliers going forward? Rank up to 3 that would be most beneficial. A free-response option was given, but <1% of respondents filled it
out; ~13% of respondents answered ‘None of these.’ as one of their top three responses in 2020.
33%
% YoY changeX% 2019 2020Most beneficial supplier interactions for researching/considering suppliers1
% of respondents ranking in top 3
Digital
Self-serve Directed Self-serve Directed
Traditional
11. McKinsey & Company 11
Digital self-serve for order submission is now preferred
significantly more; mobile app ordering has risen ~60 percent
38
28
36
39
31
40
35
45 44
37
34
38
31 30
22
Calling sales repEmailing sales rep Ordering
from sales
rep in person
Using my
company’s
procurement
department
Using a supplier’s
website
Using my
company’s
e-procurement
portal
Using a
mobile app
Using call
center/customer
service
18% 58% -1%N/A2 -4% 0% -25% -38%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400), McKinsey Global Omnichannel B2B Sales Survey, 2019 (n = 510)
Self-serve Sales rep involvementInternal processes
Most preferred method for ordering1
% of respondents ranking in top 3
1Q: Which of the following methods do you/would you most prefer to use when submitting your order? Please rank up to 3 that would be most beneficial. Results for top 1 responses are consistent with top 3. A free-response option was given, but
<1% of respondents filled it out.
2Question was not asked in 2019.
N/A2
% YoY changeX% 2019 2020
12. McKinsey & Company 12
67
46
46
50
4
12
45
59
61
4
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Online/web support (eg, chatting with customers
via video/website/mobile app to support purchase)
Inside sales team (eg, interacting with
customers on the phone)
In-person/field sales team (eg, meeting with
customers face to face)
Other
Before COVID-19 During COVID-19
Go-to-market sales model during COVID-191,2
% of respondents
94%
shifted their GTM
model3 during
COVID-19
The majority of B2B companies have shifted their go-to-market
model in light of COVID-19
1Q: In what ways was your company’s product or service sold before COVID-19?
2Q: Now today, in what ways is your company’s product or service sold during COVID-19?
3Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
13. McKinsey & Company 13
E-commerce revenue is up 46 percent since the onset of COVID-19
Percent of company revenue driven by e-commerce before and during
COVID-19 (among companies that sell online)1,2
Average % of total revenue
42
62
Before COVID-19 During COVID-19
+46%
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
14. McKinsey & Company 14
E-commerce share of overall B2B company revenue is up in all
countries, most notably Brazil and Italy
Percent of company revenue driven by e-commerce before and
during COVID-19 (among companies that sell online)1,2
Average % of total revenue
45
56
51
47 46 47
44 42
47
61
42 40
56
65
56
64
51
57
52
47
53
68
62
52
All
countries
IndiaFrance JapanUKGermany SpainItaly China S. Korea Brazil US
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Before COVID-19
During COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Europe APAC
23% 16% 11% 21%36% 20% 12%13% 11% 46% 29%12%
X% % change
15. McKinsey & Company 15
14
20
18
40
7
Much more effective
As effective as before
Somewhat more effective
Much less effective
April 6
Somewhat less effective
100
1Q: How effective is your company’s new sales model at reaching and serving customers? Figures may not sum to 100% because of rounding.
59% of B2B decision makers believe the new sales model is as effective
or more so than prior to COVID-19 (up from 52% in early April)
Effectiveness of new sales model in reaching and serving customers1
% of respondents
14
25
19
28
13
April 27
100
52%
as effective or more so
compared to prior to
COVID-19
58%
as effective or more so
compared to prior to
COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/2–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
16. McKinsey & Company 16
Companies are likely to keep their new sales model for more than
12 months after the onset of the COVID-19 crisis
33
36
25
6
Very likely to sustain 12+ months after
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
N/A, made no go-to-market changes
69%
are “very likely” or “somewhat
likely” to sustain these shifts
12+ months after COVID-19
Staying power of new sales models1
% of respondents
1Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19? Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
17. McKinsey & Company 17
More than 85 percent of B2B companies have adjusted incentives in
response to the effects of COVID-19
35
33
14
14
14
13
More variable incentives
Short-term bonuses/incentives
Lower quotas
More fixed incentives
No change
Higher quotas
Sales team incentive structure changes in response to COVID-191
% of respondents
1Q: To what extent has your company made changes to the incentive structure of your sales team in light of COVID-19? Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)
18. McKinsey & Company 18
25
21
16
12
11
9
5Pharma and medical products
Global energy and materials
Travel, transportation, and logistics
Technology, media, and telecom
Advanced industries
Global finance, banking, and insurance
Consumer/Retail
10
20
20
20
18
12
$25M to < $100M
$1M to < $25M
$100M to < $500M
$1B to < $10B
$500M to < $1B
$10B+
4
4
18
25
27
11
5
7
50,000–99,999
100,000+
1,000–9,999
<50
50–99
10,000–49,999
100–499
500–999
1Percentages may not sum to 100 because of rounding.
Survey respondents by no. of employees of company
% of respondents1
Survey respondents by role in company
% of respondents1
Survey respondents by industry
% of respondents1
Survey respondents by annual revenue of company
% of respondents1
21
16
14
11
10
8
8
7
5
R&D/Innovation/Product design
Top management
Operations
Sales
IT/computer services
Engineering
Purchasing
Shipping/logistics
Marketing
B2B Pulse Decision-Maker Pulse #2: Respondent Overview
Pulse #1 closed on April 6, 2020 Pulse #2 closed on April 27, 2020
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 419)