Changes In Consumer Behavior Brought On By The Pandemic

Consumer behavior is always changing and evolving, however the changes seen recently have altered the business world significantly. There has been an acceleration in the shift to online shopping, an increased need for omni-channel, and major changes in consumer shopping habits – all brought on by the COVID-19 pandemic.

Shift To Shopping Online

People have been forced to live differently, and as a result they are also shopping differently and spending their time differently. Staying indoors has naturally increased the need for online shopping, and we have seen rapid changes in behavior that would have otherwise taken years. One example is how quickly people have adapted to purchasing groceries online. This is one category of goods that was not frequently purchased via the web. Customers are also purchasing more essentials and household cleaning supplies online.

In the U.S., consumers spent $211.5 billion on e-commerce during the second quarter of 2020, up 31.8% quarter-over-quarter, according to the U.S. Census Bureau.

“The events of the last year have resulted in such a significant acceleration both from a consumer and a business standpoint. We’ve seen shopping behavior from consumers just fast-forward. You think about the penetration of online grocery shopping today vs. where it was 18 months ago –18 months ago, would you ever have predicted people would be shopping for fresh, perishable groceries [online] as much as they are, as frequently as they are, today?” said Ravi Jariwala, senior director of public relations for Walmart e-commerce, as cited in Winsight Grocery Business.

Spending More Time On Leisure Activities 

Behaviors have notably changed, whether we look at the amount of time people are spending on self-care, mental health and physical wellness, or the amount of time spent watching television at home, we can see a significant shift in day-to-day actions.

For the first time in ten years, the amount of time people spend watching television is up, and there is an increased demand for digital wellness, as people opt to stay home and are dealing with increased stress and mental health awareness. More time is also being spent reading the news and taking up hobbies. All of these behavioral changes are leading to a shift in spending habits – as people are spending more on experiences and less on material things. And more on their health versus things that were very popular pre-pandemic, such as clothing and other fashion items. With the closures of spas and salons, purchases of self-care items have also been on the rise, giving some beauty retailers a much-needed sales boost, considering that cosmetic sales were down in the double digits in the first half of 2020.

Value-Based Purchasing 

The instability of jobs, fear and stress brought on by COVID-19, and people stocking essentials at home, there has also been more of a focus on value-based purchasing.

A McKinsey & Company study stated, “Given consumers’ price sensitivity, value remains the primary reason for consumers to try new brands as well as new places to shop. Aside from value, convenience and availability are most often cited as top drivers of consumers’ decisions about where to shop, while quality and purpose (desire to support local businesses, for example) are the more important considerations when choosing new brands.”

The trends we see emerging as a result of the pandemic include a major shift toward e-commerce, increased shopping at one-stop-shop retailers, and an increased focus on buying local and private label offerings, according to GlobalData.

“In the world of commerce, the things we thought we would see in 2030 are now things that we’re seeing today. At the beginning of this thing, we as a company decided to kind of blow up our roadmaps. We deleted all of our plans. The focus was really, how do we get entrepreneurs and small and medium-sized businesses through this generational crisis?” said Arpan Podduturi, Director of Product, Retail at Shopify.

The pandemic has definitely changed consumers’ behaviors, priorities, and purchasing habits, which directly led to changes in the business world. And we can expect many of these changes to be permanent.

Source : Forbes