Daily life for people around the world has changed in ways that would have been unthinkable a few weeks ago. But as consumer-facing organizations try to find their way through the COVID-19 pandemic, it’s important to keep in mind that the global consumer was already evolving at great speed. That process is now playing out faster than anyone imagined.
Consumer Behaviour in Brief
- Consumer attitudes, behaviours and purchasing habits are changing, and many of these new ways will remain post-pandemic.
- While purchases are currently centred on the most basic needs, people are shopping more consciously, buying local and embracing digital commerce.
- To manage isolation, consumers are using digital to connect, learn and play, and they will continue to.
- Moving forward, we will see an increase in the virtual workforce as more people work from home and enjoy doing so.
New behaviours will transform the industry’s future
The COVID-19 pandemic has fundamentally changed the world as we know it. People are living differently, buying differently and in many ways, thinking differently. Supply chains have been tested. Retailers are closing doors. Consumers across the globe are looking at products and brands through a new lens.
The virus is reshaping the industry in real-time, rapidly accelerating long-term underlying trends in the space of mere weeks. Our research indicates that new habits formed now will endure beyond this crisis, permanently changing what we value, how and where we shop, and how we live and work.
Even as this crisis continues to evolve, by exploring the changes that are happening now, we can consider what consumer goods businesses should do today to prepare for what’s next. It’s very important for any retailer to develop an e-commerce website as the economic and pandemic situation might change easily and dynamically, so it’s essential to survive for any retail business.
The advantages of consumer behaviour
On the bright side, there has been a noteworthy increase in online shopping. Now that retail stores are closed, consumers are relying more on digital mediums for their purchases. According to a survey, consumers are 30.6% more likely to purchase online in 2020 than they were in 2019, including both essentials and luxury items. A recent study by McKinsey in China also showed that consumers are more likely to continue shopping online, especially for essentials and personal care, even after the outbreak ends. This shows how the consumer behaviour paradigm is shifting from shopping in outlets to online shopping now more quickly than ever.
Online Shopping Spiked 55% Globally Week-Over-Week
The forced closure of physical stores resulted in a pivot to e-commerce, with consumers securing essentials by any means necessary. Twenty-two per cent of U.S. shoppers reported paying a premium as a result of running into “out-of-stocks,” up from only 3 per cent during the previous week.
Rethink Customer Engagements
As we all practice social distancing, communication is more important than ever. This is an opportunity for more creative, authentic and personalized interactions with customers. Retailers must meet shoppers where they are now — i.e., in digital channels via social, mobile, apps, etc. They should consider virtual events such as personal styling and how-to classes via video conferencing or live streaming product launches to engage with shoppers.
Getting to know the consumer in crisis
Consumers are responding to the crisis in a variety of ways. Some feel anxious and worried, fueling panic-buying of staples and hygiene products. At the other extreme, some consumers remain indifferent to the pandemic and are continuing their business as usual, despite recommendations from government and health professionals. CPG companies will need to understand how their own consumers are reacting and develop customized and personalized marketing strategies for each.
Summary
The COVID-19 pandemic is changing daily life for consumers around the world in different ways. By understanding where the most significant changes are and which ones will stick, companies can position themselves to adapt.
