How The COVID-19 Pandemic Is Changing Consumer Behavior?

COVID-19 & Consumer Behavior

COVID-19 will permanently change consumer behavior.

Coronavirus has changed the world completely. It’s no more the world we used to live in. People are living their lives differently, they now think differently and it has eventually affected the way they shop.

The preferences have changed and the priorities have shuffled. Grocery and other essentials have got the top priority tag, whereas product categories including apparel, electronics, automobile, and other luxury products like jewelry are experiencing steep fall in the demands.

Let’s take a look at the fastest-growing categories in the US amid the Coronavirus pandemic:

Fastest-growing product categories in the US amid the Coronavirus pandemic

Understanding ‘Consumers in Crisis’

Thinking that everything will get back to normal after the success in vaccines is wrong!

Consumers are not just concerned about the impact of COVID-19 on their health. They are also worried about the economy. People are responding to the crisis in different ways. While some people are getting anxious and panic-buying for the essentials, others are continuing everything like usual.

Consumers are more fearful of the economic impact of COVID-19 than for their health.

Source: Accenture COVID-19 Consumer Research, conducted April 2–6. The proportion of consumers that agree or significantly agree.

Impact of Changing Consumer Behavior on Retail Industry

The virus is reshaping the retail industry at a global level. The retailers and brands are facing many challenges that revolve around health, safety, supply chain, labor force, cash flow, consumer demands, marketing, etc.

At this point in time, it is necessary to understand the changes that are happening, the consumer preferences, and also prepare for ‘what’s next?’

Rise in Online Retail — New buying behavior is the new normal now!

Rise in Online Retail amid Coronavirus

Digital commerce has seen a boost as the consumers are going online for shopping. This is a kind of rise that is likely to be sustained post-outbreak.

“Retail platforms have undergone a six percent global traffic increase between January and March 2020. Overall, retail websites generated 14.34 billion visits in March 2020, up from 12.81 billion global visits in January 2020.”

Here is the graph showing an increase in retail eCommerce worldwide:

Supporting Local Retailers & Wholesalers — Growing love for ‘Local’

Many countries have urged their citizens to opt for local brands so as to empower their economy. So, now is the high time brands start thinking about how to connect with their customers locally.

Here is a poster by ilsr.org urging to support local businesses:

Posted by ilsr.org urging to support local businesses

This is a new way to support the local business community that is crushed by the outbreak.

Read about the top-selling & least selling products amid the Coronavirus outbreak here: Top Selling eCommerce Products: Shifting Consumer Behaviour And Changing Product Demand Amid COVID-19

Originally published at http://beststartupbusiness.wordpress.com on June 2, 2020.

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