What Businesses Can Learn About Consumers Spending Habits During COVID-19?
How are they spending their hard earned cash during a time of crisis?
In 2020, the need for essential items has never been greater, leaving many companies all over the world struggling to stay afloat while vying for the business they still have left. As consumers shift their purchasing power to the bare bones, many brands have tried to stay relevant through clever marketing campaigns concerning the COVID-19 virus. This has also lead many industries to adjust their product offerings to target the newly revamped post-pandemic consumer.
Ideally this shift should keep the public somewhat engaged and avoid coming across as opportunistic. Instead, focus on the priorities of your consumer and keep in-mind these true factors that are affecting how they spend their hard-earned dollars through this health and economic nightmare.
Here are 5 things consumers look for before purchasing their products during the pandemic.
Price:
When the world gets shut down so does a large part of its workforce. This effect has made unemployment rates skyrocket as businesses look to downsize their staff. The average person now has another crisis which is making sure they have enough money coming in to put food on their table, making their purchasing decisions come under ever more scrutiny. Soon that average household item, which seemed like a bargain at first, has turned into something more of want rather than a need. This soon trickles down throughout all industries and can stunt sales across the board, making bargain hunters out of the majority of us. Branding suddenly becomes irrelevant. Businesses who may have had an edge in the past over their competitors, either due to a well-known brand name or boasting superior quality, will have a harder time competing during a pandemic — especially if their price-point is vastly significant for the average mundane purchase. Name brands that don’t produce high-demand essential items will reap the benefits by creating functional products at a much lower price point. Companies must strive to analyze if their products fit, make the appropriate shifts, and determine how they can compete in the COVID-19 marketplace while staying profitable.
Safety:
The obvious health concerns associated with the daily interactions people have during a casual shopping outing, has forced the government to implement drastic measures that ensures we can still be safe. Standing no closer than 2 meters from another and limiting the number of store patrons, are just some of the ways business have tried to flatten the exposure of the virus, while keeping customers walking through their doors. But the overall experience of waiting in long line ups while trying to avoid people who might be deathly sick has become a nightmare. In comparison, the already flourishing E-commerce marketplace has definitely soared to new heights during this pandemic. Businesses selling their products online without the help of a storefront is the new normal and those who haven’t adapted have dealt with the consequence. There’s no leisure shopping during this time. The worry of human contact has allowed the E-commerce market place to thrive along with any businesses that are able to create the safest of environments.
Support Local:
With the rise of the internet the world became very small. Globalization had made it easy for consumers and businesses to purchase items from around the world in a fast and efficient manner. As trade barriers and shipping difficulties take place, it has become harder and harder for both suppliers and consumers to receive products from foreign markets. The adverse effect has created a silver lining for local businesses that are able to manufacture, produce and distribute their products within their community with minimal hurdles. In order to protect our economy consumers are striving to put their dollars toward supporting these local businesses. This has a cyclical effect, as these are the brands that will eventually give-back and build up our local economy in the future.
Buying in Bulk:
Where there was a time that we could purchase items last minute, those days seem to be a distant memory at this point. With empty shelves, long line ups and a month-long wait on Amazon, the need to “buy for the future” has become the standard. However, the adverse effects have lead to unnecessary hoarding and the overconsumption of certain products, which has left many consumers unable to by essential items. Warehouse stores like Costco are leading the pack and have made many of their products available to be purchased in bulk at a reduced price. These products usually consist of various household products that need to be constantly replenished. This principle can also be applied to replenish-able products sold in larger sizes, which in the end results in less visits to the store. Seizing the opportunity for both physical and virtual storefronts to make items available in bulk can be very lucrative not just for the business but for the customers as well. Larger packages help to avoid stockpiling and give consumers the chance to shop smarter, while keeping the shelves reasonably stocked for everyone
Convenience:
Stay at home, a simple phrase heard around the globe creating a not so simple task when attaining your essential products. This makes the new goal for businesses to get their product to the consumers in the most safe and efficient manner possible. Contact-less delivery, an option that is basically synonymous with any delivery or shipping method, helps to limit the human contact between delivering and receiving. The ease of delivering products doorstep-to-doorstep without compromising one’s health has made this an extremely popular option that businesses have added to their delivery process. When consumers urgently need to travel to a physical store, the key is to get them in and out as fast and safely as possible. Where products are placed around the store is of utmost importance and being able to locate essential items fast will prevent lingering customers, while still obtaining a relatively high volume of sales over the course of a day.
