The lockdown period generated new consumer habits. Retailers had to alter their business models to adapt to the impact of these quick changes. Moving forward, since many of the longer-term shifts in consumer behavior are continuing, companies can fully embrace the new normal by following suit.
Since being compelled to live differently, people began purchasing and using their time unprecedentedly. Behavioral changes that might have ordinarily taken years happened quickly. According to the U.S. Census Bureau, consumers in the U.S. spent $211.5 billion on e-commerce during the second quarter of 2020, an increase of 31.8% over the previous quarter. The necessity for internet shopping developed organically due to the quarantine. As a result, people have embraced online grocery shopping, a previously nascent market, and are choosing to continue its use, despite the freedom to shop in person. Consumers are also continuing to order more necessities and cleaning goods online.
The insecurity of employment, the stress and anxiety brought on by COVID-19, and individuals stockpiling necessities have all contributed to a greater emphasis on value-based shopping. Considering customers’ price sensitivity, the value of goods remains the biggest motivator for exploring new brands and stores. In addition to price, customers cite convenience, availability, and the desire to support local companies when selecting new brands. In the sphere of trade, what was anticipated to happen in 2030 is happening now. The main topic of discussion is how to bring entrepreneurs and small and medium-sized enterprises through this global crisis.
People are spending money on memories and experiences in place of tangible possessions. Whether we examine how much time individuals spend on self-care, mental health, and physical well-being or how much time they spend watching television at home, we may find a noticeable difference in daily behaviors. People are viewing more television for the first time in 10 years, and there is a higher demand for digital wellness since individuals want to remain at home and are more mindful of their mental health and stress levels. Also, more time is being spent engaging in hobbies and reading.
Less focus is being spent on material goods that were fashionable before the epidemic, including clothes and other accessories. Self-care product purchases have increased, giving beauty shops a much-needed overhaul and sales boost. When the availability of spas and salons disappeared, people switched to online purchases. The trend of returning to physical pampering is a welcome relief for the wellness industry.