The COVID-19 Consumer
The COVID-19 outbreak came and changed the world in a way nobody could have imagined, creating a “new normal” as people adjust to living in the middle of a pandemic. Due to the medical crisis, most brands stopped their advertising campaigns and activations since the future was uncertain and they didn’t want to risk sounding tone-deaf. Now as economies worldwide reopen and the consumer starts adapting to the new lifestyle it is key for brands to understand this new consumer, their needs, and their newly acquired habits.
The biggest mass change we see according to data gathered by Nielsen is the exponential growth of eCommerce, even among those demographics that were still reluctant to accept the new modalities. These include older generations and the Latin American Market. The growth of online shopping also creates a more informed and savvy consumer since they can research, read reviews, and find similar products in case their usual is not available, something very common during this pandemic, or if they are on a lookout for a better deal. Another occurrence we are seeing often is that the main buyer from the household might have changed forcing a new member to take the reins on the family shopping. This also opens a new window of opportunity to try new products and stores. This consumer just starting to learn how to shop for their household and might not be loyal yet to a brand or store in specific.
Price and a change in “essentials” also motivates the consumer during the COVID-19 pandemic. Even those who have not been affected have shown to be inclined on saving due to the uncertainty of continuous employment and health status but they are still open to treating themselves with the occasional luxury product, specialty food, ingredient, or household item.
While the flow of money is uncertain for many there are also fewer expenses like gym memberships, daily commute, or travels which gives them a bigger budget than expected for their household necessities.
Brands now have the opportunity the rebrand or better position themselves to cater to these new consumers and markets in order to form a new loyal customer base.
