What will the new reality look like? What is the value that sets consumers’ new daily lives and standards? How is the market changing with the COVID-19 outbreak that shook the world?
As social distancing has become common since the coronavirus outbreak, consumer behavior is changing to fit the new reality. An important success factor for the advertising business is predicting changes in consumer behavior and developing long-term strategies related to them to recover more quickly from severely affected industries.
Criteo’s data shows that in recent weeks, sales of various product categories, including food, home office supplies, consumer electronics, and pet supplies, have increased considerably.
In this article, based on research from Criteo and several other organizations, we analyze emerging trends and the potential impact of these changes on multiple markets.
Let’s look at some of the recent trends in terms of the new reality.
1. The consumer media , particularly online video watching to further a lot of time to send you .
Video consumption surged amid the corona crisis and is expected to remain strong after the coronavirus outbreak.
“After the novel coronavirus outbreak began in earnest, the age group with the greatest increase in media consumption is Generation Z, and 58% of Gen Z users have increased social media use and media consumption,” said Britany Tam, consultant at Hill+Knowlton Strategies . Says.
Consumers take pictures of themselves and post them on social networks like Instagram and TikTok. Brands now have the opportunity to reach younger audiences through video content that emphasizes uniqueness rather than high production value.
2 . With growing economic insecurity, consumers are becoming more price sensitive .
Many customers look at economic assets from a new perspective and focus on:
- Discover special offers and discounts
- Reduced use of non-essentials (e.g. luxury, luxury products)
- Brands, local brands and own brand products with lower prices
According to McKinsey & Company’s April analysis report , two-thirds of consumers worldwide are unsure and unoptimistic about the long-term impact of the COVID-19 outbreak. Even those who maintain a positive outlook for an economic recovery, I’m thinking of spending cautiously over the next few weeks.
3. ‘expansion / growth than You and switch to centered on the’ status quo ‘thinking is .
Experimenting with a new product or service is not a typical response from consumers during times of instability. People are shifting from the traditional’growth’-centered mindset that allowed all new attempts to a mindset that focuses on’protecting as it is and maintaining assets.
According to Simon Moore, CEO of Behavioral Science Firm Innovation Bubble, this is not the time to launch a new product or service. It’s time to get rid of the boxes and improve your existing customer service.
4. Consumers pay attention to brands that address their needs in these difficult times .
In a study conducted by Intelligence Central this April , 58% of consumers are impressed by brands that provide the services they need, and 55% appreciate brands that have made changes to help them. This includes brands that contribute to the community as well as individuals. 54% of respondents appreciate the brand’s donation activity, and half of consumers favorably rate the brand for solving the coronavirus problem.
In 2020, many brands have shifted the focus of their communication message to sustainability, community contribution and support. The topics currently included are:
- A sense of purpose and solidarity that demonstrates that brands are pursuing more than sales
- Recognizing consumers who value the brand’s philanthropy, and conducting corporate activities for the development of local communities
- Actions being taken to solve the COVID-19 problem
- How brands can help consumers in unexpected ways
Brands that emphasized their noble personality have now switched to suit the sentiment of the time. It’s important to communicate how your brand can help in your daily life, but it’s also important to find the right tone. In the same vein, many consumers believe that brands should not exploit COVID-19 as a commercial opportunity.
5. Consumers car sharing service unsafe andago thought as , automotive industry- enormous opportunities exist can .
After the coronavirus outbreak, many consumers are expected to refrain from using public transport and ride-sharing services. This is because once the mobility restrictions are lifted, we plan to use our own vehicles more often or arrange personal transportation (cars, scooters, bicycles).
According to an IBM survey conducted in the United States in May , more than 17% of respondents said they would use their cars more often due to COVID-19, and one in four said they would use their cars as their primary mode of transportation in the future. One-third of respondents said the’financial limits’ would have a serious impact on vehicle purchases after the coronavirus ended.
6. Many consumers are coming couple the moon during the large crowd was gathering where escape is .
The same IBM survey predicts that conferences and fairs will be greatly affected by the new reality. 75% of respondents say they are unlikely to attend these events in 2020. However, pubs and restaurants are expected to recover in the coming months. In this study, IBM explains:
“More than a third of consumers said they would visit pubs and restaurants, and only about 10% said they would not. Outdoor parks are also a preferred place. One-third of respondents said they would visit outdoor parks if mobility restrictions were lifted. About 25% said they were also ready to visit the beach, and 1 in 5 said they were ready to go to the malls and shopping centers.”
7. The consumer non-face-to-face retail store looking for you .
Companies that offer contactless payments as well as instant payments via mobile phones or other mobile devices will be the right partner for customers in 2020 who don’t want to use a wallet.
According to an IBM study, 40% of consumers will use contactless payments in the future.
8. Corona in crisis because the local product purchases and preferences are .
Proximity, the origin of the product, and availability are the main reasons customers no longer want to go far to buy the product they want. At a time when many consumers are trying to avoid crowding as much as possible, special or big discounts aren’t enough to get them to turn to their favorite stores.
In IBM’s survey, 25% of US respondents say they are now buying more locally produced, grown, and sourced products in local stores.
9. a healthy lifestyle for consumers attitudes have evolved .
In the aftermath of COVID-19, consumers are looking for ways to maintain and improve their health and wellness by re-evaluating priorities, lifestyles, and existing values.
A survey conducted by McKinsey & Company of Chinese consumers also supports this trend. “Trends arising from the corona crisis, such as home training (provided by some sports apparel brands), can continue to persist. This reflects the fact that many people plan to protect their health after the coronavirus outbreak.”
10. New users are the driving force behind e-commerce growth.
According to the McKinsey & Co survey, looking at the results in China, 3-6% of the online market share is expected to be solidified by the middle-aged people who are accustomed to digital channels, and the new consumer segment that has overcome the first barriers such as account creation.
As offline stores shut down and their physical share declined, e-commerce became a more important channel for many product categories. In the post-corona era, this shift is expected to continue, especially in countries where retailers have sufficient capacity to deliver a positive online experience.
Consumers of all ages will prefer a “safe” shopping experience online rather than a crowded store.