Aside from a few select categories, consumer spending has stalled due to the COVID-19 pandemic. However, as states continue to loosen restrictions and consumers head back out into the world, we'll see an uptick in spending in areas outside of food and household goods. Below, we take a look at where the pandemic has changed consumer attitudes on spending and evaluate where we could see long-term changes in behavior.
Across the globe, sports fans have been missing out on the action with their favorite teams sidelined by the COVID-19 pandemic. Though restrictions are beginning to loosen and leagues like the NBA and NHL have announced plans to return, the reality is that things are going to be drastically different at first. Seventy-two percent of Americans said that they wouldn’t feel safe attending live events without a coronavirus vaccine, which only further cements the notion that athletes will be playing in front of empty arenas for the foreseeable future.
As consumers have shifted to online shopping to avoid trips to the grocery store, brands such as Pepsi and Clorox have begun investing in direct-to-consumer sales. But, to do it well, big CPG brands will have to master e-commerce and the myriad logistics that come with it. While diversifying channels is an essential part of growing business, they have to ask themselves, “If we build it, will they come?”
For agencies and event organizers, there's a lot of work to be done to assuage consumers' concerns when it comes to returning to live events. In fact, a study from Performance Research found that 60% of consumers have long-term fears about attending large events.
Experiential marketing is one of many industries that has been hit hard by the COVID-19 pandemic. In the interim, agencies and brands have been working diligently to create virtual experiences that bring joy, value, and entertainment to consumers during a difficult time.
Coming at a time of collective unease and jarring disruption, Mental Health Awareness Month feels particularly crucial this year. As mentioned in our latest infographic, 44% of Americans say their mental health has worsened since March, and 90% are looking for ways to improve their wellbeing. So, how can brands help? Below, we share three ways to genuinely connect with consumers and provide solutions throughout this month:
Though citizens across the country are more than ready for new normalcy to take hold, the unfortunate reality is that it’s going to be some time before large-scale live experiences are commonplace again. And even when they do, things will be different. In the meantime, brands have been adapting by creating virtual experiences that allow consumers to engage from afar.
With citizens across the country sheltering in place for the time being, our ways of life have been turned upside down. For many, the commute to work has been limited to a commute to the other room. That fitness class or gym session has morphed into a virtual one from within the comforts of home. Even the way that we eat food, an essential commodity for life, has changed drastically. Though many restaurants are still offering delivery, the fact of the matter is that all the time spent at home has led to major shifts in consumption behavior.
When the NBA announced the suspension of its season on March 11th after a player tested positive for COVID-19, it set off a chain reaction that no one could have foreseen just months ago. From March Madness and the Masters to the Stanley Cup playoffs and Summer Olympics, sporting activities have come to a screeching halt. While public health and economic concerns remain the most important issues of the COVID-19 crisis, sports have always served as an escape for the millions of Americans who would welcome such a distraction during this time.
As we move our way through mid-April, people across the country are passing the one-month mark in terms of time spent in social distancing. Over that time period, consumer purchase behavior has followed a rather distinct pattern, with cleaning products, pantry items, paper products, and a few other categories seeing a major surge in sales. However, as the calendar moves forward, consumers are further settling into their routines and keeping non-essential purchases to a minimum.