Is the pandemic changing the consumers behavior? Nobody can doubt this. But the recent research of EY, Future Consumer Index has proved this while watching the behavior of consumers in USA, Canada, United Kingdom, France and Germany. The research identifies and categorizes each consumer that displays specific purchasing characteristics. This kind of data is valuable and can be precious for marketplaces for the future development of their business. Online shops and department stores have seen already the great changes and must use data to adjust for the future.
What are the new emerging consumer behaviors?
In a period of pandemic, is absolutely natural that most of the consumers are worried about the health of themselves and their close people. They are also worried about buying and the availability of their basic needs. Consumers finally are concerned about their loss of the freedom of movement. Those radical changes on their routine and the loss of stability drive consumers to adopt new behaviors.
The “cut deep” consumer.
According to the research the “cut deep” consumers who is approximately the 27.3% of the market, have restricted much of their expenses not only for security but also due to the impact on their careers. Most people in this group are more than 45 years old and many (one in four) have lost their jobs temporarily or permanently. The 78% of this group is spending less often and mostly purchasing only the essentials. 33% have declare no need in brands in this pandemic period. Almost 9 to 10 of these people spend nothing for leisure activities or clothing and footwear.
The stay “calm and carry” on consumer.
This group consists for the 26% of the market. The people in this group have no significant impact on their lives and jobs, therefore they haven’t changed their expenditures. Most of them continue to purchase with the same frequency. A 21% of them spends more in food essentials and a group of 18% less.
The “save and stockpile” consumer.
This market group is more concerned regarding their families and the future rather than the pandemic itself. These people are currently spending more on food and essentials. Most of them also spend less on clothing (72%) and less for their entertainment (85%). They are the most pessimistic for the long term-effects of the crisis.
The “hibernate and spend” consumer.
Those are the consumers that are the most concerned about the impacts of the pandemic. Their age group is mainly from 18-44 years old. Although they seem to worry about the impacts of pandemic only 40% of them is shopping less frequently. Also while 42% of these market say that the products they buy have changed, 46% of them admits that brands are now more important to them.
The market after the pandemic.
The transition of the consumer behavior is cannot be clearly predicted after the pandemic is gone. Only some consumers expect to go back to their old behaviors soon. Usually after similar radical changes people adopt the mood of pause and reflect. Time will show how and when things will chance.
The above market groups according to the research, are expected to change post-pandemic.
Five new consumer segments are expected to appear such as the:
- “Get to normal” consumer – 31% that daily live haven’t really changed and are less worried about the pandemic.
- “Cautiously extravagant” – 25% that are focused on health but are optimistic and will sped their money where they feel is more important.
- “Stay frugal” – 22 % spending slightly less with some more significant cuts. More pessimistic and trying to get back on their feed.
- “Keep cutting” – 13% The least likely to have job, and keep deep spending cuts, with significant changes on where they spend their money. Most worried market segments.
- “Back with a bang” – 9% that is the younger audience have work and now spending more, since their life was disrupted. They are now the most optimistic.
In any case, in the near future markets and consumers will continue to change and the evolution cannot be totally predicted. Marketplaces and retailers have to be able to understand and adjust anytime. The consumer’s behavior is important and businesses must find ways to support, reassure and remarket. New normal is expected to appear. Learb more about this comprehensive research here.