Not surprisingly Covid-19 has changed a lot about our lives including our consumer buying habits. In a recent condensed version of their extensive consumer research McKinsey and Company came up with some interesting trends.
How many of these changes will stick? McKinsey has identified 5 areas.
- Flight to online
- Shock to loyalty
- Need for hygiene transparency
- Back to basics and value
- Rise of the homebody economy
Digital shopping is here to stay
Categories where expected growth in online shoppers exceeds 35 percent include essentials such as over-the-counter (OTC) medicine, groceries, household supplies, and personal-care products.
Brand loyalty on the wane
Consumers are now trying new product brands at the rate of 36% and another 25% are switching to private label brands. Of consumers who have purchased different brands, 73% intend to continue buying those brands.
Concern for health and safety
Enhancing hygiene with contactless delivery and curbside pickup is increasing in popularity as 79% of consumers indicate that they will continue or increase their usage of self-checkout after Covid-19.
Focus on essentials
As discomfort with the state of the economy grows, about 40% of U.S. consumers have reduced spending and cut back on nonessentials.
Activities outside the home
Consumers are concerned about returning to regular activities outside the home at a rate of 73%. The places most listed include hair salon, gym, or restaurant along with public transportation, ride sharing, air travel, and crowded spaces like indoor or outdoor events.
Spending time at home
More at-home time is spent on domestic activities, media, and news. Usage of online entertainment has skyrocketed. So has investments in at-home fitness equipment and online exercise programs.
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Source: McKinsey and Company
The recommendation(s), advice and contents of this material are provided for informational purposes only and do not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice. Dean & Draper Insurance Agency specifically disclaims any warranty or representation that acceptance of any recommendations or advice contained herein will make any premises, property or operation safe or in compliance with any law or regulation. Under no circumstances should this material or your acceptance of any recommendations or advice contained herein be construed as establishing the existence or availability of any insurance coverage with Dean & Draper Insurance Agency. By providing this information to you, Dean & Draper Insurance Agency does not assume (and specifically disclaims) any duty, undertaking or responsibility to you. The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.