The Coronavirus Era has disrupted ‘business as usual’ for companies producing consumer goods and providing consumer services. This has led to a rapidly changing operating and consumer environment and left the appetite for experimentation diminished.
With retailers and consumers becoming increasingly risk averse, what could this mean for craft brands, new product development and the innovation pipeline? What are the new core set of values and features that brands will refocus on? Most importantly what will be the shopping trends..?
As per the report shared by Euromonitor International on latest consumer trends Shopping will also be conducted largely from the home, and remote learning, gaming, cashless and proximity payments will all either ramp up or become the norm. Consumers’ mindsets will switch to reduced consumption of non-essential items and anti-ostentation, a focus on self and family and on preventative and immune health.
Companies will focus on maintaining value sales as consumers find themselves in a recessionary era with reduced discretionary income.
How consumers work, shop, eat, drink and play will be driven by lingering home seclusion and ‘risk dread’. An increase in working-from-home will be matched with an increase in hometainment – cooking, eating and socialising at home.
Following are the trends to look forward as highlighted in the report..
The new normal: What is here is stay…
Health beauty and fashion
New attitudes toward physical distance, health and remote working will create opportunities related to therapeutic. properties and mental wellbeing. Companies will work to diversify supply chains, while continuing to invest in digital tech and virtual experiences to maintain engagement.
Social distancing knocks the very concept of group consumption. We had witnessed a shift in traditional drinking rituals and occasions pre-COVID-19, and this will become more pronounced. Consumers will be jaded, less prone to want to post on social media about their drinking preferences; discretionary income will be spent on things that make them healthy in the first instance, happy second.The report does not expect to see a new normal for packaged food; the industry is doing well and expects to return to normal in most cases, with a residual impact of stockpiling bringing purchases forward in some cases.
Home and Technology
As consumers cut down on discretionary purchases, tech brands that focus on low-cost strategies will benefit by proving to offer the biggest bang for buck. However, technology companies operating in traditionally more premium spaces like Apple will not likely be impacted as much due to their loyal bands of affluent diehard fans.
Services and Payments
Retailers will focus on their value proposition and technology. As the technology gap grows between laggards and adopters, sales will disproportionately go to the adopters, resulting in a more consolidated retail landscape globally. Shopping centres, inherently social, will have to work hard to draw shoppers.