Even as much of the world is (re)opening up, shoppers are indicating that there are some changes brought by the pandemic that will persist, according to a new global study from Momentum Worldwide, the world’s first global experiential advertising agency. The study reveals five key changes to consumer behaviour that retailers must understand and adapt to if they want to be successful in this new environment.
Recent forecasts predict trillions of pounds in losses for retailers. With an increasing number of brands folding due to the pandemic, in order to survive and succeed, it’s crucial for retailers and brands to understand the new consumer behaviours and attitudes that are changing the industry.
“With the retail sector being in a constant state of flux since COVID-19, we felt it was important to get a sense of what retailers need to do to have a fighting chance at surviving the pandemic,” according to President of Momentum UK, Luke D’Arcy.
5 key findings revealed by the study include:
· The behaviour of bulk buying and “the big store” is here to stay. Brands must respond with larger formats and be ready for consumers to return to their preferred household brands—76% of consumers say this will be the case. With 78% of consumers claiming that grocery stores/supermarkets are the #1 place they will be most comfortable returning to, retailers must prepare sooner rather than later.
· Brands should give back to the local community. 93% of consumers expect big-name brands to give back to the community where they operate. Retailers need to be active in helping local communities. 87% of consumers say seeing a brand give support during the pandemic has improved their perception of them and 82% agree they will seek out and buy brands that provided support during the pandemic.
· Little luxuries are essential. 85% of people believe it’s important to reward themselves and 79% seek out little moments to reward themselves during this stressful time. Consumers are looking to products to create experiences.
· E-commerce is the new in-store. With 79% of consumers likely to continue using grocery delivery services, the “e-experience” is now as important as in-store. Brands must improve their e-commerce to ensure they are effective and trustworthy. Trust is the biggest reason consumers choose a brand.
· Digital advertising will increase. Retailers must emphasize digital spend. 84% of consumers now shop online since the pandemic so brands need to shift spend accordingly so they remain “seen” by consumers.
“A provocative insight we found is that while shoppers admit they are likely to continue purchasing online, the vast majority miss the in-person experience,” said President of Momentum UK, Luke D’Arcy. “83% of study respondents said they miss shopping time with family and friends and 79% said they miss being able to touch and feel products. This suggests that it’s extremely important for retailers to continually keep a pulse on shopper attitudes and behaviours as they continue to morph, depending on consumer safety and comfort.”
Source: Momentum Worldwide