The ongoing coronavirus pandemic has clearly impacted consumer buying habits in a number of ways over the last few months, particularly with constant news coverage of economic distress and health considerations. At this point, however, consumer trends are influenced by more than the daily news cycle, particularly involving concerns over rising levels of unemployment and worry about the future of the economy.
According to Nielsen
Basket reset. Rather than stocking up on hand sanitizer and toilet paper, which consumers were flocking to during the first quarter, sensibilities are leveling out and changing. Health-related items are still in demand, but the tides have changed. In short, stockpiling is on the way out, although many consumers will still maintain larger at-home quantities of essential items than in previous times.
Homebody reset. Where consumers spend money has shifted to the home base. While this was also true at the beginning of the pandemic, this trend has re-emerged and will likely remain for some time as business closures and public gathering restrictions seem here to stay for the time being, with local guidelines changing now and then. Overall, the trend is that consumers now prioritize in-home purchases more than spending money going out.
Rationale reset. Why consumers make the purchases they do remains a hallmark in consumer psychology. Currently, buyers are less willing to expend discretionary income on luxury items and activities, such as entertainment outings and vacation travel. This rationale is partly the result of travel bans and restrictions while also influenced by health factors as well as economic concerns due to limited income and an uncertain financial future.
Affordability reset. Considering the literal ability to pay for items undoubtedly affects how any consumer spends their money at the end of the day, wallets are going a long way in determining how much consumers are willing to spend on extra items, which is less these days by default. As global economic declines continue for individuals and families, affordability and the other behavioral resets appear to hold true not only in the U.S. but also around the world, particularly in Asian markets. In the U.S. alone, "one in four American households reporting an income decline due to COVID."
- https://www.nielsen.com/us/en/insights/report/2020/predicting-the-covid-19-behavioral-reset/
- https://markets.businessinsider.com/news/stocks/nielsen-study-four-predicted-consumer-resets-will-shape-the-southeast-asian-fmcg-market-of-tomorrow-1029567255#
- https://www.adgully.com/covid-19-nielsen-decodes-evolving-consumer-trends-future-consequences-96819.html
- https://us.acrofan.com/detail.php?number=336369
- https://www.uschamber.com/co/good-company/launch-pad/nielsen-buying-habits-covid-19