The majority of consumers have changed their brand loyalty during the pandemic. According to a recent McKinsey study, which polled consumers from more than 48 countries regarding their spending habits during 2020, about 75% of U.S. consumers changed brands once if not more since the pandemic began. Overall, consumer values have been shifting and continuing to change as uncertainty remains when it comes to health, home finances, and job security. According to Ketchum Analytics partner and managing director Mary Elizabeth Germaine, "We're seeing massive consumer behavior shifts that are likely to persist."
Testing brand loyalty
The first wave of brand loyalty testing came when many products were no longer available and consumers were focused to either go without or buy products from other brands. While 75% of consumers changing brands is the U.S. figure, levels of purchasing differences and intent to continue new shopping experiences vary from one country to the next. India and China show higher level of changing brands, at roughly 95% and 80% respectively, while Japan shows a much lower change at 30%. However, the majority of global consumers who have already tested brand loyalty are more likely to continue expanding their shopping experiences.
Less inclined to pay
Prior to the pandemic, Gen Z was most likely to only buy essentials only compared to other generations, but this has changed. Now, all generations show a trend toward only purchasing what is needed, rather than items for entertainment only. A likely reason why all generations are moving toward buying less and choosing different brands that may cost less remains that everyone has become more budget-conscious in light of overall limitations and uncertainty.
E-commerce lift
Online shopping has been on the rise for some time. However, this trend has skyrocketed during the pandemic at a higher rate than previously expected as many businesses were forced to temporarily shut down and limit capacity upon opening. E-commerce has seen a 30% growth across all countries. Now, more consumers than ever expect to make online purchases, which naturally includes the need to sometimes change brands depending availability and cost.
Homebody reset
Many more consumers are still engaging in home-based activities than before. This trend involves consumers prioritizing in-home purchases more than spending money going out to restaurants, concerts, and other public attractions. Lower levels of public engagement undoubtedly means that some consumers have given up loyalty to certain venues while opting to stay home instead, while others may stay more local and shop at different stores that don't require as much travel.
Health on the mind
With health and safety concerns remaining a top priority for most consumers, many have begun to prioritize how companies are keeping their employees, their products, and their customers safe. While the relationship consumers have with brands when it comes to trust and care has been important for some time, now this has become more true than ever. As a result, many consumers are open to changing brands to find products that resonate with these values in an authentic way.