Since the start of the global pandemic Covid-19, the
countries have started to enter into a complete lockdown situation, which mean
limiting the public outing, public gathering and so on. Due to this very
measure taken by the governments around the world we have seen a major shift in
the shopping behavior of the consumers, as the shopping mall get closed and
people have very limited access or even no access to shops. And due to this
very fact the Ecommerce shopping is gaining growth in the sales numbers day by
day. People are shifting from bulk buying behavior to online shopping, they are
even changing what they’re buying, when they buy, and how they buy. The
COVID-19 pandemic has accelerated the significance of online channels. Today,
consumers consider online as their primary shopping channel and this will
persist in the immediate future. In that digital-first environment, operational
agility, flexibility and consumer engagement assume huge significance.
According to Capgemini Research Institute, Consumer Behavior Survey, 59% of
consumers worldwide said they had high levels of interaction with physical
stores before COVID-19, but today less than a quarter i.e. only 24% see
themselves in that high-interaction category. Amazon’s website hit 2.54 billion
visitors for the entire month of March 2020, representing a 65% jump compared
to the same period in 2019. Walmart Grocery app witnessed a record downloads
representing 460% growth in average daily downloads amid COVID-19, which is 20%
more than Amazon.
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detailed analysis on the COVID-19 – Pipeline Analysis 2020 reports browse
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As news of COVID-19 spread and as it was officially
declared a pandemic by the World Health Organization, people responded by
stocking up the items of their needs. Consumers rushed to buy medical supplies
like hand sanitizer and masks and household essentials like toilet paper and
bread. Soon, both physical and online stores were struggling to keep up with
demand, and price gouging for supplies became rampant. According to a survey
done in survey of U.S. and U.K. consumers found that 96% of Millennial’s and
Gen Zs are concerned about the pandemic and its effects on the economy. This
concern is leading them to make change their behavior more dramatically than
other generations, which includes cutting back on spending, stocking up on
items, and spending less on experiences. During the coronavirus pandemic,
online grocery shopping is picking up a lot of converts—at least for now. The
change in shopping patterns has caused retailers to adapt quickly and could
create long-term challenges as the giant retail sector accelerates its
transition to ecommerce and Omni channel fulfillment. According to data from
research and polling firm Nielsen and Rakuten Intelligence, U.S. online sales
of consumer packaged goods (CPG)—the kinds of items typically sold in grocery
stores—grew 56% for the one week ending April 18, compared to the same period a
year earlier and for the week ending April 11, online CPG sales grew 59.1%
compared to the same period a year earlier.
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In-order to match the changing behavior of consumers
the retailers across the world have adapted their delivery and returns
propositions to ensure customer and staff safety during the COVID-19 crisis,
and these changes have led to transform the consumer expectations of online
delivery and returns. The contactless delivery was widely introduced in China,
setting the bar high for retailers and foodservice providers globally.
E-commerce giants Alibaba and JD.com’s food & grocery arms introduced
contactless delivery methods, as well as foodservice providers such as Meituan
employing this method for takeaways with customers being informed of both the
chef and delivery driver’s temperature – a level of detail that has not yet
been replicated in other countries. Contactless delivery has been introduced by
retailers internationally, including in the UK and US, helping them to keep
their online operations open. With online retail sales estimated to reach a
great high of $6.5 trillion by 2023, the ecommerce sector was already booming.
But since the outbreak, online shopping has been catapulted into complete
overdrive. Even the largest retailers on the planet are struggling to keep up
with the unprecedented consumer demand. Few of the items which has seen the
major hike in purchasing behavior includes Disposable Gloves which has seen as
670% y-o-y increase in purchase from march 2019 to 2020. Similarly the demand
for cough & cold medicines have increased to 535% y-o-y in the same period.
Among the major declines includes luggage & suitcases which saw a decline
of -77% y-o-y.
According to the research it was found that these six
product categories have mainly been affected due to COVID-19 and consumer’s
buying behavior changes:
· Health
and Safety products: It was found that items such as hygienic and medical
mask sales are up by more than 300%
· Consumer
Packed Goods: Products like shelf-stable milk and milk substitutes are up
by more than 300% in dollar growth. Other items which has seeing a major
increase in demand are things like dried beans and fruit snacks that have a
long shelf life
· Food
& Beverages: Since the stores are closed the consumers are mainly
focusing on buy online pick up in store option or home delivery. Hence the apps
which provides service to home delivery are also facing workforce issue to
accommodate all the orders
· Streaming: Since
people are locked in their homes and have no longer any options for external
entertainments, hence the streaming services like Netflix, Amazon, Hulu, and
Disney+ has seen a gain in new subscribers during the first quarter of 2020
· Luxury: The
potential expected loss as great as $10 billion for this industry in 2020 due
to COVID-19. This is mainly because the luxury goods rely heavily on the Asian
market’s purchasing power, where the pandemic has been affecting consumers
since January
· Fashion
& Apparel: The industry is facing a huge impact due to closure of
stores and even the online apparel sales are down as people are putting more of
their budgets into daily essentials
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Conclusion:
While the world is reeling from the effects of the
Coronavirus pandemic, user behavior is being forced to change and shoppers are
increasingly moving online. Ecommerce sites are in a position to be able to
capitalize on this, but only if they are able to be found by customers in the
first place. While tactics may be needed to adapt the new environment and the
businesses should consider retaining investment in their analytics, online
marketing and online content so that they can remain competitive and meet the
needs of shoppers.
UnivDatos Market Insights (UMI) Latest Research Report –
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