Ever since the novel coronavirus took over the world, life has transformed entirely from what many used to be familiar with in the pre-COVID-19 era. Economies are collapsing worldwide while people stay at home in an attempt to flatten the curve. Businesses, regardless of whether they are mighty or small, are taking a major hit due to the COVID-19 lockdown.
Along with these significant changes, consumer spending behaviors have also drastically evolved. While fewer people are spending money on non-essential products during the lockdown period, this behavior is likely to differ in the post lockdown era. However, there are nevertheless expectations of major changes happening to the ways in which consumers are going to spend money once the lockdown lifts. Here are a few things to expect from consumer spending behavior post the COVID-19 era:
It is no secret that small businesses, in general, have been suffering significantly due to the COVID-19 lockdown. The lack of buyers has resulted in severe losses for many small business setups, and unfortunately, several are on the verge of bankruptcy. Since such a situation persists, more and more consumers are motivated to shop locally whenever possible in the lockdown period. This trend is expected to continue even after the lockdown lifts, which will help small businesses to get back on their feet.
All the facts and figures are pointing to the outcome that the e-commerce industry is going to flourish post-COVID-19 era. This is because consumers will be reluctant to head out and shop in crowded retails stores even after the lockdown lifts to ensure safety. Apart from the safety issue, consumers have realized how much more convenient and more comfortable it is to shop online than at a retail store. Even when shopping at physical stores, research shows that 95% of customers want companies to take it upon themselves to maintain social distancing measures in their stores.
Now that vacation plans are getting canceled left and right, and with 65% of the population postponing their plans, many are waiting for the lockdown to lift to travel again. But, as with everything else, spending behaviors in terms of travel will not be the same again as well. The popularity of cruise ships and other crowded and confined travel mediums are likely to decline in the future. People are less likely to travel to densely populated countries and cities as well.
Since the majority of restaurants and pubs have shut down everywhere, consumers are now ordering takeout online. Even after the lockdown lifts, 65% of consumers say that they are going to choose takeouts over dining out in restaurants. Consumers are apprehensive of hanging out in crowded pubs, as 67% of them reveal their plans to continue virtual happy hours with friends in the comfort of their own homes. Therefore, alcohol delivery from bars and pubs will continue to be accessible after the lockdown period.
For many, it was a habit to hit the gym every day before the COVID-19 hit. Now, since gyms have shut down worldwide, previous gym-goers have to make do by working out in their own homes. Once the lockdown lifts and gyms reopen, fewer people are likely to visit them as they used to earlier. The Harris Poll indicates that 85% of consumers are planning to continue their workout sessions at home, even in the post-COVID-19 era. This will be the case even if consumers remain positively interested in fitness like they used to be. The major difference is that consumers will prefer to buy fitness equipment for personal use rather than spending time in a crowded gym. Consumers are also likely to prefer workout sessions organized by fitness operators and trainers, which are less crowded than regular gym settings.
Consumer spending patterns are going to be different from how it was in the pre-COVID-19 period, and how it is now in the lockdown period. The expectation is that consumers are going to be more responsible and careful about their safety while spending money in the post-COVID-19 era.