Coronavirus/COVID-19 is changing the economy in every way imaginable. Some of these changes may be here to stay, as people grow more reliant on eCommerce, remote work becomes more mainstream, and social distancing continues to affect the public sphere. Some things may be gone forever, once the dust settles. Others may blossom, as a new way of living and working take hold.
People are spending less money, which hardly comes as a surprise. 52% of consumers have reduced their overall spending since the onset of Coronavirus. 63% have increased their online spending, however.
These insights come from Jungle Scout’s 2020 Consumer Trends Report. Jungle Scout is a platform for Amazon Sellers, so their research is heavy with data pertaining to Amazon, but there are plenty of useful, actionable insights for anyone working in eCommerce or online business of any stripe.
Read on to find out more about the 2020 Consumer Trends shaping today’s economy.
2020 Consumer Trends According To Jungle Scout
As we stated at the beginning, Coronavirus is changing the way we think about and conduct business in every conceivable way. Some traditional business models may never recover. 39% of consumers polled by Jungle Scout indicate they’d be fine never shopping in a physical store again.
Of course, the Brick-and-Mortar apocalypse has been going on for some time. That trend had been looking like it could turn around, however, as we’ve slowly, gradually recovered from the last recession.
Here are some other 2020 Consumer Trends to help give you an idea of where people’s minds, hearts, and wallets are at.
71% Of Consumers Have Shopped On Amazon During Coronavirus
As we also stated in the intro, Jungle Scout are a platform for Amazon Sellers, “Amazon Entrepreneurs” as they put it, so much of their data is focused on that marketplace. This figure shouldn’t exactly come as a surprise, given that Amazon are the largest online retailers in the world.
Jungle Scout’s research indicates that Americans are heavily reliant on Amazon. 65% of consumers make at least one purchase on Amazon each month. 52% say if they could only shop at one store for the rest of their lives it would be Amazon. That’s also hardly a newsflash, considering you can buy everything from marshmallow fluff to goldfish.
69% Of Consumers Will Maintain Or Increase Their Online Spending
It seems that shoppers are getting used to online shopping and are integrating it into their daily lives and routines.
69% of consumers say they will continue their current rate of online shopping if not increase it, even after reopening. Likewise, 39% say they’d be fine never visiting a physical store again.
This bodes ill for impulse purchases of giant bars of chocolate and overpriced breath mints.
84% Of Consumers Are Brand Loyal
Now here’s a surprising statistic. 84% of consumers shop for specific brands when they shop online. This is in spite of having access to nearly every product on Earth. Or perhaps it’s because of that fact.
The 2020 Consumer Trends Report proceeds to break down this data further, revealing consumers’ brand loyalty for different products. Groceries, health and beauty, and pet supplies are the top categories where consumers shop for a particular brand. These are all some of the products people are buying most of right now.
50% Of Consumers Are Buying More Groceries
The 2020 Consumer Trends Report breaks down consumers’ online spending habits even further, showcasing how people are spending their money during lockdown.
A lot of people are spending more on groceries, which hardly comes as a surprise given that restaurants have been closed. 47% of consumers have been spending more money on cleaning supplies, as well, which is also hardly surprising given that people have been home much more often.
People are spending less on clothing, however, with 47% spending less on clothes than they were before Coronavirus.
One takeaway from this could be that this is an excellent to promote household products or brands. Now would be an excellent time to launch any kind of home renovation or beautiful product, if you’ve been thinking of it. It’d be a good time to amp up your activities if you produce household goods of any kind, as well.
27% Of Consumers Will Increase Spending When Things Reopen
That’s not a ton. 45% of consumers report that their spending will remain relatively the same when things resume. 29% report that their spending will decrease after things re-open.
This seems to suggest that consumer uncertainty is still quite high. That’s likely to continue for some time, as the economy continues to get rocked due to Coronavirus.
Book Sales Are On The Rise
A great majority of consumers are still only spending money on essentials. Entertainment of various kinds is on the rise as well, however, which makes sense, seeing as how people are looking for ways to pass the time during lockdown.
20 – 29% of consumers have been spending money on books and e-books during lockdown. 13 – 24% still purchase toys and games, as well. 15 – 16% are still spending money on art supplies.
The takeaway from this consumer trend is that it’s still a good time to launch a product meant for entertainment or creativity.
46% Of Consumers Still Prefer To Buy Clothes In-Person
While some things have been changed irrevocably in the wake of Coronavirus, other things will remain the same. 46% of consumers would still prefer buying clothing in-person rather than online, for instance. This makes sense, as people still want to be able to try things on before making a purchase.
47% still prefer to buy Health and Beauty supplies in-person, as well. 42% still prefer to buy Household goods, like Home & Kitchen or Garden & Outdoor goods.
One takeaway from this insight is if you sell a product that involves a physical experience in some regard, you might experiment with ways to make the online experience more tangible for your customers. You could incorporate a virtual dressing room app like Zeekit, for instance, if you’re selling clothes. Or you could incorporate augmented reality for household goods, if you’re selling a product for someone’s personal space.
One thing is for certain, things will never be the same after Coronavirus. Things will look very different when society begins to re-open, whenever that may be. Now is a time to experiment, to get bold and try new things. It’s time to start conjuring The Future.
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