As the U.S. and Canada start to re-open for business, we’re entering a new phase of consumer confidence and spending trends. While significant areas of the country are still seeing increases in cases, many states are beginning to lift restrictions, and many more will do so soon. We’re in a new period of transition, and with public health professionals saying that we’ll be battling the spread of the virus well into 2021, we’re expecting this period of transition to be the new normal, at least for the remainder of 2020.
So how should brands react in this transition period? To start, we need to consider the macro trends that have come to light in the last few months and how to position our brand communication given this new consumer mindset. As we look to the data to help lead strategy, these trends are becoming clear as important drivers to any brands tone and approach during this transition time.
ACCELERATED DIGITAL ADOPTION
Forced isolation and a reliance on digital platforms for everything from meetings to grocery shopping has accelerated key digital trends that were already on the rise. Over half (54%) of US consumers are shopping far more online during the pandemic, with the primary driver to replace in-store shopping. The growth in ecommerce has been significant, with Salesforce noting a 41% YoY spike in digital revenue for online brands as states locked down in the week of March 15-21, 2020.
LIVING WITH INCREASED ANXIETY
As consumers are faced with the threat of illness, financial hardship, and social isolation, anxiety and mental health issues are rising dramatically. Guardian Labs recently released study results that revealed 83% of US consumers felt “stressed and/or overwhelmed” during these challenges, with 45% seeking out mental health assistance. The trend is making people feel more in-tune with one another, with 76% saying they feel more empathetic towards people with mental health challenges, giving credence to the notion that we are all in this together.
GREATER FOCUS ON HEALTH
Consumers are focusing on their physical health while in isolation, both through activity and healthy eating. Research and Markets notes that home fitness sales have increased 170% since the pandemic started. Peloton recently paused advertising as sales accelerated, and its stock has reached highs not seen since November 2019. This at-home fitness trend will likely continue beyond reopening as people cautiously return to gyms and fitness classes.
SEEKING COMFORT
While there has been a spike in those looking to maintain health, there has also been an increase in sales of comfort foods, as many consumers look to familiar favorites to sooth themselves and provide their families with meals they love. “We’re seeing consumers crave comfort and convenience as they are making more meals at home.” – Kelsey Roemhildt, General Mills
THE RISE OF DIY
From homemade masks to new paint for the living room, as consumers stay home, they’re finding new ways to improve their surroundings and pick up DIY projects that they’ve left unfinished. As lockdowns ease, consumers will still be remaining largely at home and we can expect this trend to continue. Home Depot purchase intent mentions in social media are up 75% YoY, with Lowe’s mentions up 55%.
EROSION OF BRAND LOYALTY
As economic challenges affect millions, many consumers are shifting away from normal purchase behaviors, both for accessibility and financial reasons, with 50% of consumers changing brands for some needs, and nearly 25% buying more generic store products. Consumers are beginning to expect brands to adapt to the current economic climate, with 49% expecting brands to provide discounts.
For a deeper look at these macro trends, and to see our 7 Recommendations for Marketers During Transition, read our After the Curve white paper.
