US research is leading the way in defining how consumers are increasing their spending on line by as much as 30%. Here we take a look to see how new spending habits may effect your industry results and how R6 Digital can help your business move online through branding and marketing.
L.E.K Consulting have released new figures that show while consumers are pessimistic about a recession next year and that consumer sentiment has turned negative, consumer spending has been refocused onto “stay at home” activities like cooking, watching TV and exercising at home.
Research is showing that there are large increases in online activity, search is up and people are spending much more time on social networks.
There are clear winners and losers in consumer spending with more people staying home. They are turning to the Internet, partially social platforms to engage and stay connected.
The data would suggest that the money spent online is most likely a redirection of more traditional spending.
It will take a direct hit from Jupiter to stop some from buying and whilst unemployment is on the rise, many still have jobs and are not in threat of losing their job, this group, at this stage are still spending, but redirecting the way they spend.
It is too early to tell how long the world will be in the grips of COVID- 19, but we suspect many consumers will be forever changed in their buying habits.
Many will have tried the online, deliver to your door experience for the first time, and given the ease at transacting, many will settle into a continued regime of buying online. Ecommerce stores, those that have quality products have had massive movements over the last 40 days and continueing to drive forward.
The big winners so far are:
- At home fitness + 35-40%
- Pet supplies + 10-15%
- Groceries +20%
- In home entertainment+ 20%
- Healthcare services +15%
- Medical supplies 20%
The R6 Digital Takeout
We don’t know how long this trend will continue, but once consumers get a taste of a new trend, it often sticks. The survey revealed that up to 50% of consumers will return to their old buying habits. Additionally, when supported with socila media marketing, the increase in social proofing is even more noticeable than ever.
The other 50% will adapt to their new found buying model. Are you ready?
While Facebook has revealed its usage has “Skyrocketed” advertisers are slow on the take up to target the increase in usage.
If your brand is to dominate, then you will have to adapt. Some brands, through no fault of their own will suffer lost business, but just about any brand can reimagine to stay relevant.
Time may not be on your brands side but there is no doubt that consumers will get used to the (new for them) online buying paradigm and while consumers will return over time to more traditional methods of buying, many will stick with their new, recently discovered online experience.
R6 Digital can help your brand reinvent itself. Talk to our branding experts today and we can help you reinvent and reimagine your business’ branding.