The Covid 19 pandemic has transformed our daily lives and has allowed us to discover new hobbies and create new routines, but what are people currently spending money on? What are the items that everyone is purchasing the most during these difficult times? Where are sales declines happening? A Wall Street Journal analysis gives us the answers to these questions.
At the beginning of the pandemic, it was noticeable that there was an increase of in-store grocery shopping, however, currently, there is a huge rise in online-shopping which began the week after April 1 and stores like Whole Foods and Trader Joe's have noticed the impact of online shopping in northern states and less foot traffic as social distancing measures and stay at home orders have become more strict.
At the beginning of the pandemic, there was a particular rise in the purchase of certain items like waffle irons, sandwich makers, board games, printers, and heaters. However, in April, there has been a decline in these items. On the other hand, the purchase of stay at home comfortable clothes like sweatshirts and pajamas have risen in April as more people are working from home and others are unemployed (more than 27 million) but the purchase of other apparel has sharply declined.
In addition, from the beginning of the pandemic, there has been a noticeable increase in alcohol sales. The demand has particularly increased in liquor and beer but not so much in wine and this increase continues.
Contrarily, and what is impressive, is that Netflix and Disney + have maintained their subscription sign-ups at the same level and have not noticed any significant increase due to the virus.
Furthermore, gardening has become an important hobby and has grown more than during the last recession, there has been increased purchase of seeds since mid-March, particularly in tomatoes, peppers, squash, and beans.
As the pandemic progresses, there has been a progression in the items that different individuals are purchasing. Online purchases have become extremely important as they protect customers from interacting with the general public and from contracting the virus. E-commerce is growing and this is an important topic in marketing. This article relates to the external market environment because this pandemic is having a political, economic, social, and technological impact across the world. Due to local governments placing safety measures, the economy been dramatically impacted and workers losing their jobs, people staying at home, and technology becoming a necessity in our lives, it has transformed the way people live and the products they purchase and consume.
https://www.wsj.com/articles/quarantinis-bread-makers-and-badminton-whats-hot-in-down-consumer-market-11588411800?mod=hp_lead_pos8
It's been interesting watching history unfold right in front of us - moreover, it's an insight into how people make decisions when confronted with unfamiliar circumstances.
ReplyDeleteWhat I've found most striking is that consumers, if nothing else, value a sense of normalcy in times of crisis. Such highlights a very basic, human need we all share, and I think a lesson can be found in that - marketers should always remember that markets are, at their heart, people with needs, and will gravitate towards things that can satisfy these needs.