How Consumption Behavior Shifting During Covid-19 Outbreak
During this corona pandemic, some industries may experience some challenges in difficult times. According to the EY consumer index, the consumption behavior data shows that there are several things that can be considered related to consumption patterns. In North American countries such as the United States, Canada and Europe such as the United Kingdom, France and Germany there were simultaneous decreases in consumption levels.
Based on data from the EY Consumer Index, 27% of consumers said they would reduce their spending during this pandemic. 26% of consumers choose to continue consuming as usual. Meanwhile 35% of customers choose to make a deposit on inventory. And the remaining 11.35% spent more than others.
Understanding Panic Buying that Happens a Lot
The data above can give an idea of what happened lately. With an uncertain situation like now. Many people respond to crises in different ways. One way is to do a large shopping for needs and stock during the pandemic that occurred.
This reason is quite understandable. Given the psychological human is to be able to survive and meet their needs. However, there are many people who do not understand how to manage needs in the present. As a result many people end up buying too much compared to seeing their needs. By adhering to the principle, the advantages are better than the disadvantages.
However, there are some things that need to be noted. This would cause new problems. With so many people doing it. It actually makes people feel the need to do the same thing, which is to shop and prepare supplies. This will ignite many others and make the stock inventory reduced and even exhausted.
Main Priority Product to Purchase During Pandemic
Because the pandemic is changing the pattern of people shopping globally. Then the products spent also experience changes. There are several products that are the top priority during this pandemic. According to data from the Nielsen Research Company the following are products that were sought after during the pandemic:
- Proactive health-minded buying (purchasing preventative health and wellness products).
- Reactive health management (purchasing protective gear like masks and hand sanitizers).
- Pantry preparation (stockpiling groceries and household essentials).
- Quarantine prep (experiencing shortages in stores, making fewer store visits).
- Restricted living (making much fewer shopping trips, limited online fulfillment).
- A new normal (return to daily routines, permanently altered supply chain).
- Health and Safety Products
This is the product most sought after during the pandemic. People become more sensitive and conscientious about health problems. The impact, of course, is that people will become more aware of the issue. Health products such as medicines, antiseptics, vitamins and medical devices will be targeted.
This happens in all countries that experience a pandemic. Data from Nielsen shows a very significant increase of up to 300% for medical devices such as masks and antiseptic liquids.
- Food and Household Needs
The next type of product that has increased is food products and other household needs. This is understandable because in order to survive people need basic needs such as food and other basic needs.
Data from Nielsen also showed a significant increase of between 300% of demand for basic needs such as wheat and milk. In addition, foodstuffs that can be stored for a long time have also increased, such as processed oatmeal products, nuts and the like.
- Digital Media Streaming
Apart from food and health products. A unique thing happens when many areas experience lockdowns. However, this is a blessing for digital media streaming services. With the majority of people spending time at home, digital media streaming is actually experiencing its heyday.
Giant streaming services such as Netflix, Hulu, HBO and Amazon have experienced a drastic increase in the number of people who have subscribed since the lockdown in various countries in the world.
What should the company do?
This was the main question of the topic. Perhaps many companies feel the need to adjust the way they market their products. Given the changes in consumption patterns that occur among consumers almost all over the world.
There are a number of sectors that are likely to undergo major changes in order to survive and be able to compete in the present. Companies must dare to make changes to keep up for this short term. While developing the right strategy for the long term. Given there is no certainty when the present situation will end.
However, companies can make various efforts to keep the economy excited by the following ways:
- Product Education and Diversification
Because there are many shortages due to covid, the company has a responsibility to change consumer consumption patterns. One way that can be done is to provide information and education about covid. This might indirectly provide the understanding needed to survive in the current era.
- Product Diversification
For companies that produce food. One way that can be done is to provide a variety of food choices and a wider range of products. Thus consumers have more options and not only buy these products and ultimately lead to scarcity and high price increases on certain food products.
- Doing Product Restrictions
This may be a way that can be done to prevent scarcity of products sold. Companies must also be wiser and consider other factors before making this policy. If deemed necessary and already in a crisis stage, then this method can be an alternative
- Adaptation with a New Pattern
The next step is to adjust to the pattern of consumer behavior. The most widely used way to shop now is online. This can also be a consideration and a challenge for the company, how to make sales with an online scheme appropriately.
- Increase Online Sales
For businesses that are directly affected, such as retail, food and restaurants. Maybe making improvements online can be a solution to overcome the sluggish business lately.
The right sales strategy can be key for some of these businesses. The ways that can be done are as follows:
- Serve 24/7
One of the advantages for businesses that sell online is that they can attract customers anytime. So the business can go on without worrying about not being able to serve customers. Besides that, another convenience is an easier management system.
And also it is safer in terms of health-supporting social distancing movements because there is no need to queue to buy something. And reduce the risk of being infected due to crowding in shopping or restaurants.
- Provide More Services
With the current conditions, companies can also conduct analysis and evaluation of the types of their services. What needs to be added and what needs to be removed. In addition, this can also provide new business opportunities by creating new experiences amidst conditions like now.
- Gives Confidence About Shopping Online
The last thing you can do is to provide information about how to shop online. This is also an effort to ensure that shopping online is one solution in the present era.
You can provide certainty or guarantee by conducting an online shopping campaign. You can also give examples of the process of traveling goods from the company to the hands of consumers with a safe and convincing scheme. In addition, online shopping also supports efforts to prevent the spread of Covid-19 from spreading.
Thus, changes in consumer behavior are quite radical and very fast. Then the company must be responsive and react to changing patterns of demand. There are several stages that companies should try to understand in order to survive in an uncertain era like now.
Because people’s mindset will change for a short period of time and will also form in the long term. People will tend to reduce interactions in getting the product they want. And every company must be able to analyze, evaluate and adapt to changing consumer behavior patterns as they are today.