My, How We’ve Changed: How COVID-19 Has Transformed Our Consumer Behaviors
November 12, 2020: By: Todd Kaufman, VP of Business Development
Seven months into the pandemic, what has changed? Pretty much everything! As the initial shock of lockdown and quarantine has faded, we have all evolved as humans and as consumers. In that process, we have learned how resilient and adaptable we can truly be. From the way we work to the way we exercise to the way we eat, the impact of COVID-19 has transformed our purchase habits and how we interact with our favorite brands.
We have gathered a series of consumer, brand and marketing trends that highlight those changes that seem to be here to stay.
THE NEW NORMAL
· Mask Up… But Make It Fashion
As masks have become mandatory, they have become as much fashion accessory as medical necessity.
From Louis Vuitton designer face shields to LOL! Surprise and Crayola masks for kids and Uniqlo’s version that is kind to the skin and blocks UV rays, the options for safety with style are endless. We’re also seeing a shift towards eco-friendly masks made from washable fabric or silicone, allowing for reuse and reducing waste caused by disposable ones.
Masks are also being used to raise awareness of societal issues as several celebrities have been wearing #VOTE masks in advance of next month’s election. And Naomi Osaka wore masks bearing the names of victims of police brutality during her post-match interviews at the U.S. Open.
With mask mandates in place for the foreseeable future, we’ll continue to see them become a form of creative expression.
· Nice to Virtually Meet You
From workplace meetings and socializing to birthday parties and graduation celebrations, virtual platforms have helped us stay connected to our friends, families and colleagues while quarantined.
Programs like Zoom and Microsoft Teams have given businesses a platform to connect with colleagues and new contacts via chat or video call, while Facebook and Houseparty became the place for virtual events. While closed, bars and restaurants held events such as virtual trivia to keep customers engaged.
Despite lockdown, these platforms have helped some people actually feel more connected and virtual gatherings have now become a part of our everyday lives.
· Together, But Six Feet Apart
With consumers beginning to re-engage in in-person activities, event spaces have gotten creative as they seek to satisfy the demand for safe, socially distanced gathering places. Several cities have embraced the drive-in option for movies, concerts and sporting events. In the U.S., Walmart converted 160 of its parking lots into drive-in theatres through a partnership with Tribeca Enterprises. In the U.K., Virgin Money Unity Arena is a pop-up concert venue that includes distanced, raised metal platforms for groups of up to five people. We can expect to see more innovative activations that offer safe outlets for community and togetherness.
· And The Fake Crowd Goes Wild!
Sports have returned on both sides of the pond with one twist… no fans! Major League Baseball and the NBA engaged fans by allowing them to “attend” games virtually through cardboard and digital images, respectively. And the NFL and English Premiere League have been pumping in artificial crowd noise to enhance the at-home viewing experience. Content-starved consumers have welcomed the distraction and comfort of seeing their favorite teams play. We’ll continue to see teams and leagues get creative with consumer engagement, in-game content and marketing partnerships that allow fans to connect more deeply to their favorite players and teams.
· Back To School
In one form or another, school is back in session. Teachers have turned to Google Classroom to upload lesson plans and activities that keep virtual students engaged. Parents have used virtual learning apps/content platforms to fill the gaps. Outschool provides virtual learning classes for small groups of children with subjects ranging from art history to historical figures to Frozen dance parties. ABC Mouse teaches traditional school subjects such as math, science and history while GoNoodle promotes movement and mindfulness to help reduce stress and anxiety in our little ones’ minds. While parents (not so) patiently await the return of full time in-school education, children are acquiring new technological skills and learning curriculums beyond their age/grade level.
· Take A Stand
As the fight for social justice and racial equality continues, consumers are now demanding that the brands with which they engage take a stand. Ben and Jerry’s was celebrated for its strong call to action to Dismantle White Supremacy, while Nike and Procter & Gamble released powerful, thought-provoking ads that raised awareness of the issues faced by BIPOC/BAME members of our communities. Uncle Ben’s, Aunt Jemima and Eskimo Pies, long cited as using racist tropes in their brand imagery, will all be relaunched under different names/packaging. In the sports world, the Washington Football Team retired the “Redskins” name and logo. On the retail front, Sephora was the first major retailer to commit to The 15% Pledge, a call to action to retailers to commit a minimum of 15% of their shelf space to Black-owned businesses. With brands and companies having made meaningful and sustainable commitments to diversity, education and inclusion, we can expect positive change to continue as we work towards a more just and equal world.
HEALTH + WELLBEING
· 99 Problems But A Calorie Ain’t One
Featuring similar fresh flavors as normal soft drinks, low/no calorie drinks allow the fitness focused to enjoy a fruity, refreshing drink without the excess sugar. Brands, such as Dash and Zevia offer fizzy/fruity drinks that keep the refreshing, sweet taste of a soft drink while offering a sugar and calorie reduced alternative. And real fruit-infused flat and sparkling waters such as Hint and Spindrift continue to gain market share. Now that “sugar is the new smoking,” we expect demand to continue in this space.
· Pack a Protein Punch
With an increased focus on muscle growth, quick snacks and plant-based 'meats' packed with protein have become staples in the diets of health-minded consumers. As such, consumer demand for fresh, convenient snack options have increased. Companies such as Huel and RX have developed bars and shakes to enable consumers to get their protein fix during their post-workout window.
And more people are aware of how meat consumption effects the environment, companies like Beyond Meat and Good have developed protein-rich products from meat-free ingredients to allow consumers to follow a vegetarian/vegan diet without missing out on vital nutrients.
The focus on physical health and helping the environment will continue, and it is likely that the demand for protein in both plant-based and snack varieties will follow.
· Strong Body, Strong Mind
As consumers continue to navigate the daily stresses caused by the pandemic, many have turned to mindfulness to maintain their mental fitness. Meditation has been a top search according to Google Trends and according to Twitter, the use of the meditation emoji has increased by 161% since last year!
Calm has turned to celebrity partnerships including Lebron James, Matthew McConaughey and Harry Styles. The app has also spawned a TV series, which launches on HBO Max later this year.
headspace lifted the pay wall on some of its guided meditations, providing a series of free content called Weathering The Storm to populations heavily impacted by the pandemic, including New Yorkers, the unemployed and essential workers.
As consumers continue to prioritize mental fitness, we can expect an increase in products and content that reduce stress, promote sleep health and focus on overall wellbeing.
THE SIMPLE LIFE
· Comfort Is Key
The movement of meetings from the conference room to the couch created the homeleisure category. Loungewear has seen a resurgence as consumers spend more time in their homes without the need to dress up in their workplace or at social events.
Pretty Little Thing and Asos, made loungewear a key part of their marketing across their websites and social platforms, while large fashion brands, such as Pangia and Calvin Klein produced high-end loungewear to meet the shift from work clothes to staying-in outfits.
With consumers spending more time on social media throughout the day, digitally native brands such as Feat used targeted advertising on social networks throughout lockdown to market their butter soft hoodies and joggers.
With the remote workplace here to stay for a while and winter on the horizon, the demand for stylish but comfortable apparel and accessories will continue to grow.
· Level Up
With activity options limited, gamers leaned in. Hard.
Esports streaming service, Twitch, broke several viewership records earlier this year and according to the Wall Street Journal, the platform also saw amateur players begin to increase their own live streams for both the community aspect and the opportunity to make incremental income.
Nintendo reported increased console sales and Microsoft reported significant growth in multi-player engagement. Electronic Arts and Activision Blizzard have also seen sales and gameplay achieve new records. And Epic Games collaborated with Travis Scott for a musical journey within Fortnite that attracted millions of viewers.
As the cold weather kicks in, gameplay and viewership is forecasted to continue to increase, with a much more expanded and engaged audience.
· Get Out!
As the pandemic forced the closure of gyms and fitness clubs, health-minded consumers turned to the outdoors to keep up with their regimens. Participation in cycling, running and other outdoor sports have all increased as consumers look to keep up their mental and physical fitness.
Big sports brands, such as Nike and Under Armour, have developed apps to track outdoor exercise, while Strava has become popular for bringing a social side to tracking runs, walks and bike rides. Also on the tech side, fitness devices such as the Apple Watch and Fitbit have made it easier for athletes to track their fitness journey without the need of a personal trainer and a gym.
Other outdoor sports, like tennis and golf, have seen increased participation as a method of exercise, enjoying the outdoors, and socializing at a safe distance.
With consumers having adopted more personalized and affordable fitness habits as an alternative to the gym, this is a trend that will continue to grow, especially as they limit non-essential indoor visits.
MY HOME, MY CASTLE
· Master Home Chef
While restaurants were closed, chefs looked for other streams of revenue, often in ways that invited diners to collaborate with them.
Restaurants such as Momofuku and Shake Shack began selling meal kits, allowing at home diners to recreate specialties such as Bo Ssam and Shackburgers at home. Virtual cooking classes taught by prominent chefs such as Top Chef finalists Kelsey Barnhard Clark and Eric Adejpong offered amateur cooks a chance to learn new techniques and ingredients from culinary masters.
In New York, exclusive restaurants such as Rao’s and Carbone, offered delivery through third-party apps such as Postmates and Uber Eats.
With a consumer expectation of premium food being available to them 24/7 and restaurants hungry for additional revenue streams, we can expect continued accessibility in this segment.
· Hair Toss, Check My Nails
With the prolonged closure of salons, consumers took it upon themselves to keep up with health and beauty regimens that were previously left to professionals.
At-home manicure kits from Olive and June allowed consumers a DIY option for #qurantinenails that includes more colorful and creative looks.
With the lines between personal and professional looks blurring, consumers have also been experimenting with non-traditional hair color palettes. Bleach London has given consumers an option for bold and bright colors.
For men, many took the #qurantinebuzzcut plunge almost immediately, leading to increased adoption of at-home hair clippers from Wahl, Phillips Norelco and Bevel.
With consumers now having adopted these behavioral changes, we can expect this trend to continue.
· Bringing The Gym Home
With gyms forced to close their doors, fitness-minded consumers turned to technology-driven home equipment. Fitness mirrors and basic equipment such as weights and mats sold out quickly while apps saw significant increases in downloads. Many fitness brands offered free trials and discounted prices to increase the accessibility of their products.
Peloton has seen exponential growth in sales of its bikes and treadmills that connect to live classes and have video content. The app also provides strength, yoga, bootcamps and guided meditations.
Fight Camp registers boxing workouts via an app to track calories and strength and retains all data to aid in fitness improvements. Tonal marries equipment and an interactive screen to track your movement and connect you to workout classes to enable at-home training with professionals.
With consumers having incorporated these new habits into their daily regimen and the continued limitation of non-essential indoor activities, the home gym will likely grow and expand as a safer and more cost-effective alternative to traditional gyms.
· Fixer Upper
With home now serving as the primary place for well, everything, consumers are investing in home improvement and enhancement projects that turn their domiciles into modern oases.
Retailers such as Lowe’s, Home Depot and Tractor Supply Company are all seeing growth, thanks in part to consumers spending more on discretionary items such as fire pits and patio heaters. And earlier this summer, inflatable pools were almost as hard to find as Purell!
Sherwin-Williams has reported growth as many millennials are moving into older homes that require a refresh. Scott’s Miracle-Gro is also seeing unprecedented growth as gardening not only provides a home beautification opportunity, but a new hobby.
With “urban flight” projected to continue, so will consumer spend on home products.