Consumer behavior in the "New Normal"

Who would have thought a microscopic particle from Wuhan could cause catastrophic havoc globally. The unstoppable virus destroyed lives & livelihoods across the countries. Industries stood still & decimated economies to the ground.

With very few income opportunities at hand & daily expenses bleeding personal savings, consumer behavior is ready to shift to the “New Normal”.

In this unique situation of COVID-19, no one has a concrete idea of what the future holds for us. The absence of historical data makes it even more difficult to predict consumer behavior in times to come.

In the recent lockdown, we have seen a number of immediate impacts on our behavior as a consumer & based on that we can predict consumer behavior in the “New Normal”.

Decrease in luxury spending

Gone are the days when consumers enjoyed financial freedom. Consumers of the “New Normal” will significantly curtail spends on luxury items like cars, cameras, phones, watches, gold & costly home appliances.

Carts on e-commerce sites will go empty of luxury goods & wish lists will grow short for a few months.

Expensive movie & dinner dates will become “movie & dinner at home” dates.
The shopping sprees will be settled at window shopping.

In a nutshell, luxury shopping will go south in the “New Normal”.

Increased spending on health & essentials 

One of the positive sides of the lockdown is increased health awareness. Scores of people have taken up Yoga, Meditation & “at-home fitness exercises” during the lockdown for healthy living.

Health-conscious consumers are expected to shell-out more on hygiene, preventive care, healthcare/medicine & fitness. 

Personal, home care & essential goods will also be top picks in the “New Normal”. 

Cost-conscious buying

Consumers are expected to continue reducing their expenses & pile-on their savings in uncertain times. Value for money & cost-effective products will be preferred over premium brands. 

This behavioral shift will be seen in luxury product purchases like cars, cameras, smartphones, etc. 

Online is a new offline

“Online shopping surge is unlikely to change even after COVID-19,” says the report published by Capgemini. In my opinion, the appetite for online shopping will only increase & consumers will actively opt for e-payments & contactless deliveries.

E-commerce sites are also putting their best efforts to make this experience pleasant through timely delivery, compensations for canceled orders with higher & wider integration of e-payment platforms.

Retail chains are also expected to open/enhance their e-commerce portals while giving customers offline shopping experience as well.

Increased level of self-isolation will drive online traffic in the “New Normal"

 “Indoor” is the “New Leisure” 

Outdoor entertainment events like sports, cinemas, theatres, concerts & parties will receive an infinitesimal response. Consumers will turn to indoor entertainment mediums such as small screens, OTT platforms & web streaming services like YouTube. 

As consumers will defer their meeting, backpacking & solo-traveling plans; the travel & hospitality industry will barely keep afloat.  

The void created by outdoor leisure will be filled-up by indoor leisure. This lockdown has already seen people posting their cooking, singing, acting & writing talents on social media platforms. 

Indoor leisure will be the “New Normal” in pandemic times & after.

Owing to the safety concerns, the behavioral shift stimulated in the lockdown will continue to be seen even after the COVID-19. 

Post Covid-19, we are looking at the new consumer who is healthier, more conscious, less mobile, & yet more productive.