Fashion blogger and NSW DFO Homebush ambassador Quoc Phan discusses how COVID has changed consumer shopping behaviour.
It’s no secret that COVID-19 has changed the landscape of consumer behaviour.
Consumers now have price, value and affordability at the top of their criteria when it comes to shopping, with key retailers such as DFO Homebush, noticing a significant rise towards cost-conscious buying behaviours and an increased sense of shopping with purpose.
Types of change in spending behaviour
We have seen a change in consumer spending behaviours which is largely dependent on key factors such as their life stage, disposable income and overall spending habits.
When the government initially introduced the coronavirus supplement, it was seen as a temporary financial assistance to some, and as an increase of discretionary income to others.
For example, some younger working Australians may have not been earning the $1500 per fortnight the government were offering, which resulted in a greater amount of discretionary income available.
Consequently, people experiencing this temporary spike may view this as a bonus and were more likely to spend on items on their wish list.
With the border closures and international travel bans, where people may have spent on travel, they would now allocate that spend at retailers, whilst remaining focused on finding the best value.
Seeking value
Despite various spending behaviours, COVID has made us universally more conscious as a consumer.
The term ‘overall value’ is what the modern present and post pandemic consumer seeks.
This can be based on brand, quality, usability and cost per use.
Hence, it doesn’t mean purchasing the most inexpensive or cheapest available.
Consumers are beginning to look past the price of an item at face value, but now consider the overall cost per wear and/or use of that item.
For example, buying a luxury backpack on sale at $300 may not necessarily be cheap in the short-term but if it’s intended to be used regularly and the quality holds up well over time, this would be seen as great overall value in the long term.
When it comes to being cost-conscious, consumers will not always be hunting for a bargain but also explore the value of a product especially when they need the item to serve its purpose.
Becoming a smarter shopper
As some consumers want to continue to spend with an eye on value, there has been an increase in Australians searching for more frugal ways to spend.
This includes searching for discount codes, using loyalty benefits from current memberships and cash back reward services.
In August, CEO of Flybuys, John Merakovsky, stated that Australians are looking to get more value out of their shop, along with Cashrewards reporting that their new members have increased by 37% year-on-year, following the sales surge during the pandemic.
Therefore, it is evident that many consumers are actively educating themselves on how to become a smarter shopper.
Desire to shop in-store
After being at home more frequently than usual for most of this year, along with the easing of restrictions, Australians will be more eager to be out and about.
Despite, the shift of digital adoption likely to continue post-pandemic, there will be a burning desire among Australians to visit their favourite bricks and mortar stores as they seek an in-store experience.
In spite of the convenience that online shopping provides, there’s a lack of a human interaction element, which in-store experiences offer.
A consumer sentiment survey carried out by Boston Consulting Group in July showcased that 60% of consumers preferred to go to physical stores, compared to 22% preferring online channels.
Bricks and mortar shopping provide an advantage to be able to analyse a product and its overall value in-store than experiencing the ambiguities of online shopping that include sizing issues and the inability to have a tangible experience with the product prior to purchasing.
However, it is evident each consumer profile has varying levels of digital maturity and usage, hence, it’s likely, we’ll see in-store visitations skewed to traditionalists and baby boomers compared to tech savvy young adults who are regular online shoppers.
Bricks and mortar stores will never become redundant as consumers still always value the in-store experience especially when they are unfamiliar with the store and/or brand, or just need the reassurance that they are getting what they pay for, but it has shown that online shopping will continue to grow, due to its unmatched offering of convenience.
COVID has changed the way we shop, but there will be a recommencement of some shopping normalities in the future, along with retailers having a greater focus on offering an omni-channel experience to consumers.