Surveys

5 Ways Consumers Have Changed Since COVID-19

SurveysApr 02, 2021

5 Ways Consumers Have Changed Since COVID-19

From frugal spending to a focus on wellness, a new report looks at how consumer behavior has evolved since the start of the pandemic.

5 Ways Consumers Have Changed Since COVID-19
Consumers have altered their shopping habits since the start of the COVID-19 pandemic. A new report from The Conference Board takes a look at those changes.
New York—The COVID-19 pandemic has taken its toll on everyone as it drags past the one-year mark.

A new report from The Conference Board takes a look at what has changed about consumer behavior since the start of the pandemic.

Titled “Consumer Behaviors and Business Opportunities in the COVID-19 Era,” the report highlights a shift toward frugality, a surge in spending on wellness products, and other insights into evolving consumer behavior.

Here are five important takeaways.

More shoppers are cutting back on spending.

As COVID-19 sent shockwaves through the economy, many consumers became increasingly frugal and switched up their spending habits.

At the height of the pandemic, 64 percent of U.S. consumers said they actively cut back on spending, according to The Conference Board Global Consumer Confidence Survey.

That frugality may be here to stay, said the report, particularly if job recovery stays sluggish and financial support from the government dries up.

The pandemic-related job losses disproportionately affected Black and Latino employees as well as those in lower-paying jobs or with a lower level of education.

In January 2021, more than 40 percent of consumers in each of these demographics said they were having difficulty meeting regular household expenses, according to the report.

“As in previous downturns, this change in spending patterns may be slow to reverse, with many likely to stick to cheaper products and sales channels over name brands even after their finances recover,” said the report.

It added companies who can cater to an increasingly frugal customer, through offerings like secondhand markets or rental services, will be rewarded.

The pandemic is weighing on consumers’ mental health.

The economic toll the pandemic has taken is clear, but the emotional cost has been just as hefty.

The U.S. Census Bureau’s Household Pulse Survey, a biweekly survey that tracks people’s economic situation, food and housing security, and their mental state, found that more Americans have been experiencing feelings of anxiety and depression since the pandemic began.

The survey asks how often people feel “nervous, anxious, or on edge,” how often they feel unable “to stop or control worrying,” how often they have “little interest or pleasure in doing things,” and how often they are “feeling down, depressed, or hopeless.”

As the pandemic continued, fewer people said they were free of these symptoms, with reports of feelings of anxiety and depression at their highest in late April into early May.

Google searches for terms like anxiety, panic attacks, and treatments, particularly remote and self-care techniques, greatly increased after the start of the pandemic, according to a World Economic Forum report on Google Trends data.

An author of the WEF’s report called the situation “a mental health tsunami” that stems from burnout, unemployment, and COVID-19-related deaths, and said experts foresee a decline in society’s mental health.

Wellness spending is surging.

As one trend lends itself to another, the decline in mental well-being has led to an increase in spending on wellness.

The report noted consumers have been spending more on self-care products and listed a variety of reasons behind the uptick, including mental stress and a desire to protect themselves from the virus.

Another notable factor is people have more time on their hands due to job loss, not having to commute due to remote work, and the lack of activities available.

As a result of this wellness focus, certain categories have felt a boost in sales, including fresh produce, natural products, sports equipment, and anti-anxiety products and services, like aromatherapy and meditation.

Digital services that center around health and fitness have also seen user counts surge as they flock to online workout videos, personal training apps, and more.

Virtual mental health services as well as other telehealth solutions also gained popularity.

Consumers are prioritizing digital convenience.

Online shopping is nothing new, but the pandemic has led to an increasing number of consumers making use of those services. 

E-commerce sales surged during the pandemic, topping off at more than 16 percent of total retail sales in Q2 2020.


This figure, which measures where a purchase took place, “dramatically understates digital’s true influence,” said the report.

“Consumers now expect digital convenience at every stage of the shopping experience, even if the final sale occurs in a brick-and-mortar outlet.”

Shoppers are getting accustomed to the digital features that save them time and effort, including high-quality filtering, search, real-time information, and responsive support.

Physical stores are still crucial, added the report, noting the “immensely important” role they play in discovery and brand immersion as well as social interaction and community events.

“If anything, the collapse of revenue for many businesses due to the closure of brick-and-mortar stores and other offline service points (including those with online capabilities) has demonstrated that physical locations are essential.”

However, the report adds businesses may need to alter the functions and features of physical stores to better complement their online business.

Businesses may consider adding a pick-up section for online orders or adding QR codes to shelves to provide additional information about a product online.

Retailers should pay attention to mobile.

Mobile devices continue to take on a bigger role in the shopping experience.

Cellphones are expected to “play an integral part in further advancing digitalization and omnichannel operations.”

As 5G networks—the newest and fifth generation of the technology behind cellular networks—rollout throughout the country, mobile’s reach will expand along with it, said the report.

As shoppers look to keep their distance from each other, touchless interactions, like contactless payments or virtual try-ons, are increasingly important.

“As 5G networks proliferate, the centrality of mobile will only become more entrenched, and must shape all business decisions in the post-pandemic economy,” said the report.

For more information or to read the report, visit the Conference Board’s website.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Watch: How Is the Industry Doing When It Comes to Diversity?
Recorded WebinarsMar 31, 2023
Watch: How Is the Industry Doing When It Comes to Diversity?

Annie Doresca and Michelle Graff welcome Reggie Johnson and Sheryl Jones for a frank conversation on the state of DEI in fine jewelry.

Macy’s Longtime CEO to Retire Next Year
MajorsMar 31, 2023
Macy’s Longtime CEO to Retire Next Year

Jeff Gennette will step down in February 2024, passing the torch to the CEO of another notable retailer.

Piece of the Week: The Extraterrestrial Lunar Necklace
AuctionsMar 31, 2023
Piece of the Week: The Extraterrestrial Lunar Necklace

Artisan Martin Roberts fashioned lunar meteorites into 48 beads to create this out-of-this-world necklace.

Full Disclosure at Your Fingertips
Brought to you by
Full Disclosure at Your Fingertips

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

JBT Re-Elects Richard Katz as Board Chairman
MajorsMar 31, 2023
JBT Re-Elects Richard Katz as Board Chairman

As for new members, the organization welcomed Jewelers of America’s Annie Doresca and Parag Jain of Parag Diamonds.

Weekly QuizMar 31, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
At Watches & Wonders, a $20M Watch Makes Its Debut
WatchesMar 30, 2023
At Watches & Wonders, a $20M Watch Makes Its Debut

Jacob & Co.’s new “Billionaire” timepiece features more than 200 carats of yellow diamonds.

See the Jewelry Collection Expected to Top Elizabeth Taylor’s at Auction
AuctionsMar 30, 2023
See the Jewelry Collection Expected to Top Elizabeth Taylor’s at Auction

Heidi Horten, wife of department store magnate Helmut Horten, collected jewelry from Bulgari, Cartier, Harry Winston and Van Cleef & Arpels.

Bringing Over 130 Years of Diamond Expertise to Modern Grading
Brought to you by
Bringing Over 130 Years of Diamond Expertise to Modern Grading

De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.

Jewelers Mutual Marks a Major Milestone
MajorsMar 30, 2023
Jewelers Mutual Marks a Major Milestone

The jewelry industry insurer and solutions provider is celebrating 110 years in business this month.

10.57-Carat Purplish Pink Diamond Expected to Sell for $35M+
AuctionsMar 29, 2023
10.57-Carat Purplish Pink Diamond Expected to Sell for $35M+

Sotheby’s will auction the diamond, which it says is “arguably the most significant pink diamond to ever appear at auction,” in June.

Blue Nile to Close Fulfillment Center, Lay Off Workers
MajorsMar 29, 2023
Blue Nile to Close Fulfillment Center, Lay Off Workers

The retailer, recently acquired by Signet Jewelers, will lay off 119 employees in July.

See All the New Patek Philippe Watches for 2023
WatchesMar 29, 2023
See All the New Patek Philippe Watches for 2023

The Swiss watchmaker introduced 17 new models at Watches & Wonders Geneva.

Mark Henry Jewelry Offering Complimentary ‘Masterclass’ on Sales from Peter Smith
MajorsMar 29, 2023
Mark Henry Jewelry Offering Complimentary ‘Masterclass’ on Sales from Peter Smith

As part of the promotion, Smith will share his sales expertise during a 90-minute training session.

I’m Enchanted With Parmigiani Fleurier’s Perfect Travel Watch
EditorsMar 28, 2023
I’m Enchanted With Parmigiani Fleurier’s Perfect Travel Watch

At Watches & Wonders, the Swiss brand unveiled a follow-up to last year’s Tonda PF GMT Rattrapante.

Helzberg’s New Lab-Grown Diamond Collection Earns SCS Certification
CollectionsMar 28, 2023
Helzberg’s New Lab-Grown Diamond Collection Earns SCS Certification

The “rêve” collection’s engagement rings and wedding bands are geared toward “sustainability minded customers.”

This New Rolex Day-Date Tells Time … and Affirmations
EditorsMar 28, 2023
This New Rolex Day-Date Tells Time … and Affirmations

A new word appears on the dial each day of the week.

D.C. Jeweler That Honored 50-Year-Old Gift Certificate Closes
IndependentsMar 28, 2023
D.C. Jeweler That Honored 50-Year-Old Gift Certificate Closes

Bensons Jewelers closed for good Feb. 24, impacted in part by the decline in foot traffic downtown since the onset of the pandemic.

Swarovski Names New GM of North America
MajorsMar 28, 2023
Swarovski Names New GM of North America

Kolja Kiofsky has been with the crystal and jewelry company since 2010.

Jewels to Shine in Upcoming ‘Golden Age’ of Hollywood Auction
AuctionsMar 27, 2023
Jewels to Shine in Upcoming ‘Golden Age’ of Hollywood Auction

The Kruse GWS Auctions sale will include the replica “Taj Mahal” necklace Elizabeth Taylor made with Avon as well as a costume piece Marilyn Monroe wore.

Pandora Promotes GM to Chief of Retail Operations
MajorsMar 27, 2023
Pandora Promotes GM to Chief of Retail Operations

Massimo Basei is moving up, while Chief Commercial Officer Martino Pessina is stepping down.

Registration Is Open for the HardRock Summit
Events & AwardsMar 27, 2023
Registration Is Open for the HardRock Summit

AGTA GemFair and the Denver Gem & Mineral Show also will have a presence on the show floor.

Piece of the Week: The $5.8M Patek Philippe ‘Sky Moon Tourbillon’
AuctionsMar 24, 2023
Piece of the Week: The $5.8M Patek Philippe ‘Sky Moon Tourbillon’

Sold by Christie’s Hong Kong, this masterwork of complications now holds the record for most expensive watch ever auctioned online.

Movado Predicts Declining Sales Amid ‘Volatile’ Retail Environment
FinancialsMar 24, 2023
Movado Predicts Declining Sales Amid ‘Volatile’ Retail Environment

The watch company expects first-quarter sales to fall as much as 15 percent due to inflation and tough comps.

Lightbox Promotes General Manager to COO
Lab-GrownMar 24, 2023
Lightbox Promotes General Manager to COO

Adam O’Grady, general manager of the Lightbox Lab, has taken on the new role and will report directly to Lightbox CEO Antoine Borde.

Which Brands Do Watch Enthusiasts Love Most? Chrono24 Takes a Look
WatchesMar 23, 2023
Which Brands Do Watch Enthusiasts Love Most? Chrono24 Takes a Look

The watch marketplace gathered data from 1.3 million collectors, highlighting the most popular timepieces and exploring value appreciation.

Burgundy Diamond Backing Out of Ellendale Mine Deal
SourcingMar 23, 2023
Burgundy Diamond Backing Out of Ellendale Mine Deal

Burgundy has opted not to exercise its option to buy the mining claims Gibb River Diamonds currently owns.

GCAL Introduces 8X Cut Grade for Proprietary Cuts
GradingMar 23, 2023
GCAL Introduces 8X Cut Grade for Proprietary Cuts

Patented and specialty cuts now can receive an 8X Proprietary Certificate, which can be customized to include a company’s brand and logo.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy