The pandemic changed many of our shopping habits, but how many of those changes have lasted?
Consumer spending during the pandemic was the product of rapid and forced change, which resulted in various fads and trends. However, the rollback on pandemic restrictions and changes in the economy has caused consumers to return to their pre-pandemic spending practices.
Takeout and delivery services were very popular in 2020, but their use quickly dropped in 2021. Brick-and-mortar locations are still the main channel for shopping.
The pandemic also changed consumer spending on sustainable and luxury goods.
According to a 2020 Capgemini Research Institute, 65% of all consumers are more mindful about their consumption habits and impact because of the pandemic. Of consumers, 79% changed their spending preferences because of changes to their social and environmental concerns.
Sustainable products grew to a 17% market share in the past few years.
Lower income households could afford to spend more on luxury goods and experiences with stimulus checks, but they stopped once the stimulus program ended.
Higher income households stopped spending on luxury goods during the lockdown and resumed once restrictions were lifted.
Technology and its adoption were the biggest changes in the pandemic.
Trends such as contactless pay, omnichannel retailing and new customer convenience options existed before but were accelerated by the pandemic.
Consumer and business adoption of these technologies increased the share of digital retail sales.
Investments in Web 3.0, the metaverse, virtual and augmented reality, artificial intelligence and blockchain technology increased across industries. As a result, the need for better digital marketing and marketers has grown.
Only around one-third of major businesses had confidence in their employees’ digital marketing skills during the pandemic, so the need for the skills has vastly increased.
Overall, the consumer changed less than the market and technology did.
