Consumers raided supermarkets, grocers and medical supply stores nationwide, in a ‘doomsday’ stock-up for everyday items considered necessary for upcoming weeks or months. With uncertainty high regarding how long a period of isolation might last, we can only assume this shift will be here for a while.
Naturally, this has had a direct impact on both small and large businesses, some feeling it much more than others. The best thing businesses can do right now is look at trends, utilise what’s already out there and focus on future strategies. Consider how your business might be able to help its surrounding community.
Studies suggest credit card spending in grocery stores and supermarkets was up 74% during the second week in isolation, compared with this time last year.
The purpose of this article is to inform businesses where consumers are spending money, to present opportunities for small business to expand on their current offering. This is a time to grow and explore new spaces and ways of working. Exciting new avenues have emerged that will be carried on well past COVID-19. Old rules are being broken and new, inventive ways of working have arrived.
Here’s what consumers are buying right now:
1. Groceries – particularly shelf-stable, long-life products like canned goods, soup, dried fruit, pasta and rice.
2. Medical equipment and supplies, including vitamins, disinfectants, antiseptics, cough and cold treatments, soap and toilet paper.
3. Health services – there has been a 25% increase in health service spending, including consultations (in person or online) with doctors, medical professionals, naturopaths and personal trainers.
4. Electronic goods, particularly goods necessary for at-home work stations.
5. Fitness equipment that can be used at home.
6. Streaming services and media platforms for home entertainment and work, including Zoom, Google hang-outs and Netflix.
7. 5G and internet technology
8. Office equipment and furniture for home offices
9. Alcohol.
Where consumers have haltered spending:
1. Restaurants, cafes and bars, likely due to take-away and delivery only restrictions
2. Clothing and department stores
3. Recreational activities and events due to forced closures.
4. Travel due to restrictions.
Trends and considerations
Boost in online and e-commerce marketplaces
Online markets and home delivery options were already booming, but current isolation measures have seen a rapid increase in online sales, with shoppers wanting to limit visits to physical stores and crowded places. Supermarkets, grocers and restaurants are offering more opportunities for home delivery and as regulations continue to tighten, this trend will only increase.
A time for local
More than ever consumers are opting to ‘Shop Local’. Buyers want to know where their food is from and feel proper measures are being taken to ensure hygiene and safety. The more transparency business can have at this time the better. Transparent supply chains reflecting simple farm-to-vendor processes and promotions of locally sourced products could relieve consumer stress.
New business opportunities
Small businesses are fighting to stay afloat, finding new, inventive ways to stay relevant and help supply-demand amongst recent government closures of all non-essential services. Restaurants are opening bakeries, distilleries are producing hand sanitiser, wine bars are selling wine-boxes, gyms are streaming classes and even pottery studios like Bondi Clay are sending out clay for weekly online tutorials.
“The feedback, encouragement and orders we’ve had are unbelievable. We get the orders in one day and deliver the next”, said Kayde Clemens owner of Bondi Clay.
Social networks major beneficiary of new traffic
The more time spent at home, the more time spent on social networks chatting with friends, family and colleagues. This is a great opportunity to build business presence, brand voice and connect with consumers. Businesses are using social platforms (particularly Instagram and Facebook) to market new products and even pose questions to consumers regarding what they might want or want to see.
It’s a great opportunity to connect with consumers and grow your community. Despite changes in spending and economic insecurity, people undoubtedly still want to support their regular businesses.
Streaming platforms more popular as people spend more time indoors
With limitations on gatherings and non-essential closures a whole new online world has emerged. Almost every class-based business has transitioned to online streaming, keeping current clients happy and occupied. Between morning gym classes, guided evening meditation or educational classes consumers are finding all sorts of fun, new activities to fill their time. Consider what you can offer people. Could you develop an online course or a fun evening experience? Check out the capabilities of Zoom and Google-hangouts – they’re easy to use and cost-effective.
Event cancellations spur new digital alternatives
Similar to online classes, marketers are finding new ways of accessing audiences and bringing live events to the home. World renowned theatres are streaming performances and past archive hits free, showcasing the arts and giving quality entertainment every night of the week.
My Business is on hand with a range of resources to help businesses navigate this difficult time, with practical advice and information to help develop strategies to maintain and sustain. Visit our resource hub to find out more.