How Covid19 has changed the Concept of Discretionary and Essentials
It was found by a survey of top developed countries in the world “how the COVID-19 outbreak has affected their consumer plans for discretionary spending—and which shifts could be part of the next”
Consumers are adequately reducing most discretionary spending, which has a deeply bad impact on some industries, such as restaurants, dress, footwear, car, mobile, travel, and entertainment industries.
Most of the consumers are under stay-at-home orders around the nation, and simultaneously they have reduced spending on other products which are not related to highly needed categories. Economists also noticed that the shopping habits of consumers before, during, and after the COVID-19 peak indicate that spending in a number of categories remains low for these months or possibly even longer.
With that a good impact on online shopping and it has increased as compared to the last month or years, especially for groceries. Consumers who never buy products online and they are frequently purchasing their groceries and many will likely continue to buy their product through online, at least as long as the pandemic continues.
Consumer behavior also changed in terms of stockpiling in a few countries like America. More than 85% of Americans did not store more food and household products in an amount necessary to overcome even short supply shortages. But the opposite situation happens in most Asian countries like China and India.
How are consumers prioritizing their spending?
Consumers all over the globe are still spending normally– and also spending more sometimes – on staples such as food, household supplies, and personal care items, and also people are showing their interest in home entertainment. As noted, online shopping has drastically increased with regard to grocery and household products, but that growth in online sales has not come close to offsetting the overall reduction in consumer spending. In terms of service, delivery obviously has seen increased demand, and some parts of the takeout food sector are cautiously optimistic.
The pandemic has created the biggest health crisis in the last few months. Addressing this crisis we need more precautions and requires medical measures aimed at preventing and containing the virus. Be health conscious and stay positive.
*image source from Google
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