“The Great Indoors” Sees Consumers Splurge
Despite the economic uncertainty that COVID-19 brings, consumers are still willing to open their wallets, new data shows.
Research from Criteo shows a spike in a number of different retail categories, including Health and Beauty sales skyrocketing 77 per cent in March compared to January 2019 and Home Goods up 13 per cent for the same period.
“The new experience of “the great indoors” has led to significant changes in consumer trends,” said Criteo Australia & New Zealand commercial director Colin Barnard.
“The more time they spend at home, the more consumers are starting to think about the things that matter each day: working remote, learning remote, exercising at home, cooking, entertaining the kids and spending time with the family.
“The new social distancing economy sees people spending more on products that are less essential and more quality-of-life oriented. As our data shows, people are getting used to being at home more, and they are adapting to living almost entirely indoors. Consumers are coming to terms with the knowledge that this state of being may last a while, and they are turning toward products that help comfort and entertain.”
With gyms shut, Sporting Goods was the fastest growing category for March, up a staggering 1100 per cent compared to January 2019.
Weightlifting equipment increased by increased by 565 per cent alone.
With consumers clearly still willing to spend, Barnard suggested marketers continue to monitor such trends and shape strategies accordingly.
“Pay attention to what’s happening in your market and on your website, and continue to monitor trends each week. Focus on areas that are currently expanding such as remote work, education, home exercise, and entertainment,” he said.
He also suggested playing around with different ads to keep audiences engaged.
“As people spend more time at home and are looking to be entertained, use interactive ad formats to engage with your ideal customers,” he said.
“With personalised ad campaigns that help people find what they need during this time, marketers can connect with their audiences while building stronger relationships post-pandemic.”
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