Christmas is threatened by the pandemic: consumers have changed the way they consume, and the plans that were made year by year are left behind, meaning that this time will be largely spent with family rather than friends.
The pandemic is having an impact on consumer spending. According to Mintel’s COVID-19 Tracker, a quarter of US consumers agreed that spending on leisure and entertainment is a lower priority for them. Holidays planned months in advance are no longer contemplated, since many fears cancelled flights, as well as the closure of airports and borders.
Due to the pandemic, the consumers have become more and more reluctant to travel. Increasingly, they are considering a holiday at home, with their family, enjoying the tradition of being together., The need to seek happiness elsewhere, rather than in their home, is becoming less and less relevant.
According to data from the Bureau of Economic Analysis (BEA), the pandemic has had a strong impact on consumer product prices. From February to June, meat and poultry prices rose by 11%, and beef prices experienced the largest increase, at 20%.
COVID-19 has caused an increase in demand for food, as more people now prefer to stay home and avoid eating out. While there are no significant food shortages, disruptions in the supply chain have driven up prices.
Internet shopping has become a necessity; it is booming thanks to the pandemic. Brands have had to adapt to the new circumstances. Consumers are increasingly reluctant to buy in a physical shop, so they prefer to shop conveniently on the internet and avoid catching the virus.
Deloitte expects Christmas e-commerce sales to increase by 25-35%. With so much online shopping, this means that there is an increase in deliveries and delivery people. Carrier companies are working hard to deliver all of the packages that have been ordered by consumer, extending their working hours to reach each and every family.
It seems that toy shops will not keep their toys in the shop. Since the pandemic they are selling like never before, as entertainment for both children and adults alike has become a basic need. Believe it or not, the greatest demand is for toys like puzzles, board games and crafts.
According to Mattel CEO Ynon Kreiz, the toy industry as a whole has grown significantly, and continues to demonstrate its resilience in challenging economic times.
As we have seen, the pandemic has changed life for us all, event at Christmas.
Family gatherings are going to change from being numerous, noisy events that take place with the whole family, to being spent among only our closest relatives, taking every necessary measure to prevent the virus from spreading.
In terms of brands, they have turned the pandemic around. Thise need has made their strategies more flexible than ever, they are anticipating a more holistic view of reality and, collaborating with consumer. This can be seen in the casa of Naturgy, which provided its services free of charge to hotels and residences, or Pepehone which decided to give away more GBs of data so that consumers are able to stay in touch with their families.
Beyond giving away their services, brands are closer than ever to their consumers, as this is the only way to predict their behaviour. Is this altruism, or are they simply anticipating the needs of their precious consumers?
And your brand, what plans do you have to make your consumers happy this Christmas? Don’t hesitate to tell us at firstname.lastname@example.org