Impact of the COVID-19 Pandemic on Consumer Behavior

Due to the outbreak of COVID-19, many businesses have been shut down or have incurred huge losses due to worldwide lockdowns as well as a change in the customers’ behavior to stay at home to be protected from the virus, high costs and inconvenient distribution. Businesses that are relied on face to face communication and interactions during providing a service or a product are at risk.  The COVID-19 pandemic has made it difficult for companies, retailers and manufacturers to adapt to the current environment as well as changing consumer behavior adhering to the social distancing measures along with preparing for a potential recession period.

How retailers are going to adapt to changing consumer behavior

As soon as the COVID-19 pandemic started across the world, manufacturers, as well as retailers, focused mainly on the supply chains and production. The lockdown situations along with the collapse of the physical retail shops led to a massive change in consumer behavior which focused more on securing their basic necessities. People started switching to online modes of shopping than offline ones.

Retailers are adapting to the new digital to survive the fierce competition and increase their sales production. With the change in consumer needs, products and services should change automatically and identification of opportunities as well as a new environment should be made.

The shopkeepers have to become familiar with the new normal and do their own research to increase their sales production. Online shopping has made a huge effect on consumer behavior as well as their expectations with the usage of e-commerce websites. Retailers can increase their production for sales by going digital which can help the consumers in finding in-store products as well as skip the check-out line. Such seamless shopping services can be made successful through the use of camera and sensors in the store and is gaining popularity among the retailers.

Another measure that can be taken by the retail stores is that they can go multi-channel that is having both a physical store as well as an online store. It not only gives way to new opportunities but also fulfills the need of consumers. Options in technology with features such as 360 views, interactive videos and gesture controls can also help retailers to adapt to the changing consumer behavior as it opens new ways to close the gap between the physical product experience and on-screen image.

Change in consumer behavior can also be seen due to the increased environmental concerns and awareness among individuals. Concerns about both the external environment as well as their physical and mental health encourage customers to favor a particular brand over others which promotes health and environment protection. Retailers can take measures to promote natural and environmentally friendly products to increase their overall sales promotion.

Digitalization: a key to businesses post covid-19

Fatpos Global predicts that the retail markets are anticipated to register a significant CAGR in the coming decade. Covid-19 has affected the economy as well as the ease of doing business. Digitalization is opening new ways for changed consumer behavior and shopping habits. Adaption of the same, positive management during and through the crisis can help in minimizing the losses in the medium and long term. Retailers are expected to maintain a balance between the human as well as the virtual to achieve significant growth. Measures such as diplomatic decisions, strategic development and adapting to operational change should be followed in order to prepare themselves for the business in the new normal.