Publication date: 31 Mar 2020
Initiative agency (part of ADV group in Russia) has analyzed how consumers have to adapt to everyday reality amid temporary isolation. In addition to the Covid-19 pandemic, the world has to deal with the economic crisis. The current situation causes some changes in consumer behavioral patterns and trends, and it is already possible to predict which of the changes will likely persist even after the isolation is over.
What niches will get additional growth impetus?
Esports and online gambling niches in the broad sense of the word will grow in size and importance and receive new audiences. According to App Annie, downloads of apps in China jumped by 40% during the first two weeks of February. According to Douyin, Honor of Kings and League of Legends have doubled their audiences from 2019.
In the absence of live sporting events, esports have started playing a more significant role. Many bookmakers have already shifted their focus towards esports. The number of visitors to Twitch, the world’s leading streaming platform for gamers, increased by 20% over the past month.
A colossal surge in online retail (E-commerce) is a logical consequence of the current situation, which can be characterized as adaptation to isolation. In the midst of the COVID-19 epidemic in China, online purchases increased by 30%. At the same time, online grocery sales soared by more than 150%. Online grocery sales in Australia grew by 45% in February alone.
Consumer’s wish to view-and-touch products before purchasing them used to be the only obstacle to e-commerce expansion. Amid isolation, more and more people are becoming used to online shopping and will stick with it even when social distancing measures are removed. E-commerce has received impetus to long-term growth. Moreover, advertisers who did not previously invest in e-commerce will eventually evaluate all its advantages.
Numerous streaming services help the services sector make the shift to online. Nightclubs, fitness clubs, excursions, concerts, museums are adapting to the new reality.
During the crisis, sales of such products as hair clippers, manicure and wax sets for women, hair dyes have increased by 30%. Beauty brands and salons are getting more active online and live-streaming skincare and makeup tutorials on various platforms. People’s basic needs will remain the same. What will change is the way people consume services.