Dear Clients, Partners and Friends of TMD,
Since the shelter in place order was issued, I find myself doing a great deal of reading in the evenings and on weekends. I recently read an article in Advertising Age Magazine that discusses 5 Consumers Trends that will endure after COVID-19. These trends are very relevant to business and I want to share some insights I have had after reading the article.
It is remarkable how the U.S. population has so readily and instinctively changed behavior in ways that will likely have lasting implications for brands. With these changes there are opportunities but also cautions for marketers, and we are all marketers.
“When there are serious changes in lifestyle and life circumstances, there is a fairly dramatic change in preferences for brands that consumers use, and their perceptions about those brands,” says Peter Noel Murry, who runs his own consumer psychology practice in New York.
As we plan for the future, we might do well to consider the following trends from Advertising Age, which experts expect to outlive COVID-19.
1. Time-tested brands will shine
As consumers change to adopt new behaviors and habits, they’re sticking by the brands they’ve long trusted to get them through and beyond the crisis. There will be a change from “novel and trendy” to “tried and true” will make it difficult for new brands to launch in this environment. The older brands/companies that have been around a long time have built the emotional brand equity up over generations.
2. DIY gains ground
Consumers are using their time at home to learn new skills, like cooking (pay attention Produce Companies), baking gardening and many more DIY activities. Food purchasing in the last two week has far exceeded typical Thanksgiving shopping. Bottom line is that we are going to see more people become self-reliant. This could forever change the restaurant and hospitality industry. Recently I attended a webinar and one of the speakers suggested that the restaurant industry may only recover to about 75-80% of what it was prior to the pandemic.
3. Comfort with digital offerings
As media and research companies adjust from live events to virtual ones, so are consumers adjusting to digitizing their behavior. Some demographics, like older consumers who may have been unconformable are quickly adapting to making on-line purchases, especially for groceries and other necessities. Once they fall into a new routine and get used to the ease of delivery at their door it may be hard pressed to return to brick-and-mortar, experts say. Think about the implications for the construction industry and even supermarkets. The medical industry is not immune to the change, especially as services like Teledoc become more accessible. If you didn’t think telemedicine was here to stay, think again.
4. Flexible work arrangements
Many expect the current situation of so many Americans working from home will lead to a dramatic shift into more flexible work arrangements as employers realize it’s not necessary to have everyone in the office to get things done. Employers may find significant benefits to employees working at home, not to mention the need for less office space, thus reducing overhead costs like rent and utilities.
5. Safety wins over privacy
While consumers have grown more protective of their privacy and personal data in recent years, experts say that is changing during the current crisis. Many are deferring to the government and those in leadership positions to keep them safe even if it means giving up on their own privacy in the process. (I don’t know about you, but this trend makes me uncomfortable)
So, what’s next for brands? I will discuss what I see happening next in my next message to you. In the meantime, stay safe and healthy.
Nicholas M. Pasculli
President & CEO