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How are purchases today due to Covid-19?

Administrator - MSP marzo 31, 2021 DAT# 1.426

A recent study called «The Influential Shopper» by SAP SE (NYSE: SAP) and The Economist Intelligence Unit, yielded important data on shopping habits in the coronavirus pandemic from June to August, comparing them with the previous period of January. -March by the generations groups: baby boomers (born between 1946 and 1964), generation X (1965-1980), millennial (1981-1996) and generation Z (1997-2010).

Firstly, an increase in online spending of 15% was observed between June and August and millennials are the ones who invest the most, noting the importance of e-commerce for this group around the world.

On the other hand, baby boomers have had the highest increase in online spending with 12 percentage points, going from 25% in January-March to 37% in June and August, although millennials who invest the most. Generation X follows, which went from 39% to 47%.

It should be noted that the youngest people were the ones who changed their habits the least because they were used to using the online channel, where 53% of the purchases of millennials between June-August were made online, spending 2.5 times more than baby boomers, 1.5 more than Gen X and 1.3 more than Gen Z.

Likewise, purchases in the period of the pandemic were analyzed, reaching two notable trends. The first is the consolidation of purchases of basic products and the second, that of non-essential products that were previously purchased in stores, making clear the increase in confidence by consumers in the online channel.

Baby boomers were the most prominent generational group in the acquisition of basic products with a total of 191% in groceries, 154% in food delivery and 90% in cleaning and personal hygiene products.

Average monthly spending on cleaning products and food grew by 78% and 49%. However, in the case of non-essential products (clothing, consumer electronics) it increased by 10 to 11 percentage points.

Negative behavior was evidenced when going to physical stores, however, Italians and Spaniards show the least fear in this area, being clear that the increase in the purchase of non-essential products through online channels is due to people’s fear of go to physical stores, but this varies depending on the country.

In Spain, it is noted with 23% and Italy, with 21%, becoming the most confident. In the same way, in the United Kingdom it was obtained 41%, and the United States, with 32% being the most reluctant to go to physical establishments, followed by Germany, with 27%.

According to age, millennials show fear the most with 36%, surpassing generation X and baby boomers, where 30% were obtained in both groups. With respect to generation Z, this is the one that feels the least fear with 24%.

44% of those surveyed want to avoid crowds, giving an advantage to online shopping, but 49% indicate that they want to buy products anytime and anywhere, thus being the main advantage of e-commerce. The third advantage is the saving of time with 42%

This study also analyzed the advantages of buying in physical stores. The first for all generations is immediate gratification when taking the product home, having 57% of those surveyed.

In second place, there is the possibility of touching and noticing the appearance of the product with 37% of the respondents and, in third place, there is the selection of offers and discounts. Baby boomers and generation X with 31% agreed that traditional establishments offer better deals than the online channel, although the youngest say they disagree.

When the pandemic improves and restrictions are reduced, it is expected that the purchasing habits acquired in this period will change, however, more than 6 out of 10 respondents (61%) mention maintaining some of them.

Millennials (66%) and Gen X (61%) will be the most likely to stick with them. In the case of baby boomers, those who will least support them with 55% and generation X is in the middle with 60%.

So, most of the habits will stay and 40% of those surveyed say they are more familiar with online shopping after the pandemic, being a clear positive for e-commerce.

Within this same order of ideas, a third of the three youngest groups and 22% of baby boomers claim to have reduced their income, 25% are pessimistic about the economic recovery after covid-19.

Therefore, young people think that recovery is complicated with 31% and 28% of Gen Z and millennials while Gen X got 20% and baby boomers 22%.

30% of the three youngest groups say they are unsure about covering essential expenses in the six months after the survey and baby boomers 17% in this situation.

Online channels are at a clear advantage with the coronavirus situation and the study mentions that options must be identified to expand the share of the online market and rethink business strategies with the aim of post-pandemic recovery.

Alfonso Cossío, Head SAP Customer Experience Spain says «In the future, the key to the success of brands is to identify ways to satisfy the needs of all generational groups and create exceptional experiences in any environment, whether in the store or in different online channels «.

«» In addition, greater familiarity with online channels and greater competition will force brands to be more agile in analysis, interactions and personalizations «.»

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