5.06.2020
COVID-19: Impact on consumer behavior
Most consumers have already adapted to life in the era of COVID-19. Behavioral changes include increased emphasis on food waste reduction, focus on nutrition, and stricter budgetary considerations, as well as a strengthened preference for trusted brands.
It is not yet clear what life will look like in the post-pandemic era; however, it is clear how the pandemic and associated quarantine have already affected consumer preferences. Furthermore, we can state with confidence that the pandemic's impact will continue to be felt long after it ends. One of the primary shifts caused by this event has been a rebalancing of online and offline commerce. In the past few months alone, Russia has seen more than thirty new major players on the food production and delivery market, not to mention hundreds of small businesses that are trying to meet a radical increase in online demand. A recent study conducted by Accenture shows that consumers have not only shifted their behavior by buying more necessity goods, hygiene products, and medicines, but have also begun to shop more conscientiously, showing preference for local products and for digital formats.

Most consumers have already adapted to life in the era of COVID-19. Behavioral changes include increased emphasis on food waste reduction, focus on nutrition, and stricter budgetary considerations, as well as a strengthened preference for trusted brands.
It will come as no surprise to hear that the e-commerce sector has benefitted most significantly from this new era. It has shown absolute growth in all countries over the past few months. The online supermarket Hema, owned by Alibaba, grew by 220% in February alone as compared with last year. However, this unprecedented growth in e-commerce also has its downsides. With increased online demand, the average cost of online shopping carts has risen by 50%, causing failures across e-commerce infrastructure. These failures include inaccurate delivery times, product shortages, and a decrease in service quality. When these failures occur, an interesting phenomenon has been noted: loyal consumers began to shift their buying habits, preferentially moving to local brands.
Accenture released accompanying recommendations for businesses on how to respond and behave in the post-pandemic period. We full-heartedly agree with these recommendations. Most companies will be able to adapt to post-pandemic conditions if they adhere to the approach Accenture describes as "Response, Reset, Renew." In fact, this approach is very close to iLP Solutions' business philosophy: to focus on constructing meaningful customer relations using real knowledge and data-driven marketing.
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