One year since the pandemic brought by covid-19 started, many things remained the same, but undeniably drastic changes have been made. The covid-19 crisis and the subsequent lockdown period imposed all over the world significantly impacted and changed consumer behavior. Considering that the elements of the economy are entangled with public health measures to prevent widespread of the virus, this eventually resulted to economic instabilities which then altered economic dynamics. The lockdown of countries all over the world had a profound impact on the way of life of the people. The altered dynamics of market economy have hugely impacted the way consumers behave. The disruption caused by Covid-19 have compelled consumers to move toward online channels. The isolation and social distancing allowed consumers and businesses to embrace virtually everything- from, e-commerce, online shopping, virtual events, distance learning and more. According to a new McKinsey Global Survey of executives, “digital adoption has taken a quantum leap at both the organizational and industry levels”. The IBM’s U.S Retail Index for examples says that the ongoing pandemic hastened the shift away from physical stores to digitalization of customer transactions by several years. Notable changes in behavior at the beginning of the pandemic according to UArizona researcher Sabrina Helm are the rise in online shopping and online grocery buying, and stock piling. Significant changes can also be seen in the dramatically reduced on optional spending on goods such as restaurants, apparel, footwear, accessories, travel, and entertainment. However, in a global context, consumers are still spending but they are spending more on staple needs such as food, household supplies, and personal care items and increases in home entertainment. Furthermore, the Swiss Re Institute have identified five key trends in behavioral changes emerging from the impact of Covid-19: (1) increased digital adaptation; (2) change in mobility patterns; (3) change in purchasing behavior; (4) increased awareness of health, and; (5) changes in interpersonal behavior. These trends are interconnected and are overlapping with each other. Digital tools are the way to go in life, business, lifestyle and interaction, transportation, health, and finance. It is expected that the pandemic will end and that most habits prior to the pandemic will return. However, it will also be inevitable that some habits will die because consumers have adapted and lived in a more accessible and convenient alternative.

Author – Nikka Nadon, Chief Information Officer at ABMSZ
Dated: May 26th, 2021