RETAIL CONSUMERS ARE TAKING ON FOUR DISTINCT BEHAVIORAL DIMENSIONS
Consumers have reported a permanent shift in habits, including increased use of online channels, which is likely to last beyond the pandemic. Approximately 36% consumers are planning to buy more apparel online, with higher income levels leading the way. As the percentage of online sales settles at this new level, retailers must figure out how to become profitable as expenses continues to rise in a more online world and margins thin. Read more about the hidden costs of fulfillment.
Consumers also spent less on discretionary retail during the pandemic and continue to seek more value in its wake. With more people looking for lower price or promotions, retailers must consider steps that allow for a focus on value without chasing the race to the bottom on discounted pricing, including increasing share of private brand merchandise. Read more about launching private brands.
Sustainability is increasingly impacting consumers’ buying decisions. Almost 80% of surveyed consumers experienced increases in environmental concern, and 38% have changed their buying decisions due to this. Most Anxious consumers are the most influenced and they are also the ones most likely to shop more online, so retailers must consider more ecofriendly ways of shipping. Read about creating a realistic sustainability strategy.
STUDY: ALIXPARTNERS CHANGING CONSUMER PRIORITIES
Consumers across the board have had to learn new behaviors and adopt new habits in their everyday lives as a result of the global pandemic. Our ongoing study of changing consumer priorities reveals distinct behavioral dimensions that consumer companies must consider to prepare for the changing world.