HOW COVID-19 IS INFLUENCING CONSUMER BEHAVIOUR

As the novel coronavirus’ effect on the global economy continues to escalate, it’s growing toll on income and spending intent are changing dramatically, which in turn is ushering in a paradigm shift in retail sentiment and behavior...

- Shivam Gautom

It’s been three months since the World Health Organisation declared the COVID-19 outbreak to be a ‘Public Health Emergency of International Concern’. Despite continued efforts by governments and organisations across the world, the virus continues to spread unabated. With as many as 2.4 million cases across 185 countries and territories, it is a catastrophe unlike anything we have experienced so far.

As the novel coronavirus’ effect on the global economy continues to escalate, it’s growing toll on income and spending intent are changing dramatically, which in turn is ushering in a paradigm shift in retail sentiment and behavior.

Why Consumer Sentiment is Changing?

Economic Uncertainty

There have been shockwaves along the global economy in the wake of the pandemic, and alongside this, the effects of individual financial insecurity are coming to the fore. Amidst the worldwide lockdown, a recent WGSN report outlines a fortnight increase of 14 percent in the number of adults in the USA who are concerned about the economic impact of the escalating crisis, compared to the fortnight prior. The report also suggests how ‘concerns about their financial wellbeing will change the value equation for many consumers in their discretionary spending.’