The Effect of Consumer Confidence on the Economic Climate Amid COVID-19

The coronavirus (COVID-19) situation is affecting the lives of people around the world. Whether individuals are working from home due to social distancing measures, doing their best to deal with job loss, or adjusting to new worries and routines, the pandemic is changing the way they make purchasing decisions. In turn, this is affecting the current economic climate. 

In fact, according to data from The Harris Poll, 33% of U.S. adults are very concerned about losing their job because of the pandemic. Meanwhile, 27% of those respondents are somewhat concerned about job loss. 

Consumer spending habits are being affected by the state of household finances as well. According to the findings, 42% of Americans have experienced a partial loss in income in April 2020. While 38% of respondents said they sought out either new or additional sources of income, 33% of adults also either halted or cut back on their retirement savings. 

Another set of data, this time provided by McKinsey & Company, paints a similar picture. It was found that during March, 29% of adults changed their household spending amounts due to the COVID-19 pandemic. 

In terms of other actions being taken by individuals amid COVID-19, some measures involve the cancellation of trips, avoidance of physical stores, as well as stopping their attendance to social events. A poll by Ipsos noted that between March 10 and 11, 11% of adults cancelled a personal trip. This percentage increased to 42% between April 9 to 10. 

As for the shift from shopping at brick-and-mortar stores to online spending, it went from 13% to 41%. There was also a significant shift in the attendance of social events. While March had 18% of individuals avoid these gatherings, the percentage skyrocketed to 69% in the following month. 

As a business, it is important to know what these consumers and households hold most important during such unprecedented times as well. According to information by the American Association of Advertising Agencies, 84% of internet users intended to buy food amid COVID-19. 

Meanwhile, 72% of purchases pertained to household supplies. Beauty and personal care products also saw noteworthy popularity at 52%, while medical and healthcare items accounted for 50%. In addition, 37% users were interested  in streaming and entertainment services. 

Since more and more consumers are participating in ecommerce activities, a business should understand the types of items that garner the most interest. This is only in addition to understanding the financial situations of their target market. Each business and industry is different, requiring thorough market research and customized strategies in order to achieve success. 

 

The Find Your Audience team is here to aid clients around the world during these challenging times. Be it market research, social media, ecommerce, or brand reputation services, the team is ready to help entrepreneurs reach their business goals. 

To receive an in-depth consultation and customized business plans, contact the Find Your Audience team at either 647-479-0688 or hi@findyouraudience.online.

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