The Times Australia
The Times World News

.
The Times Real Estate

.

How COVID-19 changed the way we shop – and what to expect in 2022 and beyond

  • Written by Adrian R. Camilleri, Senior Lecturer in Marketing, University of Technology Sydney
How COVID-19 changed the way we shop – and what to expect in 2022 and beyond

COVID-19 has dramatically changed how businesses and consumers behave. We’ve seen panic buying, the rise of the “homebody economy” and a strong shift towards contactless shopping.

As we emerge from the worst of the pandemic, it seems the right time to reflect on the most important changes in consumer behaviour we’ve seen, and to make some predictions about COVID-19’s lasting and pervasive effects on how we shop.

Pandemic purchasing

One of the first impacts of COVID-19 was supermarket shelves being repeatedly stripped of toilet paper and other products[1] ahead of lockdowns.

One debate this behaviour sparked was about how much it could be considered irrational panic buying[2] – or if it was rational to stockpile[3] in response to the irrational behaviour of others.

It was a real-life lesson in game theory. Decisions that make perfect sense for individuals can add up to a bad outcome for the community.

Shoppers queue for toilet paper, paper towesl and pasta at asupermarket in Sydney, March 20 2020.
Shoppers queue for toilet paper, paper towels and pasta at asupermarket in Sydney, March 20 2020. James Gourley/AAP

Read more: A toilet paper run is like a bank run. The economic fixes are about the same[4]

Spending less, spending more

Spending more money at the supermarket was at least possible.

Consumption patterns changed significantly due to closed borders, restricted shopping, stay-at-home orders and general uncertainty.

Data from the Australian Bureau of Statistics shows large drops in spending on transport, accommodation, recreation and entertainment services, and catering.

Individual services consumption, 2020

Individual services consumption by select categories, 2020.
Percentage change in household services consumption by select categories per quarter 2020. ABS, Insights into household consumption, December quarter 2020[5]

Spending on food increased marginally, and on alcohol even more. The main reasons cited for increased drinking, according to one study[6], were stress (45.7%), increased alcohol availability (34.4%) and boredom (30.1%).

Individual goods consumption, 2020

Individual goods consumption, 2020 Percentage change in household goods consumption by select categories per quarter 2020. ABS, Insights into household consumption, December quarter 2020[7]

Spending also increased on home-related electronics, streaming services[8], furnishings, hardware and pet-related items[9].

Interest increased in traditional activities such as cooking[10], reading[11] and gardening[12].

It is too early to tell to what extent these pandemic-driven shifts will translate into permanent behavioural change. However, research published last month[13], based on surveying 7,500 households in France, Germany, Italy, the Netherlands and Spain, supports the likelihood of at least some long-term sectoral shifts in consumer behaviour.

Predictions of a shopping splurge

As restrictions relax[14], some marketing experts are predicting “revenge spending[15]” – shopping sprees with abandon.

Certainly many higher-income households have the money to splash out on a holiday, or new car, or home renovation, with Australians banking an estimated A$140 billion in extra savings[16] during the pandemic.

Other research, such as the National Australia Bank’s quarterly Consumer Sentiment Survey[17], suggests the pandemic has engendered greater caution. In its most recent survey, 37% said they were mindful or careful of where they spent their money (42% of women and 33% of men). In terms of purchasing influences, 43% nominated supporting local businesses, compared with 15% environmental issues and 14% social concerns such as labour practices.

In NAB's consumer sentiment survey 43% said their purchases were influenced by the desire to support local business.
In NAB’s consumer sentiment survey 43% said their purchases were influenced by the desire to support local business. Shutterstock

Some have wondered[18] if, in the wake of COVID-19, we are about to experience another “Roaring Twenties” – emulating that period of economic prosperity and cultural dynamism in the 1920s following the deprivations of the first world war and the “Spanish flu” epidemic.

The circumstances are not exactly analogous. But new technologies and changes in habits are likely to drive several long-term changes in the way we shop.

Going contactless

Our desire to reduce physical contact accelerated contactless payment methods. Research (from the Netherlands) suggests this will, for most, be a permanent change[19], accelerating a steady decline in the use of cash for shopping.

ATM cash withdrawals using debit cards

Monthly, seasonally adjusted. Reserve Bank of Australia[20]

Technology enabling payments using smartphones, such as supermarkets introducing a way to pay by scanning a QR code[21], will contribute to this shift.

Read more: The paradox of going contactless is we're more in love with cash than ever[22]

Ways to buy things without ever having to step inside a shop – such as curbside pick-up and home delivery – should also continue. In 2021 we’ve seen a number of startup businesses promising grocery deliveries in 15 minutes[23].

“Omni” experiences

Increasingly our buying behaviour will be shaped by what marketing experts call omnichannel shopping[24] – a fancy word meaning using a variety of experiences to make a purchase.

You might, for instance, go into a store to try out headphones, then go online to read third-party reviews and compare prices from different retailers.

Technologies such as augmented reality[25] will facilitate this trend. For example, IKEA’s Place[26] app allows you to see how furnishing will into your space.

IKEA's 'Place' app.
IKEA’s ‘Place’ app. IKEA

More and more what were once physical experiences will have their digital variants, from attending university to having an appointment with a health professional to taking a tour of the British Museum[27] or exploring the Grand Canyon[28]. Though these cannot replicate the real experience, they will be an increasingly common way to “try before you buy”.

The future of shopping will gradually merge the digital and physical. But whatever changes, some things will remain constant: the human desire to make experiences convenient, fun and meaningful.

References

  1. ^ toilet paper and other products (theconversation.com)
  2. ^ panic buying (theconversation.com)
  3. ^ stockpile (doi.org)
  4. ^ A toilet paper run is like a bank run. The economic fixes are about the same (theconversation.com)
  5. ^ ABS, Insights into household consumption, December quarter 2020 (www.abs.gov.au)
  6. ^ to one study (doi.org)
  7. ^ ABS, Insights into household consumption, December quarter 2020 (www.abs.gov.au)
  8. ^ streaming services (app.content.deloitte.com.au)
  9. ^ pet-related items (doi.org)
  10. ^ cooking (doi.org)
  11. ^ reading (www.roymorgan.com)
  12. ^ gardening (www.abc.net.au)
  13. ^ published last month (doi.org)
  14. ^ restrictions relax (www.smh.com.au)
  15. ^ revenge spending (www.thedrum.com)
  16. ^ A$140 billion in extra savings (www.afr.com)
  17. ^ Consumer Sentiment Survey (business.nab.com.au)
  18. ^ have wondered (theconversation.com)
  19. ^ be a permanent change (econpapers.repec.org)
  20. ^ Reserve Bank of Australia (www.rba.gov.au)
  21. ^ scanning a QR code (www.news.com.au)
  22. ^ The paradox of going contactless is we're more in love with cash than ever (theconversation.com)
  23. ^ in 15 minutes (www.9news.com.au)
  24. ^ omnichannel shopping (nielseniq.com)
  25. ^ augmented reality (doi.org)
  26. ^ Place (www.ikea.com)
  27. ^ tour of the British Museum (www.youtube.com)
  28. ^ exploring the Grand Canyon (store.steampowered.com)

Read more https://theconversation.com/how-covid-19-changed-the-way-we-shop-and-what-to-expect-in-2022-and-beyond-172973

The Times Features

Understanding the Dangers of Ignoring a Gas Leak

Gas leaks are silent threats lurking within both homes and workplaces. A gas leak occurs when natural gas or any other gaseous substance escapes from a pipeline or containment. T...

Can You Sell Your House Privately in Queensland? Here’s How

Selling a house privately in Queensland is entirely possible and can be a cost-effective alternative to using a real estate agent. While agents provide valuable expertise, their co...

Itinerary to Maximize Your Two-Week Adventure in Vietnam and Cambodia

Two weeks may not seem like much, but it’s just the right time for travelers to explore the best of Vietnam and Cambodia. From the bustling streets of Hanoi to the magnificent te...

How to Protect Your Garden Trees from Wind Damage in Australia

In Australia's expansive landscape, garden trees hold noteworthy significance. They not only enhance the aesthetic appeal of our homes but also play an integral role in the local...

Brisbane Homeowners Warned: Non-Compliant Flexible Hoses Pose High Flood Risk

As a homeowner in Brisbane, when you think of the potential for flood damage to your home, you probably think of weather events. But you should know that there may be a tickin...

Argan Oil-Infused Moroccanoil Shampoo: Nourish and Revitalize Your Hair

Are you ready to transform your hair from dull and lifeless to vibrant and full of life? Look no further than the luxurious embrace of Argan Oil-Infused Moroccanoil Shampoo! In a...

Times Magazine

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

How AI-Driven SEO Enhancements Can Improve Headless CMS Content Visibility

Whereas SEO (search engine optimization) is critical in the digital landscape for making connections to content, much of it is still done manually keyword research, metatags, final tweaks at publication requiring a human element that takes extensiv...

Crypto Expert John Fenga Reveals How Blockchain is Revolutionising Charity

One of the most persistent challenges in the charity sector is trust. Donors often wonder whether their contributions are being used effectively or if overhead costs consume a significant portion. Traditional fundraising methods can be opaque, with...

Navigating Parenting Arrangements in Australia: A Legal Guide for Parents

Understanding Parenting Arrangements in Australia. Child custody disputes are often one of the most emotionally charged aspects of separation or divorce. Parents naturally want what is best for their children, but the legal process of determining ...

Blocky Adventures: A Minecraft Movie Celebration for Your Wrist

The Minecraft movie is almost here—and it’s time to get excited! With the film set to hit theaters on April 4, 2025, fans have a brand-new reason to celebrate. To honor the upcoming blockbuster, watchfaces.co has released a special Minecraft-inspir...

The Ultimate Guide to Apple Watch Faces & Trending Wallpapers

In today’s digital world, personalization is everything. Your smartwatch isn’t just a timepiece—it’s an extension of your style. Thanks to innovative third-party developers, customizing your Apple Watch has reached new heights with stunning designs...

LayBy Shopping