It’s no secret that pandemic has led to a tale of two economies. Although Covid-19 restrictions are being lifted in most parts of the world and economies begin to reopen, many consumers are scrambling to regain their financial footing.
Unarguably, the pandemic has influenced the spending and saving patterns of the consumers that will continue for several years to come. Here’s a guide to some of the spending habits people are most likely to carry on even after the pandemic.
1. Consumers will not spend on nice-but-not-necessary things
Covid-19 has taught that life is unpredictable, and savings is the most valuable thing that can help in these uncertain circumstances. Hence, now people only prefer spending their hard-earned cash on the all-time classics while keeping a distance from the fleeting fads, be it clothing, jewelry, or basic utilities.
Folks now are spending smartly on the trends that are here to stay, such as pearl jewelry, leather jackets, handbags, etc., so they can adore them for many years. The pandemic has reminded us of the value of having a budget and savings. Consumers are now well aware of where the money is flowing; hence most of them have shifted towards necessities while moving away from luxuries.
2. Consumers will prefer buying online only
The coronavirus threat is not over yet as new variants like Delta, Omicron, etc., keep coming now and then. Owing to this, consumers feel more anxious about offline shopping and will prefer a contactless experience.
For retailers, these concerns may heighten the importance of keeping up safety protocols like rigorous cleaning, thermal scanning, regular use of sanitizers, and more.
3. Grocery shopping might be among the pandemic’s stickiest changes
It’s no wonder that pandemic has totally changed the eating and grocery shopping habits that will surely continue post-pandemic too.
According to AlixPartner’s Survey, most US consumers reported permanently changed habits, and 44% of them said they would spend less on dining even after they get fully vaccinated.
Jeff Harmening, General Mills CEO, said that Americans used to dine in the work cafeteria or eat in restaurants on business trips; however, all these things have faded away post-pandemic.
Also, the way people spend on groceries is different too. According to a report by Mastercard Economics Institute, about 7% of grocery shopping was done online before the pandemic. However, owing to the new spending habits, the grocery industry is expected to retain 70% to 80% of the digital gains that it witnessed during the pandemic.
4. Contactless payments are here to stay
Contactless payment is one of the most significant changes to emerge from the pandemic. According to the Mastercard report, nearly one billion more contactless payments were made during the first quarter of 2021 than in 2020.
The pandemic made us think differently, and consumers now are willing to try new payment systems that include everything from QR codes to other digital systems. Customers feel safe and comfortable using no-touch payments, making this spending trend continue in the future.