Consumer Behavior in the New Normal - A 2023 Wrap-Up
You know you are a pandemic adult when you get excited about stocking up on essentials!?
Well, jokes aside, the COVID-19 pandemic did change a lot of things for brands and consumers. And you can't help but agree that pre-2023 and 2023 consumer behavior paint two contrasting pictures.
The question is: What's here to stay and what's not??
Let's decode this with StartInc!?
Pre-2023: A Recap of Shifting Consumer Behavior
As the pandemic settled in and the lockdowns were announced, one after the other, consumer's psyche saw a significant shift. Along with the psyche, their incomes took a hit, too! As a result, the following 2 changes were seen:
Consumers saw hoarding as a way to gain some control of their environment and a way to feel more prepared for uncertain times. They reduced their spending on fashion, jewelry, electronics, and travel and increased their spending on groceries and other food items.
Furthermore, consumer behaviour changed from the need to feel, touch, and taste to buy to safety and hygiene. This led to consumers shifting to online platforms and shopping for their basic needs online. As a result, digital payments became more prominent, as even retail stores started accepting online transfers.
2023: Unveiling the 'New Normal'
Once the lockdowns were raised and the Indian consumers adjusted to their lives, they didn't go back to normalcy. Instead, they adjusted to what we call today as the 'New Normal.' And this new normal can be characterized briefly in 3 points. Here's a quick rundown!
1. Change in Values and Preferences
71% of individuals surveyed in India emerged from the pandemic with a transformed perspective on their behaviours and consumer values. This transformative period led them to reassess their priorities in life. Result? They are placing a greater emphasis on their personal purpose.?
The study also found 5 factors that are driving the Indian consumer's purchase decision. These are:
Initially, these factors were only popular amongst Gen Z and Millenials, but today, they're applicable to all consumer demographics.
2. Focus on Necessities and Savings?
People are being more careful with their money and only buying the things they need. They are also saving for accidents and medical needs. But they also save up for little indulgences and little pleasures. This correctly hints at the fact that discretionary spending on shopping, entertainment, travel, and social gatherings has risen.?
These changes are both a problem and a chance for brands to meet the growing need for higher-quality goods that meet changing customer wants.?
So, what are some markets that have the chance to attract more consumers and mint money? Organic goods, supplements, exercise gear, home care products, and wellness brands that support overall health.?
3. Enjoyment Everywhere Mindset
According to Mintel, Indian consumers are also on a search for happiness post-pandemic. Nearly two-fifths of individuals aged 35-44 are allocating more funds towards vacations/holidays than they did before COVID-19. This is a clear signal of a demand for enjoyable experiences.
This shift presents opportunities for brands to provide affordable indulgences, such as home spa products, staycation packages, and similar offerings that bring affordable joy to people's lives.
Wrapping Up
So, what does the new normal hold for the future?
Consumers are prioritizing brands that align with their personal goals and values. Their demands have changed, with sustainability and personal well-being taking the lead.
These behaviors may continue or change in 2024. What's important is to analyse and evaluate consumer behavior so you can match the goals of your consumer.
We at StartInc know just the right parameters to analyze consumer behavior in the new normal. Our team heavily relies on data to help you build and grow your brand.?
Want to know how we can help you? Find out here!?