COVID-19 Consumer Sentiment: Insights and Implications for Brands and Retailers

ArtLogica conducted a nationally representative US consumer survey (759 respondents, +/- 4% margin of error) to understand consumer sentiment, mindset and behavior during COVID-19 as we prepare for recovery. Key insights and implications for brands and retailers:

Insight #1: COVID-19 has laid bare social economic divides. Social Distancing and working from home (WFH) are luxuries: Many consumers with lower Household Income (HHI) cannot afford to socially distance; 46% of consumers with HHI >$150K are WFH compared to 7% of HHI <$25K.

Implication #1: WFH is likely to continue for many affluent consumers in the foreseeable future. Retailers and restaurants historically reliant on office-based traffic will continue to be challenged and will need innovate.

Insight #2: Younger consumers are the most worried about their finances, while Boomers are relatively secure: over 50% of Gen Z and Millennial consumers are worried about their next rent or mortgage payments compared to 12% of Boomers

Implication #2: Coveted Millennials are financially challenged and may not longer be the desirable target consumer they once were. Boomers are better positioned to weather the financial challenges and actively support economic recovery.

Insight #3: The “Gig” economy has been impacted…but may benefit in the long run: Over 10-15% of Millennials and Gen Z consumers are freelance workers who have been financially impacted; the demographics of freelance workers may change due to COVID

Implication#3: With the increased acceptance of WFH and demand uncertainty, companies may begin to adopt more contract or freelance roles

Insight #4: Mental health is strained for a majority of consumers: 60% of consumers are concerned about their mental health. 13% feel mentally unwell. 34% know someone who has COVID-19. 10% know someone who has passed away

Implication #4: Brands, products, or services that encourage self-care and mindfulness are much needed now. Companies should explore what products or services they can offer for comfort

Insight #5: Consumers are seeking certainty and connection: 20% of consumers are alone during this time and 30% of seniors are alone; over two thirds of consumers are doing service for others to pursue connection

Implication #5: Brands that are able to create authentic relationships, facilitate connection and give back memorably during this time will win consumer loyalty…potentially for the long term

Insight #6: Parenting has become even more of a juggling act with distance learning, WFH, and managing anxious young minds…but family relationships are improving due to an abundance of quality time

Implication #6: Offering relief/escape for parents and facilitating creative ways to engage the family will be welcomed with open arms

Insight #7: Women are experiencing even greater “mental loads:” 42% of women are doing the majority of home management and homeschooling compared to 22% of men. They are 1.6X more likely to feel mentally unhealthy and 3X more likely to feel their relationships with their spouse/partner have worsened vs men. 

Implication #7: Brands and employers that recognize and actively support female empowerment with proactive measures will win long term loyalty 

Insight #8: The kitchen has never been busier: 70% of consumers are cooking more, 46% are snacking more and 37% are baking more.  

Implication #8: There is opportunity for brands to consider how they can participate in the kitchen in an appropriate way as behavior shifts…and eventually encourage fitness or physical activity longer term

Insight #9: Media consumption is skyrocketing as consumers seek entertainment; interest in non-food spending, especially, fashion, is significantly diminished

Implication #9: Brands should experiment with alternative marketing channels like livestreams, podcasts and videogames; they need to be inspiring and storytelling around their products – provoking specific needs based on insight rather than fatiguing consumers with sale messaging

Insight #10: A vast majority of consumers are wearing masks and embracing new models of engagement with retailers: 37% have shopped more online, 26% have ordered more local delivery and 29% have used more curbside pickup

Implication #10: Retail and services businesses, especially local ones, must restructure and rethink their product/service delivery models; buying online (or by phone) with curbside pickup, virtual consultations, and touchless payments will be part of the new norm – and this will require different setup, staffing and capabilities

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About ArtLogica: ArtLogica Strategy Group is a business, brand and marketing strategy firm helping clients in consumer-focused verticals: retail, fashion, luxury, services, consumer goods. We are seasoned industry executives who combine art and logic to create long term value for clients. Our sweet spot is the intersection of the consumer and the business - turning deep understanding of a consumer insight, need, behavior into actionable business activities that deliver growth and profit.