Digitalization – don’t look back!

Young adults around the world have grown up immersed in tech. When computers became a household essential, my favorite thing to do was get creative on Paint. Little did I know that tech would become integral to my life. Growing up I was always the tech guru of our family solving any issues we had, from creating a CV to installing a new DVD. And I still am the inhouse resource!

If 2020 has shown us anything, it’s how fast technology can evolve and almost overnight become essential for daily life. We’ve seen the rise of the QR code, contact tracing apps and, of course, the high demand for ecommerce shopping. Last year consumers spent $861.12 billion online with U.S. merchants, an incredible 44.0% year over year increase. That’s the highest annual U.S. e-commerce growth in at least two decades- nearly triple the 15.1% jump we saw in 2019.

The coronavirus pandemic forced consumers to adopt new habits and revaluate their priorities, with businesses pivoting strategies to meet new demands. The pandemic had a serious impact on the nation’s economy, changing market dynamics and the way we shop.

Thinking back to March 2020, at Kelkoo Group we saw an expected increase in edible products, also a mirrored increase in-home care, cosmetics, and personal care products.

The following months saw a shift in behavior that no longer focused on essential. People started spending more of their income on nice-to-haves such as clothing, shoes, and electronics. The Stimulus Check plays a massive role in this change, with the extra money well-received by many Americans.

The top five products that saw the biggest increase in the US during the first lockdown:

The increased uptake of online shopping from consumers who made the switch from brick-and-mortar stores is also a big driving factor of the increase.

For many consumers, this was their first experience with online shopping, opening ecommerce up to new demographics. We saw a 12.2% growth for new online shoppers in the 65+ segment. That’s a whole new base of customers who hadn’t yet experienced online shopping, and I think they’re here to stay.

Online shopping became an essential part of life for everyone in 2020, with the change in landscape pushing a record number of physical stores online. At Kelkoo Group, we were able to guide those stores through their first journey online.

2020 was a year of accelerated digitalization for consumers and companies alike around the world, and I believe that this shift in online behaviour will set the tone for years to come.