HP Innovation Issue 16: Fall 2020 - | Page 68

45 % of baby boomers
WHEN THE PANDEMIC HIT Portland , Oregon , hard in March , Christopher Hayes and his family canceled the vacation they ’ d been planning for months — a summer trip soaking up the midnight sun in Alaska . With the money for the trip refunded and a shelterat-home edict imminent , the family reallocated their vacation budget toward sun-seeking much closer to home : They decided to update their 30-year-old deck and install a full outdoor kitchen .
Instead of heading straight to the Home Depot or Lowe ’ s for this ambitious project , Hayes turned to online sites and social media to see what people were using and research the big-ticket items he planned to purchase : a large outdoor griddle , a smoker , and an industrial garage rack . He bought everything online and assembled many of the items himself .
“ I could have gone into a store and bought something prefabricated ,” said Hayes . “ But this way , I was able to put together piecemeal exactly what I wanted . And I was willing to do [ the extra research ] in order to avoid being around a lot of people .”
In the midst of a pandemic that ’ s left no supply chain unscathed , online shopping has become more than just an occasional indulgence — it ’ s a lifeline . Today , consumers are turning to ecommerce to buy everything from groceries to appliances to ergonomic office furniture ( with a corresponding increase in shipped packages ) from the safety and comfort of home . The resulting market shifts have been extraordinary , with ecommerce sales growing more than 30 % between the first and second quarters of this year .
45 % of baby boomers
say they ’ re embracing ecommerce because of COVID-19
SOURCE : NATIONAL RETAIL FEDERATION
“ Stay-at-home and social-distancing policies accelerated consumer demand to shop online by five years overnight ,” says Rachel Tipograph , founder and CEO of MikMak , an enterprise marketing ecommerce platform .
SHIFTING SHOPPING BEHAVIOR People are making major purchases — including bigticket items like fine jewelry , mattresses , and new cars — via the internet . For those who wish to avoid crowded aisles , “ buy online , pick up in store ” ( BOPIS ) has become a common practice . There ’ s even been a generational mindset shift about online shopping ; whereas millennials and Gen Z grew up “ adding to cart ,” now 45 % of baby boomers say they ’ re embracing ecommerce because of COVID-19 .
UK-based consumer psychologist Kate Nightingale suggests that these trends are about more than straightforward germophobia — with many people experiencing financial upheaval , there ’ s a security and power element behind shoppers ’ decisions . People are thinking longer and harder about their priorities these days , and many are practicing “ mindful consumption .”
“ Mindful consumption is about reclaiming control over buying decisions ,” she says . “ A sense of control is necessary for our experience of safety — something we have all been missing .” Buying online , she adds , means people are able to make their own choices without feeling pressure from a salesperson .
Hayes ’ s experience seems to support this theory . He says that making such a large purchase online forced him to be more thoughtful — he even felt he had more agency in the process . “ Ultimately , I was able to do a lot more tailoring to my vision versus letting a store employee kind of create that vision for me ,” he says .
CONSUMER DOLLARS ARE LANDING CLOSER TO HOME Pandemic spending is , for lack of a better word , unprecedented . Many people have adjusted their financial habits , including what they ’ re buying — as well as where they ’ re turning to shop .
According to Deloitte , Q2 consumer spending fell dramatically in areas such as recreation , transportation , and accommodation . Spending on flights , hotels , casinos , cruises , sports , movie theaters , and theme parks plummeted . With fewer people buying apparel and luxury accessories , some major retailers like Lord & Taylor shuttered for good .
But a few winners emerged , too : Walmart , Target , and Uber Eats all experienced higher-than-usual volumes of online orders during the first few months of the pandemic . Consumer spending on Amazon jumped 60 % between May and July compared with the same time period in 2019 . Online grocers , gaming companies , and video-streaming services also saw surges .
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