5 consumer behaviours during Covid-19 (and what to do about them)

Consumer behaviour, especially for liquor and FMCG goods has changed significantly in the face of the Covid-19 pandemic. The reasons for this vary; some changes are mandated (such as the closure of restaurants, bars and other venues, as well as social distancing), and others are more conscious and arguably ‘common-sense’ choices (such as spending less time in stores).

Here are some observations from the Australian market and its consumers, and what you can do to react to these changes.

Consumers are spending less time in-store

As shopping is reduced towards ‘essentials only’ style purchasing, the stores that are open are naturally seeing increased foot traffic. These stores therefore represent one of the few areas of risk for contracting the virus. Whilst supermarkets and many off-premise liquor retailers are combating this by limiting customer numbers in-store at any given time, consumers are reducing their total time in the store. Accessibility and visibility are therefore crucial to ensuring your customers will purchase your products during their visits. Speaking with your retail partners about creative merchandising and ways to increase your visibility will increase your chance of success.

Merchandising is crucial to making your products visible to consumers, particularly with reduced time spent in-store.

Consumers are shopping on impulse

As customers look to get in and out of stores quickly, and visit stores less frequently, simple reminders in-store can help a customer remember that your product is something that they need. The ability to draw attention to your product at key points in-store is important, using gondola ends, POS display materials, or separate displays near the storefront or registers will increase impulse purchasing and provide easier access to your products.

Marketing your brands to consumers before they arrive instore can also be effective, in either combatting impulse purchasing of competitors products, or increasing pull-through for your own in-store merchandising.

Consumers are buying in bulk

FOMO (Fear Of Missing Out) has been replaced with FORO (Fear Of Running Out). With the reduced frequency of shopping trips and fewer incidental purchase occasions, consumers are looking to buy in bulk and stock up for the future. As mentioned before, this means you need to ensure your retail partner has sufficient stock levels so sale opportunities aren’t missed, and retailers need to be pushed to replenish shelves as frequently as possible. You can assist them (and your consumers) by supplying packaging that makes refilling easy, and that allows consumers to purchase more of your product at once. Multi-packs are the easiest way to achieve this, but it is important to remember that consumers may not want, for example, 12 of the same bottle. Mixed-packs can give the consumer variety, whilst ensuring all included product is from your own brand.

Consumers are spending more time online, whether that be for work, communicating with friends and family, or for entertainment. Placing your messaging strategically around this content can increase your reach.

Consumers are looking to cost-effective products

These are times of economic uncertainty for most consumers, with many facing job losses or other hardship. Consumers are generally trading down, moving from luxury goods to those which represent great value for money. Discounts for buying in bulk, (within the legal and retailer restrictions) can help consumers to choose your brand, whether that be deals such as “2 for $30” or reductions on cases and mixed-packs. These deals could go further than those offered in normal sales periods, to demonstrate to consumers your understanding of current conditions – again, working on creative solutions with your retail partner is key.

Consumers are heading online

With large segments of the population working from home, consumers are spending an overwhelming amount of their time online. This can be for work itself, accessing news to learn of the latest developments, for shopping, or simply for distraction and entertainment. Experiential marketing has been a key sales driver over the last few years; naturally Covid-19 has changed this. Online messaging, across online platforms and social media, is crucial to both reaching your existing consumer base and new targets. Not only is the content of the messaging important, but where it appears (or doesn’t appear!) is vital, so as to maintain a positive image for your brand and products. Rethink how your customers will be consuming your product, and adjust your content accordingly. Showing the ‘human’ side of your company, and demonstrating your brand values, can also help you connect with your audience.