2020 rebound report
2020 Rebound
Consumer Behavior, Sentiment, and Trends
At Criteo, we dont have a crystal ball, but we do have data.
What weve seen in our ongoing analysis of market trends is that once the coronavirus outbreak began dominating news headlines, consumers quickly responded by adopting new habits and product preferences to meet their changing needs. These behaviors give us insight into what, where, and why theyll buy in the coming months.
Brands have had to play catch-up. Some trends may be permanent and others may normalize in time. But, right now, we can estimate that the next year or two will require new strategies as marketers adapt to the new consumer. The lockdowns may be over, but the behaviors consumers have learned and the ways theyve purchased and adapted will last for much longer.
Inside The 2020 Rebound Report, we'll break down
what marketers need to know about how consumers
are adapting this year, what theyre buying, and which
marketing strategies are proving to be most effective.
A Tale of Two Consumers
The coronavirus pandemic created a new normal.
In this reality, people dont leave the house without a face covering, and they try to stay three meters away from strangers. As cities scale back formal distancing measures and businesses begin to reopen, we expect behaviors like these to continue. Significant numbers of consumers will be cautious for months to come, while others will start to resume their lifestyles with some modifications.
Going the Distance
People are ready to get out of confinement, but many are worried about asymptomatic cases and transmission. In the absence of mandated social distancing policies, careful consumers will choose to keep space between themselves and others.
A survey by Coresight found that:
- 2/3 of US consumers plan to avoid at least one type of public space after lockdowns end.
- 45% plan to avoid shopping centers and malls specifically.
Criteos consumer sentiment survey, Peak to Recovery, conducted in May, surveyed 10,000+ shoppers worldwide and found that in-store comfort levels vary:
9% of respondents in the US and the UK feel comfortable going to a shopping mall right away.
45% of Australian respondents say theyre already comfortable with going to shopping malls.
56% United States.
Crowds No More
Our research shows that as the prospect of crowded spaces increases, consumers comfort levels decrease.
Respondents who say theyll feel comfortable going to restaurants in one to five months:
- in South Korea
- in France
- in India
CROWDS NO MORE
Respondents who say theyll feel comfortable going to a bar in one to five months:
| in France | 62% |
| in Australia | 59% |
| in Italy | 55% |
| in Spain | 52% |
| in South Korea | 51% |
| in the US | 50% |
| in the UK | 49% |
| in Brazil | 45% |
| in Germany | 45% |
| in Japan | 42% |
| in India | 33% |
| in Russia | 36% |
Respondents who say theyll feel comfortable going to large sports events or concerts in one to five months:
| City | Comfort Level |
|---|---|
| in Italy | 38% |
| in Germany | 38% |
| in France | 36% |
| in Australia | 38% |
| in South Korea | 36% |
| in India | 34% |
| in Brazil | 36% |
| in the UK | 34% |
The Age of Discovery
During the height of lockdowns, internet traffic rose by up to 35%, according to data from Netscout.
Social distancing prompted more consumers than ever to turn to online channels to find what they needed. The vast majority say they plan to keep purchasing from the new stores they discovered.
Heres what our survey found:
- 34% of respondents shopped from some online stores for the first time.
- 41% said they bought from the online versions of physical stores they usually purchase from.
- 82% are likely to keep purchasing from the new stores they discovered.
Redesigned Lifestyles
Of the respondents in our Peak to Recovery study:
- said that the peak crisis period was a good opportunity to make changes to their lifestyles and habits.
5 Top Trends in the Rebound Economy
- Do-It-Yourself Mentality
- Remote Work
- Distance Learning
- Cooking at Home
- Home Exercise
#1 Do-It-Yourself Mentality
Knitting
We Are Knitters, a Spain-based online seller of knitting supplies, saw sales spike globally 235% since March, with New York (+300%) and Massachusetts (+375%) boasting the most yarn enthusiasts.
20% of Australians, 24% UK, and 21% US discovered (or re-discovered) do-it-yourself (DIY) activities in the last few months and intend to keep doing them.
Baking
Aided by a wealth of suggested recipes, news articles, and foodie blogs, baking is a wholesome activity that can bring on feelings of comfort and abundance. According to Google Trends, searches for banana bread went up 54% worldwide in March.
Criteo data shows that in early April, sales of baking items like batter & cocoa mixes, bread crumbs, pie & pastry fillings, and cookie decorating kits, increased in:
- +273% Australia
- +289% Spain
- +789% Italy
Gardening
During World War II, 20 million Americans planted victory gardens which produced 40% of all fruits and vegetables consumed in the US during that time. According to online retailer Ozon, demand for seeds rose by 20-30% year-over-year in March.
28% Australia, 25% US found their green thumbs in recent weeks and plan to continue gardening.
Puzzle-Solving
In the last half of March, US puzzle maker Ravensburger saw sales jump by 370% year-over-year. The coronavirus-induced surge in puzzle demand means that in 2020, Ravensburger has been selling 20 puzzles per minute in North America.
#2 Remote Work
Like fax machines and typewriters, the standard five-days-a-week office job may become a relic. According to the Federal Reserve, the share of the US labor force that works from home has tripled in the last 15 years. The coronavirus pandemic has only accelerated the trend.
Our survey found that:
19% Australians, 20% Britons, 26% Americans began working from home significantly for the first time in recent months and they plan to continue.
Productivity & Mental Health
48% of respondents feel more productive when working outside of the office.
60% feel that it has a positive effect on their mental health.
Real Estate
69% of companies now plan to shrink their office footprint.
Commuting Time & Expenses
Employees who work at home half the time would save an estimated $2,500 - $6,500 per year on things like gas, parking, food, and daycare, and the equivalent of 11 days per year in time they would have spent commuting.
Home Office Product Trends
Webcams
Logitech, a company that dominates the space, sold out of webcams in April. Other major retailers ran completely out of stock. For Zoom, usage took off in March to the tune of 200 million daily meeting participants. By comparison, in December 2019, the maximum number of daily participants was 10 million.
Criteo data shows that at the end of March, sales of webcams increased significantly compared to the first four weeks in January, and by the end of May, daily sales numbers were still significantly above sales earlier in the year, in most countries.
Desks
When stay-at-home orders first began, many may have quickly thrown a laptop on the kitchen table, repurposed the nightstand, or converted the liquor cabinet into a workstation. But as families and roommates were pressed to work in the same living space, spare rooms, garages, closets, attics, and other forgotten corners were transformed into home offices.
- +24% Italy
- +218% Australia
- +94% Japan
#3 Distance Learning
These days, the kids are at home when theyre supposed to be in school. UNESCO reported that due to school closures, more than 1.2 billion children in 186 countries are not in their classrooms. Many university classes will go virtual in the fall. Parents and students are preparing:
Gap years
1/6 students whod planned to attend college full time in the fall no longer plan to.
Home School
On average globally, about one in 10 parents believe theyll continue home schooling their kids:
7% Australia, 9% UK.
Learning & Childcare Product Trends
In the 28 days from April 13 to May 10, sales of Educational Software increased significantly.
#4 Cooking at Home
Most restaurants have remained closed except for takeout and delivery in recent months, putting a new emphasis on eating at home. OpenTable estimates that one-quarter of American restaurants will go out of business due to coronavirus quarantines. Restaurant reservations were down 95% on May 13 compared to the same day in 2019.
52% of respondents in the United States said that even after the peak of the Covid-19 crisis, they are likely to continue cooking at home.
Online Grocery
42% of respondents plan to keep purchasing groceries online in the future.
Grocery Apps
Grocery app downloads jumped significantly from February to mid-March, including Instacart (+218%), Walmart Grocery (+160%), and Shipt (+241%).
Grocery Product Trends
Throughout a peak period of the crisis in the US, during March 15-April 12, Americans stocked up on ingredients for quick, easy meals:
- +635% for pasta sauce.
#5 Home Exercise
Gyms are starting to reopen, but even with machines spaced six feet apart, it may be a long road before consumers feel comfortable around all that heavy breathing.
40% of Australian respondents plan to keep exercising at home in the months ahead.
Fitness Product Trends
Exercise Bands sales rose:
- Poland +86%
- US +504%
- Australia +488%
- UK +725%
- Germany +745%
Connecting in the New Normal(s)
Therell be no quick return to the way things were before coronavirus, but there will be many new normals. People are learning to cope with trade-offs and adaptations that touch every aspect of life.
Regional differences will be very significant as marketers start to build campaigns; towns, cities, states, countries, and continents may all start to diverge when it comes to both attitudes and shopping patterns.
About Criteo
Criteo (NASDAQ: CRTO) is the global technology company powering the worlds marketers with trusted and impactful advertising.