Which consumer trends will remain?
Marco Giorgini, International Growth Lead at Google EMEA, found some interesting consumer-focused lessons from the 2008 financial crisis that could help business decisions made today and in the years ahead. He discovered international consumer trends with the expectation that this could prepare brands for 2021 and beyond.
The year 2008 marked a time of economic uncertainty and upheaval.
- Prioritising value for money
In 2008 consumer priorities changed to fit the unstable situation. People used online channels to compare prices easily and to find the best deals.
Throughout the coronavirus pandemic similar behaviours emerged. In June 2020, global retail e-commerce traffic jumped to a monthly record high of 22 billion visits. Two in five consumers said they were purchasing more online, and specifically cited low pricing and promotions as the biggest draw.
- Cross-border sales take off
The events of 2008 triggered a tipping point where online retailers explored global expansion and export options to offset economic troubles in their home markets.
Today, businesses have a much larger international audience that is shopping online and ready to buy. Cross-border online sales have grown 21% year-over-year from January to June 2020. In Western Europe, cross-border e-commerce sales jumped 30% in May 2020 compared to the previous year.
Most business categories have seen more than 10% growth in their online customer base during the pandemic, and many consumers say they plan to continue shopping online even when brick-and-mortar stores reopen.
- New consumer habits start to stick
After the last recession, new shopping behaviours became the norm as consumers saw the benefits of comparing prices, waiting for discounts, and starting their shopping early to make better deals. As consumers continued searching for online deals, exporting businesses grew and world trade recorded its largest ever annual increase in 2010 as merchandise exports surged 14,5%, according to the World Trade Organization.
History could repeat itself in 2020 as many newly formed consumer habits look likely to stick. Online cross-border shopping could increase further as people have become even more comfortable with e-commerce. Initial indications suggest consumers have started to enjoy some of their lockdown habits. Whether that’s improved hygiene, healthier eating, or more time spent on personal development, over half of Millennials and Gen Zers say they’ll maintain lockdown behaviours once the pandemic is over.
Key takeaways for businesses
- Drive growth through export: Even in the middle of this pandemic, your business should be ready to seize new opportunities, meet shoppers’ needs, and be more globally-minded than ever.
- Expand your global reach: As global trade rebounded after 2008, many retailers moved to expand their international presence, and they sometimes sought out takeover targets. Google’s export checklist will ensure your global payments, customer care and logistics are set up for success.
Monitor customer trends: You can’t predict the future, but you can be ready to respond quickly when consumer trends suddenly shift. Use this special Market Finder feature to explore how search trends within your business categories have evolved over time in each of your markets.
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