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Affected by Crisis, Consumer Confidence Continues to Sway

New research from Disqo examines shifts in consumer behavior and spending predictions.

As the world settles into new routines, many fear we remain far away from a return to the old normalcy. From late March through early April, Disqo has surveyed over 32,000 consumers with the goal of understanding today’s consumers’ current behaviors with shifts in online shopping, engagement in new everyday activities, overall spending, and confidence.

 

According to Disqo’s data, nearly 40 percent of all purchases are now being made online as of April 6. This is an increase from just two weeks earlier when the company’s survey showed 32.8 percent of purchases being made online. Further, the survey showed one in 12 consumers are now making 100 percent of purchase online.

Additionally, while fear still rules consumer sentiment, Disqo’s research found that concern about contracting COVID-19 is increasing at a slower rate from prior weeks. The growth of concern from March 23 to March 30 was 1.7 times greater than the growth from March 30 to April 6. Still, 35.5 percent of people surveyed report feeling extremely concerned about contracting the coronavirus.

Nearly half of all consumers surveyed by Disqo are at least moderately concerned about small gatherings of people.

“As uncertain as these times are, most would agree we will get back to normal, though what normal looks like may be a bit new,” said Carl Van Ostrand, vice president of consumer insights at Disqo. “Consumer confidence and spending will rebound — and there are early indicators in our study that consumer concerns, albeit heightened, have stabilized on certain topics. Retailers who are able to deliver in this new paradigm are well poised for growth in the weeks and months ahead.”

Week-over-week, the age demographic between 25 and 35 years old told the company they are spending more money compared to the month prior. According to the company, this is most likely linked to health and beauty purchases or home and garden items. Overall, half of survey respondents said they are currently spending less money.

While the largest categories for spend remain in buying groceries, household essentials, and food takeout, 24.1 percent of all consumers do plan to purchase apparel and 49.3 percent of all consumers plan to purchase health and beauty products within the next two weeks.

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