Add text column body text.
Covid-19 poll daily insights
March 19, 2020
Based on our latest survey insights, we predict that consumer behavior is shifting. With the work from home status seeming to last longer than another 1-2 weeks, workers are starting to think about what they need to buy to be comfortable at home. We believe this first phase was about buying essentials, the next phase will be about buying items that make people comfortable and the next phase will be about items that make people happy.
Example of someone looking to be more comfortable and support small businesses:
Example of a brand providing value to parents at home and seeing a huge benefit as a result:
My friend’s yoga for kids website traffic has gone up 11,600% since Tuesday.
— Michelle Tandler (@michelletandler) March 19, 2020
A consistent percentage of brands report sales going up. We also see a consistent shift of brands moving from sales being the same to sales being worse, week over week.
3PLs are taking their roles very seriously. We’ve heard multiple reports of logistic centers and warehouses isolating one worker per brand, running shifts of workers, checking temperatures of employees before they enter and requiring staff to wash their hands a certain number of times per day. We’re continuing to dig in on this trend.
Brands continue to report reducing their ad spend despite reports of ROAS becoming more efficient for brands that offer essential and semi-essential products. We spoke with a brand today who sells a semi-essential good – kid’s clothing – who reduced ad spend despite ROAS going to 10x (up from approximately 1.8). She is generally concerned with what will happen and doesn’t want to spend her available cash on advertising until she has more certainty on how things will play out.
It’s not clear, though, if that’s really the right strategy. Consumers are spending more time online right now. With ad budgets going down for most, inventory is available and consumers are looking for items that will help them be more comfortable at home.
Crazy time right now.
Everyone is on these platforms so attention is high and competition is cutting spend so costs are down. That means… HIGH attention at a LOW cost.
Don’t stop marketing!
— Jason Portnoy (@jasonportnoy) March 19, 2020
Brands with increasing sales
How are they feeling?
Brands report that they are skeptical these good times will last indefinitely but don’t have a good hypothesis as to why. They can’t believe that they are doing so well.
Brands continue to be nervous about supply chain disruption but don’t see any immediate impact. One brand told us today,”I don’t know why I’m nervous…I guess anything is on the table so it’s possible the warehouses could close?”
Creating content that is supportive of consumers. Princess Awesome, which sells science and technology inspired children’s clothing, put out a post on Facebook to followers asking for ideas on what parents were doing for social quarantining. The comments inspired a blog post that lists 90 things you can do with kids. The post has been shared more than 30,000 times and got the brand picked up for a local news segment.
Brands with decreasing sales
How are they feeling?
Brands with decreasing sales report that they are concerned with paying staff. They are resilient and willing to stick this out but are unclear on when things will turn around which makes them wonder if they should consider taking on loans, laying people off, or just hanging tight.
Some brands have reported that they’ve stopped trying to sell their current product right now and are thinking about what else they can do. A swimwear brand in Canada explained that their sales are going to be hard to increase as they are a seasonal brand and travel, which triggers sales, is halted. Instead, they are brainstorming new products they could create to better suit the times. Sometimes, necessity is the mother of invention.
Brands with flat sales
How are they feeling?
Brands with flat sales report that they are nervous about consumer confidence. It seems like these brands sell non-essential items but are loved and valued by a niche of customers (e.g. jewelry). They report that the longer this containment continues, the less confident they are that their sales will stick around.
Some brands are increasing their safety protocol and communicating it with customers. Niv’s Bling reports, “we’re marketing to our customers that we’re taking COVID-19 seriously and are upping our health and safety protocols.”