How does Covid-19 affect markets and buying behavior?

In the two months (March/April) that were affected by the lockdown, there were many negative areas as well as top performers. Nonfood retail suffered the most. The apparel, optical, and furniture and garden sectors all saw sharp sales declines. So did products related to travel, as they continue to face great uncertainty. 26 percent canceled or abandoned their travel plans. This is largely due to the fact that more than half of the Swiss fear that the borders will remain closed for at least another two months.

Health and hygiene products such as thermometers and disinfectants, Sport@Home products such as fitness equipment, and technical consumer goods for the home office and homeschooling benefited strongly. There was also growth in games, children's play equipment and electronic games and gaming devices.

New ideas and concepts in retail trade

While retailers have reached their capacity limits during the lockdown phase, new ideas and concepts have emerged in the stationary retail sector. There are regional SME initiatives with the intention of a joint customer approach and service offers as well as many individual concepts such as online 1:1 life consulting, click&collect or home delivery services from industries that had not practiced this before.

Changeover to "Home" also led to additional expenses

In the GfK Consumer Pulse survey, just under half (48%) of the Swiss said they had spent less money than usual during the lockdown in April. However, high-income earners or families with children spent more money than usual in some cases, especially on the products in higher demand mentioned above.

Dealing with the virus

The perceived threat from the virus is diminishing. More than half of the Swiss believe it is unlikely that they will become infected - especially those over 60. The vast majority nevertheless adhere to hygiene measures: wash their hands more often (76%) and avoid contact with other people (70%).

More than half of the Swiss believe that a second wave is quite realistic.

The Swiss feel well informed about the virus and the regulations and restrictions that apply in each case, but the proportion of people who feel very well informed about the virus and the measures is shrinking.

Outlook for the "new normal

Existing trends will intensify. Despite certain adjustments, attitudes and purchasing behavior will not change fundamentally. Ecological issues and also other customer needs will remain relevant.

More than half of the Swiss think that "work from home" will continue to be part of everyday life in the future. This brings with it certain changes in consumer and purchasing behavior.

Just under half of the Swiss expect to spend less money, 32 percent want to use delivery services more often and 27 percent avoid shopping in large malls.

The current crisis is the beginning of probably the biggest global recession in generations, bigger than the financial crisis in 2008/09 (IMF 14.04.2020). The lockdown measures are affecting not only retail trade worldwide, but a wide range of sectors, such as industry, banking, aviation, tourism and many more (OECD 27.03.2020).

An internal GfK study (GfK Europe POS Tracking) on the performance of Tech & Durables brands in Europe during and after the financial crisis shows that the future success of a brand is decided during such a crisis. Brands that made the right investments during the recession and thus increased their market share were able to maintain their competitive advantage in the decade after the crisis. Accordingly, it can be assumed that the onset of the new normal is the ideal time to review the target direction of marketing investments.