November 2020: the second wave of digitalisation

Category: eCommerce, covid19, digitalisation

November 2020: the second wave of digitalisation

Consumers are in the midst of a reconfiguration of habits, changes in brand evaluation criteria... but also changing their emotional mood in a matter of days and their daily routine in weekly intervals. At The Cocktail, we have been trying to understand the impact of COVID on consumer attitudes and behaviour on a recurring basis since the first moments of the pandemic.


We will face the coming months with greater spending control.


In line with emotional and habit hibernation, the dominant and decided trend in recent months has been towards spending control. Almost 5 out of 10 people have said they will spend less than in the same month last year (48%). The percentage of the population that seems to have moved into a spending control attitude is up 17% since September.


Overall, a similar proportion of those who say they have increased (a lot or some) of their savings since the start of the crisis than those who have had to spend (some or most) of their savings.



The second wave of digitalisation.


After the explosion of confinement, many businesses have taken note and moved into the channel. In addition, users have acquired new habits and that is why we are witnessing a second wave of digitalisation, quieter than the first but (even) more expansive. Digital access" (to peers, leisure, services, work...) was the basic tool of "being in the world".


  • Its "obvious" uses have been consolidated. We no longer debate whether there will be a reversal in the uses of digital banking.
  • It is the great 'solver', digital appears as the basis of the answer.
  • Even more naturalised and omnipresent, it is progressively freeing itself from negative connotations.
  • It appropriates spheres that were alien to it.
  • It allows "not touching" the world. QR codes, contactless means of payment, pre-management of journeys and visits... 
  • The more I know, the more I learn. It generates greater confidence towards new learning.



What about Christmas?


Practical unanimity on how different the coming festive season will be. Two out of three anticipate a completely different Christmas than in previous years. The general slowdown in spending runs parallel to projected spending on gifts. Fewer gifts will be given but with a greater "emotional investment". 


Online (especially marketplaces) will play a leading role and local shops will grow compared to last year. Online shopping is increasing compared to last year for all the players analysed (wholesalers/marketplaces, specialised brands and
department stores). 



Conclusions and recommendations.


  • The attitude of spending control has arrived, hence the need to follow up in detail and on the go the retraction in spending and monitor the evolution of the different categories and the typology of customers of our brands.
  • November's habit is "my me". The past is no longer the reference for building the future, there is no turning back, there is a new behavioural pattern that is now the real one.
  • The fight for the consolidation of new digital uses. Digital habits have expanded with the pandemic, how to seize the opportunity?
  • A new Top of Mind: Reconfiguring the relevance of channels from the consumer's perspective (weakness of the physical, centrality of the telephone but origin of pains...). From the consumer ideal: remote yes, but also human.
  • Centrality of online in the coming Christmas season. Design a value proposition centred on the customer and with those elements on which the customer focuses during these dates.

Download the full report here.