5 Consumer Trends to Look Out for Post-COVID-19

customers sticking around in the post-pandemic retail world, said Bain.

The report advised luxury brands to “invest more in online sales and marketing, particularly in areas hit hardest by the pandemic.”

How much shopping will remain online post-pandemic remains a subject of debate in retail.

While Bain is forecasting a rise in shopping shifting to e-commerce channels, Peter Smith wrote in his last column that consumers will be eager to return to stores and that retailers should be ready for them.

The call for eco-friendly and socially conscious brands will only get louder.

Sustainability has been a buzzword in the retail space in recent years, with more consumers eschewing fast-fashion and disposable products for more sustainable alternatives.

Brands will want to be mindful of consumer concerns post-pandemic when thinking about end-to-end product life cycle, supply chain management, and how to dispose of unsold stock, said Bain.

In the fine jewelry world, consumers have been doing their homework on environmental and social issues, turning to conscious brands that use recycled metals and responsibly sourced gemstones, for example.

Greenwich St. Jewelers in New York City recently stocked the 10-piece “Lift Collection,” featuring jewelry showcasing gemstones from Anza Gems, purchased for fair trade prices directly from dealers in Tanzania and Kenya.

All proceeds from the collection went to nonprofit Gem Legacy, which funds projects benefiting East African mining communities, and the Tanzanian Women Miners Association.

A brand’s ethics and aesthetics will be weighed equally.

Consumers are not simply mindful of purchasing eco-friendly and ethical products, they will soon be prioritizing these items, according to the Bain report.

Described as the “rise of a post-aspirational mindset,” the report suggests that shoppers will be on the lookout for “purposeful brands.”

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Deloitte echoed this point in its Global Powers of Luxury Goods 2019 survey, noting that younger, affluent shoppers are socially and environmentally conscious and hold luxury brands to high standards, particularly in regard to sustainable and ethical production processes.

The survey pointed to Tiffany & Co. as an example of a luxury goods company appealing to these customers, highlighting its responsible sourcing as well as its social and environmental work, particularly its philanthropic foundations focusing on reef conservation and awareness for responsible mining.

The company was one of the first jewelers to use gold sourced from the “Salmon Gold” initiative, which aims to mine gold in a way that’s mindful of the habitats of salmon and other fish.

Inclusion will be key as spending power is reduced.

Luxury brands tread a fine line between aspirational and exclusionary.

As unemployment numbers grow, consumer sentiment will take a dive. The U.S. consumer confidence index sank in April to 86.9 points from a revised 118.8 in March, its lowest level since 2014.

“Brands will need to use all their ingenuity to revamp their offer at accessible price points, reflecting the reduced spending power of many middle-class customers,” said the report.

Bain & Co. concluded its report on a positive note, stating that luxury will regain its strength once the situation stabilizes.

“Lessons in resilience learned in the dark days of 2020 can power a sustainable recovery in 2021 and beyond. This crisis may be transforming the luxury industry for good, but it could also be a transformation for the good.”