When tech is more than an investment, it’s an indulgence
One of the reasons you need to base your decisions on hard facts is that some of the trends that we’ve observed over the past 18 months appear contradictory.
Consumers can confuse us! For instance, on the one hand, they tell us they are price sensitive, yet on the other, our sales intelligence indicates that they are paying more for premium products that help them manage pandemic living.
Retailers and manufacturers need to be aware of this apparent contradiction when planning pricing and promotions. People are willing to pay more for the good quality, longer lasting products they need to cope with the pandemic, for instance for home working and studying where better networking solutions may be required. They are also investing in better performing, smarter products to indulge themselves. During lockdowns, the only way to splash out on a treat was to choose something home-based.
Thus, shoppers chose pricier features and functionality when buying products that make life easier at home, such as superior TVs, thinner notebooks, better vacuum cleaners, bigger smartphones etc.
For some consumers, being limited to the home meant they were able to save money they would otherwise have spent on going out, and this has been redirected to premium products. However, this is not the case for all, and many have seen a significant cut in their income.
Sales made during the Q4 2020 lockdowns showed us that consumers will pay more for problem-solving products. Shoppers often traded up, either because cheaper alternatives were not available, or they had disposable income and could afford to do so. It is key you understand these shopping trends and know the latest consumer preferences when planning your pricing and promotions.
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