Shopify Ecosystem

Hawke Media Coronavirus Report: July 15, 2020 | Blog | Hawke Media

hawke-media-coronavirus-report:-july-15,-2020-|-blog-|-hawke-media

The United States continues to break records as coronavirus surges grow with states like California, Texas, and Florida hitting record highs in confirmed cases, the latter setting a national record for most cases and most hospitalizations in one day.

COVID-19 has been a constant since March and the world has revolved around this virus, however, there are early signs of hope as an early-stage vaccine trial sees positive results and some common sense methodology from The CDC that says the virus could be quelled in 4-8 weeks if everyone wears masks.

Despite this, the issue has become divisive and will continue to be polarized as many refuse to take precautions and restrictions are re-imposed, meaning businesses will suffer as the public good takes precedence and government assistance hasn’t been able to adequately fill the gap for many.

This means that consumers will once again be pushed back into their homes and have to adapt or continue to solidify new ways of addressing their needs.

Consumer Trends

Spending by Category

5f0f35ddfce9e67a26727c0e JzjqaWuVf2e06WXHW oR4klQAsxvEYqHQRPR60h0rUtIreVg nHDBTUFlY5phE16zji Ze2ipMoe0iEH3eqLSRSL5L9aL0 2o5N6

Source: McKinsey
  • Consumers intend to spend more in the next two weeks across a majority of categories as many begin recovering to some degree.

5f0f35dd47dbc28d6b6f7f72 YRWCMYOmS0OUQ6kiSC3NJUk O

Source: McKinsey
  • The number of consumers that are shopping primarily online is growing as well, with 40-70% expected to make the shift almost completely.

Consumer Behavior

5f0f35dd4ca41144f95a6617 l3HgSWUDzL0B5p UPvJ3cJB2qkTJujFIl5cI0rWFTaOJQ1tknaAYh PkR2dPZllmZGkZSvkIUmnzAqUyF4cgvFv y7TBaxy5NkQHsrzwejnpS

Source: PWC
  • Globally, consumers are increasingly willing to go the extra mile and part with their data to help with contact tracing and other initiatives.
  • Additionally, nearly three quarters have found themselves working from home at least part-time.

Business Trends

Category Growth

5f0f35dd0ec52b67a13ebccd Cgoid7ZxPbbCzXi9dZ Nw LdkD8fOd8ukw5uC5Psa7igo6VHrKeFGF42TeX3 kDSiF3UYoWYW5Is0ab70wKAyN7BbVGamClyftiUYFeJQlNRkQaMUl4c W5EsseN4 ieJLYeE4Q

Source: Via News
  • In 2020, the only sector forecast to see real growth globally is Food & Beverage, not including alcohol.

5f0f35dd8c430864f314f2e7 U6ytCz8oqIVsEGXkxPeBHOGeWosSfwdlY6EO1q3Y3FPwwWt0UdmaD5a6Khl5vBeHNosa0MdAVLWVEJRdag10MeQqg ovEbM8egJ82DBQp3x40ND9Stj0giQAxmTqc8rBEBiEiy H

Source: eMarketer
  • Retail sales are projected to end the year down 5.7% from 2019, which is 12% below pre-COVID projections.
  • Global GDP decline is expected to hit 3% which is stark in contrast to the 0.1% global GDP decline of 2009. 

eCommerce Growth

Source: Loss Prevention Magazine
  • While growth is expected to drop on a global and national level in most regions, eCommerce across many categories has experienced unprecedented growth like the 149% increase in US home improvement sales. 

Advertising

5f0f35de5ec309351dfbee65 HH79nEDtRqkqc5YX1RoZjU9ko cvd8E7ADxraJbPoE1gJC5bOVnSaK mTTH1VW15qnODckTWhhdszgePSnKNWWEJ

Source: McKinsey
  • Digital channels are becoming increasingly more relevant as consumers shift their focus from traditional media, many spending time in apps, so ad dollars are following that pattern.

5f0f35deb0765cc8f6933141 AHaUnst28wF iKm7V2kCz0oKbaanpetQtgtV8HyLvcPfMjv4F6KSjpSC97Mye8aarNZ7KzxmZ8z0gyUTsS y6 OzUuKtFMcvmMImgWs9p0zto l yy4Xn RDFQp GAe6O66wD4Ca

Source: eMarketer
  • Google’s ad revenue dropped by an astounding 5.3% in June 2020. Other major digital advertising platforms experienced similar hardship with the exceptions of Instagram, Snapchat, and Amazon.

This article originally appeared in the HawkeMedia blog and has been published here with permission.

I'm also on

Subscribe to Podcast

Top 1% most popular show out of 2,729,419 podcasts globally!

eCommerce Fastlane | Shopify Podcast For DTC Brands | Growth Marketing Strategy For Entrepreneurs | Listen Notes