Shopify Ecosystem

Hawke Media Special Report: March 4, 2021

hawke-media-special-report:-march-4,-2021

It’s Women’s History Month. Much like Black History Month, it started as a week (Women’s History Week) after the passage of Pub. L. 97-28 in 1981, wherein it stated that the week starting March 7, 1982, would carry the designation of being the first. 

In 1987, the National Women’s History Project petitioned to have the week of observation extended to a month, and that same year, the inaugural Women’s History Month took place.

The passage of these resolutions came on the backs of women who fought oppression, violence, and degredation to earn recognition as equals among their male counterparts.

Now, this month encapsulates the continued struggles of women from all walks of life to achieve equity and parity. 

And it celebrates the achievements of all of the women who made it possible throughout American history; the doctors, lawyers, mothers, homemakers, scientists, activists, athletes, and the list continues to expand as the glass ceiling that stood in their way for so long begins to shatter. 

Consumer Trends

Rent Freefall

Pandemic National Rent Index

Source: Apartment List

  • Rent prices are decreasing, especially in major metropolitan markets that were hit hard by the pandemic like NYC which saw a 21% decrease in rent prices.
  • Alternatively, rents in some cities like Boise, Idaho are on the rise as Americans have made the move to remote work with increases of 14%.

Grocery Shopping

covid grocery shopper habit changes

Source: Supermarket News

  • According to research from the FMI Foundation, 36% of consumers surveyed said that they’ve changed who in their household shops for groceries.
  • Responsibilities in household tasks have shifted due to the pandemic as roles had to be abruptly reshuffled, so prospective consumer identities have to evolve with this trend.

Spending Intent

Global Spending Intent

Source: Deloitte

  • While spending intent is positive across the board in countries like India going into February/March, the US is showing signs of reservation as consumers are almost entirely focused on essential categories.
  • The pandemic has brought essential products into the forefront and brands have had to adapt to the reality that with uncertainty people are saving more and becoming more conscious of what they spend it on.

Getting Around

Travel Statistics 1-25 milesTravel Statistics 25-100 milesTravel Statistics 100 miles

Source: Bureau of Transportation Statistics

  • US travelers aren’t flying as much as they used to, but road trips are becoming increasingly more popular with trips longer than 100 miles spiking around August/September 2020.
  • People who want to travel are finding alternative ways to do it by exploring domestic locations as large crowded areas have become a safety risk.

Business Trends 

Credit Card Fees

Mastercard Visa Credit Cards

  • “Visa and Mastercard are reportedly set to implement a wide-ranging restructuring of the ‘swipe’ fees banks charge merchants to process credit card transactions beginning in April. While the matrix of fees is complex, the net impact is estimated at increases of $768 million a year for Visa and $383 million for Mastercard, or a total of $1.15 billion, according to analysis by global payments consulting firm CMSPI.”
  • This fee increase could put more strain on merchants who rely on these major credit card networks, leaving them with the option to eat the fee or pass it along to their customers.

Target Boom

Target eCommerce

Source: Business Insider

  • Target has quietly become an eCommerce powerhouse with triple-digit growth each quarter in 2020, undoubtedly aided by the pandemic.
  • The dominance of large retailers in the eCommerce space could, like their brick and mortar counterparts, see many small businesses pushed to compete for space in the market.

Personalization

Efficacy of personalization for customer engagement and conversion

Source: Marketo

  • Personalization increases conversions 5x when compared to static content, however, only 12% of marketers are satisfied with their personalization efforts.
  • Personalization has become a key component of increasing engagement across the board as shoppers become more acutely aware of their digital habitat.

Special thanks to our friends at HawkeMedia for their insights on this topic.
I'm also on