This is evident from an analysis by Klarna, market leader in the field of buy now, pay later. Klarna has been analyzing the online shopping behavior of Millennial and Generation X consumers since the introduction of the corona measures on March 11. These groups together form the majority of all consumers.
Onine spending at the beginning of the crisis: Comfort and conviviality go before clothing
During the corona crisis, Klarna saw an increase in online shopping and the use of the payment method Pay later. The study looked at online shopping patterns in two age groups: Millennials (ages 24-40) and Generation X (ages 40-55). The consumption of both groups has changed compared to the time before the corona crisis. Previously, the purchase of clothing and shoes was popular, but this has changed drastically in the first weeks. With an average weekly decline of ten percent, there has never been such a sharp decline in this segment. People prefer to spend money on purchases that improve life at home. For example, the growth of online purchases of food & drinks and health & beauty (weekly 18% and 10% respectively) follows closely the purchase of electronics and entertainment.
Wilko Klaassen, General Manager of Klarna in the Netherlands and Belgium: ‘The insights may be obvious if you think about your own shopping behavior and that of the people around you. People were setting up their workplace, bringing home beauty products, stocking health products, and buying games to play with their partner, children, or roommates. In addition, we see many new buyers and an increase in transactions using Klarna. We expect our buyer protection to be the reason for that. ”
Return to standard online shopping behavior
However, as of March 30, consumer behavior has returned to a more normal trend. For example, the online purchase of clothing and shoes is rising again. Existing customers are becoming more active and there is also an increase in the number of consumers who shop with Klarna for the first time. Especially now that physical stores are still largely closed, online shopping offers a solution for them.
Klaassen explains: ‘Although the restrictions regarding social interaction still apply, we see again that people are investing in new clothes and shoes for spring and summer. Their workplace has been set up and stocks are back up to standard. Now their wardrobe! That the trend is normalizing is good news for online retailers. ”