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What do you spend the most on, and why do you do it? If you are in the advertising segment, you had probably lost some sleep on this questions in the past before. Well, Klarna, Sweden-based online transaction solutions provider tracked down its users’ spending habits by product, segment, type and other categories during the pandemic to see what drives consumer behaviour under such crises.

Thanks Klarna for curing my insomnia. Here’s what happened.

1. The Generations Gap

Tracking down the spending pattern of your target audience is a tricky and demanding thing to do. With COVID-19 not only knocking on your doors but actively influencing your sole existence in the business world it makes sense to dive deep into what is it that relevantly changes inside your customers’ mind during the pandemic.

Gen Z promotes online shopping, pandemic hit them the least out of all generations.

The “young” generation may actually help your business make more money if you respond to the circumstances right. While Klarna reportedly saw a drop in sales for all generations, young adults and teenagers are not willing to let COVID prevent them from entertaining themselves. Locked at home people between 18 and 23 reportedly increased their expenditure in the Home & Garden segment, increasing to a whooping 262% relative share. With strict regulations on social distancing Gen Z started focusing on the individual and increased their preference shown towards the Health & Beauty segment by 81%. Also, spendings on home entertainment and hobby items saw a minor increase as well.

Millenials show similar patterns to Gen Z, Gen X are more conservative.

It’s not surprising that people born in the 80s and early 90s show almost identical spending patterns as their younger siblings. Millenials tried to really prepare for a major lockdown as they spent the most in ALL SEGMENTS at the very beginning of the pandemic in early March. Later, they show similar values to Gen Z in the corresponding segments, such as a 231% share in the Home & Garden industry.

Surprising enough, late adults and those recently retired spent the highest on entertainment and serving their desired free-time activities with a reported 62% increase.

Baby boomers show lowest sensitivity with less spontaneous consumer behaviour.

With an exponential increase in the pace of technological and social adaptation over the past decades the generation that was born into a world with no Internet, no smartphone and no social media reacted the slowest and the most uncertainty avoidant to COVID-19. People of 55 and older dropped their Clothing & Shoes spendings by 30% and, although a notable index, their expenditure on Home & Garden supplies has increased by the lowest with an index of 236.

#stay #home #spend #more #okboomer

2. Where is Money Spent?

Home & Garden expenditure increases continuously, first decline at end of April.

Forbidden to find fun outside? Entertain yourself #at #home. In the previous section insights have been provided to how major of an increase has been reported in the Home & Garden segment regardless of the generation involved. The upward trend started to saw a decline at the end of April as the regulations of the pandemic were softened. Though, an increase is still present compared to January and February.

People focus on themselves as the outbreak grows.

An average increase of 14% was reported at the early growth of the pandemic in the Health & Beauty indsutry, with a decline hit later, and yet another increase of 17% parallel to the decrease in the Home & Garden segments. Seems like the virus accelerated the ever-increasing focus on health.

Entertainment and textile has its ups and downs during COVID-19.

Whereas spendings within the Hobby & Entertainment sectors increased at the early stages of the pandemic, sales saw a slow decline overtime. Expenditure on shoes and textile dropped right after the virus hit, and still hasn’t managed to recover completely.

#beauty #house #entertainment #profit

3. Final words

While the pandemic definitely puts up a challenge for businesses to remain competitive on the market it also reveals new opportunities and could better reveal your strengths, weaknesses and how prepared you are for a crisis situation. Home-based expenditures saw a major increase in sales while commercial and outdoor activities hasn’t allowed businesses to maintain their profitability. Anyways, the generation gap does reveal itself with a clear pattern proposed as the younger the customer is, the more likely he is to behave less avoidant towards the uncertain COVID-19 proposes.


We hereby expressly do not declare that we are the author of the post or the content it contains. It is our intention to summarize the essential information from several sources and to provide our site visitors with knowledge about our services.

Accenture. 2020. “COVID-19: Impact on consumer behavior trends”. Accessed 2nd July.
Engage Customer. 2020. “How lockdown consumer spending habits have evolved”. Accessed 2nd July.
The Irish Times. 2020. “Revolut data confirms consumer spending spike as lockdown eased”. Accessed 1st July.


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