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AMERICANS LOVE TO “BUY AMERICAN”

buy american

AMERICANS LOVE TO “BUY AMERICAN”

TradeVistas’ September poll shows overwhelming support for “Buy American” policies, while one in four Americans – and nearly 1 in 3 Republicans – say trade is “the most important issue” in their vote for president this election cycle.


“Buy American” is likely to be a prominent campaign theme this fall as Republican President Donald Trump and Democrat party candidate Joe Biden sketch out their plans for reviving the U.S. economy in the midst of a pandemic.

Biden’s aggressive “Buy American” agenda proposes major investments in federal procurement and infrastructure to support domestic manufacturing. Trump, meanwhile, has made “Buy American” a cornerstone of his Administration. After campaigning in 2016 to bring back U.S. jobs lost to global competition, Trump has levied tariffs on foreign steel and aluminum, launched a trade war against China and issued executive orders aimed at ensuring that U.S. companies were the federal government’s preferred suppliers.

TradeVistas’ September poll of 1,003 adults, conducted by Lincoln Park Strategies, shows strong support for “America First” approaches like Buy American. Our survey shows strong bipartisan approval of Buy American federal procurement policies, which a plurality of Americans say would create large numbers of jobs. Americans also say they support Buy American in their personal spending, with a slight majority saying they’d pay a premium for U.S.-made goods. Finally, we find that the Trump’s Administration’s focus on trade policy may have elevated the importance of this issue among many voters, particularly among Republicans and likely Trump voters.


1. Big support for “Buy American.”

Overall, three out of four Americans (75 percent) say they support Buy American policies requiring the federal government to buy from domestic suppliers whenever possible.* Nearly half – 48 percent – say they “strongly support” the policy, while just 5 percent of Americans say they are either “somewhat” or “strongly” opposed, while 21 percent were “indifferent.”

Majority support was consistent across education, race and income, but was strongest among self-described Republicans, 70 percent of whom “strongly support” the policy (compared to 40 percent of Democrats and 37 percent of Independents). Among likely voters, 68 percent of those planning to vote for Trump also said they “strongly support” Buy American, compared to 41 percent among likely Biden voters and 39 percent among those who were undecided. Men were also more likely to be strong supporters (56 percent versus 41 percent).

Q1 Do you support Buy American Policies

2. Strong belief that “Buy American” policies generate jobs

While some prominent economists have criticized Buy American policies as counterproductive and potentially even leading to the loss of U.S. jobs, respondents in our survey believe the opposite. Nearly 4 in 5 respondents (79 percent) say Buy American procurement policies would create jobs, including 41 percent who say it would create “a large number of jobs” and 38 percent who say it would create “some new jobs.” Again, this support was consistent across race, education and income.

Democrats were more skeptical than Republicans, however. While 60 percent of Republicans said Buy American would create many jobs, 36 percent of Democrats said the same. (However, only 2 percent of Democrats said the policy would “hurt American jobs.”) Similarly, likely Trump voters were more likely to say Buy American would create large numbers of jobs compared to likely Biden voters (59 percent versus 31 percent). Undecideds fell in the middle with 42 percent.

Q2 Do Buy American policies create jobs numbers corrected

3. Americans would pay more to Buy American themselves

Americans in our survey seem to support Buy American as a broad statement of economic patriotism and would pay more to buy U.S.-made goods.

Twenty-five percent of respondents in our survey said they would choose an American-made good over a comparable foreign product “regardless of cost,” while 31 percent say they would pay a 10 to 20 percent premium. Another 25 percent said they would buy the U.S. product if it were the same price as a comparable item, while 9 percent said they would purchase the cheaper product, and 10 percent were unsure.

Q3 Would you pay more to Buy American

These results run counter to earlier surveys finding that while the majority of Americans believe it important to buy U.S. products, they are less willing to pony up a premium. A 2017 Reuters/Ipsos poll, for instance, found that while 70 percent of Americans think if “very important” or “somewhat important” to buy U.S. goods, 37 percent said they would not pay more for an American product, while 26 percent said they would pay only up to 5 percent more.

One potential explanation for our results is negative shifting consumer sentiment toward products made in China. A 2020 survey by FTI Consulting, for instance, found that 40 percent of Americans say they won’t buy Chinese-made goods.

Our survey found significant partisan differences over buying American, which indicate a solidification of views likely prompted by Trump. While 46 percent of Republicans said they would buy American regardless of price, just 18 percent of Democrats said the same (although 32 percent of Democrats also said they would be willing to pay a 10 to 20 percent premium). The starkest difference, however, was between Republican men and Democratic women. While 52 percent of Republican men said they would buy American regardless of cost, only 14 percent of Democratic women said they would do so.

Q3 Would you pay more by gender and party

4. Trade as a crucial election issue for key sets of voters

Partisan enthusiasm for Buy American may also translate into the elevation of trade as an election issue for many of the respondents in our survey. Overall, 19 percent of total respondents said a candidate’s position on trade is “the most important issue to me,” while 25 percent said trade is “one of the most important issues” determining their vote for president.

These figures, however, mask significant partisan differences in how likely voters view the importance of trade. For instance, while 66 percent of Republicans in our survey said trade was the most important or among the most important issues to them in their vote for president, half as many Democrats (33 percent) felt the same. Similarly, while 64 percent of likely Trump voters said trade was the most important issue or among the most important election issues to them, 62 percent of likely Biden voters said trade “is important but will not have an effect on my vote” or is “not an issue I really care about.” Trade does, however, seem to matter for undecided voters in our poll; 59 percent considered the issue to be the most important or among the most important in their vote for president.


These results mirror findings showing sharp partisan differences in the issues that matter most to voters this fall. The Pew Research Center, for instance, finds that while the economy is the top concern of Trump voters, Biden supporters are the most concerned about health care and the pandemic. For many Republicans and Trump supporters, the interest in trade policy is likely a proxy for this broader concern over the economy.

Q4 How Important is Trade to your vote


“Buy American” has always made for good politics, tapping into Americans’ strong sense of economic patriotism. But there are a couple reasons why American sentiment toward buying American might be especially strong today, even aside from the particular focus on U.S. production by President Trump.

For one thing, the coronavirus pandemic exposed major weaknesses in global supply chains, reinforcing concerns about U.S. over-reliance on foreign imports, particularly for medicines, medical equipment and other vital products. Boosting domestic production and manufacturing will also be crucial to America’s post-pandemic recovery. So long as millions of Americans remain under-employed or unemployed as a result of COVID-19, federal investment in domestic production or infrastructure could help put Americans back to work.

Given both political parties’ embrace of Buy American, it will be a priority regardless of who wins the White House in November.



*Note: While our survey sought to measure Americans’ perspectives on “Buy American” as a matter of federal policy, we realize that Americans are likely to interpret “Buy American” more broadly, to include personal spending decisions as well as those by the government. Politicians have also added to the confusion by using the phrase “Buy American” to show support for domestic manufacturing and production generally.

Methodology: 1,003 interviews among adults age 18+ were conducted by Lincoln Park Strategies from September 10-12, 2020 using an online survey. The results were weighted to ensure proportional responses. The Bayesian confidence interval for 1,000 interviews is 3.5, which is roughly equivalent to a margin of error of ±3.1 at the 95% confidence level.

Access the polling questions and results by Lincoln Park Strategies here.

Download the full infographic.

TradeVistas Buy American Opinion Poll Infographic

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Anne Kim

Anne Kim is a contributing editor to Washington Monthly and the author of Abandoned: America’s Lost Youth and the Crisis of Disconnection, forthcoming in 2020 from the New Press. Her writings on economic opportunity, social policy, and higher education have appeared in numerous national outlets, including the Washington Monthly, the Washington Post, Governing and Atlantic.com, among others. She is a veteran of the think tanks the Progressive Policy Institute and Third Way as well as of Capitol Hill, where she worked for Rep. Jim Cooper (D-TN). Anne has a law degree from Duke University and a bachelor’s in journalism from the University of Missouri-Columbia.

trade

THE “HOMEBODY ECONOMY” AND TRADE

Mindful Spending

An estimated 2.6 billion people – one-third of the world’s population – continue to live under some form of quarantine conditions. These are trying circumstances for individuals and businesses. From a consumer demand perspective, the longer we all engage in some form of quarantine or social isolation, the more likely our new habits will take hold.

The emergence of this “homebody economy” is becoming apparent in consumer spending. Only China seems to be rebounding in consumer spending – the rest of us are still cutting back on discretionary spending. We are focused on essentials, being cost-conscious and cutting back on services and travel. We are even spending less on apparel and footwear, which impacts millions of jobs worldwide as workers in global value chains face uncertainty in their employment.

According to the International Labor Organization (ILO), 93 percent of the world’s workers live in countries experiencing workplace closures due to COVID-19. ILO estimated the reduction in working-hours for the second quarter of 2020 as equivalent to the loss of 400 million full-time jobs. Job losses, reduced hours and foregone income are having a clear dampening effect on spending habits and demand in international trade, which in turn creates more job insecurity.

No Contact

In most countries, the vast majority of people have turned to e-commerce and other digital or contactless services such as curbside pickup and drive-throughs. Many consumers are likely to delay resuming “normal” shopping and other behaviors until after a vaccine is widely available. That includes, unfortunately, the resumption of preventative healthcare. The hidden health impacts of foregoing routine health screenings and other interventions will be felt in national economies for years to come.

On top of all this, we know that the impacts of recession – layoffs, loss of income and the growing effects of income equality are closely correlated with reduced health outcomes and life expectancy. The World Health Organization has cautioned about the long-term consequences of lockdowns and isolation on mental and physical health, noting that depression and anxiety under normal circumstances cost the global economy an estimated $1 trillion per year in lost productivity.

No doubt we’re all feeling some level of anxiety, mood swings, and changes in sleep patterns. McKinsey’s consumer sentiment survey shows, in another twist of cruel circularity, that people are spending more time inactively, consuming digital content, which could have negative implications for people’s happiness.


Trade Antidote for the Irritable, Anxious and Exhausted Among Us

Lest we leave you further depressed, might trade in some goods and services provide a much-needed antidote to the mental and physical wear and tear of COVID-19? We think so. Here are some ideas.

Yoga – Global demand for PVC has been hit hard with a major drop in demand in China. So, why not do your small part by buying yourself a fresh, new vinyl mat. The PVC-based mats are cushy, which might be nice for your next savasana. If you’ve gained a little weight during the lockdown, you can rely on American textile engineers – the same ones medical personnel turn to for durable emergency wear – to also deliver yoga pants that will hold your belly in place as you stretch in downward dog.

Guided Meditation – Evidence of meditation practice dates back to approximately 1500 years BCE, but we generally thank Chinese Taoists and Indian Buddhists from the 6th to 4th centuries BCE for developing forms of practice that spread throughout the world. These days, Andy Puddicome, a Brit who studied meditation in the Himalayas and became ordained as a Tibetan Buddhist monk in Northern India, can be credited for making meditation accessible, modern – and available online – for the masses through his app, Headspace. Through Headspace and others, you can have guided meditation through an app on your phone, a service traded across borders thanks to the Internet.

incense

Incense – The use of incense can be traced back to ancient Egypt where it was used by priests for fumigating ceremonies and tombs. It was thought to hinder the presence of demons and served as an offering to their gods during worship and ritual, which is how incense came to be used in India and throughout southern Asia and China. Resin-based incense such as frankincense traveled to Europe and the Mediterranean along a trading route known as the Incense Route. Today, you can buy very high end and exotic incense like the brand, Astier de Villatte, which is handmade on the Japanese island of Awaji by masters of aroma who have been honing their craft and handing it down for hundreds of years. Also popular is incense made from palo santo (which means holy wood), a tree that grows along the coast of South America.

A Cleanse – If you’ve tried any form of keto, paleo or cleanse diet these days, chances are you had to look online to find far-flung ingredients from around the world. Popular ingredients include Maca powder derived from root vegetables grown in the Andes mountains in Peru, carob, which is native to the eastern Mediterranean region, and the Schisandra berry, which comes from mountainous regions throughout China. Another exotic ingredient is moringa, a nutrient-rich plant derived from “the miracle tree” native to North India. If your diet has you cutting back on caffeine, you can also try teas that taste like coffee, such as from Teecino. Their herbal teas use herbs and nuts like ramón seeds harvested in rural communities in Guatemala through programs that support educational and nutritional programs for women and children in Central America.

inredients

The Struggle is Real, Trade Can Help

The WTO issued a news release in June that estimated an 18.5 percent decline in merchandise trade in the second quarter of 2020 as compared to the same period last year. By any measure, the impact on trade, on livelihoods, and on our well-being has been profoundly negative. But as we work toward collective resilience, one thing you can do is to work on being healthy at home. And, with all of the products and services available to us through trade, we have lots of ways to do just that.

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Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fifteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program. 

This article originally appeared on TradeVistas.org. Republished with permission.

ecommerce

How to Manage a Sustainable eCommerce Strategy After the Pandemic

DK Hardware, online home improvement retail company, presents six reasons why it is essential to professionally manage an eCommerce platform, so that your business or entrepreneurship is consolidated according to the unwritten rules of the digital economy.

Understanding that the digital economy will continue to be one of the main economic engines in the post-COVID-19 stage, it is essential to ensure our business opportunities in the medium term. However, to achieve the previous, the development of skills to capitalize on it, as well as to face the challenges it entails, is key.

In the last quarter of 2020, the growth of eCommerce globally has been more than exponential. According to Statista, retail platforms have undergone a six percent global traffic increase between January and March 2020. Overall, retail websites generated 14.34 billion visits in March 2020, up from 12.81 billion global visits in January 2020. This is of course due to the global coronavirus pandemic which has forced millions of people to stay at home in order to stop the spread of the virus. How to continue with that sustainable success? DK Hardware shares six key thoughts.

1. Maximize investment. Digital commerce will be the area that will receive the most investment in the coming months (and therefore the most competitive), and these resources should be managed in an efficient and optimized way, since the sales process will be impacted from the pre-sale, the transaction, the after-sales, as well as the service and the customer experience.

2. The relationship with the client evolves. Customer consumption habits have changed and during the process e-commerce has won thousands of new consumers, so the evolution of online commerce management should represent an opportunity to resume direct relationships with consumers. Direct to consumer (D2C) solutions, such as CRMs, applications, custom quotes based on customer needs in regards to volume or project, and communication APIs will be unstoppable in the coming months, and you must understand what they are, how they work and what advantages they can bring to your project.

During the contingency, empathy and transparency played a leading role in customer service, and service was prioritized over sales. Learning to keep our commitments and manage the true needs of consumers in our favor will position us positively, and digitization will be a perfect ally to strengthen these new parameters and deliver true added value to our business or entrepreneurship.

3. New technologies in support of a contact-less society: Concepts such as voice assistants, advanced analytics, artificial intelligence, augmented reality, mobile communication applications, omnichannel platforms, the Internet of Things, robotics and big data in real time, will be variables that must be included in the eCommerce strategy, and we must learn what are the advantages of each of these technologies to capitalize them according to our market segment, since it is intuited that the newly acquired habits will detonate in new needs and demands.

4. A new dimension of social commerce. Social networks are part of the daily life of consumers, and the growth in the use of these platforms during the pandemic has increased the relevance of the exchange of opinions, preferences, and recommendations, around brands, products, and services. The implementation of data analysis tools in real time, for example, that allow measuring customer sentiment, will be very suitable for the development of communication strategies and efficiency of digital campaigns, as well as an adequate conversion of sales interactions.

5. Logistics efficiency. Although the growth of eCommerce has become a great advantage, it also has challenges that are transforming the established foundations. If online sales have suffered from anything during this contingency, it is the lack of infrastructure and logistics to speed up the arrival of the product in the hands of the customer. Learning to digitize and automate delivery and delivery routes in the most efficient way for the good performance of our business is something that greater investment in digital training allows.

6. Care of personal data. The greater the demand, the greater the security gaps. Understanding the relevance, design and management of robust cybersecurity systems, authentication, and protection of personal data will transform in consumer trust and loyalty.

After the rapid evolution of eCommerce, we are obliged to evolve. Only change is guaranteed, and we must demand a perfect rhythm to do it. Training will always be the most important ally for adaptation and the creation of firm, robust, viable and disruptive projects. We do not see a better time than this to add true professionalism to eCommerce strategies, acquire leadership of transformation and thus achieve a new generation of businesses that face the demanding and competitive future.

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Featured in the Best Online Shops 2020 – Newsweek, DK Hardware is one of the largest online home improvement retailers for a variety of hardware manufacturers all over the United States and Canada.

data

What Do Consumers Want Now? The Data Knows.

Businesses seem to know more about you than you know about yourself.

Sign up for or log into any social media platform and you will encounter suggested buying options based on your personal interests or previous buying history.

There’s a reason for that. The market is a consumers’ market. Any company that wants the chance of long-term sustainability must know as much detailed information as possible about their ideal client or consumer, says Janét Aizenstros, Chairwoman & CEO of Ahava Digital Group (www.ahavadigital.com), a women-led digital consultancy that serves Fortune and multinational media companies in 15 locations globally using data and technology.

And it’s not just the business sector. Government agencies, political parties and private equity investors make decisions every day based on what data reveals to them about a person’s income, financial and buying habits, credit history, political identification, demographics, personal values, lifestyle, emotional sentiments, voting history, opinions and modeled behavior.

“Without good, verified data, decision-makers would have to rely on guesswork as they introduce products and services, plan an election campaign, or determine whether a community needs their next real estate project,” says Aizenstros, whose company gathers and provides ethically verified data to Fortune corporations seeking to nurture relationships with women consumers.

“Guesswork obviously is not the best approach, especially when millions of dollars are involved.” 

How do businesses use verified data to make short-term and long-term decisions for their consumers’ needs?

“Ideally, personal milestones change a person’s buying habits,” Aizenstros says. “Examples are highlights of becoming a new parent, moving to a new home, or getting married. If a business knows you’ve just had a baby, then they know you need car seats, toys, diapers and a host of other products they can market to you.”

Consumer data carries great value to businesses, but only if it’s verified, refreshed frequently and keeps up with data and privacy legislation changes by data being ethically-sourced, Aizenstros says.

Here are a few ways data is used to keep the economy, and the world in general, humming along:

Auto industryCar dealers need a good understanding of their potential customers’ income and what vehicles they might prefer based on lifestyle. GM, Ford, and others draw insights from consumer financial data and lifestyle data as they plan and implement marketing campaigns for new models.

Fashion industry. The fashion industry’s new focus is sustainability to capture the growing trend of fashionistas. The retail industry pre-COVID relied more on the human experience than the ecommerce experience for their consumers to make decisions. But now Estée Lauder, for example, has accelerated its focus on e-commerce because of the pandemic’s disruption to brick-and-mortar stores. With verified and predictive consumer data, fashion brands can quickly measure how customers react to ideas and make prompt adjustments accordingly.

Real estate. Real estate developers are always trying to figure out which areas of a community to focus on for their next investment. If they are slow to identify trends, they could miss out on making money. Data helps them monitor, for example, which areas of a city are showing a growing trend in mortgages and credit history.

Financial institutions. Financial institutions use data in such areas as credit-risk assessments or to send targeted offers of investment products to consumers.

“The reason obtaining ethically-sourced, verified data is so important to corporations is that they want to maximize their ad spend by diminishing their burn-and-churn rates,” Aizenstros says. “They need to know who their ideal client is and what they exactly want so the business can maximize their marketing investment by more than 90%.”

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Janét Aizenstros is Chairwoman & CEO of Ahava Group Global (www.ahavagroup.co), a modern media parent company that serves Fortune and multinational media companies in 15 locations globally. Her background includes roles in finance at TD Canada Trust, Canon, and Brookfield LePage Johnson Controls, along with management consulting in a broad range of functions, such as supply chain operations and data analysis. Aizenstros is a signatory with the United Nations Business Action Hub for the United Nations Global Compact program. She is an award-winning businesswoman with several leadership awards such as the Top 40 under 40, the Top 10 Inspiring Women in Canada, and 2019 Conscious Company Media’s Top 22 Business Leaders.

E-commerce

E-commerce Will Continue to Grow in Importance Post-COVID

As we enter the second half of 2020, the global COVID pandemic seems to be slowing down in some places and taking wing in others. Through all the waves, however, one thing is becoming certain: we still have quite a while to go until things go back to “normal.”

For businesses, this brings a host of challenges. Although there’s a necessity to flatten the curve, economies cannot halt for the next year or so until scientists (or nature) come up with a solution. Ultimately, this means that some form of adaptation is necessary.

E-commerce growth in 2020

One of the most significant changes that we saw in consumer shopping habits in 2020 was the rapid growth in popularity of e-commerce. Just a few months back, online shopping was considered unreliable by most individuals over 65. Almost overnight, however, it has become an essential practice. And some numbers testify to the growth of e-commerce.

For example, for Q1 2020, Amazon reported a 29% increase in North American and an 18% increase in worldwide sales. What is even more interesting is that grocery sales have grown a full 8%, compared to the slower growth of 1% during previous years.

On the whole, this is a clear indicator that e-commerce is gaining importance in today’s society. And not just in categories such as tech, apparel, or entertainment. It’s also becoming more relevant when it comes to purchasing health or other essential products. 

With this increased exposure, it’s also likely to expand further during the coming months and years. After all, it’s widely available, convenient, and no longer a foreign concept to most.

For business owners, this prospect of accelerated growth sends a clear message. If they haven’t already, now is the time to make e-commerce an integral part of their business operations.

Changing work models

Adapting to changes can be difficult. And many have already made leaps to keep their operations going during the pandemic. From working remotely to introducing online shopping, these changes have made it possible for small businesses to carry on during these trying times.

But the truth is, small businesses need to put much more effort into their e-commerce webshops to allow them to work with the same efficiency as physical businesses.

For Americans, spending habits have changed drastically since the beginning of the year. The retail industry has taken a big hit, as have companies working in travel, hospitality, entertainment, and even health.

Moreover, there is a tendency towards turning to local shops for a variety of products. Of course, this is a lifeline to small companies who have taken the biggest hit since March. But, it can also be bad news for those whose business models were developed to serve a more global market.

This is why businesses need to start acting now.

Following trends

Over the next period, e-commerce businesses will need to be much more vigilant about how they approach the future. 

First and foremost, they will need to employ risk-mitigating strategies, which will allow them to continue reaching customers. These include diversifying supply chains, implementing DTC models, relying on automation, as well as re-thinking the entire business process.

Furthermore, they’ll need to pay special attention to meeting customers’ needs. Basic conversion-boosting practices such as search engine optimization, decreasing page load times, improving copy and visuals, will all influence user experience, and thus sales and rankings.

One way to future-proof e-commerce businesses is to take a hands-on approach to mobile optimization. Right now, mobile shopping is witnessing growth, and this trend is only likely to continue. If they want to keep up, businesses should adjust early on by adopting mobile optimization tools that are popular among their users.

Moreover, with fewer opportunities to make sales face to face, web design should receive a higher amount of attention. Do you deal with products for which tactile or sensory information is crucial when it comes to sales? Consider whether the visual content on your pages could bridge the gap between online and in-person shopping experiences.

You can look for inspiration from companies that are managing to do this with success. For example, Zoma is an online mattress retailer. Their product collection pages were designed to clearly illustrate the differences between various types of mattresses. This allows users to find the product that will meet their needs with much less hassle.

source: zomasleep.com

Putting customers first

Providing more in-depth information about your products and keeping your website visitors’ needs in mind is a big step in the right direction. However, it’s not going to be enough.

In e-commerce, sales rely on impeccable user experience, so you need to come up with ways to provide it to your customers. Things like free shipping, 24/7 customer service, or high-quality instructional content all play a part in driving conversions.

For this reason, it’s not a bad idea to call attention to the changes you’re making to your service. Are your locations open? Are you taking orders? Are you taking any extra precautions to protect your buyers? It may be wise to use a popup or banner on your website’s homepage to communicate to customers about how COVID might be affecting your business. A good example of this is the banner shown at the top of supplement machine manufacturer LFA Capsule Fillers website.

source: lfpacapsulefillers.com

As the current situation unfolds, you may even want to create a separate section on your website, addressing your response to COVID. That’s what retailer Massimo Dutti did. On their dedicated COVID-19 page, they call attention to an extended returns period to 30 days, as well as free standard home delivery.

source: massimodutti.com

For business owners, these changes are quite small. Though they require an investment in terms of time, they do provide a high level of value to customers. Ultimately what they’re doing is establishing a greater sense of trust, which is critical for any business, but especially for those just now expanding into e-commerce. In the end, trust translates into customer loyalty (and higher conversion rates). 

Navigating uncertain terrain

With the global situation being unpredictable at the moment, consumer behavior is more volatile than ever. What this means for businesses is that they need to be ready to make quick adjustments. And the only way to do this is to pay closer attention to everything that is or isn’t working.

One thing’s certain: e-commerce will continue to grow at a rapid rate, especially in the coming months. For this reason, do your best to follow current trends. Future-proof your business, mitigate risks, and find ways to improve your service. This way, you’ll be decreasing the chance of being run over by the times, and allowing your business to reach new heights.

shopping

Impulsive Shopping and Post-Pandemic Consumer Behavior

Picture this. You are in the supermarket in your neighborhood queuing to pay and see some delicious and totally irresistible chocolates that you did not even think about buying but that now are something that has become essential. That is what in marketing is called “impulsive buying” and, for example in the case of supermarkets, it is their main source of benefits.

Let’s take it up a notch. Have you thought about how you can translate an Instagram or Facebook like into a sale? That’s called Influencer Marketing, and I’ll show you how to unleash this online technique by starting a conversation and ultimately driving sales and establishing impulsive shopping, whether this was your initial objective or not. Remember, one like, share or comment, might equal one sale.

The Internet and mobile devices, as instant tools, favor impulsive purchases. Different promotions present on your website can trigger unplanned purchases by Internet users. Imagine being able to have those displays that are in the boxes of the supermarkets integrated into the design and shopping experience of your online store… How much extra income could they bring you? The experience may surprise you.

Flash sales (Time-limited): Flash sales are time-limited sales that are very often used in e-commerce to encourage impulsive buying. Generated by an attractive offer but limited in time, the user has to make a quick decision if he does not want to miss this opportunity. It works very well, especially in specific seasons where people are willing to spend more money (Christmas, back to school, Halloween).

Free shipping: The hook is to set a minimum purchase price so that the shipping costs are free and, if the customer does not yet have that amount, offer low-cost products in the checkout process that achieve the minimum required quantity. If we use products that far exceed the minimum amount, it will not work, but if they are inexpensive and related to the purchase that has been made, success is practically guaranteed.

Stock level: Showing available stocks can, to some extent, favor impulsive buying. If the number of products in stock is low, the interested visitor will tend to buy their product for fear of not finding it again at the price proposed in your online store.

Give away discount coupons or free products (gift): On condition of making a purchase, of course. This type of tactic has been shown to also boost sales since the customer must buy in order to receive their gift.

Expiration date:  Discounts on these types of items range between 20 percent and 50 percent of their initial price. For example, if they are products that expire the next day, the price is usually cut in half, but if we talk about products that have weeks to expire, the discount stays between 20 percent and 30 percent. Stores free themselves of products that would end up in the garbage and without any benefit if not bought, while customers get a good deal for a product that they would either buy or just purchase to take advantage of that specific occasion.

After the pandemic

From toilet paper in the early pandemic to bleach and flour, during this crisis consumers have modified its consumption and its way of making the purchase. But what will the consumer be like after pandemic? It is evident that many consumers have had to test the online channel as a result of this crisis, and they have realized how comfortable and safe it is for them.

The confinement has made the segment of the population that least bought online, those over 55-60 years old, now the group that needs it the most, especially those over 70, who are the most vulnerable to the disease and those who, therefore, should be more confined and without the help of their families. Although the consumer preferred to buy some specific products in person; if consumers verify that the product they receive at home meets their expectations, it is very likely that after the crisis it will continue to do so.

On the same line of shifting consumer behavior, for instance, some of the most popular products today are related to protecting employees and separating consumers with employees, like speak-thru devices, trays and shelves, and sliding service windows.

Where do impulsive purchases predominate: in physical stores or on the internet?

Physical stores are the main claim to get a customer to buy without having thought about it before. This fact is partly logical because most impulsive products are food, clothing, drinks, and personal care products. If discounts and promotions are added to that, the mix is ​​perfect. Supermarkets, shopping malls, and convenience stores are the central places for this type of sales.

Furthermore, some stores go the extra mile by using techniques that play with your senses, by releasing exquisite coffee and fresh cookie smell to get you in, even if they’re not in the food business.

Online advertising is the least appreciated to generate buying impulses, but that does not mean that their tactics are useless: Brands that use digital platforms as the first approach and establish the first connection have the potential to reap the benefits when the time comes to make the final purchase in the store, according to a study by Geoblink. 69 percent of those surveyed stated having bought between one and five products spontaneously in the last week, while 26 percent admitted having made between six and ten purchases of this type.

The millennial generation is the one that buys the most on impulse: a small group of 7 percent have bought up to 11 items without foresight in the last week. The previous facts serve as a great opening remark of the aforementioned Influencer Marketing technique. If you got until this part of the story, it means that there’s impulsive buyer material within you.

Influencer Marketing is nothing more than getting the right people to talk about you, firstly triggering your target audience to talk about you, secondly prompting that audience talking to each other about you, and finally you and the audience listening to each other. When this two-way conversation is in place, it is very probable that some of your social media likes, whether on Instagram or Facebook, are in fact translating into sales in your physical or online store.

There are a couple of exceptions to this rule on digital impulsive buying: the first, that those who already have a subscription to a platform like Amazon, which avoids having to go through several stages before buying, are better able to combat the impulsive factor. The second: when the object to buy is an electronic item. 55 percent of the participants chose the Internet as the preferred medium for the impulsive purchase of these items.

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Featured in the Best Online Shops 2020 – Newsweek, DK Hardware is one of the largest online home improvement retailers for a variety of hardware manufacturers all over the United States and Canada.