Revenge shopping is a phenomenon in which consumers feel deprived of certain items or experiences and, as a result, spend more money on these items and experiences when given the opportunity. It occurs when people return to their favorite stores after a long time. Groceries and other necessities are not included in revenge shopping—instead, it is all about shopping for nonessentials.
Shopping malls and retail brands are facilitating consumers with vouchers and massive discounts to promote this phenomenon to encourage shoppers to leave their homes and shop outside.
How COVID-19 will impact revenge shopping market?
Customers are seeking for ways to make up for the time they have lost. In the aftermath of the pandemic, customers appear to be retaliating against COVID-19, which has long been associated with retail therapy. They have started spending on things they could not bought before. Millennials, in particular, are likely to engage in revenge shopping to compensate for being unable to purchase during the lockdown.
When it comes to revenge shopping, consumers are likely to make up for lost time by spending more. This is likely to help consumer-focused businesses increase their sales and strengthen their foothold. Meanwhile, in the aftermath of the lockdown, shopping by appointment may become the new normal.
Brands with a loyal customer base will be the first to benefit from the spike in revenge shopping. Other manufacturers and retailers may need to attract customers with discounts and price reductions to meet customer desire for revenge without spending significant amount of money.
Shopping malls—which have been notably affected by the COVID-19 pandemic—may benefit the most from revenge shopping. Many malls are reopening at or near capacity, allowing customers to shop at multiple locations in a single trip. Customers are eager to see what changes malls have implemented to include more experiential shopping; thus, malls are experiencing increased customer footfall.
Spike in online shopping
In terms of nonessential or discretionary items, an analysis of online spending on total expenditure provides insights into future customer tendency to buy online. Consumers will increase their online spending share for footwear, clothing, and accessories, consumer electronics &appliances, and furniture &home decor overall. As a result, considerable amount of money is anticipated to be spent on revenge shopping.
Continuing the trend of accelerated growth in online shopping, revenge shopping will most likely take place online, however, consumers will also shop in-store more, as they are more comfortable in purchasing products from stores. However, this can only happen if the worldwide lockdown is lifted. Until then, consumers will prefer to shop through online sales channel.
In near future, revenge shopping is expected to gain high taction, as lockdown-like situation is expected to prevail for some more years in many countries. Initially, the online shopping was considered only for premium people, however, middle-class people are now willing to shop online instead of stores. This has further increased the customer base for online shopping, which is expected to accelerate the growth of the revenge shopping market in coming years.
Women will tend to buy more in revenge shopping
Women are more likely to spend money on revenge shopping, as they enjoy shopping. The demand for apparel and footwear, among female consumersis increasing substantially. This will result in increase in the consumer base for revenge shopping.
Owing to increase in events such as weddings and baby shower ceremonies, multiple countries, such as India, have witnessed increase in trend of revenge shopping. Wedding shopping is regarded as extremely important in India and cannot be avoided. This had a positive impact on the demand for various luxury items, which, in turn, drives the growth of the revenge shopping market. Women were seen purchasing more wedding items than expected, thus increasing consumer demand for a variety of products.
Consumers in Europe are showing strong enthusiasm for luxury and high-end brands as a result of lockdown. The fear of the virus as well as increased prices are unable to keep them away from luxury stores. Consumers of low- and mid-priced brands, on the other hand, shop both online and offline. Similar trends can be expected as more countries in Europe, Asia-Pacific, and North America gradually reopen.
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