Fourth Edition Crosswalk
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Understanding the Unprecedented: Quarantine and its Effects on the American Consumer Fourth Edition: Cautious Reemergence Overview Over the past two months, we have studied how consumers have reacted and adapted to the peaks and valleys of the Coronavirus crisis. In our first edition, we analyzed the impact of the “panic phase” (3/15 – 3/28) on the mindshare and wallet share of the consumer. In the second edition (3/29 – 4/11), we checked in on that consumer to see how their behavior had evolved as they moved from the “panic phase” to the “enrichment phase”. In our third edition (4/12 – 5/2), we looked at how consumers adapted to the situation while also thinking about what comes next. In our final edition, we look back at the past two months of the crisis to help inform how consumers will reemerge as the country reopens. In the final edition of the report, we continue to address the following questions: 1. How has the Coronavirus and related crisis impacted the ways in which consumers engage in 1 digital content and make purchase decisions? 2. How will these trends shift as the crisis continues and we settle into our “new normal”? What will 2 the next phase look like from a consumer perspective? 3. Will these trends, or some of these trends, achieve a level of permanence even after the crisis 3 abates? This edition of the Coronavirus Consumer Report covers the fourth phase of the crisis (May 3rd - May 15th ). For this report, Traub and Crosswalk conducted a study of 5.29M consumers who provided self-identified information via social media platforms. We sourced parsed data from digital networks, consumption trends, habits, and language. We then applied our proprietary funnel system to filter the data and assign inferences based on proven correlations between specific data points and demographically known characteristics. The study analyzed 4.9M active online retail consumers across the United States, split between Gen Z (2.5M), Millennials (915K), Gen X (880K) and Baby Boomers (1M). 1 The Coronavirus Consumer in Numbers Gen X YouTube consumption +59% Increase in delivery as a to 65% of total social media consumption +3,300% purchasing factor for Millennials 88% of Gen Z social media users are on TikTok 52% 70% +355% 209 Percentage of wallet share spent peak wallet share Millennials who Increase in percentage Number of times by Gen Z on apparel, spent by Baby 10% cared about CSR of Gen X purchasing Millennials visited accessories, and Boomers on prior to COVID19 L’Oreal products Labor.NY.GOV per month beauty (5/3 – 5/15) ”needs” (3/15 – 3/28) Percentage of Millennials who 76% 53% 25% cared about CSR 0% 0% during the peak of Baby Boomers (3/15 – 3/28) (5/3 – 5/15) of Gen Z searched for of the crisis searched for “COVID19 Percentage of Gen X engaged with kids content “reopening” general info” (5/3– (5/3– 5/15) 5/15) Percentage of Percentage of wallet share spent by Millennials on 15% Millennials who now care about peak news consumption by Millennials beauty and fitness (5/3 – 5/15) 10% 12% CSR 67% (3/15 – 3/28) 2 Demographic Breakdown of Our Study AGE ETHNICITY 18-20 21-24 Caucasian 25-29 30-34 35-37 African American 38-44 45-49 Hispanic 50-54 55-59 60-64 Asian 65+ 0 20 40 60 80 100 0 25 50 75 100 Gen Z Consumer Millennial Consumer % of Sample Size Gen X Consumer Baby Boomer Consumer GENDER Female Male 0 25 50 75 100 % of Sample Size 3 CONTENT Content Engagement May 3rd – May 15th NEWS STREAMING FOOD FITNESS TECH BEAUTY FASHION KIDS -3% -5% +2% +3% +10% -5% +2% +6% +3% -2% -4% 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 0 25 50 75 100 4 Search Terms Search term groupings aggregated based on volume of individual terms that fit within each category. The size of each word corresponds with the percentage of the sample size who engaged in that search. Gen Z Millennial Who who got hair covid19 in my hair Gen X Baby Boomers covid19 in my Covid19 general info sba loan who who hair reopenings hair coloring 5 Social Media Consumption Percentage of Sample Size Active on Social Media Arrows show direction of change between prior to March 2020 and May 3rd – May 15th Gen Z Millennial Gen X Baby Boomers Active on Social 30% 78% 20% 55% 31% 45% 21% 23% TikTok 86% 88% 40% 43% 5% 9% Instagram 42% 66% 34% 42% 32% 44% 11% 15% YouTube 31% 45% 27% 48% 6% 65% 14% 33% Facebook 8% 36% 15% 22% 48% 63% Twitter 1% 32% 4% 10% 1% 4% 1% 4% Pinterest 0% 7% 8% 15% 5% 9% 18% 48% LinkedIn 0% 38% 12% 38% 1% 20% 0% 50% 100% 0% 50% 100% 0% 50% 100% 0% 50% 100% **Note: Tik Tok was not tracked prior to March 2020 56 YouTube Consumption Breakdown of YouTube Content Streaming Viewership by Generation Change in YouTube Consumption Across Generations May 3rd – May 15th Gen Z Millennial Gen X Baby Boomers News -2% -5% -8% 13% of sample 1 5 % of sample 1 8 % of sample 28% of sample Highlights/Livestream size size size size +10% Fitness +8% __ __ 20 18 18 5 Sports Highlights -4% __ __ __ __ +8% +12% Beauty Tutorial +6% 23 8 11 2 Comedy/Vlogs __ __ 11 5 4 1 +7% Cooking Tips/ Recipes +10% __ __ __ 10 22 23 Influential & ____ ____ __ __ __ __ 18 20 Informative Content +18% DIY Craft Tutorials +15% +13% __ __ __ 22 28 26 +12% +10% +15% +25% Kids Content +11% __ 33 42 6 March 15th – 28th --- March 29th – April 11th March 29th – April 11 -- April 12th – May 2nd April 12th – May 2nd –- May 3rd – May 15th 7 MEDIA VISITED Media Visited Consumers, especially those in the three older generations, are still highly focused on May 3rd – May 15th the news. With less content being created in other categories (i.e fashion and sports) the news has dominated the media landscape. GEN Z CONSUMER MILLENNIAL CONSUMER GEN X CONSUMER BABY BOOMER CONSUMER x Month Buzzfeed 32 x Month CNN 44% 50 x Month MSNBC 42% 45 x Month 53% CNN 44% 42 x Month TMZ 28% 22 NY Times 35% 45 NY Times 40% 33 Fox 44% 38 People 18% 15 MSNBC 34% 25 CNN 33% 30 MSNBC 44% 33 Refinery29 16% 11 HuffPost 33% 34 Wall Street 30% 31 Wall Street 35% 30 Journal Journal E! Online 12% 10 The Onion 29% 21 Huff Post 29% 22 NY Times 35% 25 Fox 11% 7 Fox 24% 22 Buzzfeed 22% 20 Forbes 24% 14 Los Angeles MSNBC 8% 10 Buzzfeed 18% 23 Washington 11 22% 13 Post 22% Times Wall Street NY Times 5% 5 18% 21 Fast Company 18% 10 Washington 19% 12 Journal Post ESPN 1% 1 Mashable 18% 20 Los Angeles 13% 18 ESPN 8% 2 Times Wired 8% 8 Mashable 12% 8 Forbes 6% 8 ESPN 5% 2 ESPN 5% 2 8 Websites Visited May 3rd – May 15th GEN Z CONSUMER MILLENNIAL CONSUMER GEN X CONSUMER BABY BOOMER CONSUMER Google 43% 27 x Month Google 28% 29 x Month Google 34% 37 x Month Google 25% 15 x Month x Month Twitch 24% 36 Labor.NY.GOV 12% 209 Food 18% 13 HGTV.com 24% 18 Network Reddit 9% 39 Happiness is 12% 14 SBA . GOV 13% 35 homemaking. 22% 11 Homemade com Imgur 5% 18 EDD.CA.GOV 11% 92 Skinnytaste 13% 7 12Tomatoes 18% 8 All Recipes 11% 8 Happiness is 10% 27 SBA . GOV 15% 30 Homemade Skinnytaste 8% 4 EDD . CA . 8% 64 JumbleJoy.com 14% 5 GOV Connect.my. 6% 188 Labor . NY . 5% 102 florida.com GOV Groupon 6% 3 Connect.my 3% 88 florida.com The Penny 6% 3 The Points 3% 1 Hoarder Guy The economic toll of the crisis can be clearly seen through the high percentage of consumers visiting government websites related to unemployment or small business loans. Particularly concerning is the frequency with which they have had to visit these sites, indicating the websites’ inability to handle the abnormally high levels of traffic and the desire among consumers to continually checkback for updates. 9 COMMERCE Younger Consumers Spending More on “Wants” While Older Consumers Still Focused on “Needs” Consumers continued to spend money primarily on their functional needs such as Grocery Products/CPG younger consumers began to shift their wallet share towards personal care, “wants”, and enrichment, such as beauty and fitness. WANTS Gen Z Gen Z has remained largely unburdened by the crisis with 52% of their wallet share dedicated to “wants” and another 14% spent on fitness. Accessories These consumers have also begun to spend more on restaurants and takeout as they reenter the world. Millennials Apparel Beauty While Millennials continue to spend heavily with 48% of wallet share on grocery/CPG cleaning products they also have been spending on ENRICHMENT personal improvement with 12% on beauty and 10% on fitness. Gen X As the generation most likely to be quarantined with children at home, Home/ Gen X has split their wallet share with 43% spent on “needs” such as Tech Food/Takeout House Goods Kids Fitness grocery/CPG and cleaning products, 12% spent on home and 25% on kids apparel, toys/games, and crafts.