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Retail & E-Commerce 10.20.20 BLOG 

Consumer Sentiment and Shift to the Homebody Economy Opens up Opportunity

Carl Miller, Global Director of Global Retail Insights Network

homebody-economy-2020

Consumer Sentiment and Shift to the Homebody Economy Opens up Opportunity

The massive shift in consumer lifestyles around the world during the COVID-19 pandemic has created a new white space opportunity for companies providing physical goods and digital services.

With a bit of knowledge and data analysis, companies can identify region specific value within countries they may not have thought of at the beginning of the year.

What is a Homebody Economy?

The new “Homebody Economy” has seen a more than 10 percent growth in most categories, with conversion rates soaring in certain pocket regions and countries. This shift in sentiment and habit has most consumers saying they plan to continue shopping online even after brick-and-mortar stores open.

In fact, 89% of the respondents from a Nielson 2020 study said they will be more willing to buy daily necessities and fresh products online once the pandemic is over.

So what is the secret sauce for success in this new economy?

Identifying White Space Opportunities

The good news is that the Homebody Economy touches most categories, from food and beverage, household, apparel and entertainment.

Plus, the global data is available to identify the value in which certain regions or countries identify products within these categories. 

A few examples of otherwise unseen opportunities with companies we are currently working with are as follows.

Opportunities in Fitness

A digital fitness company we are working with provides workout programs within the US and has never ventured out to provide services globally. They had some unique strengths in that they had an “all-star” team that taught the classes across a few primary languages.

After identifying a few data points to investigate, they were able to identify a countries where their specific line of fitness was trending, in addition to recent currency fluctuation and digital media expenses being in their favor when looking at customer acquisition costs.

The company decided to move forward in testing countries with short format programs and are looking for double the profit potential.

One of the side benefits they are investigating is an offset of seasonal patterns, especially since there has been a “Fitness Zoom Fatigue,” where fitness members are choosing being outdoors during the summer months. The idea they are testing is that with southern hemisphere countries, there is potential for catching two winters per year and an influx of interest.

Opportunites in Furniture

A household furniture company that had lost business and momentum to Amazon and Wayfair identified countries where the item category was doubling in search over a short period of time.

The executive team moved remarkably quickly to start testing customer acquisition in the eight countries where they saw the spike and felt that their personalized service and multi-lingual customer service platform could provide a leading edge in supporting long term customer affinity and referral impact.

After testing customer acquisition, they decided to develop relationships with a 3PL that could service their top two new global countries. With a limited inventory selection, they will start selling products within these regions this month. 

As companies better understand global customer acquisition variables, and with the unique strengths of Homebody Economy products and services, they can develop new business that can move seasonal product, leverage buying power, and create lifetime value for their consumers.

 

Throughout the crisis, we are helping companies identify how they can provide value on a global scale, matching existing resources with opportunity for long term global growth. If you're interested in learning more about our Global Whitespace Assessment, please contact globalwhitespace@transperfect.com.

 

 

 

 


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