COVID-19 changed the profile of online shopping, survey led by UNCTAD points out

NIC.br supported the initiative and collected comparable results through the ICT COVID-19 Panel 

The pandemic accelerated the shift towards a more digital world and triggered changes in online shopping habits, which are likely to have lasting effects.

The COVID-19 pandemic changed online shopping habits, according to a survey with around 3,700 consumers in nine emerging and developed economies.

The survey, titled “COVID-19 and E-commerce”, examined how the pandemic affected the way consumers conduct electronic commerce and use digital solutions. The study provides data from Brazil, China, Germany, Italy, Republic of Korea, Russia, South Africa, Switzerland, and Turkey.

During the pandemic, more than half of the survey respondents reported shopping online more frequently and relying more on the Internet for news, health-related information, and digital entertainment.

According to the survey, consumers in emerging economies conducted online shopping the most.

“The COVID-19 pandemic accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the global economy begins to recover,” said Mukhisa Kituyi, Secretary-General of the United Nations Conference on Trade and Development – UNCTAD.

The Secretary also pointed out that the global acceleration of online shopping highlights the urgency of ensuring that all countries can seize the opportunities offered by digitalization as the world moves from pandemic response to recovery. 

Online shopping increases, but consumer spending decreases
The survey conducted by UNCTAD and NetComm Suisse eCommerce Association, in collaboration with the Brazilian Network Information Center (NIC.br) for the production of data related to Brazil and Inveon, shows that online shopping increased by 6 to 10 percentage points in most product categories.

The largest increases are in the categories of electronic and ICT-related products, gardening and “do-it-yourself” products, pharmaceuticals, education, furniture and household products, and cosmetics or personal care products (Figure 1).

However, the average monthly online spending per buyer fell significantly (Figure 2). Consumers in emerging and developed economies postponed larger expenditures, with the former focusing more on essential products.

The tourism and travel sectors experienced the largest declines, with the average spending per online buyer dropping by 75%.

“During the pandemic, online consumer habits in Brazil changed significantly, with a higher proportion of Internet users buying essential products such as food, beverages, cosmetics, and medicines,” stated Alexandre Barbosa, manager of the Regional Center for Studies on the Development of the Information Society (Cetic.br), a department of NIC.br responsible for the survey in Brazil.

The increase in online shopping during COVID-19 varies between countries, with the largest increase observed in China and Turkey, and the smallest in Switzerland and Germany, countries where more people were already engaged in electronic commerce.

The survey indicates that online shopping grew more intensely among women and individuals with higher education. Consumers aged 25 to 44 also reported a higher incidence of electronic commerce compared to younger people. In Brazil, the increase was greater among the more socio-demographically vulnerable population and among women.

Furthermore, according to the survey, small merchants in China were better equipped to sell their products online, while those in South Africa were less prepared.

“Companies that place e-commerce at the center of their business strategies are prepared for the post-COVID-19 era,” said Yomi Kastro, founder and CEO of Inveon. “There is a huge opportunity for advancement in industries more oriented towards physical shopping, such as non-durable consumer goods and pharmaceuticals.”

“In the post-COVID-19 world, the unparalleled growth of electronic commerce will alter national and international retail structures,” said Carlo Tereni, president of the NetComm Suisse eCommerce Association.

“That is why policymakers must adopt concrete measures to facilitate the adoption of electronic commerce in small and medium-sized enterprises, foster talent in the area, and attract international investors in electronic commerce.”

Digital giants get stronger
According to the survey, the most used communication platforms are WhatsApp, Instagram, and Facebook Messenger, all owned by Facebook.

However, Zoom and Microsoft Teams benefited the most from the increased use of video calling apps in workplaces.

In China, the main communication platforms are WeChat, DingTalk, and Tencent Conference, the survey shows.

Changes are here to stay
The survey results suggest that changes in online activities are likely to last beyond the COVID-19 pandemic.

Most respondents, especially in China and Turkey, said they would continue shopping online and focusing on essential products in the future.

They also intended to travel more locally, suggesting a lasting impact on international tourism.

Source: https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2487 

This content was automatically translated with the support of artificial intelligence.