The pandemic has certainly changed our lives in so many ways, causing lengthy business interruptions and other disruptions. But every cloud has a silver lining. With the majority of physical retail stores closed during national and local lockdowns, online shopping has grown to become more of the norm. What this has led to over the last couple of years is a marked change in consumer shopping habits, attitudes and product purchases.
In the world of eCommerce, many new stores have constantly struggled to get even a small piece of the market. But perhaps an unexpected side effect of Covid-19 when it comes to shoppers, is a drop in consumers saying they’re loyal to a brand, according to recent statistics from a Lazada Insider series.
More people are discovering brands through social media ads, consumer reviews sites as well as different eCommerce sites. With a saturated, increasingly competitive online space, the sort of brand loyalty that consumers used to feel in the past is gradually being overtaken by the need to make better spending decisions when faced with rising prices.
Lazada’s eCommerce shopper behavior report “Transforming Southeast Asia – From Discover to Delivery” has shown that APAC shoppers will go as far as to switch brands or stores for a better price. More than 40% of shoppers in India would purchase from a brand that wasn’t their preferred one, when faced with rising prices and a struggling economy.
This decrease in brand loyalty is no doubt bad news for marketers; however, it can be good for start-ups or those who are venturing into eCommerce for the first time!
This is a huge opportunity for someone who is looking to get their business off the ground. Because it is so easy to start an online business in today’s environment, the potential for expansion is nearly limitless. Once you start to experience success, more and more people will want to buy your product and it is easier to gain more exposure, reach out to new customers, and build from there.
A chance for Startups to enter the eCommerce market and grow
One of the problems small growing brands, or startups, have continually faced is competition from bigger, well-established brands in the market. But with customer loyalty down, startups and those new to the market have a chance to make their mark, and be defined by their potential to provide goods and services that consumers are looking for today. One of the best ways to grow your brand as an early-stage start up is to carve out your own market niche, which makes your brand more valuable. Be creative in tackling problems from new angles and thinking out of the box. For some start-ups, white labels may be a way to take advantage of the current decreasing trend in customer loyalty. Instead of paying a premium price, consumers are willing to forgo the big brand name for something more affordable. This creates opportunities for those venturing into eCommerce to consider the potential of reselling cosmetics, skincare, and other products from production companies with white label agreements.With brand loyalty down, consumers are paying attention smaller players
As more information about products and services becomes available, more and more consumers are taking note of the little guys, instead of automatically going for a brand they know and recognize. For the first time in years, smaller businesses and newcomers to the eCommerce scene can compete with bigger, more established businesses as long as their products meet the needs of consumers.
This is a huge opportunity for someone who is looking to get their business off the ground. Because it is so easy to start an online business in today’s environment, the potential for expansion is nearly limitless. Once you start to experience success, more and more people will want to buy your product and it is easier to gain more exposure, reach out to new customers, and build from there.