A Shock to loyalty
According to a recent McKinsey study, the crisis has prompted a surge of new activities, with an astonishing 75 percent of US consumers trying a new shopping behavior in response to economic pressures, store closings, and changing priorities.
This general change in behavior has also been reflected in a shattering of brand loyalties, with 36 percent of consumers trying a new product brand and 25 percent incorporating a new private-label brand. Of consumers who have tried different brands, 73 percent intend to continue to incorporate the new brands into their routine. Gen Z and high earners are most prone to switching brands.
The beneficiaries of this shift include big, trusted brands, which are seeing 50 percent growth during the crisis, and private labels, which have outpaced the retail market. Some 80 percent of customers who started using a private brand during the pandemic indicate they intend to continue using it once the COVID-19 crisis subsides.