Let's face it. We are living in unprecedented times. We have never seen anything quite like this. In March alone we experienced 10 million people apply for unemployment and 6.5 million people applied for unemployment the week of March 28th. We are witnessing contraction in the economy. Most businesses and industries will take a massive hit. As online sellers, the best strategy right now is to put yourself in position for when the market inevitably returns back to normal. If you aren't selling online yet and have been thinking about it or if you are a brand that's looking at diversifying in this economy, check out our latest article on the reasons why right now is the best time to do this.
When the economy once again gains momentum and you want to start taking advantage of it, it would have been too late to capture market share on "Revenge Spending". What is Revenge Spending? The term comes from the 1980s which described the unleashing of pent-up Chinese consumer demand after the chaos and poverty of the Cultural Revolution. In 2020, the term describes major spending of luxury items by wealthy Chinese who have been cooped up in their homes for weeks.
In the U.S., as the economy picks back up, people find jobs and extra spending money, sales will also increase both at brick-and-mortar stores as well as online. What will help online sellers over physical stores is that consumers will need time to gain confidence that COVID has surely gone away.
We are still a long way away from returning back to normal, but right now is the time to put your brand in a position to take full advantage of "Revenge Spending".