[pic: by Nathan Dumlao]

Giselle Liu

Business Editor

Yzl5979@psu.edu 

The beginning of 2021 has been a busy time for businesses to recover. Last week, SLI and LEB in Penn State Behrend brought students Support Local Giveaway to help local Erie brands thrive. These insights into how consumer habits are changing will give businesses a sense of how to find opportunities and get through the financial uncertainty this year.

1. Homebody products are trending.

Since people stayed at home much more than they have had before, customers flavor products that can make them feel comfortable staying at home. Getting bored of the bedroom? Redecorate it! Feeling like being pretty at home? Buy new PJs! According to recent research from Square identified the comfort items increasing and declining in sales in 2020 compared to 2019. 

Three retail categories to watch are home goods, apparel, and beauty and wellness. Retailers will be wise to stock up on affordable products that are easy to ship, like home decor, candles, air fresheners, house plants, and supplies for at-home hobbies. Clothing retailers should prioritize loungewear and comfortable clothing, which are showing a surge in sales, according to the same research from Square. Loungewear is up 13x compared to last year, while sweatshirts are up 10x, athleisure is up 3x, and pajamas are up by 71 percent.

                 2. Fewer options, fewer mistakes.

Under the pandemic, customers are more and more worried about taking risks and getting the products they don’t want. A phenomenon called analysis paralysis, people tend to avoid taking actions to relieve their anxiety and stress from making wrong choices when they overthink about the situation, is trending recently.

Implementing selections of staff picks or categories based on interests can give consumers a sense of comfort in getting an expert recommendation. According to Forbes, analysis paralysis goes beyond choosing which product to buy – consumers are also overwhelmed with deciding how to buy. Business owners should make the fulfillment methods they offer clear (online orders, in-store, and curbside pickup, etc.) to meet individual consumer comfort levels. It will be crucial in 2021 to emphasize policies to reduce consumer anxiety about shopping or picking up items in person.

                  3. School supplies are selling fast when distance learning is continuing.

Whether students are in elementary school or college, a comfortable home classroom can ease some of the difficulties of remote learning. That means many people are purchasing basic office gear, like office chairs and desks. According to Forbes’ data, sales have risen 115% and 45%, respectively, since 2020.

However, in 2021 traditional school supplies are being replaced as students upgrade their tech stack and focus on items that enable nontraditional educational experiences. Low-tech school supplies like notebooks and pencils are dropping in sales compared to last year. Although composition books are an outlier, with sales having risen by 106%, according to Forbes’ data.

                    4. Adaptation, imagination, and resilience.

Creativity isn’t conflicted with quarantine. When customers are seeking new indoor events to relieve their stress, it will be time for new products to shine. Imagination is one of the hardest things to keep alive under pressure. Companies that are able to do so can reap significant value. According to Harvard Business Review, in recessions and downturns, 14% of companies outperform both historically and competitively, because they invest in new growth areas. For example, Apple released its first iPod in 2001 — the same year the U.S. economy experienced a recession that contributed to a 33% drop in the company’s total revenue. Still, Apple saw the iPod’s ability to transform its product portfolio: It increased R&D spending by double digits. The launch of the iTunes Store (2003) and new iPod models (2004) sparked an era of high growth.