.IE Tipping Point Report 2020

Section 2 The consumer response to Covid-19 Despite economic collapse since the lockdown, with most of Ireland’s main street shops and office spaces closed for business, consumer demand online has continued unabated. Since the Covid-19 crisis began, almost half (49%) of consumers say they have spent more money online than before the pandemic, while just over a quarter (26%) have spent the same as before. Increases in online spending occurred mostly in the younger age group of 24-34 year olds (58%), many of whom may have frequently shopped online for goods and services pre-Covid-19. Typically, international businesses are the first ones to benefit from any increases in Irish consumers’ online spending, but the Covid-19 crisis has been different. Consumers estimate that since the Covid-19 crisis began in March, 53% of their online purchases have been made with Irish businesses compared to 48% before. While the percentage change is not huge, it is still a significant milestone—previous research has shown that the bulk of Ireland’s e-commerce spend has gone abroad to international retailers. Covid-19 and the lockdown have been major contributing factors. Irish consumers know that without their support, many Irish businesses will never reopen. Buying Irish has always mattered to Irish consumers, but Covid-19 has created a sense of urgency. Over two-thirds (67%) of consumers who had done most of their online shopping with Irish businesses explicitly stated that they wanted to help Irish SMEs through the crisis. Have consumers been spending more or less online since the Covid-19 crisis began? (Base: 950 consumers who shop online) Since the Covid-19 crisis, consumers estimate that… 17% 26% 12% 10% 4% The same A little less Significantly less Not spending online A little more Significantly more 32% 53% of their online purchases have been with Irish SMEs versus 47% with international retailers. (Base: 1,000 consumers) 6