.IE Tipping Point Report 2022

Section 2 The Covid consumer Consumers in the post-Covid era will be driven by convenience, ease of use and experience. Increasingly, digital natives will set the e-commerce agenda. SMEs responsive to these new needs will be rewarded. .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 7 With strong signals that the worst of the Covid pandemic is now behind us, consumer sentiment is generally positive. Looking back, 3 in 10 consumers considered themselves better off in 2021 than they were in 2020, with the most positive group being the Young Millennials (born 1991-1996). Of the total sample, 44% said they were no more or less better off. However, 28% said they were slightly or significantly worse off, a figure that rose to 34% among Gen X (1965-1980). Among all consumers, 87% said they made a purchase online in 2021, down from 94% in 2020. The figure was lower (78%) among Baby Boomers (1946-1964), suggesting that one of the most accurate predictors of a preference for online shopping is age. 50% reported spending significantly or slightly more online in 2021 compared to 2020. Gen Z (born 1997-2012) were most likely to report an increased online spend in 2021, with 6 in 10 saying they spent more than the previous year. Digital natives, the tastemakers In 2022, 16% of consumers say they will do most of their shopping online, while 39% will do a mixture, buying necessities, such as groceries, in physical stores but most other products online. 45% of consumers plan to do most of their shopping in physical, bricks-and-mortar stores, up from 42% in 2021. However, broken down generationally, these findings reveal interesting differences among the digital natives, the Millennials and Gen Z. Why consumers prefer to shop mostly in physical stores 58% More convenient 56% Want social interaction/ to go outside 24% Saves time 22% Cheaper 9% Preferred retailers don’t have online store 2021 2020 61% 62% 2021 2020 39% 55% 2021 2020 19% 24% 2021 2020 20% 14% 2021 2020 15% 21% Base: 453, consumers who will do most of their shopping in-store in 2022 Why consumers prefer to shop mostly online 64% More convenient 49% Saves time 41% Safer/ less social interaction 39% Requires less travel 36% Cheaper 2021 2020 52% 51% 2021 2020 46% 56% 2021 2020 66% 59% 2021 2020 42% 50% 2021 2020 30% 29% Base: 162, consumers who will do most of their shopping online in 2022