Small and mid-tier brands can benefit from changes in consumer behaviour triggered by the COVID-19 crisis.
COVID-19 is bad for business, right? Not necessarily, say Jonathan Knowles, Richard Ettenson, Patrick Lynch and Joseph Dollens. Writing for MIT Sloan Management Review they argue that despite the challenges posed by the pandemic, the disruption of consumer spending habits presents “an unprecedented opportunity” for small and mid-tier brands (SMBs).
“In terms of purchasing behaviour, once a routine in a certain store or preference for a particular brand is established, it becomes habitual and is difficult to change.” In “normal times” it would be difficult for SMBs to disrupt these routines to challenge market leaders. But these are not normal times. Consumers are changing their purchasing behaviour – and now is the time to take advantage.