How Coronavirus Has Changed Verishop Customer Behavior — From Categories to Geographies
In the past month, we’ve seen an unprecedented impact from the COVID-19 pandemic, leaving many of us in the technology community wondering about the impacts on consumer behavior. Our team has heard from brands, advertisers and other partners who are also trying to navigate the abrupt changes on our daily lives.
While we will undoubtedly see a pointed effect on the U.S. economy, our data shows that consumers remain resilient, and I wanted to share four initial takeaways from what we are seeing here at Verishop. We are a young company — with double-digit millions in annualized sales in 9 months of operations — and our community is small, but it is mighty. The following takeaways are derived from month-over-month comparisons based on data from the weeks of February 20–26 and March 19–25, when most of the U.S. instituted social-distancing measures.
1. Feels like home. As most states across the country have asked their residents to “shelter in place,” we are spending more time than ever before in our homes. Compared to last month, Verishop has seen a 158% sales increase in our home goods category, with three times as many products sold. We believe that our community of shoppers is quickly adopting new at-home hobbies like cooking, mixology, decorating and self-care, and we’re seeing an uptick in purchases of more than 180% in the subcategories of kitchen products, barware, home décor and bath products.
2. Putting our best face forward. For many of us, our interaction with others is dominated by online communication and virtual tools. We believe this new, hopefully temporary, normal is redefining our view of self to the headshot frame that our computer and phone cameras capture. Fashion choices are geared toward comfort, and skincare is utmost relevance. Accordingly, on a month-over-month basis, Verishop has seen a 102% sales increase in our beauty category, led by skincare and wellness, and a sales decrease of 16% and 17% in our women’s and men’s fashion categories, respectively.
3. Cities on the frontline. Traffic to Verishop from NYC is down 25%, and more broadly, is down across the board from all metropolitan areas. We believe this is because more densely-populated cities are on the frontline of battling the outbreak. Their consumption needs are rightfully focused on the healthcare industry and outfitting medical staff with adequate protective gear. Meanwhile, traffic in less densely-populated suburban areas like the Dallas and Houston metros in Texas have increased.
4. Younger shoppers staying on trend. When it comes to the different demographics that visit Verishop, we have seen a 10% increase in shoppers under the age of 35. We can only hypothesize the reason for this shift in demographic behavior, but it’s certainly plausible to think that younger consumers are quicker to adopt online solutions. Whether that’s for the consumption of media, purchase of groceries, or communication with loved ones, younger demographics tend to lead the way in the digital world.
At Verishop, we’ve built a platform that helps our community of shoppers discover the brands they love most. These brands are real businesses run by our peers, neighbors, and fellow entrepreneurs, and during these uncertain and unprecedented times, and we are doing our best to support them during this historic time.
On a personal note, I’m honored to announce that Cate and I are making a personal donation of $100,000 to the Los Angeles Regional Food Bank. We are very thankful for the work of this exceptional organization in keeping the city that our family calls home safe, healthy, and fed. In a time when community matters more than ever, we are grateful to be a part of one that inspires us to take action and urge everyone to support our community in any way they can.
Imran Khan
CEO, Verishop
