Children support local businesses
One of the results of the pandemic is that kids have been driven to shop small, revitalizing their local economy through support of independent businesses. 1 in 10 German teens are inclined to shop at independent stores. The same attitude showed preschoolers from Spain. They demonstrate preference toward shopping at local businesses, with +23% more kids in this demographic have bought from independent stores since last quarter.
In Germany kids as young as the age of 3 have demonstrated an interest in supporting local business. Our data shows that +46% more pre-schoolers have made purchases from independent stores compared to the same period last year. With most of these kids and their families in Germany spending the majority of their money offline (65%), this shows there is still a necessity for an immersive brick-and-mortar experience in an increasingly digital world. Local businesses therefore have the opportunity to create lifetime brand advocates should they reach young shoppers with a propensity to purchase in-person.
At the same time in France kids started to think more about environment and use the second-hand clothes. During 2020, Zalando were keen on capitalising on the growing interest in second-hand clothing boosted by the pandemic. This October also saw Zalando making the sale and exchange of second-hand fashion items available in France. Kids Insights data demonstrates that kids favouring Zalando over-index on being concerned on the environment (+39%), illustrative of the opportunities to increase brand affinity with this audience as a means to grow fandom and encourage purchase. Brands should follow suit by being vigilant of kids’ interests and adjust their offerings to grow brand appeal.
Coming back to support local shops, the trend toward local business is also suggestive of a crave for a sense of community, which has been lacking due to the Coronavirus. In Germany, kids aged 3-9s are most likely to use YouTube to keep up to date with their favorite stores and retailers can consider developing content on YouTube as part of their marketing strategy, promoting the sense of community to reach their audience more effectively and build advocacy.
What this means…
Although there is a trend for German kids to spend offline, the kids ecosystem is becoming increasingly digitised. Boys aged 6-9 are currently spending an average 46 minutes per day online and some of the most popular platforms are YouTube (34% say it’s their favourite) and Roblox (3%).
In the last few years we have seen significant growth in direct-to-consumer (D2C) or over the top (OTT) retail. Even at the start of 2020, pre-Coronavirus, more than half of businesses predicted that their D2C revenue would increase significantly in 2020. However, the pandemic has accelerated this, which has caused many brands to shift their models; circumnavigating traditional retailers to ensure their products reach the end consumer.
D2C retail makes it possible for smaller, independent brands to reach an audience; cutting out traditional marketing middlemen, and communicating directly with them via social media platforms.
About the author:
The Insights Family survey almost 7,000 children aged 3-18 every week across 17 countries, equivalent to more than 362,000 kids a year. Not only do we take a global viewpoint, but also a local and regional perspective, by surveying 21,300 kids across all regions of Germany each year.