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Markets to Target During Social Distancing

Staying at home has changed consumer spending habits.

The coronavirus pandemic has decimated the promotional products industry, drying up traditionally strong markets as government-imposed shutdowns aim to ensuring social distancing. As a result, consumer spending habits have changed overnight. In order to survive, distributors must adapt to the ever-evolving economy by targeting these thriving markets.

Delivery Services
Instead of flocking to stores, shoppers are turning to delivery services for their groceries, home appliances, clothing, birthday and holiday gifts, and other items. According to consulting agency Brick Meets Click, 31% of U.S. households bought groceries online in March, jumping 145% since August 2019. In order to meet the growing demand, delivery apps such as goPuff and Instacart are planning to hire thousands of workers, creating enormous opportunity for distributors to sell uniforms, corporate apparel and new hire kits. Of course, restaurants are relying upon meal deliveries and curbside pickup orders while stay-at-home mandates prevent dining. In a recent webinar, Alex Morin, vice president of sales for Top 40 supplier HPG (asi/61966), suggested that major brands may buy branded take-out containers for struggling restaurants to use, plastered with a supportive message.

Home Fitness
With gyms across the country remaining closed, and people needing to relieve their stress now more than ever, there’s been a surge in interest in home fitness equipment. Additionally, fitness centers and personal trainers have been offering free online workouts. ASI’s in-house gym, All Fitness, is no exception – virtual classes for members are conducted via the Zoom videoconferencing app. Branded yoga mats are highly valued, as are water bottles, sweatbands, towels and smart clothing that monitors your heart rate.

Telehealth
Fearful of being exposed to the coronavirus, people are avoiding hospitals, medical facilities and urgent care centers at all costs. Thus, telehealth companies that allow patients to see doctors or therapists via their computers or phones have become more popular, with nationwide interactions rising 50% in March, according to Frost & Sullivan consultants. Teladoc has reported a spike in video requests to more than 15,000 per day. Doctors’ house calls for the 21st century, telehealth creates an opening for selfcare packages to be shipped to patients’ homes.

Cleaning Services
Professional cleaning services have been in high demand since the outbreak of COVID-19. Commercial buildings and medical facilities need deep cleans, especially as some businesses plan to reopen soon. Distributors should be supplying these cleaning companies with personal protective equipment (PPE), such as masks, gloves, aprons, boots and hand sanitizer.

Home Improvement/Gardening
Spring is traditionally the busiest time of year for home improvement stores, generating about 30% of annual sales, Fortune reported. People tend to use their income tax returns for remodeling their kitchen, installing new doors and windows, and fixing up their yard. This year, business has exploded with people having all the time in the world for DIY projects. Lowe’s CEO Marvin Ellison told CNBC there has been a sales increase across nearly every store category as customers stock up on cleaning supplies and work on their homes. Targeting those with green thumbs will lead to greener wallets for savvy distributors.

Branded, easy-to-use tools come in handy these days.

Children’s Activities
Surely, boredom is setting in for kids home from school. That’s why there’s been an uptick in board games, lawn games and other family-friendly activities. Journals, puzzles and coloring books are more fun options to keep children occupied. Adult coloring books are useful, too, as studies have shown a link between coloring and mindfulness. “During bad economic times, coloring books always rise in sales,” said Wayne Bell, CEO of St. Louis, MO-based Really Big Coloring Books (asi/82277). “All the expensive electronic toys go out the window as families try to save money, and a lot of people turn to that family table time with kiddos and grandkids and coloring books.”

To help lift some of the burden, ASI’s onsite daycare, Lots of Love Learning Center, is offering free virtual activities for members every weekday via Zoom.

Drive-In Theaters
A blast from the past, drive-in theaters are experiencing a resurgence during the coronavirus pandemic. Apparently, they have a history of entertaining Americans during health crises, their peak popularity coinciding with polio outbreaks during the 1950s. There are still 305 active drive-in theaters in the country, according to the United Drive-In Theatre Owners Association. While most open for the summer, some have opened early to accommodate families eager to get out of the house while maintaining social distancing.

Alcohol
Saved the best for last. Historically, alcohol has been one of the most resilient industries during economic recessions. The coronavirus pandemic has proved no different: Wine sales for off-premise consumption were up 29% from March 1 to April 18 compared to the same period last year, Nielsen reported. Total alcoholic beverage sales for off-premise consumption were up 24%. With virtual happy hours replacing going out on the weekends, distributors should reach out to breweries and wineries offering branded flasks, growlers, straws, bottle openers and other boozy merch.