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The U.S. market in the post-COVID era
America's purchasing power is on the rise: here's why now is a good time to invest in the U.S.
https://www.exportusa.eu/retail-sales-usa-2022.phpIn America, "Pandemials" refers to young people entering the workforce during the global pandemic. According to the World Economic Forum, Pandemials are specifically young adults born after 1997 and children yet to be born.
Over the past year, one in four young people in America has considered suicide. COVID-19 has forced the global population to change its lifestyle and consumption patterns, hitting the youngest particularly hard. This shift has given rise to a new generational identity: not Millennials, Gen Z, or Gen Alpha, but Pandemials.
Entering adulthood is never easy, but in 2021 it has become even more challenging. Young adults are facing their second major global crisis: first came the 2008 financial crisis, and now the COVID-19 pandemic, which has affected education quality, economic prospects, mental health, and well-being.
The pandemic has compelled this generation to focus on their health, the environment, and the quality of their personal relationships. These circumstances have shaped their unique characteristics, such as:
In short, we are dealing with a hyper-connected generation that, according to many experts, feels isolated and constrained by health restrictions and uncertain futures.
The year 2020 disrupted and accelerated various changes that were either about to happen or progressing slowly. The pandemic sped up these shifts. During mandatory confinement, technology became increasingly prevalent, and access to the digital showcases of all kinds of businesses became the norm.
Pandemials, in particular, took full advantage of online shopping and explored new forms of entertainment, culture, and digital communication. Today, they emerge as a favored audience in the U.S. market, making it essential for businesses to understand the peculiarities that define them.
For international companies in the United States, the priority should be to enhance and improve their online presence. Pandemials filter information rapidly (within 8 seconds), therefore brand communication must be clear, concise, and visually appealing. Entertainment also serves as an informational source for young Americans. Additionally, since Pandemials are accustomed to using multiple apps simultaneously, companies should develop multimedia and multichannel campaigns.
Given their strong focus on the quality of personal relationships, it’s crucial to address them in ways that make them feel part of the dialogue. Pandemials expect services to be personalized and efficient. Brands that prioritize customization will secure their attention and loyalty.
Demonstrating concern for Pandemials’ well-being is equally vital, ensuring that the brand is there for them—not the other way around. The pandemic was a traumatic experience for this generation, and companies can help alleviate its effects by offering content or experiences that create emotional connections with those who faced loss and uncertainty.
Brands must also have the courage to present themselves authentically, aligning with their audience by addressing issues that matter most to them, such as the environment and social justice. However, caution is needed: words must be matched by concrete actions to avoid dissolutionment.
Due to their hyper-connected nature, Pandemials are used to discussing brands with their peers and trust others’ opinions when making purchasing decisions. This generation values listening, so companies should show they value consumer feedback.
This means prioritizing customer reviews, word-of-mouth recommendations, user-generated content, and influencer opinions over traditional mainstream media. In uncertain times, knowing they can trust the honest words of their peers encourages purchases and fosters stronger brand relationships.
While our insights are partial and based on current contexts and future scenarios for European and international companies in America, one thing is clear: to thrive tomorrow, retail and consumer goods brands must engage the Pandemial generation. Not only do they have growing spending power, but their economic influence extends far beyond their families. Their impact will only increase as they mature and become savvy consumers. Companies capable of meeting the high expectations of this new generation of American consumers will enjoy mutually beneficial and long-term relationships, both economically and emotionally.
America's purchasing power is on the rise: here's why now is a good time to invest in the U.S.
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