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The Hermit Consumer Era

It all began with a seemingly mundane Friday morning, the kind that usually unfolds in a familiar rhythm of household chores and quiet family routines. As I entered the living room, I saw my mom sitting in a cosy corner. In front of her, a laptop displayed an array of virtual storefronts, and a few clicks later, packages containing everyday essentials and whimsical indulgences were on their way to our doorstep. As I observed, I realised that my mom, like many others, had become a curator of comfort within the walls of our home. The rituals of going out to shop for groceries or spending leisurely afternoons in crowded malls had given way to the convenience of online orders and doorstep deliveries. It was a revelation, an unspoken acknowledgement that our approach to the outside world had evolved.

                                  Far in a wild, unknown to public view,

                                 From youth to age a rev’rend hermit grew;

                                The moss his bed, the cave his humble cell,

                               His food the fruits, his drink the crystal well:

                              Remote from man, with God he pass’d the days,

                             Pray’r all his bus’ness, all his pleasure praise.

                                                                       THE HERMIT by Thomas Parnell

What is Hermit Consumer?

The term “hermit consumer” refers to a concept that emerged during the COVID-19 pandemic to describe a shift in consumer behaviour towards more self-sufficient and home-centric lifestyles. It reflects the trend of individuals spending more time at home, prioritising goods over services, and adopting a more minimalist approach to consumption.

In the years before Covid, consumer spending on services, spanning travel to entertainment, was escalating. However, lockdowns in 2020 disrupted this trajectory, leading to decreased service expenditures and a notable uptick in goods related to health, hygiene, and domestic life—a trend termed “home nesting.” In richer countries, this decrease is even more significant. Remote work and learning altered daily routines, diminishing the need for certain services. The enduring legacy of heightened health consciousness has instilled consumer wariness, impacting activities involving close contact. Concurrently, the pandemic expedited the surge in online shopping and digital consumption, impacting traditional brick-and-mortar services.

The hermit behaviour trend variations:

In densely populated countries where personal space is limited, the desire for solitude and privacy may be more pronounced. This can lead to a higher prevalence of hermit behaviour as individuals seek to create personal spaces within their homes and limit their interactions with others. Cultural norms and values can also influence the prevalence of hermit behaviour. In some cultures, there may be a greater emphasis on individualism and self-reliance, which can contribute to a higher inclination towards a hermit lifestyle. Socioeconomic factors like income levels and access to resources can also play a role in hermit behaviour. Individuals with higher incomes and greater access to resources may have more options to create self-sufficient lifestyles, whereas those with lower incomes may have fewer choices and rely more on external services. It is important to recognise that hermit behaviour is not limited to specific countries or regions and can be observed in varying degrees across the globe. Some countries, like New Zealand and South Korea, did not have long lockdowns, so people there are still spending money on services as they did before. But in other places, people have gotten used to staying home a lot. For example, in the Czech Republic, spending on services is much lower than usual. In America and Japan, people are also spending less on going out. In Japan, there has been a big drop in bookings for restaurants where people used to go for work-related meetings and entertainment. It is like the places where people used to have fun are less busy now.

The effect of Hermit Consumer in the markets of Dhaka

In Dhaka, Bangladesh, the pandemic has had a substantial impact on consumer behaviour. With an increased focus on security and convenience, there has been a significant shift toward online buying. Consumers are increasingly turning to e-commerce platforms to acquire a variety of goods and services. Furthermore, consumption patterns have shifted, concentrating on basic things and products that enhance health and hygiene. Digital marketing and communication have become critical for businesses to interact with clients, leveraging social media platforms and online advertising. Sustainability and ethical consumption have also gained appeal, with Dhaka customers more interested in businesses that value environmental and social responsibility. The pandemic has affected food consumption patterns in Bangladesh. For example, there have been reports of changes in fish consumption due to the impact of the pandemic. The pandemic and subsequent lockdown measures have also influenced electricity consumption in Bangladesh. Overall, post-pandemic consumer behaviour in Dhaka demonstrates adaptation, prudent purchasing, and a preference for local products.

Corporate Insights and Strategic Responses

The hermit consumer trend, marked by a shift in consumer behaviour towards preferences for solitude and home-based activities, has significantly influenced various industries. In the realm of restaurants and food delivery services, there is a notable inclination towards takeout and food delivery, prompting businesses to optimise delivery operations and invest in technology for an enhanced online ordering experience. Major platforms like DoorDash, Uber Eats, and Grubhub have adapted to cater to this trend. Similarly, e-commerce and online retail giants such as Amazon, Alibaba, and Walmart have experienced a surge in demand, leading to investments in delivery networks and improved logistics. The trend has also boosted the streaming services and entertainment sector, with companies like Netflix and Disney+ seeing increased subscriptions. In the fitness and wellness industry, the hermit consumer trend has fueled demand for home fitness equipment and virtual classes. To adapt, businesses are focusing on strategies such as enhancing online presence, offering virtual experiences, continuing delivery and takeout services, and adopting flexible work models. The long-term impact and success of these strategies will hinge on factors like the pandemic’s progression, societal shifts, and technological advancements.

Why has the trend endured?

There are many possible reasons behind this. Firstly, a huge number of people still remain afraid of getting infected, maybe by Covid or something else. Rich people are swapping to their own vehicles and trying to avoid crowded public transport for their own privacy. In Britain, car usage remains consistent with pre-Covid levels, while there has been a significant decline in the use of public transportation. Additionally, there is a noticeable decrease in people’s interest in close-contact services. In the United States, spending on hairdressing and personal grooming treatments is 20% lower than before the pandemic, whereas spending on cosmetics, perfumes, and nail products has increased by 25%.

Secondly, it relates to the working patterns. The pandemic has allowed people to work from home. This shift towards remote work has brought about notable changes in work patterns with several potential benefits. This transition has resulted in reduced demand for services typically utilised while working at the office, such as lunches, and has concurrently led to an increased demand for do-it-yourself goods. Additionally, the flexibility of remote work has allowed individuals to allocate more time to household tasks and personal interests. This change in lifestyle has prompted an increase in spending on household items like glassware, tableware, and household utensils, as observed in the case of Italians, who spent 34% more on such products in the past year compared to 2019. These shifting dynamics highlight the potential benefits of working from home, including improved work-life balance, increased productivity, and a greater focus on personal well-being and home-related activities.

The third reason may be values. The pandemic has brought about notable changes in people’s values, leading to shifts in behaviour and priorities. Studies show that people spent an average of 30 minutes more per day engaging in hobbies and creative pursuits compared to pre-pandemic times. This surge in dedicated personal time has led to increased spending on art supplies, DIY projects, and online learning platforms. Furthermore, online searches for meditation and mindfulness techniques have skyrocketed, indicating a desire to find inner peace and enhance mental well-being. These shifts in values demonstrate a greater appreciation for self-reflection, personal growth, and pursuing individual passions in the face of global adversity.

The hermit consumer trend is a result of various factors. People choose to stay home due to health concerns and fear of infection. Remote work has changed how people spend their time. Personal values have shifted, with a greater emphasis on solitude and individual pursuits. This trend has significant impacts on businesses. Some, like e-commerce and online entertainment, are thriving, while traditional industries like hospitality face challenges. Investors are closely watching companies adapting to the hermit lifestyle. Looking ahead, the hermit consumer trend is expected to continue post-pandemic. Businesses need to understand and cater to this shift, providing solutions that align with the preferences of a home-centric lifestyle. Ultimately, the trend reflects broader changes in how society values comfort, connection, and personal satisfaction.

Author: Anika Tasnim Lodro

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