Consumption changes after Covid-19 : evidence from China's outlet

Abstract

The outbreak of the pandemic has caused significant impacts on the operations and development of brick-and-mortar stores, severely obstructing the growth of the physical economy. The Outlets industry has also been greatly affected by the pandemic. Consequently, how to stand out in the post-pandemic era has become one of the crucial strategic considerations for Outlets. Therefore, this paper deeply explores the changes in consumer behavior, consumption characteristics, and transformation paths of the Outlets model in the retail industry during the post-pandemic era. And finally, this paper will provide valuable insights to enhance the market competitiveness of Outlets. Firstly, through the literature review, this article summarizes the relevant research and theoretical frameworks on consumer behavior in the retail industry and during global crises, laying a solid theoretical foundation for subsequent analyses. Secondly, the article provides a comprehensive understanding of the Outlets model by introducing its business model, operational strategies, and market positioning within the industry. Furthermore, by analyzing the statistical results of a survey, the article investigates the characteristics of Outlets X consumers, and reveals their preferences, demographic features and purchasing behaviors. The research indicates that although consumers' preferred shopping time has not significantly changed during the pandemic, both shopping frequency and dining consumption frequency have decreased, implying an overall decrease in consumers' willingness to spend during the pandemic. Additionally, when considering factors influencing clothing purchases, cost-effectiveness has become the most significant concern for consumers. This phenomenon indicates that consumers place greater emphasis on practicality and value for money in the context of economic downturn and employment uncertainty. Moreover, the article further analyzes the changes in consumer behavior at Outlets X malls during the pandemic. Utilizing micro-level data, the article explores shifts in consumption patterns, brand preferences, and price sensitivity. These research findings demonstrate that sales of high-end brands and non-domestic brands have deteriorated during and after the pandemic, while domestic brands have remained comparatively stable. This observation aligns with the trends of "consumption downgrading" and "domestic substitution", indicating significant changes in consumer preferences during the pandemic. Subsequently, based on empirical analyses, this paper delves into the changes in consumer behavior in the post-pandemic period. The results show a decline in sales of high-end and non-domestic brands during and after the pandemic, which did not recover with the cessation of pandemic control measures, further confirming the trends of consumer downgrading and domestic substitution during the pandemic. Lastly, the article presents a transformation path for the Outlets model in the post-pandemic era, discusses various perspectives such as B2C, B2B, O2O, C2M, community economy, fan-based models, and cross-sectoral diversified economies, and examines potential modes that Outlets could adopt during the transformation process. The article also offers insights and feasibility analysis for this transformation, including data empowerment, omnichannel operation blending online and offline channels, creating multi-scenario marketing models through enhanced traffic, and developing new business ventures to seek new profit growth opportunities. Additionally, specific implementation steps are discussed, and provides practical guidance for Outlets in their transformation during the post-pandemic era. In conclusion, this article provides valuable insights and references for Outlets and the retail industry as a whole, by deeply exploring the changes in consumer behavior, consumption characteristics, and transformation paths of the Outlets model in the post-pandemic era.