Consumer BehaviourShifts During Lockdown ofSpring 2020

Consumer Behaviour Shifts During Lockdown

of Spring 2020

In this document: Background & research methodology 3

Online products and services 7

Small and large businesses 20

Helping others 24

Habits and attitudes 29

2© 2020 PayPal Inc. Confidential and proprietary

BACKGROUND & RESEARCH METHODOLOGY

© 2020 PayPal Inc. Confidential and proprietary

Background

COVID-19 has dramatically changed how people live, work and shop. Businesses, economies and service providers from all over the world need to respond to these changes quickly & extensively, but there are many question marks.

People are facing new challenges. Parents are reaching out to modern technologies to handle new tasks. Others, like the elderly, for the first time are forced to try online shopping and quickly catch up with younger generations.

The survey aimed to collect insights about the specifics and shifts in behaviour during three periods:

• Pre-lockdown

• During lockdown

• Post-lockdown

In cooperation with Ipsos, PayPal conducted 13 market surveys with approximately 26,000 respondents to examine how people shop, sell, send money and donate at this time, how they want to do so in the future and what challenges they see along the way.

4© 2020 PayPal Inc. Confidential and proprietary

Research Methodology

Online surveyFieldwork dates

European: 8th to 29th May 2020Spain: 15th to 21st May 2020

13 countries

2000 interviews per market

Respondents recruited from Ipsos online panels

Countries included:

Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland,

Portugal, Spain, Sweden, and UK

15 minute questionnaire

This research was carried out following all professional industry

standards and practices applicable to the market research industry -

ICC/ESOMAR.

In this report:


Sample error:+/- 2,2%, margin of error at 95% confidence level and p=q=50%*Small baseà Base n<80 **Very small base à Base n<30

5

58

42Employed

Unemployed

Sample Profile

GENDER AGE

KIDS <18 y.o.

POPULATED AREAREGION

EMPLOYMENT

54

3313

Densely

Intermediate

Thinly


Base: All respondents (2000) / kids at home / employed

Noroeste and Noreste 19%

Madrid and Centro 26%

Este 29%

Sur and Canarias 26%

LIVING IN HOUSE

1 11%2 32%3 24%4 24%

5 or + 9%49% 51%

34%

8% 14% 20% 19% 15% 24%18-24 y.o. 25-34 y.o. 35-44 y.o. 45-54 y.o. 55-65 y.o. 65+ y.o.

Mean: 48,6 y.o.

47

28

25

From home

Out of home

Stopped working

82

20

14

Onlineactivities

Live classes

No schoolingactivities

(kids at home: 682) (employed: 1156)

WORKING SETUPduring lockdown

SCHOOLING SETUPduring lockdown

ONLINE PRODUCTS AND SERVICES


There is a clear difference among people of different ages:

§ The core motivations for people to shop online were related to product availability and no queuing

§ However, people found that the online shopping experience has room for improvement: delivery taking too long was the main shopping issue they highlighted during the lockdown, as well asproducts not being in stock and price increases

§ Purchasing products and services online increased in frequency during lockdown and many were using online services or making online purchases for the first time

§ There is a widespread increased frequency for services. In products, the growth is especially seen in Grocery and Food and Drinks Delivery

§ 14% of respondents stated that during lockdown they purchased groceries for relatives andneighbours

© 2020 PayPal Inc. Confidential and proprietary.

ONLINE PRODUCTS AND SERVICES | SUMMARY

Lockdown impacted the way people shop online in Spain

Younger consumers…• show a lower purchase frequency

of products• see more barriers in online

shopping • are more open to offer/sell

products and/or services online

Consumers who are 65+ y.o.• value product delivery and no

queuing more

CROSS BORDER PURCHASESShopping abroad is quite widespread in Spain: 4 out of 10 have bought something from another country during the lockdown.

© 2020 PayPal Inc. Confidential and proprietary P7. Have you bought anything abroad during the COVID-19?

Base: Have purchased an online product during the lockdown period (1481)

bought something from

abroad

38%

<%>

PURCHASES DURING LOCKDOWNProducts have been bought by people in a greater proportion than services, but the purchase frequency of services increased slightly more than that of products.


9 16

32

35

4439

15 9

Less frequent Same frequency More frequent First time

Services Products

P2a. OVERALL, during the COVID-19 lockdown period, have you used, bought or paid ONLINE services…P3a. OVERALL, during the COVID-19 lockdown period, have you bought / paid ONLINE products….

Base: All respondents (2000) / Online service consumer during the lockdown period (803) / Products consumer during the lockdown period (1481)

have used/bought online service during the

lockdown

<%>

40% 74%have bought online products during the

lockdown

Younger people bought products and services online in a higher proportion

People with kids and those living in medium-sized or large cities bought online products and services with more frequency

ONLINE PURCHASE ADVANTAGESOnline purchases have several advantages for most people. The main ones are related to product availability (including delivery and accessibility) and no queuing.

Found advantages when buying online

during lockdown period

© 2020 PayPal Inc. Confidential and proprietaryP6. Which are the advantages you have experienced with ONLINE purchase during the COVID-19 lockdown period compared with the PRE-COVID-19 period?

63

51

37

29

26

22

22

20

14

11

1

Home delivery availability

No queuing to buy

Access shops/products out-of-home

Only option to get these products

Competitive prices/discounts

Option to compare products

Payment security

Shops open new ecommerce channels

Option to personalize purchase

Recommendations from other people

Other

<%>

84%

Base: Products consumer during the lockdown (1481) / found any advantages (1229)

Home delivery and no queuing are the main reasons stated, especially by older people

Male respondents rated competitive prices/discounts and payment security higher than women

ISSUES FACED WHEN SHOPPING ONLINE DURING LOCKDOWNDelivery taking too long was the main problem during the lockdown, stated by most respondents in Spain. Following this, 4 out of 10 highlighted problems with the products being out of stock and price increases.

Experienced a problem

© 2020 PayPal Inc. Confidential and proprietaryP5. Which are the main problems you have experienced with ONLINE purchase during the COVID-19 lockdown period compared with the PRE-COVID-19 period?

70

44

38

2422

21

16

13

9

88

6

5

5

2

2

Delivery taking too long Products being out of stock

Price increase for products and services

Fear of infection from meeting with a courier

Online shops being blocked due to excess in demand

Shops have refused to deliver

Difficulties with product returns Miscommunication with a seller

Cost of returning a product

Product quality

Distrust that online payments are safe

Lack of clarity on terms and conditions /guarantees

Difficulties of conducting a payment Site not easy to use

Seller accepting only cash

Other

<%>

73%

Base: Have purchased any product during the lockdown (1481) / have experienced a problem (1073)

2

2

4

4

4

3

3

5

11

38

41

27

33

20

37

17

68

44

42

52

47

55

46

53

18

16

13

17

17

22

14

25Less frequent Same frequency More frequent First time

(558)

(497)

(307)

(284)

(289)

(255)

(183)

(173)

SERVICES USED DURING LOCKDOWN PERIODAll types of services show an increased use during the lockdown. However, video-on-demand, music and gaming subscriptions are the most constant ones, while virtual tours (although were used by 1 out of 10 Spaniards) have a higher first-time purchase incidence.


28

25

15

14

14

13

10

9

Calls or video calls

Video-on-demand subscription

Music subscription

Tutorials about housekeeping / leisureactivities

Courses & professional training

Sports/fitness training

Online game one-off purchase

Virtual tours to museums and exhibits

P2. Which kind of online services have you used during the COVID-19 lockdown period? (no matter if free or paid) P4a. During the COVID-19 lockdown period, have you used, bought or paid ONLINE services…?

Base: All respondents (2000) / have experienced a problem

<%>

MAIN ONLINE SERVICES PURCHASED USAGE FREQUENCY

Younger people, people with kids at home and employed people show a higher purchase level in general

Men show a higher use of video-on-demand, music and gaming subscriptions

SERVICES USED DURING LOCKDOWN PERIOD


28

25

15

14

14

13

10

9

9

8

7

7

7

6

4

3

3



Music subscription

Tutorials about housekeeping / leisure activities





E-book/press subscription

Language classes

Home schooling activities for kids / teens

Gaming subscription

Leisure activities for kids / teens

Concerts and plays

Courses and trainings for other family members

Professional services

Other

2

2

4

4

4

3

3

5

3

3

5

5

7

13

8

14

6

11

38

41

27

33

20

37

17

33

33

15

40

22

20

33

40

49

68

44

42

52

47

55

46

53

49

48

60

40

54

53

49

32

20

18

16

13

17

17

22

14

25

16

16

21

15

17

14

10

14



(558)

(497)

(307)

(284)

(289)

(255)

(183)

(173)

(174)

(158)

(132)

(126)

(127)

(128)

(77*)

(67*)

(53*)

Base: All respondents (2000) / each product service during the lockdown *Small base

<%>

20

7

10

14

11

6

12

10

41

21

47

27

47

44

41

37

31

56

36

48

34

41

40

44

9

16

7

12

8

9

8


(586)

(553)

(504)

(412)

(398)

(365)

(343)

(316)

PRODUCTS PURCHASED DURING LOCKDOWNGrocery and Food and Drink Delivery are the categories that were purchased online most frequently during this lockdown period. These are also at the top of the list among the categories that were purchased online for the first time


29

27

25

20

19

18

17

16

Clothing, shoes, accessories

Grocery

Electronics & Computing

Food & Drink delivery

Cosmetics & Beauty products

Household bills

Books & Magazines

Home & Garden

P2. Which kind of online products have you used during the COVID-19 lockdown period? (no matter if free or paid) P4a. During the COVID-19 lockdown period, have you used, bought or paid ONLINE products…?

Base: All respondents (2000) / have purchased each product during lockdown

<%>MAIN ONLINE PRODUCTS PURCHASED USAGE FREQUENCY

In general, younger people show a higher purchase level, especially for clothing, electronics & computing, books and magazines

More women stated that they shopped for clothing and cosmetics than men. While more men stated that they bought electronics and auto products

PRODUCTS PURCHASED DURING LOCKDOWNAlthough all the categories show an increase in purchase frequency during the lockdown, Grocery, Food and Drink Delivery and Pharmaceutical products/drugs are the biggest winners during this lockdown period, also being at the top of the list among categories that were purchased online for the first time


29

27

25

20

19

18

17

16

15

13

11

8

5

4

2

2

1

7


Grocery




Household bills

Books & Magazines

Home & Garden

Pharmaceutical products/drugs

Sporting Goods

Toys & Games for kids

Games (physical)

Software

Auto products

Travel

Transport

Tickets (e.g. Music)

Others

20

7

10

14

11

6

12

10

5

7

10

7

5

9

28

20

34

19

41

21

47

27

47

44

41

37

34

37

33

38

49

48

34

41

21

38

31

56

36

48

34

41

40

44

47

46

48

44

36

26

30

24

27

32

9

16

7

12

8

9

8

9

15

10

10

11

10

17

8

15

17



(586)

(553)

(504)

(412)

(398)

(365)

(343)

(316)

(306)

(265)

(227)

(163)

(105)

(80)

(33*)

(29**)

(26**)

(131)

Base: All respondents (2000) / each product consumer during the lockdown

<%>

SERVICES EXPECTED TO BE PURCHASED AFTER LOCKDOWNPeople in Spain plan to continue using online subscriptions, as well as video calls; and mix online and offline versions, especially language classes and schooling, as well as leisure activities for kids and visits to museums.


28

25

15

14

14

13

10

9

9

8

7

7

7

6

4

3

3



Music subscription

Tutorials about housekeeping / leisure…





E-book/press subscription

Language classes

Home schooling activities for kids / teens

Gaming subscription

Leisure activities for kids / teens

Concerts and plays

Courses and trainings for other family…

Professional services

Other

61

96

94

59

35

30

91

29

86

37

30

94

19

18

44

33

23

1

2

6

15

13

0

10

8

12

22

9

8

3

28

33

55

45

43

0

48

52

59

53

37

53

67

10

4

6

7

5

10

10

15

15

5

10

6

10

7

10

6

8Only online Only offlineI’ll buy /use both Online and offline Won’t buy /use it anymore

P2. Which kind of online services have you used during the COVID-19 lockdown period? (no matter if free or paid) P24. How do you think you will use or purchase the following products and/or services…?

(558)

(497)

(307)

(284)

(289)

(255)

(183)

(173)

(174)

(158)

(132)

(126)

(127)

(128)

(77*)

(67*)

(53*)

Base: All respondents (2000) / each product service during the lockdown *Small base

<%> USAGE/PURCHASE DURING THE LOCKDOWN AFTER LOCKDOWN USAGE

PRODUCTS EXPECTED TO BE PURCHASED AFTER LOCKDOWNPeople in Spain very rarely stated that they plan to purchase products only offline after lockdown. Electronics, digital goods, and software were selected for solely offline purchase by only 4%/5%.


29

27

25

20

19

18

17

16

15

13

11

8

5

4

2

2

1

7


Grocery




Household bills

Books & Magazines

Home & Garden

Pharmaceutical products/drugs

Sporting Goods

Toys & Games for kids

Games (physical)

Software

Auto products

Travel

Transport

Tickets (e.g. Music)

Others

15

9

22

20

17

19

20

13

12

15

16

18

49

22

51

51

42

11

8

18

4

8

6

11

8

8

18

11

9

10

5

9

17

10

16

5

75

69

72

69

75

69

71

77

67

71

72

66

41

68

29

35

42

81

4

2

2

2

1

2

3

3

3

4

6

5

1

3

4

0

3Only online Only offlineI’ll buy /use both online and offline Won’t buy /use it anymore

P2. Which kind of online services have you used during the COVID-19 lockdown period? (no matter if free or paid) P24. How do you think you will use or purchase the following products and/or services…?

(586)

(553)

(504)

(412)

(398)

(365)

(343)

(316)

(306)

(265)

(227)

(163)

(105)

(80)

(33*)

(29**)

(26**)

(131)

Base: All respondents (2000) / each product consumer during the lockdown

<%> USAGE/PURCHASE DURING THE LOCKDOWN AFTER LOCKDOWN USAGE

STARTED TO OFFER/SELL ANY SERVICE OR PRODUCT DURING LOCKDOWN14% of respondents in Spain stated that they started to get together groceries for relatives/neighbours during the lockdown

© 2020 PayPal Inc. Confidential and proprietaryP15. Have you started to offer or sell any of the following services or products during the COVID-19 lockdown period?

Base: All respondents (2000)

<%>4

7

14

To make and sell products (eg. masks)

To do tutorials or online content relatedwith your occupation (eg. music, yoga...)

To gather groceries for relative orneighbours, for free or as a paid service

GENDER AGE I AGE II KIDS < 18yo AREA STATUS

Male Female 18-24 25-34 35-44 45-54 55-65 65+ 18-44 45-65+ Yes No Densely Intermediate Thinly Emplo

yedUnemployed

A B C D E F G H I J K L M N O P Q

Base: 967 1033 170 288 398 388 314 442 856 1144 682 1318 1091 660 249 1156 844

To make & sell products4 5 8 6 6 4 2 3 6 3 6 3 5 3 5 6 3

GH G G J L Q

To do tutorials or online contents7 7 16 12 11 4 3 2 12 3 11 5 9 5 5 9 4

FGH FGH FGH J L N Q

To gather groceries for relatives and neighbours

13 14 22 22 15 13 11 7 18 10 19 11 14 12 15 17 9EFGH EFGH H H H J L Q

Younger people are more active in selling products or services. People with kids stated more that they started to get together groceries for relatives and neighbours

SMALL AND LARGE BUSINESSES

§ Most respondents state that they shopped at small and medium stores with the same or higher frequency than before lockdown.

§ Large stores win customers over with a wide variety of goods and fast delivery.

§ Small and medium stores are recommended more by friends and family, but more importantly (as people state) shopping there is linked much more to supporting the local economy.


SMALL AND LARGE BUSINESSES | SUMMARY

Small local businesses became more important to people in Spain during lockdown

Older consumers• Make more purchases during the lockdown in (small or

big) physical shops• Select stores based on previous experience

Younger people…• Make more purchases during lockdown on (small and

big) online platforms• Pay more attention to both media and family/friends'

recommendations

• Women made more purchases in small and medium/local shops, and men on large online platforms

• In general, women are more likely to choose a store to support the local economy

17

7

12

9

71

62

69

62

11

30

14

25

2

1

6

5

with less frequency with the same frequencywith more frequency I will not purchase in this kind of shop

SMALL AND LARGE BUSINESSES DURING AND AFTER LOCKDOWN


Purchasing during lockdown

44

57

47

19

3

Big shops

Small and mediumbusiness/local shops

Large online platforms

Small-medium onlineshops

I’m not doing any kind of purchases

P17. Where are you doing your purchases during the COVID-19 lockdown period…? P25. After the COVID-19 lockdown period, do you think you will do your purchases at…?


<%>Expected purchasing after lockdown

REASONS FOR CHOOSING A SHOP

The assortment

Security I can find all what I need in one store

To support the local/national economy

How soon I can get the product

The guarantee of receiving what I purchased

Payment options

Friends and family recommendations

Recommendations on media

To find products I can’t find in other stores

Previous purchase experience

Other

P19. Which of the below criteria are you considering to be more relevant for choosing the store to purchase from during the COVID-19 lockdown period? Choose maximum 3 responses

Base: Purchase at each type of shop


Big shops Small- medium business/local shops

Large online platforms Small-medium online shops

<%>

Shopping at small and medium stores has a stronger link to supporting the local economy.

Big shops

Small- medium business/local

shopsLarge online

platforms Small-medium online shops

A B C DBase 880 1137 951 381

42 15 33 17BCD BD

39 22 28 15BCD D BD

13 60 5 55C AC AC

31 32 44 33ABD

22 20 31 24ABD

19 9 17 12BD BD

6 11 7 16AC ABC

2 2 4 6AB AB

30 15 39 22BD ABD B

31 30 33 25D D

3 6 3 4AC

HELPING OTHERS

§ Before lockdown 7 out of 10 people who had donated, had done so online. 81% of respondents hope to continue doing so after lockdown

§ Offline donations represent approx. half of online donations, and show no major changes during lockdown

§ Helping other people in person was more popular than providing others with financial support

§ 1 out of 10 people state that they started volunteering or donating due to the lockdown

§ 27% of people, who are unemployed, helped others in person, and 14% of unemployed people donated money to other people

§ In general, people tend to select one organization to donate to and more often this would be a local charity vs. a large international one


HELPING OTHERS | SUMMARY

During lockdown 6 out of 10 respondents were involved in helping other people in person or in charitable activities

There are differences by age.

Younger people…• are more active in donating, especially online vs. older

audience• are more active in donating to big/international charities

But also by gender…

• Women prefer to participate in volunteering activities in person

(877) (337) (785)

DONATIONS INCIDENCE AND METHODS

Base: All respondent (2000) / Do donations before; during; after

© 2020 PayPal Inc. Confidential and proprietaryB4. How did you use to do donations? /P22. Did you do this donation related with the COVID-19 Online or Offline? P27. How would you like to do your donations in the POST COVID-19 period, once everything is back to normal?

DO DONATIONS

<%>

44% 17% 39%

Online donations have increased during lockdown and it is highly likely to remain high after it.

7176

81

3629 27

Before During After

Online Offline

HELPING OTHERS OR DOING CHARITY ACTIVITIES

20

15

5

9

7

5

59

I personally help my familymembers

I personally help neighboursand/or friends

I personally work as avolunteer

I donate to help communityvolunteers and people in need

I donate to help medicalresearch related to COVID-19

I donate to hospitals andpatients care

I haven’t participated in any helping or charity activities …

Base: All respondents (2000) / do any charitable activity (828)

© 2020 PayPal Inc. Confidential and proprietaryP20. Are you helping others or doing charity activities related with the COVID-19?P23. During COVID-19 lockdown period, did you help or engage in charity activities…?

Less frequent

Same frequency

More frequent

First time

You help or engage in charity activities with…

<%>

15

42

27

16

31

17

4 out of 10 participated in a charity activity, and personal involvement was key. Lockdown has motivated 2 out of 10 people to help for the first time

TYPE OF ORGANIZATIONS CHOSEN FOR DONATIONS

© 2020 PayPal Inc. Confidential and proprietary P21. Could you specify the type of organization you’ve donated /collaborate?

27

50

44

Big/Intenational charities

National charities

Small/Locals' NGO/charities

Base: Support charitable organization (439)

Only international 17

Only national 34

Only local 32

Mean of mentions: 1,21

<%>

In general, people tend to select one organization to donate to, and often this would be a local charity vs. a large international one.

HABITS AND ATTITUDES

§ Supporting local economies and communities, and being cautious with spending over the coming months is key in Spain

§ More than half of the respondents in Spain recognize that they can buy everything online without any problems and online payment methods are safer than cash

§ Cashless payment methods are important for 6 out of 10 respondents in Spain. However, continuing using cash seems not to be a problem for most people


HABITS AND ATTITUDES | SUMMARY

Purchasing essential products and services online became crucial during lockdown

Older people…• Prefer more face-to-face services• Using cash in a shop now worries them, however they are

ok with continuing to use cash• Think that online payment methods

• give them peace of mind in an emergency, erasing worries about possible risks

ATTITUDE TOWARDS LOCKDOWN PERIOD


© 2020 PayPal Inc. Confidential and proprietary P29. To what extend do you agree or disagree with the following statements related with the COVID-19 period?

ONLINE

<%>

Supporting local economies and communities and being cautious with spending over the coming months is key for Spain respondents, especially for women.

2

2

1

2

2

2

3

4

4

9

7

9

4

5

5

6

7

5

9

11

8

14

12

16

14

22

22

23

25

29

34

34

44

34

46

50

43

44

46

45

43

45

36

38

34

30

24

19

38

28

26

24

23

20

18

13

11

14

11

5

Supporting local economy is key to emerge from this crisis

Be cautious with my spend in coming months

More conscious of community / importance of working together

Responsible supporting small businesses in neighbourhood

Want to buy more local/regional products supporting them in future

Discovered a wide range of online activities

Prefer face-to-face services

Can buy everything online without problems

Should help other family members use modern technology

Without shopping/having online service I’d find it to conduct my work/personal tasks during this period

Digital payments are safer than cash

Will buy more products or services online, than before Covid-19

Totally disagree Somewhat disagree Neither agree nor disagree Somewhat agree Totally agree

% B2B(totally or

somewhat disagree)

% T2B(totally or

somewhat agree)

6 80

6 72

6 72

8 68

9 67

6 65

13 54

16 51

12 45

23 43

19 35

26 24

Using cash in a shop now worries meI would consider trying new contactless payment solutions in shops

I don’t want to use cash going forward

I’m fine continuing using cash in a shop when the situation calms down

I’m fine typing my card pin in a shopFrom now on I would like to avoid touching the card reader pad in a shop


43

40

42

57

60

58

P13. How do you feel about payment methods in OFF-LINE shops? For each pair, use the slider to identify the option you feel most identified with. You can nuance your opinion using the intermediate positions.


<%>

Although 60% think that continuing to use cash is not a problem, a similar proportion of people would consider trying new contactless payment solutions in shops and would like to avoid touching the card reader pad in shops

PERCEPTION OF OFFLINE PAYMENTS

CASHLESS PAYMENT METHODS DURING LOCKDOWN PERIOD


P14. In general, how important CASHLESS payments have become in your daily routine during the COVID-19 lockdown period? SA

27 34 22 17CASHLESSPAYMENTS

Very important ImportantSomewhat important

Not important

Base: All respondents

<%>

61

GENDER AGE I AGE II KIDS < 18yo AREA STATUS

Male Female 18-24 25-34 35-44 45-54 55-65 65 18-44 45-65+ Yes No Densely Intermediate Thinly Emplo

yedUnemployed

A B C D E F G H I J K L M N O P QBase: 967 1033 170 288 398 388 314 442 856 1144 682 1318 1091 660 249 1156 844

Very important 24 31 30 34 27 30 25 23 30 26 33 25 29 28 19 30 24A GH H J L O O Q

Important 36 33 40 36 35 31 31 35 36 32 36 33 35 32 35 35 33F

%T2B 59 63 70 69 63 60 56 57 66 58 69 57 64 60 53 64 57FGH FGH J L O Q

A,B/C,D,E,F/G,H/I,J/K,I/M,N,O/ P,Q significance among segments

Cashless payment methods are important for 6 out of 10 respondents in Spain, especially for younger people, those with kids, and people who live in big cities and are employed.

%T2B(very important or important)

Documents

Consumer BehaviourShifts During Lockdown ofSpring 2020