AfterPay: Norwegian consumers have a positive financial outlook for July, but are hesitant when it comes to further increasing purchases
AMSTERDAM – JULY 14th 2020 | AfterPay Insights’ mid-June research – now covering more 7.400 interviews with Norwegian online shoppers - indicates that Norwegian consumers will reduce their overall purchases in July (i.e. both online and offline purchases). If Norwegian consumers act on their intentions in July, this will break the trend that AfterPay Insights saw in mid-June, when online purchases increased as an effect of consumers shifting purchases from brick and mortar stores to online. In June, 8% of Norwegian consumers say they shopped more in physical stores, compared to 17% who say they shopped more online.
Norwegian consumers are less worried and have a positive outlook on their personal financial situation in July
AfterPay Insights’ research shows that 16% of Norwegian online shoppers say that their financial situation has become more stressed. The data also shows that Norwegian shoppers are generally more worried about their personal financial situation than their health (note that worries have decreased overall since mid-March). So, it is no surprise that the most important reason for fewer overall purchases is the need to save money, although this is especially evident in the younger age groups. Secondary motivations are the intention to change lifestyle by reducing overall consumption, along with having general worries about the future. And third tier motivations include the risk of becoming unemployed, as well as wanting to pay off mortgages and loans.
At the same time, 12% of Norwegian consumers say that their financial situation has improved in June. And 17% say that they expect this to further improve in July; this means that Norwegian shoppers have a positive short-term outlook on their financial situation.
Norwegian shoppers project that they will make more online Fashion purchases in July
When looking at the development of online product categories, Fashion stands out in Norway, as it is the leading category in acquiring new consumers: in the second half of March, 14% of Norwegian shoppers made at least one purchase in online Fashion, and this share has grown to 21% by mid-June.
Price and convenience become more important motivations to purchase online
In Norway, finding cheaper prices online has become increasingly more important over time, along with the fact that online shopping offers more convenience. Norwegian consumers also motivate e-commerce purchases with saying that it is easier to find what they need online. It looks like the functional benefits of online shopping have increased in impact, and are possibly leading to a lasting change. AfterPay Insights will monitor consumer behavior throughout the summer and report back with an updated analysis at the end of July.
About AfterPay Insights
AfterPay Insights is a knowledge platform for e-commerce professionals. From mid March, AfterPay Insights has researched consumers’ e-commerce behavior during the corona outbreak and intend to continue this study through out the pandemic. This article is an abstract.
AfterPay, developed by Arvato Financial Solutions is the biggest payment-after-delivery service in The Netherlands and Belgium, and is also available in Germany, Austria, Switzerland, Sweden, Norway, Finland and Denmark.
About Arvato Financial Solutions
As part of Bertelsmann, Arvato Financial Solutions provides professional credit management solutions across all segments of the customer lifecycle in around 20 countries. By revealing the advantages of predictive analytics, leading-edge platforms and big data, provided solutions result in optimized financial performance and empower clients to fully concentrate on their core business.
Aida Beelaerts van Blokland