Have Danish purchasing habits changed in the wake of Covid-19?
Interview with Shopbox co-founder and chairman, Christian Zigler
In March 2020, the lives of Danes changed abruptly due to the coronavirus. But have Covid-19 affected Danish purchasing habits? We asked Christian Zigler, co-founder and chairman of Shopbox. Christian has become an expert in Danish consumer behavior after 12 years of insights from a wealth of data, thanks to the point-of-sale system that Shopbox provides. Read his interesting observations in this article - can we really compare Danish consumption habits to the period after World War II? Find the answer below.
What trends do you believe have emerged as a result of Covid-19?
“There is no doubt that Danes are facing a new reality when it comes to stores and customers. Many businesses have had it tough. Fortunately, most of our customers have done well. And the businesses that have survived the pandemic have had to adapt to become more digital, as consumer behavior has changed due to the pandemic—and may never return to the buying patterns we saw before.
We have seen a significant increase in customers wanting to sell products online now. Therefore, many of our customers have set up webshops during the pandemic or focused on solutions for offering takeout. One could argue whether these customers would have digitalized just as quickly if the pandemic hadn’t happened. I don't think so. I believe the pandemic has accelerated the digital age. Without the pandemic as an incentive, many would probably have waited a few years before transitioning their business to also operate online.
This is not the first time we’ve seen a change in buying behavior during and after a crisis. During World War II and during this pandemic, prioritizing food purchases has increased. During the pandemic, the consumption of takeout and online grocery shopping has particularly surged. For example, Føtex now delivers items they didn’t before, and Wolt has expanded its takeout menu so you can also order groceries delivered to your door. During World War II, there was no option to shop online, but back then, food and drink were also prioritized, and rationing was collected and protected.
After World War II, the economy changed, and there was room for purchases that didn’t only cover basic needs. At that time, the purchase of cars exploded, and I think we will see the same trend after the pandemic. There will likely be an increase in car sales again, or other material goods. Historically, crises have given people an incentive to think differently, which can explain a change in buying behavior both during and after crises."
“Businesses need to think more like Amazon. Customers are no longer loyal and patient the way they once were.” - Christian Zigler.
What has Shopbox done to meet the new trends?
“At Shopbox, we’ve tried to create new opportunities for our customers. We introduced an integration with Shopify, so our customers have had the opportunity to set up a webshop that can communicate with Shopbox. This way, our customers have an additional channel to sell products online without creating administrative hassle for themselves. The cash register system automatically records all transactions.
Additionally, we’ve introduced an ordering app, where our customers can get an app in their own colours and logo. Here, their regular customers can order takeout, so restaurants don’t have to use third-party providers like Wolt or Just-Eat, who in some cases take up to 30% of a sale. We believe our customers have the right to keep all the profits from their sales. Therefore, we do not operate with high fees ourselves.”
Why should business owners think more digitally now?
“Businesses need to think more like Amazon. Customers are no longer loyal or patient in the same way as before. Nowadays, customers go online to search for products, and if they don’t experience good service and a seamless customer journey, they’ll find another provider. Therefore, new initiatives are necessary to keep people engaged.
Many people no longer have the energy to go to physical stores to shop for items when they can order the same products from home. This has forced shop owners into a world where there must be more options to create a smooth customer journey. That means offering access to products both in physical stores and online via a webshop, allowing businesses to reach consumers where they are - and deliver to where they are.”
“Many businesses have had a wake-up call from the pandemic, and several creative initiatives have been taken.” - Christian Zigler.
Are there any issues with digital solutions on the market right now?
“Some businesses turn crises to their advantage. This can be acceptable in certain respects. However, we’ve seen several companies significantly increase their prices because of the high demand for their services. For instance, in the fall, newspapers reported that business owners received exorbitant bills from accountants when they needed help applying for relief packages. I find that very problematic.
In addition, restaurant owners have faced tough times, being limited to offering take-away for an extended period. This can force restaurants to rely on third-party providers who charge high fees for their take-away services.”
What do you think happens to business owners who don't embrace digitalization?
“If business owners haven’t used the pandemic as an opportunity to go digital, they should do so very soon. Digitalization is the future. According to new legislation, all cash registers must be digitalized eventually, with several specific retail sectors already required to comply by 2024. It’s simply the direction things are heading.
Failing to digitalize can result in lost revenue and, in the worst case, non-compliance with future laws. Fortunately, there are many systems, like Shopbox, to assist those who aren’t technically inclined. It’s better to begin the digital journey today rather than wait until the last minute. The sooner you act, the better prepared you’ll be for the new reality.”
Will we embrace the new trends after the pandemic?
“I believe that Danish consumer habits and the growing demand for digitalized systems are here to stay. Many businesses have had a wake-up call due to the pandemic, and numerous creative initiatives have been launched. Not everything has been negative.
One of our customers, for instance, has discovered an entirely new revenue stream through Shopbox’s digital menu feature, and they now generate a third of their turnover via this app. That’s truly fantastic, and I’m excited to see what other innovative initiatives emerge in the aftermath of Covid-19.”