The 3 Types Of Products People Buy To Fight Coronavirus Anxiety

The pandemic is traumatic for us all — consumers, businesses, and investors. Total retail sales, including those made in-store and online, decreased by 8.7 percent from the previous month, according to a recent announcement from the U.S. Commerce Department. This marks the largest decline in nearly three decades. Additionally, U.S. consumer confidence dropped to a near three-year low, according to a survey from the research group Conference Board, and fears of another Great Depression are increasing within the investment community. 

However, there’s always a light in every darkness. Some businesses and products are still in demand, especially among brands with a strong online presence, purpose, and commitment to sustainability. Brands that are produced locally and help people deal with the health crisis are especially prized. So what opportunities can we pay attention to as investors? 

Products That Bring Us Joy  

Even in a time of social distancing, family, friendship, and relationships are still finding opportunities to flourish. New couples are being created, long-term partners are spending more time together, and those who are isolating alone also have their needs. Love and sex are universal pastimes that continue to bring people joy while theaters, gyms, and bars are unavailable.

Not surprisingly, retailers around the world are reporting spikes of Viagra and sex toy sales. Some lingerie brands are in demand too. For example, The Great Eros, a 13 Ventures portfolio company, has experienced significant growth during the first week of isolation. The average order value and number of orders increased by 30%, while daily online sales have grown eightfold.

Through our fund, we are providing additional working capital to help The Great Eros keep up with the volume of incoming orders.

Grow Your Own

Given the broad uncertainty many are laboring under, many U.S. consumers have addressed their worries about food supply by growing or producing their own food. Seeds and plants for home gardening are selling out quickly, according to recent media reports. 

Apart from seeds, Americans have also been hoarding hens and roosters as egg prices have risen more than 50 percent in some parts of the country. 

And, with many of the staples being met in-house, consumers are also showing signs of making more food from scratch rather than make an unnecessary trip to the store. According to the retail intelligence firm Stackline, bread machines are the fastest-growing category in e-commerce, rising 652 percent in March 2020 when compared to the same period in 2019.   

Comfort And Nurture 

All-natural self-care products round out the top of the list. As people spend more time indoors, they have more time for self-care, and many of these consumers still prioritize products made with healthful, organic ingredients. 

However, given the restrictive quarantine measures most households are facing, consumer preferences for “less for more,” i.e. products that can be used for both face and hair, are beginning to become more pronounced. This is a trend that LOLI Beauty, another 13 Ventures portfolio company, has pioneered through its line of organic products, which carry a wide range of wellness benefits.

As investors, we are operating with a long-term vision in mind, despite short- and medium-term market headwinds. Although the COVID-19 situation remains uncertain, consumers are developing new buying habits that will be here to stay. Great products will win by empowering people and by providing them with much-needed security and comfort.     

Photo by KAL VISUALS on Unsplash