Growing concerns about the spread of the coronavirus and COVID-19 are affecting all industries, and retail and ecommerce are certainly no exception.
You have probably heard that ecommerce will increase significantly due to COVID-19.
Many companies have already moved from crisis response to post-recovery planning.
Large-scale digitization is at the forefront of many of these plans, for manufacturers in all industries. It is our opinion that trends to optimize click and pickup and delivery will double your previous investment as a result of people avoiding crowds in the next 90 days.
The digital side of the retail business will grow at a faster rate than previous projections. This is positive for the long-term goals of the digital transformation of our society.
Docmatians believe that better ecommerce technology can help shape and improve the future. The COVID-19 outbreak highlights the realities of changing consumer behavior in the digital age.
The impact of fear
Looking at the broad economic landscape, the coronavirus is having a major impact on the stock market. An event like a global health scare creates widespread economic uncertainty, seen through a downturn in the stock market.
There will also be further declines due to operational disruptions and an impact on supply chains.
The ripple effect this has across the global supply chain is becoming more apparent as companies are being forced to halt the production of finished goods due to the lack of necessary parts supplied by quarantined regions.
This shortage of supply is resulting in product availability challenges for retailers in all sectors, from automakers to clothing brands, which may continue to worsen in the second half of 2020.
A shift to eCommerce
As a result of panic buying, supermarkets, in particular, can become increasingly crowded. In addition, as shoppers avoid outlets, there may be a shift to online shopping to avoid the risk of contracting the virus.
The panic purchase is putting additional pressure on the food distribution network. However, it is difficult to predict which items consumers will store if the virus continues to spread.
Potentially, the opportunity for retailers is to acquire sales from new customers that they would not normally buy online.
For brands, it is essential to prioritize customer concerns and monitor how consumer behavior changes in response to the crisis.
But the rise in online orders has also put pressure on companies to fill them. In some cases, this pressure is mounting too much for companies and threatens to undermine their ecommerce operations.
As sales decline in stores selling their products, with many closed or open for shorter periods, demand moves online, CPG’s chief financial officer Jon Moeller said at an event at the Analyst Group of the New York consumer.
While there is a demand for products, their supply is limited, he said.
There are several solutions you can search for, such as:
- Change your SKUs (if it is not too late).
- Choose your own production facility in a safer place or country and protect your own supply line.
- Change your dependence on supply in other foreign countries instead of China.
There will be temporary expenses, but you will have permanent earnings. Once you become a supply chain, you won’t have to worry about the ‘low stock’ or ‘out of stock’ problem as you will have everything in your hand. And most importantly, don’t lose hope.
You may have heard Winston Churchill’s quote: “Success is not final; failure is not fatal: it is the courage to continue that counts.” Make this your motto.
A dramatic change in the way people work
This is the most important health-related crisis that has occurred in a truly digital age and the consequences are still unknown.
At the Seattle Technology Center, many Amazon and Microsoft employees started working from home. In China, Microsoft Teams has seen a 500% increase in Microsoft Teams meetings, calling, and conferencing, as well as a 200% increase in the use of Teams on mobile.
As an example, Zoom Video Communications has seen its share price rise and posted better-than-expected results for the fourth quarter.
Improve Customer Experience
With so much chaos surrounding this outbreak, it’s important for retailers to keep an eye on the customer.
Brands struggling to cope with customer frustrations due to coronavirus impacts make a positive impression on consumers, which in the end can only foster brand loyalty.
At the same time, retailers must prepare to account for increased volume in customer contact centers in quarantined regions for an explanation.
Training agents to handle these questions with the right sensitivity to frustrating circumstances can help ensure a positive brand experience for customers.
Yes, ecommerce will benefit in the long term, but that might not be until 2021.
It is important to note that while a change in consumer behavior is a short-term trend, these changes can have a lasting impact.
Since ecommerce accounts for a higher proportion of total retail sales now compared to other periods, the long-term impact on digital is likely to be greater during this crisis.
For brands, the key to mitigating the impact of the coronavirus is to put the customer at the center of merchandising and monitor changes in customer behavior, especially in response to ecommerce trends.