COVID-19 revealed challenges but also opportunities to redefine brand, communication and sales strategies. Retailers can now re-examine their entire business based on some crucial emerging customers’ values and behaviours. In general, companies must reflect on the purpose of their business, on the best-selling products and new promising categories to incorporate to the portfolio, on the new roles the stores are playing in customers’ lives and on the advantages, benefits and pain points of online shopping experience.
The fact is that COVID-19 changed the online landscape forever. The year 2020 saw a 74% surge in online shopping and 45% of adults in the UK received more parcels during the lockdown than ever before. In Australia, it is estimated that 52% of consumers shopped online more frequently in 2020 and 82% of Australian households made an online purchase during 2020, up from 75% in 2019 (AusPost).
As a result, retailers need to pivot their businesses’ models considering a consistent change from a buying in-store demand to online and hybrid formats, paying special attention to shopping experience and operational processes, such as embracing a local approach and dealing with disruptions in inventories and delivery delays.
#BUSINESS PURPOSE
#PHYGITAL EXPERIENCE
#OMINICHANNEL CAMPAIGNS
#DELIVERY MATTERS
#LOCALISM AND EMPATHY
“Retail executives have been fixated on the dramatic increase in ecommerce sales, but the more interesting story is less about the last few months and more about the next few years. We see that new users are buying online for the first time, and then returning to shop online again at the same or another merchant within one month. Returning to shop in short order is the way new spending habits form and share-of-wallet shifts.”
"I bought a coat. I guess I’ll probably forget about it by the time it arrives. Online shopping from Australia moment."
Today’s shoppers are always on, shopping across platforms and devices, online and offline, seamlessly. The pandemic has accelerated retail trends that were already in place, including the rise of digital, ascent of specialty retail and decline in department stores along with a customer journey that is longer restricted to visiting a store or using online but is merging both in an integrated experience.
In Australia, despite the changes, 77% of Australians still think of the act of shopping as going into a physical store. Older Aussies are three times as likely to have this view when compared to younger generations (Inside Retail).
The shopping experience now involves an overall brand experience through the omnichannel platform. After having done their research online, customers arrive at the store already knowing exactly what they want and how much it costs.
In this realm, retailers must dedicate special attention to Gen Z. Gen Z is a truly omnichannel generation, shopping wherever best suits them in the moment and without preference as to the vehicle they use to find what they want.
Online communities can convert purchases. #TikTokFashionMonth challenge helped inspire Gen Z to shop. The hashtag garnered 5.5 billion views (Vogue Business).
AUSPOST REPORT
AFTERPAY REPORT
SIGNIFYED
Retailers must consider that customers are now following multiple trajectories when they are looking for something to buy. From browsing retailers’ websites, doing some search on Google to being impacted by social media posts and recommendations from friends and family, buying experience has become more organic and fluid than ever before.
A 2019 Omnisend study found that omnichannel campaigns saw an 18.96% engagement rate, while single-channel saw just a 5.4% engagement rate. The average consumer is no longer using only two touchpoints per purchase; it has now tripled to six. In this age of intensified competition, marketers must consider a crosschannel strategy to stay relevant or they risk being left behind.
Campaigns need to follow this non-linear and multidimensional behaviour. Brands and retailers need to be prepared for purchases coming from anywhere – from traditional brick-and-mortar stores to TikTok.
Retailers can’t expect a passive and predictable consumer and advertisement must simultaneously come across different channels. Also, with 79% of internet users conducting online shopping via mobile devices, special attention to UX design and social media campaigns is crucial (Google).
SMART COMPANY
CHANNEL ADVISOR
In current times, a point of attention is crucial: with online sales consistently growing and supply chain disruptions becoming more frequent, developing effective strategies around inventory and being able to manage consumer expectations over product availability during the next few months will become critical. 94% of Fortune 1000 companies are seeing supply chain disruptions from COVID-19 and the disruption to the global supply chain is likely to continue into 2022.
In Australia, 73% of small and medium Australian businesses reported having to change how they operate, rethink supply chains and partner with local suppliers. Australians once again turned to local retailers, with 57% of shoppers stating they wanted to support local businesses, and 52% stating that delivery from overseas was taking far too long (Auspost).
For this reason, consumers are buying in advance, but retailers still need to be agile, assertive and transparent in regards to delivery dates. 46% of global consumers say they’ll never shop with a retailer again following a bad return encounter (Oracle).
Having a clear strategy to navigate the supply bottleneck and being transparent with costumers is imperative for retailers moving into the busy festive shopping period, and even beyond into 2022.
BLOOMBERG
ACCENTURE
For a medium and long-term future, retailers in Australia need to embrace online livestream broadcast with an ecommerce store that allows viewers to watch and shop at the same time is becoming increasingly relevant. The arrival of Alibaba’s Taobao Live in May 2016 marked the opening of this new chapter in sales and is being called as the next wave of the e-commerce revolution.
According to McKinsey, live-commerce-initiated sales could account for as much as 10% to 20% of all ecommerce by 2026. Live commerce is entertaining and immersive helping brands to convert more sales and engage on an emotional level with online shoppers. Still according to McKinsey, companies report conversion rates approaching 30 % up to 10 times higher than in conventional ecommerce.
Live streaming needs to express brand DNA in memorable ways. Having more sensory-stimulating platforms and appropriate influencers and creators involved in live streaming events can make a huge difference.
One of the biggest unexpected outcomes of 2020 has been a major resurgence of the ‘shop local’ movement. Consumers have increased their support for small businesses especially as a result of extended lockdowns. With limited travel radius during lockdowns and a growth of empathy towards small entrepreneurs that were forced to indefinitely close their doors during the outbreaks, consumers shifted their attention from impersonal mass-market stores and big malls to the uniqueness offered by local business.
Almost two years after the first Covid-19 outbreak, people are likely to remain working from home – at least partially – and living locally. In this scenario, neighbourhood shopping becomes a consistent trend.The CommBank consumer insights report shows more Australians are choosing to shop locally. Across cohorts, the groups most likely to shop locally are those with children (89 per cent), followed by females (88%) and Generation Y/ 23-34 years (87%).
Furthermore, an empathetic retailing posture is appreciated by consumers. Shoppers will take notice of retailers’ small acts of kindness this Christmas, as the stresses and turbulence of the past year drive a reshuffle of consumer priorities.
MONASH
AUST POST
COMMBANK
36% of moves by Australians surveyed in the previous 12 months were triggered somewhat by COVID-19 (Budget Direct). Working remotely opened the possibility to factually make home the office, but it required adaptations in space and furniture to suit more flexible and hybrid working routines.
There is renewed attention on home furnishings – in the US, home decor is projected to grow 20% between 2019 and 2024. In this trend, flexible spaces have never been more in demand but also ergonomic furniture has been crucial. Home-office workers have reported issues with physical discomfort and pain, very likely from the challenges of establishing an ergonomic office set-up remotely.
Furthermore, the plant industry has been rapidly growing in popularity for the past five years, but COVID-19 has turbocharged this growth, particularly among younger people. For people spending more time at home, plants seem to increase liveability. In Australia, sales of herb and vegetable plants shot up 27 per cent in 2020 (ABC News).
Another strong trend in interior design for the Australian market regards the maker-movement (Do it Yourself). The Melbourne based couple @joshandmattdesign started sharing their love for home decor during the pandemic, amassing a large following with a playful, bold style. Retailers can pay special attention to TikTok
channels since #InteriorDesign has achieved 7.8bn views on TikTok.
Vodafone Ireland created an intimate 2021 festive campaign. ‘Each Christmas’ tells the story of a young farmer who pines for his old neighbour, a woman who has moved abroad and only returns to her hometown during the holidays – depicting an emotionally resonant reality of modern Ireland and highlighting the power of affectionate bonds created in small communities.
#SUPPORT #IDENTITY #NEIGHBORHOOD #ACT LOCAL #COMMUNITY
As part of a larger effort to support the financial recovery of the hospitality sector in the wake of the Covid-19 crisis, bourbon brand Bulleit has debuted a new rebate program that rewards consumers for drinking at their local dives. The Local Bar Sundays initiative encourages consumers to choose their favourite local establishments in qualifying states with $250,000 “First Drink’s on Us” rebate program through the end of 2021.
The Local Collective created the “Not for lease” campaign for the Canadian neighbourhood Roncesvalles Village to support local businesses. With visually arresting message in the windows of local shops, this campaign made an important point about the importance of shopping local, especially in after 2020’s lockdowns.
#KINDNESS #SOLIDARITY #EMPATHY
Tommy Hilfiger recently extended its livestream program to Europe and North America following successes in China, where one show reportedly attracted an
audience of 14 million and sold 1,300 hoodies in two minutes
#OMINCHANNEL #LIVE STREAMING #TIKTOK AND TWITTER
In December 2020, Walmart piloted a livestream fashion event on TikTok that netted seven times more viewers than expected and enabled it to add 25 percent to its TikTok follower base. Walmart is now planning its livestream on Twitter.
Sephora has been building an online community and loyal social media following.The retailer placed emphasis on improving the inclusivity of its annual #SephoraSquad line up – a team of micro-influencers and Sephora employees who apply within a limited window to work with it across the year. Partnering with a diverse range of micro-influencers is allowing customers to feel closer to the brand, with the smaller followings boosting one-on-one engagement and allowing more human relationships to develop than would be possible to achieve via influencers with millions of followers.
#DIY MOVEMENT
#EMPOWERING CONSUMERS
# MEANINGFUL LIFE
Retailers should rely on actions and communication that involve empathy and solidarity for the end of this year and beyond. Covid-19 triggered this sense of community and support with peers but they also expect to see it resonating in brands. Retailers can also create actions or communicate their values in a more local sense, targeting specific consumers based on their circumstances, communities, neighbourhoods, stories. Campaigns can be celebrate different neighbourhoods in Melbourne, for example.
#BE KIND
#THINK AND ACT LOCAL
#CELEBRATE PARTICULATIES
#BE REALISTIC
#MITIGATE POTENTIAL CONSUMER’S FRUSTRATION
#BE TRANSPARENT
Three or more channels leads to better overall performance:. According to Ominisend marketers using three or more channels
in marketing campaigns has a 90% higher customer retention rate, and 250% higher engagement and purchase rates. If your
customers prefer speed and flexibility, build an omnichannel that is streamlined and effective at every touchpoint. If your
segmented demographic values a personal, human connection,
place an emphasis on care and interaction when building your
journeys.
# BE EVERYWHERE FOCUS ON FLEXIBLE LIVEABILITY
# PARTNERSHIP WITH CREATORS
# ALIGN ONLINE AND OFFLINE BRAND DNA
#LIVEABILITY
#DIY RENOVATION
#ERGONOMY
#FLEXIBLE SPACES
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