A Digital-Led Strategy is of Utmost Importance for Retailers as the Coronavirus Pandemic has Altered the Habits of Shoppers.
The global Coronavirus pandemic was unprecedented. No one predicted it. Yet, retail companies with an e-commerce first approach were better prepared and in a better position than businesses who relied mainly on customers making an in-store purchase.
Retails brands with an e-commerce first strategy could leverage gathered data to connect with customers in times of uncertainty. This approach allowed retailers to become agile and pivot their business model – including but limited to messaging, pricing, offers, and even provide value-added support services to assist customers locked down in their homes.
History reveals! Difficult times have not stopped companies to thrive; let alone survive.
During economic uncertainties, giants like Disney, Apple, Microsoft, and GE were born. The recent Great Recession of 2008 saw WhatsApp, Uber, and Slack lay foundations. Over two centuries, older companies like JP Morgan Chase and Dupont have survived World Wars, the Great Depression, economic upheavals – and are still thriving.
The impact of Coronavirus pandemic is slightly different. Customers were still buying, but because of health regulations and buyers forced not to leave their homes, retailers were forced to shut their doors. During pre-pandemic, several retailers, especially smaller stores, did not concentrate on e-commerce. They focused on getting more footfalls and convert them into purchases. Now suddenly these stores wear a deserted look with piling inventory and no option for customers to purchase.
On the flip side, e-commerce-first companies did realize long ago that their online store will still run 24×7 even after their physical locations close. The online store helped them to meet customer demands even outside of business hours. Retail brands with e-commerce focus provided customers with an option to buy from them at any time, from anywhere – without physically visiting the store. Further, they’ve been collecting vast amounts of digital consumer data to offer personalized shopping experiences.
When everything starts getting back to normal again, will it be business as usual for retailers who shunned e-commerce? There is a high possibility that consumers may stick to online shopping well after this pandemic is over. Read further to find out why.
We witnessed that almost overnight, the world was forced online. E-Commerce and digital channels adoption became critically essential for the survival of retailers – for those who hadn’t yet. Companies shifted their focus to delivering a better digital experience to meet the changing demands of customers.
Industry reports and stats show the e-commerce sector grow up year-over-year. This onward trajectory is expected to continue as the pandemic settles, and life goes back to some form of normality.
Has pandemic changed retail forever?
In a post-pandemic world, will customers go back to their old traditional ways and visit stores for purchasing? Or will they be habituated to the new way of shopping online?
COVID-19 accelerated the shift to eCommerce
According to CCInsights.org, Growth in e-commerce has accelerated to forecasted levels five years ahead (or more).Global eCommerce sales are seen doubling over the recent months compared to a consistent growth rate of 10-20% in past years.
According to research by the Kantar Group, even after the pandemic, the shift to ecommerce is here to stay. As per the report, since the outbreak, there has been a rise between 25% and 80% in the share of customers in Europe, making more than half of their overall online transactions.
The report indicates that after the pandemic, not only essentials, all major e-commerce categories will bounce back to even higher levels. The pace of change in consumer behaviour that many expected to take three to four years is now happening in a few months.
According to Andrew Charlton (former economic advisor) to Australian prime minister, Kevin Rudd, the crisis has forced many people to go online, they are getting used to doing things differently, and these changes in consumer trends will be persistent.
A similar sentiment is being noticed across many countries. The shift back to in-store shopping may not be the same as new habits are cemented into the minds of consumers. Retail may never be the same again.
COVID-19 has accelerated the growth of e-commerce, according to an Adobe report released recently. Higher rates of e-commerce and BOPIS (buy online, pick up in-store) may be the new abnormal, Adobe data indicates.
Multiple Generations are buying more online than previously forecasted
Pre-pandemic, eMarketer estimated that in 2020, 85.9% of Millennials in the US would be digital buyers this year. Gen X and Baby Boomers were also projected to increase their digital shopping in 2020. As this shift continues, Millennials will no longer be the sole generation which with brands engage.
No-one saw the pandemic coming. Let’s face it though, COVID is still here to stay for quite a while. We are already witnessing that brands with a digital-led strategy continue selling online and are adding value to their customers in personalized ways.
For the retailers who do not yet have an eCommerce strategy in place, the current tides are evidently indicating an excellent opportunity to pivot business models and lay strong foundations of an e-commerce approach. There is a strong indication that when the virus fades, customers may not flood stores as before as the new digital customer has become more comfortable on online shopping.
This pandemic will inevitably subside. However, one thing is for sure, brands that are succeeding and thriving despite the challenging times are able to do so because they adapted to digital commerce and are well connected to their customers. Hence, despite lesser footfalls, they continue delivering value to their customers.
The key takeaway is that a robust eCommerce first strategy, including an engaging marketing and digital sales strategy, is no longer an option for retailers, it’s a must! Brands and retailers now realize that e-commerce is necessary to give customers what they want without the need to step foot in a store. Retailers must continue investing in e-commerce capabilities and platforms that enable a compelling and engaging shopping experience.
With the Magento B2B Accelerator and Magneto B2C Accelerator powered by Krish Technolabs, retailers can now launch an improved eStore or a brand-new eCommerce store in just four weeks.
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Minal Joshi is a content marketer at Krish with a flair for eCommerce and Digital Commerce aspects. She is a MarTech fanatic with a knack of writing with which, she helps brands to curate, create, & commence digital brand positioning. Sharing insights via articles, case studies, eBooks, Infographics, and other forms of content creation is what she lives for. Being an ardent traveler, when not writing, you'll find her sipping coffee into the mountains or petting a stray.
21 December, 2022 After WooCommerce, Shopify is the 2nd most loved and used eCommerce platform worldwide. Shopify is an entirely feature-rich eCommerce platform. It offers many drag-and-drop options, and its apps work tremendously for store owners. In addition, Shopify is easy to use as it doesn't require depth coding.
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