COVID-19 pandemic is the first worldwide crisis since 2008 and it’s far away from over. At this time millions of people and many businesses face new challenges, which was even impossible to imagine a few months ago.
ALTAVIA with the help of our digital agency Kamikaze has prepared a report to help our clients to identify updated conditions of the New Reality and how to deal with it.
Markets all over the world have experienced changes. While online shopping, grocery stores, e-home entertainment and food delivery companies have experienced a significant increase of the turnover, shopping malls, clothing stores, beauty care and other purely offline services were not able to keep their turnover at the level prior to the pandemic.
This is the result of notable changes in consumer behaviour, who have come through several phases.
Even though there are significant changes in consumer behavior in different countries, not all of them have been affected at the same pace. At the same time, it became evident that consumers all over the world have gone through the offline-to-online transaction rather quickly.
Coronavirus has imposed a rapid digital transformation on brands.
Prior to the pandemic, brands with the long-term strategy have been investing in e-commerce, mobile apps and other digital customer service products. Therefore today, in the time of crisis, it is not only to switch their operations online, but also to minimise possible losses.
In contrast, brands with mostly promotional activities, dependent on external resellers and/or lacking their own digital ecosystems have been hurt hursh by decreasing sales and increasing danger for their business in general.
After the first shock and waiting time, a survival mode was on. For companies it became important to sustain business financial liquidity, including fastly changing operation models. Some of them have rapidly adjusted their distribution channels and models as well as range of offered products and services. These actions made it possible to sustain brand power: starting with brand share of mind (which tends to decrease in the times of crisis), client loyalty and new pro-sales activities
Since internet usage in households has increased significantly, businesses with already existing digital ecosystems have gained an amazing competitive advantage. This is a great time to develop own e-commerce services, change offline store opening hours and broaden existing delivery options.
Hence, in this constantly changing reality, it’s important to acknowledge possible opportunities. If so, the New Reality can become an amazing opportunity to bring the business on the new level and rise above your competitors.
There are so many new ways for communication with customers online. A few examples how offline businesses all over the world reach their home-isolated consumers today are listed below:
- Online workshops & workouts, webinars & online meetings
- Online educational activities for children and their parents
- Food delivery options offered by stores and restaurants
- Addition of cashless payments for all type of services