{"id":3429,"date":"2020-03-24T17:08:51","date_gmt":"2020-03-24T20:08:51","guid":{"rendered":"https:\/\/www.alicewonders.ws\/blog\/2020\/03\/24\/covid-19-retail-impact-crisis-opportunity\/"},"modified":"2020-03-24T17:08:51","modified_gmt":"2020-03-24T20:08:51","slug":"covid-19-retail-impact-crisis-opportunity","status":"publish","type":"post","link":"https:\/\/www.alicewonders.ws\/blog\/en\/2020\/03\/24\/covid-19-retail-impact-crisis-opportunity\/","title":{"rendered":"COVID-19: Impact on Retail vs. Opportunity in the Crisis"},"content":{"rendered":"

With COVID-19<\/strong> spreading across Brazil in recent weeks, the impact on retail<\/strong> has been forcing companies across many industries to adapt to the new way of consuming<\/strong>. From multinationals to small businesses, everyone needs to keep up with shifts in consumer behavior<\/strong> in order to push back against the crisis and soften its effects on their business. <\/span><\/p>\n

\"Measures
Measures to contain the novel coronavirus have caused major changes in consumer behavior.<\/figcaption><\/figure>\n

Deliver value to your customers<\/b><\/h4>\n

In times of crisis, a strong brand is a strategic differentiator and builds consumer trust<\/strong>. If you want to survive the post-crisis<\/strong> period, building brand equity<\/strong> for your business becomes even more strategic in the current context. That’s why working on your branding<\/strong> right now can be the gateway to customers who didn’t use your service before. <\/span><\/p>\n

First, you need to understand how consumer habits are changing through data mapping<\/strong>, which will yield insights<\/strong> for creating promotions, increasing inventory of a product, launching campaigns, and other activations. For example, <\/span>sensors<\/b> installed in the physical store capture customer movement and show which section has the highest concentration of people, or how long someone stood in front of a shelf in a given category. This is the data that feeds back into your business’s marketing strategies<\/strong>.<\/span><\/p>\n

The main goal now is to think about how to make people’s lives easier and how your brand can contribute in a natural way. In other words, it’s about seeing opportunities<\/strong> in the middle of the crisis and putting your brand’s mission<\/strong> into practice. It’s important to view these strategies as the beginning of a long-term<\/strong> relationship. <\/span><\/p>\n

How major brands have changed the way they operate<\/b><\/h4>\n

The quarantine in the state of S\u00e3o Paulo takes effect this Tuesday (the 24th), making the outlook even more promising for app-based delivery services. Anticipating the situation, McDonald’s, Burger King and other fast food chains changed the way they operate by expanding their delivery infrastructure. <\/span><\/p>\n

\"Photo
Photo Reproduction: In a post on McDonald’s Brasil’s official Facebook page, the company announced “Mc Delivery.”<\/figcaption><\/figure>\n

Burger King, meanwhile, posted on its official Instagram profile that it has consolidated its delivery presence, now with Uber Eats, Rappi and iFood.<\/span><\/p>\n

Another important example is <\/span>Ambev<\/span><\/a>, which converted its production line to make hand sanitizer gel, to be donated to public hospitals in S\u00e3o Paulo, Rio de Janeiro and Bras\u00edlia, the cities with the most coronavirus cases so far. <\/span><\/p>\n

\"Ambev<\/p>\n

Overview: Impact on retail in Brazil and worldwide<\/b><\/h4>\n

As mentioned above, the COVID-19 pandemic has been impacting retail through shifts in consumer behavior. Overall, online sales have increased across several product categories. Meanwhile, brick-and-mortar retailers that remain open are adopting new contactless delivery formats. <\/span><\/p>\n

A study by Google Retail AIT shows retail data<\/strong> from January to March 2020 and what people have been searching for online. Searches for entertainment, personal care and cleaning products<\/strong> saw the biggest increases last week.<\/span><\/p>\n

These behavioral trends<\/strong> were analyzed in countries where the pandemic has already reached more critical stages, making it possible to predict scenarios retail may face in Brazil. <\/span><\/p>\n

Focus on prevention<\/span><\/h4>\n

Among retail categories, Personal Care and Cleaning stand out the most, with searches averaging 30% higher. The growing demand is tied to products such as hand sanitizer and face masks<\/strong>. <\/span><\/p>\n

\"Cleaning
Source: Google Retail AIT<\/figcaption><\/figure>\n
\"Chart:
Source: Google Retail AIT<\/figcaption><\/figure>\n

Food Retail<\/h4>\n

Food retail<\/strong> saw an acceleration in searches for non-perishable categories, driven by stockpiling behavior. There is also strong demand for recipes people can make on their own.<\/span><\/p>\n

\"Chart:
Source: Google Retail AIT<\/figcaption><\/figure>\n

A study by Nielsen points to higher demand for the following foods:<\/span><\/p>\n

Powdered milk +84%<\/span><\/h3>\n

Grains +37%<\/span><\/h3>\n

Canned meat +31%<\/span><\/h3>\n

Rice +25%<\/span><\/h3>\n

 <\/p>\n

Life in quarantine<\/span><\/h4>\n

Searches for entertainment, food and personal care are gaining relevance as people cope with forced isolation<\/strong>.<\/span><\/p>\n

\"Chart:
Searches for entertainment, personal care and cleaning products saw the biggest increases last week. Source: Google Retail AIT<\/figcaption><\/figure>\n

Fashion retail<\/span><\/h4>\n

Since they are not essential categories, fashion<\/strong>, furniture and travel goods saw the steepest declines.<\/span><\/p>\n

\"Chart:
Fashion searches in other regions. Source: Google Retail AIT<\/figcaption><\/figure>\n

With all these changes, what can we expect in a post-crisis<\/strong> scenario? Understanding the current moment and riding the wave of the crisis, truly grasping consumer needs and how their behavior is changing, both online and in physical stores, are fundamental to follow, not only in these times of change but from here on out, for the health of your business. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

With COVID-19 spreading across Brazil in recent weeks, the impact on retail has been forcing companies across many industries to … <\/p>\n","protected":false},"author":1,"featured_media":1605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[272],"tags":[785,755,800,806,812,815,836,761,1001,1028,1130,1190],"yoast_head":"\nCOVID-19: Impact on Retail vs. Opportunity in the Crisis<\/title>\n<meta name=\"description\" content=\"How has the shift in consumer behavior affected retail, and what will it mean post-crisis? 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