This whole world is standing at a place
where if we see our past, it was horrifying and amidst this COVID-19 pandemic,
no one is sure of what will be our future.
As per the recent IMF Report, Global Growth
is projected at -4.9 percent in 2020. It is clearly evident that due to this
pandemic, world economy has faced a major setback and the Industries worldwide
are trying really hard to cope up.
Still we are about 6-8 months away from the
COVID-19 vaccine and the world has started adjusting with this new normal i.e.
wearing masks and carrying pocket sanitizers whenever going out and we all are
trying to live with this virus.
Slowly and gradually, unlock stage has
begun. Still most of the people prefer work from home but there are some people
who are forced to move out of their homes may be because of the nature of their
jobs.
Like a rational human being, we all are
spending less and saving our money for possible future emergencies.
Just to quote some facts published in a
report, as per a report published on July 2020 by Liam O’Connell-Research
Expert Covering Retail and FMCG-Global Retail Sales were projected to be around
26.7 trillion U.S. dollars by 2022, up from approximately 23.6 trillion U.S.
dollars in 2018.
According to the same report, In 2019,
Retail Industry total sales stood at 24.78 trillion U.S. dollars but due to
this corona pandemic, it has been projected that Total Retail Sales will
decline and will be at 23.36 trillion U.S. Dollars.
As we all know that retail industry
contributes a lot to GDP Growth, which currently is facing demand fluctuations.
In these tough times, retailers are forced to think of new and innovative ways
to cater to their customers.
Some
Notable Changes in Retail Industry
Nowadays most of us are taking precautions
about where, how and what we are purchasing, so it has become imperative for
retailers to be ready with increased capabilities and faster operations.
According to a KPMG Report, Almost 82
percent of consumers today are buying from retailers/brands who have taken
enough measures for maintaining hygiene due to corona. So it has become
important for retailers to reduce human touch points to avoid corona spread.
One more thing which is to be observed here is how important is it to have
“Cashless Transaction System”.
There are some sectors which have witnessed
growth because of considerable increase in sales of consumer goods in countries
like US, UK, Italy etc. which were heavily affected due to Corona.
Since only some of the grocery stores were
allowed to open for essentials in lockdown, consumers were seen stocking up
daily need essentials may be because of the fear of further lockdown.
This has created significant out of stock
situations many a times for most of the retailers. Therefore predicting and
managing the demand has become a tedious task for retailers in these corona
times.
Also, it has become very important for
consumer goods companies to identify their key suppliers and assess their
ability to fulfill supply requirements. In every case, they should be ready
with Plan B to avoid any contingencies.
Since demand can come from any geographic
area, so companies now have to be ready with excellent delivery capabilities to
offer delivery anywhere in the world as this will enhance their cash flows.
In my view, some retailers should also
adopt appointment system wherein only some customers are allowed to shop at one
point of time as per their appointment booked in advance but this strategy is
only fruitful for those who cater to premium segment that can generate them big
profits even at lower sales volume for example luxury stores in malls-beauty
parlors etc.
Strategies
of Different Brands
In the next few months, customer
requirements are expected to see a massive change due to limitation of resources;
hence the focus will be on purchasing essentials rather than indulging in
buying luxuries.
In this context, Brands like Pantaloons,
Max have started promoting work from home casuals to attract customer’s
attention and promoting these products as essentials.
As per Chairman of Fabindia Overseas Pvt.
Ltd. William Bissell, “This is a time to re-imagine the business. To think that
things will go back to the way they were, once the crisis is over, is wishful
thinking”.
With this thought in mind, this brand has
taken some amazing and innovative steps to attract their customers and gain
their revenue back.
They have launched “White Glove Service”
for their loyal customers in which if they sign up, their retail staff will
provide customized catalogs and look books for household items, furniture,
apparel, accessories and they will also bring items selected by you to your
home for trial. Isn’t it amazing!
Not only this, All the 233 stores, they
have opened with enhanced safety measures like steam ironing every cloth before
and after trial, equipped changing rooms with disinfectant sprays and toilets
have been restructured to make them hands free zones-soap dispensers and
flushes.
There is no doubt in the fact that online
businesses are gaining momentum during this period and it is safe also because
you need not go outside for purchasing but that does not mean that brick and
mortar stores will lose their identity. It is just that they need to improvise
or restructure their sales practices and let’s hope that all will be well soon!
Written by - Anshika Gupta
Edited by – Adrija Saha
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