There are rumors that e-commerce will benefit from the global crisis due to the spread of the coronavirus. But that's not quite the case. The truth is that consumption has stopped.
Current state of e-commerce
According to a study by Ebit|Nielsen, there was a sharp drop (20%) in sales from February for all categories, compared to January. With the interruption of logistics in several states of the country, all goods in transit were stopped, but that's the least of it, after all, for the retailer the payment has already come in and they have already done their part. The thing is that new orders will not be placed in the vast majority of online stores, because the consumer is apprehensive about the next steps.
The government's economic team launched a provisional measure (MP 927) and in art.18 it allowed the suspension of the employment contract for up to 4 months without salary, quickly revoked by the President. The article demonstrated the recession that is coming. No employee will have the courage to buy unnecessary products at a time of such uncertainty.
Who is winning
Let's be honest. If anyone is winning, it's not e-commerce. We quickly entered a recession, which triggered drastic changes in the supply chain and in the items that consumers are buying.
Even supermarkets will feel the impacts of the quarantine, with a drastic change in consumer behavior (and in the ABC Curve). Pharmacies are seeing high demand for specific products, but with other products sitting on the shelves.
Who is winning with the increase in demand are food delivery apps (iFood), super apps (Rappi), and local delivery services (Loggi).
How to overcome the crisis
There is no ready-made answer. If your company sells health, hygiene, and cleaning items, there is no recession, only growth. If your company sells luxury items, fashion, or any superfluous items, the time has come to change the strategy and think long-term. If your company sells equipment or replacement items, e-commerce is your only way out.
Many people are asking “how will I sell now?”, but given the passivity of the situation, the best question to ask is “how will I recover when everything goes back to normal?”. We have separated some ideas in case your company is in lockdown:
Actions for all retail companies
- Be a channel of information with your customer (don't be a news replicator)
- Bring a little comfort and fun to your customer (healthy memes are welcome)
- Take advantage of the moment to strengthen the relationship with your customers
- Talk about the future and present your products in a positive scenario
- Show the actions your company is taking to help society
- Take a break, change the subject, not everyone wants to live in fear
I have physical stores + e-commerce
- Communicate to your customer that they can buy through another channel (e-commerce);
- Convert the physical store to the online store through all available communication channels (social media, email, SMS, push, custom audience, WhatsApp, and phone);
- Create a telesales team and help your customer buy in the virtual store, then they will become an e-consumer;
- Communicate what your company has done to prevent contamination and how to handle the merchandise upon receiving it at home.
I only have e-commerce
- Take into account the current moment in the promotional content you are delivering;
- Suspend marketing automations, as the content may be out of sync with the current scenario;
- Invest time and money in communication, depending on the product category you sell, the messages may be to build a closer relationship or to sell;
- Look through your mix for products that have the most synergy with the current moment and promote them;
- Communicate what your company has done to prevent contamination and how to handle the merchandise upon receiving it at home;
- Invest more in lead generation and audience building than in conversion.
I have physical stores and no e-commerce
- Build your online store quickly (get to know Start Check Commerce);
- Create a telesales team and help your customer buy in the virtual store;
- Communicate to your customer that they can buy through another channel;
- Work actively with your customer, call, send WhatsApp, now is not the time to be passive.
Final considerations
There is no ready-made answer, easy path. Everyone will lose in some way.
The best alternative is to stay informed to be able to make the right decisions at the right time or anticipate possible problems.
Good luck! Take care!
