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Vision on the impact of the current epidemic on e-commerce

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Vision on the impact of the current epidemic on e-commerce

With the support of our 20 offices around the world, the Labelium Group is witnessing the evolution of the pandemic and its impact on the behavior of companies and consumers .
From China , the first country to apply lockdown, to Australia and England, where this drastic measure was activated this week, we have analyzed the available data and tried to synthesize trends based on the evolution of lockdown and product categories and services involved, while proposing possible actions for companies that still enjoy the possibility (in France, for example, the commendable work of Correos is worth noting, while in other countries the logistics chain has been completely stopped) and have decided to continue offering shipping.In this way, we have identified four phases Phase 1: the beginning of confinement → FearWhat are the products and services involved?First needs : food, medications (peak demand for paracetamol, alcohol gels, masks and long-term treatments), diapers, hygiene, animal feed.
Products suffering a sudden shortage : contact lenses in France after the government’s decision to close the opticians (while the level of interest remains bet france mobile where they are open)Comfort that you can hardly do without: care creams, hair coloring, etc.
New uses linked to confinement : laptop, second screen, printer …
What actions are possible? What questions to ask yourself?
Manufacturers : move towards a logic of “co-advertising” with available online sellers or open stores. In this regard, digital advertising seems to be prioritized , with a significant trend towards geographic segmentationLikewise, for those with an e-commerce website there is the possibility of being able to recover part of the physical clientele (this requires clear and concise communication, even a prudent use of customer bases for a focused orientatiFrom another perspective, the manufacturer could be present in places where it is not expected to be seen, but to which it brings a lot of value, such as LVMH, a multinational that has immediately made its production lines available to manufacture hydroalcoholic gel.A health worker sanitizes his hands as a protection measure against the coronavirus
Physical Distributors or Online Retailers : They are faced with the issue of processing excess orders and managing products in short supply. Possible actions to take:

In advertising strategies, favor the search for new clients by excluding audiences .
Update the web pages that communicate the measures in force for the coronavirus and emphasize that “we ship home.Provide new services , such as loyalty offers.
Adapt the marketing techniques of the web so as not to prioritize products at risk of running out or suffering a lack of restocking and with a significant cross-selling capacity (products with a great tendency to be the first thing added to the shopping cart ), in order to preferably use them to attract new customers.
Adapt guarantees on the website and in communication: shipments home, increased return times.
Transparency in shipping times: these can hardly be predicted at the moment, so it is necessary to avoid creating unrealistic expectations and, with it, disappointment. The order confirmation email should clearly remember that the merchant and all its logistics partners are doing their best to ensure the best service in the current contextFor advertising strategies and marketing techniques, model and make correct decisions regarding short-term cash generation and long-term profit margin maximization .
Phase 2: occupying the available time → Fight
At the moment, the key question for people at home is time management : how to use my time and that of those around me during confinementAnd this becomes the main need to fight against the psychological risks linked to inactivityWhat are the products and services involved?

 

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Entertainment: video games, television on demandFitness and relaxation.ReadingThe occupation of children.
What actions are possible? gulf email list What questions to ask yourself? Communication will be prioritized with a “problem / solution ” approach: launching “push” strategies on social media, for example. In fact, the first week of confinement, people are a priori little receptive and try to inform themselves / calm downHowever, then it is time to get busy. Available inventory is essential, the number of advertisers has been reduced: it is necessary to communicate / provide the solution , while taking advantage of the decrease in competition.In addition, it is interesting to anticipate changes in media consumption habits : TikTok exponentially multiplies its audience volumes, YouTube also offers new possibilities … Therefore, advertisers have unique opportunities to take advantage of.Phase 3: Make up for past procrastination → Boredom
People in confinement regain confidence and take the opportunity to recharge their batteries, but this also translates into a risk of boredom, marked by the establishment of a very defined routine from now on.Therefore, it is time to do everything that I have not done in recent months, since now I have time, I am at home and I feel like itThese are the three motivations: occupy my time, show others “that I do too” and save .What are the products and services involved?
DIY / works at home (within the limit of the available stock).
TrainingPublic services: Internet providers, mobile operators or natural gas / electricity distributors.
Over time, banking or financial services, although not all.
What actions are possible? What questions to ask yourself?
It is necessary to know how to take advantage of the marketing moment “I will help you avoid delays” , always with a problem / solution approac
In this regard, social networks, the Display network, native advertising, videos and / or all the “push” strategies seem opportune, since they offer the right services while they try to find new customers.For advertisers , during this phase a logic of creating new audiences is followed that can be activated or reactivated in the coming months.Regarding communication, it also seems interesting to emphasize that ” we take care of everything for you “, “don’t worry” and, above all, adapt the website if possible by correctly applying all the above recommendations.Phase 4: the return to compulsive shopping → Compensation before resumptioIn an optimistic, yet realistic scenario, consumers will undoubtedly feel the need to compensate for the ups and downs of lockdown. A phase of return to shopping pleasure will follow those of fear, struggle and boredom.Typically, we perceive that most employees are glad to return to work on Monday, with a busy and diversified day, after the weekend boredom.A man pays with a credit card for his purchases online
¿ What are the products and services involved ?
Everything that allows you to pamper yourself or make others happyOn the other hand, we find the real estate, automobile, employment or travel sectors, those that are and will be the most affected (with a decrease of more than 70% in Google searches the first week of confinement), but that they must prepare from now on the resumptionAn example would be to develop educational content on the subject (favor SEO) or an acceleration in the downloads of mobile applications to be able to relaunch later through alertsFinal Recommendations

Do not lose the results of investments in brand image
One of the goals of retail, automotive, telecommunications and other agents is to invest to secure a priority position and remain the reflection of consumption for their customers, prospective and existing. The loss of visibility during this period on traditional channels (press, radio, television, billboards) poses a risk when the activity resumes at several levels:
It outbid the set of agents (purchase costs above the average).
Emergency difficulty (too many messages limiting attribution or consideration).
Reactivation from scratch (the need to resume the pedagogy of offers and services from the beginning).
Opportunities to take advantage of in brand image during this period in the online media
Despite the current context, it is feasible to maintain brand communication in the digital medium , which will provide benefits (1) to stay in contact with customers while prospecting work continues, (2) to continue to improve brand consideration and (3) preparing to resume activity at a time when costs are lower a priori as the competitive environment has reduced.This can be illustrated by a supporting thread of support during this period of confinement ( valorization of the brand’s USPs, especially in relation to the specific context), marketing opportunities if appropriate ( presentation solutions , good practices and / or uses) or even corporate social responsibility ( CSR ) measures.
This communication can only be illustrated through an organic intervention, but also through media campaigns, focused on existing or potential audiences.
However, it will be necessary to manage these activations with indicators beyond pure performance, relying especially on “Brand Lift” studies and / or impact measurements provided by most advertising platforms.
Of course, these few items of analysis are far from exhaustive, but the ability to gain perspective is important.In these difficult times where solidarity will make a difference , all our teams worldwide have mobilized and are ready to help. Do not hesitate to contact us.

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