The current Coronavirus pandemic has wide-ranging ramifications for every industry, including marketing and eCommerce. It's no surprise then that marketers are looking to make changes that will better help their businesses adapt to the new situation. The numbers are looking pretty grim, as statistical analysis shows drops in nearly every single part of the economy. Take a look at some statistics that represent the current situation for marketing, advertising, and eCommerce.
Fashion retail sales have been nearly halved
Unsurprisingly, people aren't in any rush to shop for non-essentials this season. While most industries are seeing record lows, the clothing and fashion sectors have been hit particularly hard by the pandemic. Brick and mortar stores across Australia have been forced to close and consumers aren't rushing to spend their money in a time when employment is uncertain.
In regions such as France, the numbers aren't looking very good. There's been a severe year-on-year drop in sales for fashion, apparel, and accessory industries. Since the start of March, there's been a sharp decline of 41% in net sales. It's a difficult time for the fashion industry in France, but other countries aren't so lucky, either. The UK is seeing a similar, albeit slightly milder situation. The drop is only around 29% for its worst day, meaning it's doing slightly better than France.
It’s not all doom and gloom, though. With the introduction of massive discounts, countries like Germany have seen minute increases in sales. This might not last very long, but it could be a sign of good things to come. Online retail remains popular and website visits haven't declined much, if at all. This suggests that consumers are still checking out products, but they're reserving them for later on when finances are more secure.
Supermarkets are busier than ever
March has seen a 20.6% increase in supermarket sales all throughout the UK. It was the busiest month on record, and it’s not difficult to imagine why. The moment that there was news of a global pandemic, people were quick to start stockpiling essentials. Supermarkets saw more traffic than Christmas day, as customers scrambled to get as much into their carrying bags as possible.
There's another factor to consider. For the whole of March, restaurants saw very little business. Eating out suddenly came with a cost that outweighed the luxury. Instead, people shopped for groceries and preferred to cook and eat at home.
Despite this, large supermarket and megamarket chains suffered some slight losses here and there. As these locations are ripe for crowd-formation and close interaction, they are generally avoided. The markets that are currently seeing customers are the more local corner and convenience stores. The average household will rather turn to the closest store they have to avoid interacting with too many strangers. This has led to a sharp 30% increase in sales for independent shops. If further restrictions are introduced by governments, it’s likely that supermarkets will see a further decline, while corner shops will remain stable throughout.
Marketing strategies are changing
The continuing uncertainty of the economy has had an enormous impact on marketing. Marketers in Australia are changing their planned strategies to adapt to the current economic crisis. Only an estimated 14% of businesses are going through with their original marketing strategies for the year. This number could go even lower as the situation develops. There's no telling how the market will shift, which is why it never hurts to play it safe.
The sharp increase in changes to marketing strategies has left businesses uncertain o whether or not to proceed with the same amount of effort. While the situation seems dire, marketing is one part of a business that shouldn't be neglected, even during a global crisis. It's still very effective at attracting consumers, as long as strategies are adapted well.
Australian businesses have quickly shifted towards the delivery of digital products and content. This has led to an increase in demand for effective online marketing and SEO. People aren’t visiting a brick and mortar stores for their shopping nowadays, which is why many Australian websites need to be primed and ready for an influx of new consumers. Everything from the design to the technical aspects of the website should be improved to keep search rankings up and websites more visible.
Because of increased demand, online marketing businesses have recently seen more clients that are eager to work with them. Professionals in SEO in Sydney, Perth, and Brisbane are helping countless businesses overcome the challenges of optimizing websites for search engines. Since online retail is the only option available right now, optimization is more important than ever before.
Product and service demand drops 69%
Businesses from various different markets have seen a sharp decline in demand for products and services in the weeks of March. The extent of this is severe and, by all accounts, it is hitting nearly every industry pretty hard. In the UK, 69% of organizations have seen massive drops in demand, which has led to a halt in production and distribution. However, the problems businesses face depend on their size and revenue.
Continuing with the UK stats, businesses with annual revenue below fifty million pounds have been affected more drastically. The previous figure becomes 77% and the extent of the loss in demand is much greater. These businesses have had to make sweeping changes and adjustments to their strategy to remain functional.
Their larger counterparts have fared somewhat better. Around 64% of higher-revenue businesses have taken losses, and these losses aren’t as extensive. Drastic changes are not yet necessary, as the business model is still working well for them. On the other hand, the supply chains of over 40% have been impacted and require adjustments.
One of the most frequent changes that businesses are introducing is remote work. Jobs that previously required the worker to be present are slowly being adapted to allow for more remote access and productivity. With the same line of thinking, outsourcing services have become more prevalent as well. This has allowed many businesses to remain productive in the face of isolation regulations and keep selling their products and services.
Conclusion
There’s no aspect of the economy that the coronavirus hasn’t impacted. the numbers are showing that nearly every part of marketing is seeing record lows. The consequences of the current pandemic are likely to be felt for months, if not years after the situation has died down. Despite this, businesses need to start thinking about how to fix their marketing strategies right now. As product and service sales adapt to new changes, so does marketing. With the right kind of adaptation to their strategies, businesses should be able to eventually get back on their feet and continue seeing progress.
