The pandemic has had a far-reaching impact on health and well-being. COVID-19, which has 1.4 billion school-age students — more than 3 in 4 children and young adults worldwide — is also putting at risk the global economy at.
Distancing recommendations have the greatest impact on the economic situation. The suspension of partial commercial activities, agglomerations, and self-employed professionals severely affected independent businesses and the self-employed. This new era in business will see agility, creativity, and automation, and those with these resources will quickly rise to the top.
Retail has suffered from social isolation, particularly for small businesses that depend heavily on foot traffic and local culture. Statistics Canada reports that brick-and-mortar retail sales declined 26.4% in April. This is more than twice what economists expected.
Doug Porter is an economist at the Bank of Montreal. CBC News:
April is firmly cementing its reputation for being the worst month ever for the Canadian economy.
The market is down more than a third if we add this result to the March numbers. Many industries experienced historic declines. For example, clothing and accessories saw a 70% drop, and furniture stores fell 51% and 44% respectively (Evans 2020).
It is more than just being online. You must be in the local community.
To kick-start their online operations and reduce losses, companies must accelerate digital transformation. It is the current demand and it will continue to be the norm for consumers who have needed to alter their consumption habits.
The results show that the traditional Canadian retailer quickly realized this shift and adapted ecommerce strategies to continue the business. Small retailers can win customers in the virtual world just as big companies do. The old rules of communication and interruption marketing no longer work. It is more beneficial to have a strong online presence. This field is available for free.
While Canadian retailers are suffering from historical losses, they are cautiously returning to business. However, the digital market is still booming in Canada. According to reports, online sales increased by more than doubling in April. They now account for almost 10% of all Canadian merchandise. This is a historic record. Amazon.ca is not included in Statistics Canada’s numbers, as it has an operation in the United States.
This shift in consumer behavior was evident in a Deloitte survey. Canadians are more likely to shop online than ever to avoid contact with others. The most likely age group to visit the website of an online retailer is between 18 and 29, which is 58%. Only 44% are older.
According to the report, Canada will continue to look for ways to reduce physical contact even after opening stores. Alternative strategies include using new technologies such as ATMs and contactless payments, store robots, front-door delivery, and virtual reality experiences (Deloitte Canada 2020).
Bruce Winder is the author of the book Retail Before. During. & After COVID-19.
Online shopping is becoming a more pressing issue for suppliers and retailers.
The main attraction of eCommerce is the ability to grow quickly and provide quick service. Consumers can shop from their phones 24 hours a day, 7 days a week.
You can interact in real-time with the community to clarify doubts or solve problems. Google Trends data shows that there was a more than 200% increase in interest in Canadians searching the term “buy online” in April. This is not surprising considering people often need to be at home.
GeoTarget’s marketing plan is designed to increase brand awareness in the local community. This includes service via direct messages on Facebook and WhatsApp. This strategy is difficult for large retailers to understand as it strengthens both online shopping and the possibility of curbside pickup.
The Ontario Government was aware of the problems faced by small retailers and producers and launched “Shop Local!” Shop Safe! Shop Safely! is a campaign encouraging Ontario residents to shop safely and support small businesses.
The campaign saw the provincial government invest more than US$ 150 million in rural broadband to assist small businesses to improve and create an online presence. (Ontario Government 2020). Yellow Pages also created “Shop The Neighborhood” to encourage Canadians to support local businesses.
This type of initiative seems to be beginning to pay off, fortunately. A Think With Google survey in April found that 60% of Canadians searched for “what is open near me” using the search.
Erik Brynjolfsson is the director of the MIT Initiative on Digital Economy. He said:
It is amazing how slowly habits can change. People get stuck in ruts and it takes a shock like this to change everything. This forces people to look at the switch costs and find a new way of doing things. (Timberg, Harwell, Reiley, & Bhattarai, 2020).
Consumers are changing rapidly their consumption habits, particularly in regard to the products and places they buy from. However, companies must be as efficient and quick to win business.
Local consumers are more likely to be loyal if you invest in solutions like Google My Business, SEO / SEEM, chatbots, or social media. Research shows that many people have moved to new locations due to the closures or overload of large retailers during the pandemic.
The April Google / Ipsos survey found that more than 25% of respondents said they have tried a new brand or product because their old brand was unavailable (Morris 2020). Small retailers can win consumers in the online marketplace just as well as big brands. This is due more to the strategy chosen than the budget.
If executed correctly, the company that is ready to adapt to this new standard can lead in this post-pandemic era. It is important to provide fast, affordable service and transparent and reliable online communications.
