INDUSTRY INSIGHTS FOR WHEN THE WORLD ECOMMERCE …€¦ · Livestreams, essentially QVC for a...
2
INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM COVID-19 ABOUT THIS REPORT Creative transformation has never been as important as it is now. The scale and impact of COVID-19 has been unprecedented and while business, the government and society grapple with the current reality, we are also anticipating the impact and opportunities of a post-COVID world. We have asked a selection of our own sector experts to provide their insights on the current situation and consider the opportunities that might emerge. This has formed the WPP’d Smart Series. These are not intended as academic “white papers”; rather, they offer some key insights and actionable opportunities in a concise, digestible form that might trigger some new thinking for your business or organisation. If you would like to discuss these further please contact the authors directly - you can find their details on the last page. INSIGHT FROM COVID-19 OPPORTUNITY Growing an online marketplace isn’t easy because it requires buyers and sellers to change behaviour at the same time. COVID-19 has accelerated the shift out of necessity, with shopper traffic up significantly and platforms encouraging new merchants with discounts. Marketplaces are booming, with Amazon’s March traffic almost doubling the same month last year. The opportunity is to increase your brand presence where shoppers are now – expand your range, sharpen your pricing, optimise your product listings and invest in retail media to earn a disproportionate share of voice on the digital shelf. While short-term spikes were to be expected, there will also be long-term changes in consumer behaviour as online becomes the only channel for many shoppers. We’re effectively seeing a broad reaching trial forced upon an entire population. Many of these new online shoppers will enjoy the convenience and this will see them develop new habits. The SARS outbreak in 2003 saw the birth of ecommerce in China, with Alibaba & JD both pivoting from B2B and physical retail respectively. What can your brand do to establish a future-focused ecommerce strategy today? Where are the quick wins to keep pace with immediate demand and how will you establish a long-term roadmap to the new normal. New ways of working and socialising have pushed technology to its limits, with rapid adoption of new platforms establishing video streaming apps like Zoom, Teams and Houseparty as household names. We’ve seen more innovation and experimentation in the past few weeks than during the previous few years. Technologies that have been on the fringes will see increased adoption as shopping adapts to self-isolation. Livestreams, essentially QVC for a digital world, were already part of Amazon’s Prime Day in 2019 but will now become much more prevalent. Mobile functionality like virtual and augmented reality will also grow, allowing consumers to experience products and services from the comfort of their own home. ECOMMERCE Roger Dunn AUTHOR 10 June 2020 DATE
Transcript of INDUSTRY INSIGHTS FOR WHEN THE WORLD ECOMMERCE …€¦ · Livestreams, essentially QVC for a...
INDUSTRY INSIGHTS FOR WHEN THE WORLD
EMERGES FROM COVID-19
ABOUT THIS REPORT
Creative transformation has never been as important as it is now. The scale and impact of COVID-19 has been unprecedented
and while business, the government and society grapple with the current reality, we are also anticipating the impact and
opportunities of a post-COVID world.
We have asked a selection of our own sector experts to provide their insights on the current situation and consider the opportunities that might emerge. This has formed the WPP’d
Smart Series. These are not intended as academic “white papers”; rather, they offer some key insights and actionable opportunities in a concise, digestible form that might trigger
some new thinking for your business or organisation. If you would like to discuss these further please contact the authors directly -
you can find their details on the last page.
INSIGHT FROM COVID-19 OPPORTUNITY
Growing an online marketplace isn’t easy because it requires buyers and sellers to change behaviour at the same time. COVID-19 has accelerated the shift out of necessity, with shopper traffic up significantly and platforms encouraging new merchants with discounts.
Marketplaces are booming, with Amazon’s March traffic almost doubling the same month last year. The opportunity is to increase your brand presence where shoppers are now – expand your range, sharpen your pricing, optimise your product listings and invest in retail media to earn a disproportionate share of voice on the digital shelf.
While short-term spikes were to be expected, there will also be long-term changes in consumer behaviour as online becomes the only channel for many shoppers. We’re effectively seeing a broad reaching trial forced upon an entire population. Many of these new online shoppers will enjoy the convenience and this will see them develop new habits.
The SARS outbreak in 2003 saw the birth of ecommerce in China, with Alibaba & JD both pivoting from B2B and physical retail respectively. What can your brand do to establish a future-focused ecommerce strategy today? Where are the quick wins to keep pace with immediate demand and how will you establish a long-term roadmap to the new normal.
New ways of working and socialising have pushed technology to its limits, with rapid adoption of new platforms establishing video streaming apps like Zoom, Teams and Houseparty as household names. We’ve seen more innovation and experimentation in the past few weeks than during the previous few years.
Technologies that have been on the fringes will see increased adoption as shopping adapts to self-isolation. Livestreams, essentially QVC for a digital world, were already part of Amazon’s Prime Day in 2019 but will now become much more prevalent. Mobile functionality like virtual and augmented reality will also grow, allowing consumers to experience products and services from the comfort of their own home.
ECOMMERCE
Roger Dunn
AUTHOR
10 June 2020
DATE
INSIGHT FROM COVID-19 OPPORTUNITY
COVID-19 and the stockpiling of pandemic pantries has put great strain on retail supply chains. Many retail stores have closed completely and even powerhouses like Amazon are focusing their logistics on essentials to maintain service levels.
As key routes to market are closed off, many businesses are learning the harsh lesson that having all your eggs in one basket is a huge risk. Diversification is crucial and brands should look at all available channels – from traditional omni-channel retailers, digital-only pure plays and marketplaces, direct-to-consumer offerings and emerging channels like social commerce and shoppable content.
While there has never actually been a shortage of most products, the scarcity of some on retail shelves has caused an immediate uptick in sales as shoppers hoard popular products. The lasting impression of empty shelves will accelerate adoption of new purchasing models that provide certainty.
Consumers will be open to new models which help them avoid missing out. Subscription services that offer a discount when signing up to receive key products on a set frequency will be more appealing. This will accelerate the move to programmatic commerce, where connected devices automatically reorder essentials as supplies are running low – removing mundane tasks and guaranteeing supply.
ROGER DUNNGeneral ManagerGroupM Commerce
Roger Dunn is General Manager at GroupM Commerce, the specialist e-commerce and Amazon centre of excellence at GroupM, part of WPP AUNZ. His career has spanned agency, publisher and marketing roles, with a focus on technology
partnerships, digital strategy, performance media, and e-commerce. Roger established the e-commerce practice
at GroupM and leads the Amazon relationship locally. He led the development of a bespoke digital shelf analytics product, currently being developed into a full SaaS solution to enable global roll out, and has developed e-commerce strategies for major FMCG and CPG brands such as P&G, MARS, and Revlon.
INDUSTRY INSIGHTS FOR WHEN THE WORLD EMERGES FROM COVID-19
eCommerce | 10 June 2020
THE STORY BY THE NUMBERS:
1 Kantar Barometer, April 2020.
of Aussies think their future online purchases will increase
in comparison to how they shopped before coronavirus1
of Aussies agree that shopping online is more
convenient than going to the actual stores1
of Aussies say they shop online to save time1
of Aussies say they shop online because they find
more offers / sales / affordable prices1
of Aussies say that they find online shopping challenging /
difficult1
