Covid-19 pandemic is forcing change in retail ordering behaviour. Get the insights & tips on how your business can survive and emerge stronger from this crisis.
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In a sense, the Covid-19 pandemic has changed the way we work, shop and communicate with people more than any other technology in the recent past. As more people start working from home, they are sticking to basics, stepping outside only to buy essentials and are constantly worried about the risks of getting infected in crowded places like malls and supermarkets.
Covid-19 Epidemic is Creating a Paradigm Shift in Consumer Behaviour
Spurred on by a trifecta of smartphone penetration, cheaper 4G networks and increasing consumer wealth, the Indian ecommerce market was expected to grow to US$ 200 billion by 2026.
That projection was based on customer and market research in a pre-Covid 19 world. But in the last 2 months, both the market landscape and consumer behaviour has altered beyond recognition and there is clear indication that the industry will hit the US$ 200 billion mark much sooner.
Some of the key consumer behaviour changes, according to a survey by NRF
• 9 in 10 consumers have changed their traditional shopping habits.
• More than 50% of consumers have ordered products online that they would normally purchase at the store
• Nearly 6 in 10 consumers say they are worried about going to the store due to fear of being infected
While some of these changes are no doubt temporary, others will be permanent. As the community moves beyond the ‘survival’ mode, the digital-adoption momentum is likely to carry forward and become permanent. This inflection point will be primarily shaped by two major shifts in customer behaviour – the reluctance to mingle in crowded public places and higher propensity for digital adoption.
The Emergence of a New World Order in Retail
We believe retail is at an inflection point – and this is the start of a “A New World Order” in terms of how consumers shop and the way the retail industry operates. Retailers will need to be agile in adapting to this zeitgeist, since the prognosis for brands that miss inflection points is not great.
Under this New World Order, retailers across diverse categories cannot rely entirely on their offline presence even after the lockdowns are called off. They will have to inevitably adjust to the new norms of online buying. This will become even more relevant for categories like groceries and personal care where previously the propensity to buy online was low.
How Retailers can Quickly Adapt to this New World Order
With continued uncertainty, I predict that brands that are currently the most receptive and agile in adopting these new norms of customer behaviour will prevail than those who wait it out. So, what can retailers do to cope with these constantly changing buying patterns and quickly cope with the new world order.
• Digitization should become a priority
• Focus on improving the visibility of own e-commerce website
• Become innovative with personalized engagement
To access the full report along with key findings, visit: https://www.capillarytech.com/blog/digital-transformation/covid-19-new-world-order-retail/