Shop til you (never physically) drop?
- elee0057
- Nov 15, 2021
- 2 min read
Admit it, we have all turned to some online retail therapy at least once some point during the extensive lockdown periods. It’s no surprise really, but that means both you and I, have contributed to some degree towards the retail shift.
Since the emergence of the Covid-19 pandemic, we all have had to accustomise the way we live to adapt to the restrictions taking place all over the world. Isolation protocols and stay home requirements mean that now, more than ever, we are shifting towards online platforms to carry out daily activities. As we shift to working and socialising from home, we see more time spent on platforms such as Instagram and Tiktok which we slowly see becoming product advertisement space. The increase in online product discovery resultantly contributes to the shift in consumer behaviours, pushing for retailers to adapt to new consumer channels and thus fuelling business digitalisation.
Statistics show that diversion towards online retail consumption has indeed led to the push and surge in the e-commerce industry worldwide. 17% of consumers in the US have reduced in store trips resulting in retail sales falling by 1.9% in 2020 compared to 2019. Resultantly, consumers are spending more money online as the US Census Bureau calculates $211.5 billion spent on ecommerce in the second quarter. In Australia, 75% of people were reportedly online shopping.
Companies are prompted to reconsider and reinvest into e-commerce to capacitate for the rapid growth and diversion to online shopping, click n collect and delivery services. The consumption of product categories have also been noticeably affected with more consumption seen in the hygiene and grocery category. Unsurprisingly, online subscription services have also increased drastically as people try to find more ways to entertain themselves. In fact, I actually spent $300 worth of new subscriptions over the lockdown period...
Although, the amount I did spend still isn't justifiable...
Anyways, while existing retail shifts online, we simultaneously see the rise in new online startup businesses. Many being independently run by the creator and only known through mutuals of mutuals. These businesses primarily exists as side jobs providing owners another income stream and enabling them to be their own boss.
Have you noticed any new small businesses online?
Even now, as we see physical stores open back up, online consumption remains relatively high despite most consumers moving back to physical shopping. This poses the question of whether online shopping will be the primary sales source for the retail future? It’s hard to say as many people now still prefer physical experiences in store, but as for the future, technological developments such as virtual reality may alter the retail game completely…
Great post!!! I think that COVID-19 really made companies think about how they can deliver the same experience online as they do in store. A lot of companies had to adapt and evolve with the lockdowns and as a result online sales have absolutely skyrocketed! Like implementing AR or having real team members cater to the online websites to make the experience feel more personable. Can you ever replace going into a physical store and having that human interaction? I guess only time will tell! I have noticed a lot of home cooked meal delivery businesses popping up which has kicked off since COVID-19 started.