With COVID-19, consumer behaviours changed quickly over the past year. Many businesses have shut their doors. People are settling into working from home and lifestyles have changed. Businesses are focused on reducing costs while others are finding ways to flex to the new ways people are consuming. Many people are switching to consuming online. According to Digital Commerce 360, this year’s Amazon Prime Day surpassed 2019 by 45%, reaching $10.4 billion in sales.
Organizations have needed to shift their focus into different areas based on the consumer trends, and ecommerce has proven successful. According to The Ringer when Disney closed its theme parks, “In the first three months of lockdown, Disney’s profits declined by a catastrophic 91 percent.” However, Disney+, the streaming service, has helped the company stay agile and diversify their portfolio to future-proof the Disney Empire.
Restaurants have been one industry that has been hit the hardest while many are closing for good. Many restaurants have joined delivery apps like Uber Eats and Door Dash or have implemented their own online ordering platforms to increase ease of access for their customers. Another way restaurants pivoted to the new normal at the beginning of COVID-19 was to offer groceries and meal kits that can be prepared at home using ingredients supplied by the restaurant. Distilleries shifted product lines from spirits to making hand sanitizer to meet the demand.
2020 has taken a toll on all businesses and people (except for maybe Jeff Bezos), however, the ones who adapt to new circumstances have a better chance to be successful in the future. How has your organization adapted to this new reality? Leave a comment on our LinkedIn.
– Jocelyn van der Geest, Senior Research Analyst