Covid 19 has already pushed many businesses to transpire their digital transformation programs today which were otherwise meant to be budgeted in years to come.
It is the question of sustenance over competition, staying relevant, capturing market share and the beloved RoI. It is about reaching out to the customer at their doorstep with the desired products in the safest possible manner.
Let’s consider the Retail industry, one of the worst hits - Low footfalls in the store, need based buying, low inventory turnover, high fixed costs and low visibility on customer’s needs. Businesses need to innovate and think differently in such testing times. Adoption of e-commerce is seen bridging the gaps more than ever before. Global e-commerce sales are projected to reach $4.5 trillion by 2021 and thus there lies the opportunity for the businesses to tap in.
Customers are generally avoiding public places and are switching from malls, supermarkets and local shops to e-commerce for everyday commodities, the sales of companies providing online shopping as an option have gone up and will continue to be that way in the coming time as well. Online shopping saves time too and helps in a great manner during these times when most of us are on WFH and have less time to go out for any daily needs /grocery shopping. The fear of getting sick and catching up the virus is also eradicated plus the same day delivery adds up to the convenience and thus helps a buyer to order stuff safely from his/her home.
While some of these businesses considered digital as their secondary priority, while others had none et all - are forced to digitize their operations and are now accepting the orders online with contactless deliveries and digital payments. The current situation with Covid 19 and the uncertainty over it brings an opportunity for the small & medium sized businesses to be reborn online.
As per Statisa, Australia currently ranks tenth in the e-commerce sales worldwide and expected to produce nearly A$35.2 billion in ecommerce sales this year. By 2021 it is projected that 1 of 10 sales in Australia will happen through online channels. Therefore it can be inferred that the future growth of most of the businesses is in ecommerce. With Covid 19 - these numbers are only going North.
After easing the lockdowns in May, 2020 ahead of many advanced nations, Australian Retail sales jumped a massive month-on-month of 129.2% in clothing, footwear and personal accessory retailing. Cafes, restaurants and takeaway food services saw a surge of 30.3%, with both sectors coming off very low levels of trade in April. (Sources: Australian Bureau of Statistics)
The whole set of data is encouraging and shows that digital transformation is the need of the hour while the businesses have to understand that just like their consumers, who are changing their behavior/habits and now shopping online, they too have to be ready to fulfill their needs and thus support them in this change. The response to this change that they will have right now will ensure whether their customer will continue trusting them with fulfilling his/her needs or look for some other option in this ever changing cut throat competition.
MintWorxs is helping Australian small and medium businesses reinvent themselves online with minimalistic or negligible investment. When the times are tough..the tough gets going! Carry on Australia...