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MARKETING STOP THE COVID GRINCH THIS CHRISTMAS Covid-19 has changed everything, at least for the time being and certainly for Christmas. By Wunderman Thompson Managing Partner/Director of Shopper Georgia Bruton. The challenge that faces brands, manufacturers and retailers at this time is how to respond to change. Agility and optimisation are key. Assessing where and how shoppers are shopping is a necessity, as is reacting instantaneously. But alongside agility and optimisation, there is still work that can be done to get your businesses and brands ready for success this Covid Christmas. Understand the Covid impact on shopper behaviour Understanding and anticipating the behaviour of shoppers both locally and globally is the best defence against the inevitable impacts of Covid. In Australia there have been three key shopper behavioural shifts during the pandemic. These are: The rise of ecommerce Covid-19 has driven a huge increase in ecommerce across Australia, with some retailers seeing online sales increases of more than 100 per cent YOY, with ecommerce growth remaining above 50 per cent for the fifth consecutive month. Even in the states where lockdown and Covid restrictions have been minimal, such as Western Australia and Queensland, the baseline growth has been more than 40 per cent. In an ecommerce world, the benefits of casual browsing, dwell time and impulse purchases are minimal. While it’s easier to get shoppers to find and access products and stores, it’s also easier for them to access competitors’ products and stores, and less likely to create emotive brand connections. The mechanics at hand are far more functional and are easily diverted from, clicked off, or shut down. Therefore, understanding what makes shoppers tick in ecommerce, or more importantly, what makes them click, is key. Role of the store Traffic to physical retail stores (excluding grocery) has dropped between 50 and 100 per cent during Covid-19 due to closures, limitations and people wanting to avoid a high density of people. It doesn’t take long for consumers to form new habits and perceptions, and with five months of physical store avoidance, it’s no surprise that shoppers have changed their perception of what the role of the physical store is, from it being an ‘experience’ or ‘activity’ to a purely functional role. A focus on shopping local Data shows shopper appetite for Australian made and locally produced goods has increased significantly in 2020. Even in pre-pandemic 2019, Australian data indicated that 88 per cent of Australians would rather buy Australian made. The January bushfires ignited such an emotive and compassionate response 100 RETAIL WORLD NOV, 2020