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Covid-19 poll daily insights
March 25, 2020
- At least 25 percent of respondents continue to say sales are going up
- Supply chain impacts are becoming clearer and delays are making people worried
- More brands continue to say they’re spending more on ads
For the third day in a row, more brands this week report sales are going up than last week. It appears that consumers are keeping their spend up and shifting their dollars to new essentials—housewares, toys and hobbies, health and fitness, beauty and cosmetics, and specialty. More than 40 percent of brands reporting that sales are going up sell products in a new essential category.
Twenty-one percent of brands say they’re experiencing logistics delays with their supply chain (up from 16 percent). Additionally, 34 percent of brands that have reported issues with their supply chain are either because a factory is closed or their suppliers are temporarily pausing their efforts to provide materials—40 percent of which are apparel and accessories companies.
We’re seeing an increase in brands that say they’re spending more on ads. Brands that sell in higher demand essential and new essential categories (housewares, beauty and cosmetics, food and beverage, health and fitness) are increasing their ad spend and they’re also seeing increased efficiency.
Their cost per 1,000 impressions (CPMs) are down and cost per click (CPC) is flat or down, resulting in their return on advertising spend (ROAS) trending much higher than normal.
Effective Marketing Moments
Connecting to your customers’ new normal. Marine Layer, a men’s and women’s apparel company, sent emails to their community with their employee-recommended work from home (WFH) clothing and tips. The email campaign, “What we’re wearing and what we’re doing to boost our moods,” featured each team member’s personal WFH preferences.
Growing a customer base. Who Gives a Crap, a brand that sells toilet paper, used a punny pop-up form to communicate that they’ve sold out of their product. They also use the form as an opportunity to collect email addresses and build their email list with high intent shoppers who will be the first to know when their products are back in stock.
Brands with increasing sales
How are they feeling?
Brands with increasing sales generally acknowledge that times are good for them, though they aren’t expecting this to continue indefinitely. They’re concerned about current and forthcoming low stock levels.
Several brands have reported feeling hopefully optimistic: they’re creating a stronger ecommerce strategy, they’re increasing their online presence, and they’re acquiring lots of new customers.
Brands report that engaging and communicating with customers through email and social media is working well. One brand said they’re going to try to send personal videos to customers.
We also heard that promotional discounts have been helping. One brand reported offering a 30 percent off promotion on all full-price products and up to 70 percent off past season products.
Brands with decreasing sales
How are they feeling?
Brands with decreasing sales are feeling uncertain about shipping delays, fulfillment delays, and if they’ll have enough cash flow on hand to weather this storm. They’re also being more mindful of their ad spend and they’re spending less on ads because they’re not as efficient as they were previously.
Brands that reported having a physical store or that sell through wholesale partners are questioning their reliance on them. They’re considering putting more focus into their online channel going forward.
Brands report focusing on engaging communities through more humanized content is working well.
One brand reported that they were trying to use videos to show their brand story and their families. A couple of brands reported that keeping a positive outlook and relying on their team has helped them weather this time.
Brands with flat sales
How are they feeling?
Brands with flat sales remain optimistic that things will rebound, but they aren’t sure when that might happen. They’re concerned about how consumer spending habits will shift because of job loss. They’re also concerned with how they should sensitively communicate with people.
Brands report focusing on communicating with their existing network and customers through email and social channels is helping them to create a loyal customer base.
One brand said they experimented with an email newsletter and it’s helped them extend their brand reach further.