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Covid-19 poll daily insights

Sunday
March 22, 2020

  • Increased reports of delays with logistics providers
  • Consumers are starting to focusing on new essentials
  • Reports of continued reduction of spending on ads

 

We’re seeing reports of more brands experiencing delays with logistics providers. The data is still very noisy so it’s hard to infer actual impact – it seems like more brands are experiencing warehouses fulfilling more slowly than in the past. California ordered citizens to stay home which has brands concerned that warehouses may close, though we hear reports that warehouses intend to stay open. Colourpop announced today that they will be temporarily closing their warehousing and fulfillment center. The number of brands who report no issues with their supply chain is reducing day over day. More brands are concerned that they’ll experience issues but more than half of all brands are not experiencing any issues.

Are you seeing issues with your supply chain?

Consumers are starting to buy more categories with the new essentials in mind. Reports from consumers who are spending more time cooking are considering buying new cookware. Parents are looking at buying crafts for kids to “Keep kids busy, use time at home to do home improvements.” We spoke with multiple people who are looking at buying bikes as a way to get exercise and spend time safely outside. We will dig in more on consumer intentions and report them back here.

An increasing number of brands report that they are reducing their spend on advertising. A steady number of brands are spending more on advertising. There appears to be a slight trend of an increased number of brands who are not spending on advertising.

Are you still spending on ads

Marketing Moments

What’s working?

They are also focused on selling new essentials. Faherty, an apparel company, is marketing their “Comfy Collection” via email as perfect for people working from home.

faherty covid email comfy collection

Their email features families with young kids and the subject line calls out clearly “Working from home? 25% OFF Comfy Collection”

Redline Steel is focused on community building and spreading positivity. They are giving away a FREE Nurse Life Piece (limit of 10,000) for anyone who wants to dedicate their thanks to a nurse who they are thinking of.

redline steel covid email example

Highlights:

Brands with increasing sales

How are they feeling?

Brands are enthusiastic about their results and tentative about the future. They recognize that their in-demand items are flying off the shelves and they are not sure how much more inventory they’ll be able to get. China manufacturing is optimistic that production is ramping back up.

What’s working?

Brands that are selling well are thinking about fulfillment contingency plans – such as fulfilling in their homes in the event their warehouse closes or is too delayed.

Brands with decreasing sales

How are they feeling?

The general sentiment among brands with lower sales is “The shorter this lasts the better. As long as I maintain a good connection with my customers, and keep them informed of our situation, I believe we’ll emerge even stronger.”

What’s working?

“Staying in touch with the customers. Providing a voice of hope and solidarity. I believe keeping our inbox and social media open to discussion we are giving people reason to believe in us as a beacon of hope and a reason to believe that, while this sucks, we’ll get through it together.”

Some brands are shifting to sell online courses, so they can offset some of the reduction in product sales. Product releases continue to do really well. The Bearded Bastard reported releasing a product that has a huge boost in sales.

Brands are being creative about how to position their product. Sur La Table is recognizing that people are cooking more at home and offering products and tips on how to cook better food.

sur la table covid email subject line

One brand reported running a giveaway that has huge engagement, likely because people are working from home and engagement on social media is up.

Brands with flat sales

How are they feeling?

Brands are putting in the effort to staying positive, being resilient and nimble. They’re cautiously optimistic that their businesses will survive this downturn and they will emerge with tighter, stronger businesses.

What’s working?

Many of these brands report that advertising is working well for them, in particular on social media. We heard reports that social media engagement and time spent is up, as more consumers are working from home. Promoting top selling products and solutions for new needs (e.g. kids at home, furnishing a home office, cooking from home) may be resonating with consumers.

More resources for businesses affected by Covid-19