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Covid-19 poll daily insights

Friday
April 17, 2020


 

Brands that sell non-essential items and report decreasing sales may adapt by changing their product selection to sell more essential products. Brands that sell non-essential items and report increasing sales are also exploring this tactic, though not to the same level. Only nine percent of respondents with increasing sales plan to change their product selection, compared to 23 percent of respondents with decreasing sales.

Brands that sell non-essential items and have decreasing sales

how will you adapt, brands that sell non-essential items and have decreasing sales 4-17

Brands that sell non-essential items and have increasing sales

how will you adapt, brands that sell non-essential items and have increasing sales 4-17

For businesses whose manufacturing is based in China, when asked why they believe their sales are being affected, only 14 percent say it’s related to supply chain problems. More respondents believe their losses or gains are due to the products they offer and other external factors like economic uncertainty or rising unemployment.

why are your sales being affected, brands whose manufacturing is based in China 4-17

Apparel and accessories brands selling on Amazon have been hit fairly hard. Of these brands, 60 percent say their Amazon sales have decreased or stopped entirely. On the other hand, 60 percent say their online ecommerce sales have increased.

how have your sales changed since coronavirus, apparel and accessories brands 4-17

Effective Marketing Moments

What’s working?

Charitable promotions. AllBirds, an online footwear company, is feeling extra charitable. In addition to donating $500,000 worth of shoes to healthcare workers, the brand has started donating additional shoes for every pair bought, and is also collecting money through its website for additional donations. We’ve seen several brands offer charitable promotions during this time, and it seems like a great way to get customers involved with a good cause.

Allbirds donating shoes to healthcare workers

Light-hearted marketing messaging. Vivid Seats, an online ticket marketplace where fans can buy and sell tickets to sports, concerts, and theater events, sent an email highlighting their virtual events. In their email, they use playful marketing messaging like, “Today’s Best Seat Is on Your Couch.” This messaging reminds us that, despite the stay-at-home restrictions, you can still find joy and musical entertainment from the comfort of your home.

Vivid Seats email

Highlights:

Brands with increasing sales

How are they feeling?

Many brands with increasing sales say their sales will continue to increase after the coronavirus has passed due to their online presence. They are less confident about the performance of their offline sales channels.

To this point, one brand said, “I think our third-party retail partners will continue to suffer as people will still be hesitant to congregate [and resume in-store shopping experiences].”

For those who don’t sell online and are considering it, here’s a great guide to get you started.

What’s next?

An optimistic future—sixty-six percent of brands predict that once stay-at-home orders ease, consumers will spend the same amount of money or more with their brand than they spent before the coronavirus crisis.

how do you think consumers' spending will change after the pandemic, brands with increasing sales 4-17

Brands with decreasing sales

How are they feeling?

Brands with decreasing sales are feeling mostly optimistic about the future. Fifty-two percent of brands with flat sales said they think customers will spend the same amount or more than they did before the pandemic.

how do you think consumers' spending will change after the pandemic, brands with decreasing sales 4-17

What’s next?

Brands with decreasing sales say that once stay-at-home orders ease, they plan to strengthen their online ecommerce store by adding more products and marketing resources.

One brand mentioned they’ll be strengthening their entire omni-channel customer experience. They said they plan to “assure [that their] brick-and-mortar and online shop customer data integration […] is solid.” With reduced marketing spend, “[they’ll] focus on [implementing] more CRM [efforts] and nurturing existing customers [by offering] loyalty and referral rewards.”

One way to optimize your omni-channel experience is to ensure your point of sale systems are fully integrated with your email marketing platform. Here is a helpful guide.

Brands with flat sales

How are they feeling?

Brands with flat sales are feeling optimistic about the future. Sixty-eight percent of brands with flat sales say they think customers will spend the same amount or more than they did before the pandemic, whereas only 11 percent think they’ll spend less.

how do you think consumers' spending will change after the pandemic, brands with flat sales 4-17

What’s next?

Seventy-five percent of brands with flat sales plan to spend more time building out their ecommerce store with more products and marketing resources.

how will you adapt, brands with flat sales 4-17

One brand even plans to “invest [in their] owned channels.” Owned channels are channels that allow you the freedom to create the experiences your customers are demanding. Your website, email, and mobile marketing are great examples of owned channels that provide an unprecedented ability to deliver personalized, memorable experiences that reflect your brands’ personality which is a unique representation of yourself. The ongoing delivery of those memorable, brand-rich experiences leads to profitable relationships. You can learn more about owned channels and owned marketing here.

Ready to invest in your owned channels? Here’s a toolkit to help get you started with owned marketing.

More resources for businesses affected by Covid-19