Impact of Covid-19 on Global Ecommerce
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The presentation highlights how Covid-19 (Corona Virus) has impacted Global Ecommerce. It talks about Customer Sentiments, The categories that have performed well, and the categories that have declined during this period. The presentation also shares how industries have come together and offerings different offers to the community.
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Impact of Covid-19 on Global Ecommerce
- 1. IMPACT OF COVID19 ON GLOBAL ECOMMERCE PRESENTED BY VIKRANT SHUKLA
- 2. Experience over 12 years in Ecommerce and related technologies IT Entrepreneur for 5+Years during this tenure Magento Certified Solution Specialist CSPO®,AWS Certified SolutionArchitect Business SolutionArchitect, Adobe Speaker at Global Events Love Music, Pets and Keen Learner Also known as #Supermageman https://twitter.com/vikrantshukla https://www.linkedin.com/in/shuklavikrant/ https://vikrantshukla.com/
- 3. AGENDA • How did Covid19 Impacted? • How is Customer Sentiments? • How are different Categories of Ecommerce Impacted? • How is Industry reacting to it? • Important Links • Q&A
- 4. COVID-19 IMPACT The COVID-19 health crisis disrupts personal, social and business situations. It is unlike an economic recession, technology disruption or other challenges leaders face. Each company and industry will experience its own challenges. This four- phase model in this figure offers a framework as a starting point for creating your own way of thinking about how to lead through this disruption.
- 6. COVID-19 IMPACT Nearly half (47.2%) of US internet users said they are currently avoiding shopping centers and malls. If the outbreak worsens, roughly three-quarters (74.6%) said they will steer away from shopping centers altogether. 32.7% of respondents said they were avoiding physical stores, and more than half said they’ll avoid them if COVID-19 spreads
- 7. COVID-19 IMPACT By and large, sales of consumer packaged goods (CPG) staples are surging. According to data from Nielsen, oat milk sales were up 305.5% in the week ending on February 22. In contrast, water sales were up just 5.1% below dried beans, energy beverages and pretzels. Sales of medical masks, for example, grew 78% during the first week of a four-week period ending on February 22, compared with the same period last year. By week four, sales were up by 319%.
- 8. Consumers Are Spending Less on Clothes and More on Food, Health Products • In April 2020, 52% of US digital buyers said they purchased clothing, shoes or accessories digitally, down 4 percentage points from February 2020. • More than a third (36%) of respondents purchased food and beverages online in April 2020, up 9 percentage points from February 2020 COVID-19 IMPACT
- 9. In Germany, Some 41% of online retailers said the number of customer orders had fallen; 58% said they expected a further decline in the coming months. More than half of internet users in Germany ages 18 to 69 said they never shopped for groceries online, according to a September 2019 “The level of just new orders every day is 25 times higher than in 2019,“Karsten Schaal, managing director of the online grocer food.de. COVID-19 IMPACT Culture Behaviour Ecommerce Trends
- 10. COVID-19 IMPACT DIFFERENT REGIONS
- 11. COVID-19 IMPACT DIFFERENT COUNTRIES
- 12. COVID-19 IMPACT HOME & LEISURE
- 13. COVID-19 IMPACT : GLOBAL SUPPLY CHAINS - BOPIS BOPIS orders surged to 62% YoY growth between February 24 - March 21 as people began applying social distancing to shopping to limit their exposure.
- 16. CONSUMER SENTIMENTS This chat shows the % level of consumers across different countries when asked about their confidence level of their respective country economic condition after this covid-19 situation. The survey was done by McKinsey and Company. Ecommerce psychology says that “Customer Optimism about their economy is directly related to their spending”
- 17. CONSUMER SENTIMENTS The survey done by McKinsey and Company shows that globally the customers believe that Covid-19 will have a long lasting impact on their personal routine and expenses. More than 75% of consumers surveyed believes the impact on their routine to be felt more than 2 months. More than 50% of consumers surveyed believes the impact on their financials to be felt more than 2 months.
- 18. CONSUMER SENTIMENTS Online purchasing is up. • 47% of consumers have increased the amount of online shopping they do; 41.5% stayed the same; 29.6% expect to spend less • 12.7% shopping online 51% to 100% more than they were before • 35.4% expecting to spend more money on retail purchases because of COVID-19 concerns Bulk buying is up • 55.8% of consumers are loading up or expect to load up on bulk quantities of goods • 62.6% of the most concerned plan to buy in bulk • 29.6% expect to spend less on retail, likely reflecting a drop in discretionary purchases related to non- essentials and entertainment, and employment / income concerns Product availability • Almost 40% of consumers have been unable to find everything they wanted online Survey – 2500 Customers in USA by IDC
- 19. CONSUMER SENTIMENTS Since the COVID-19 outbreak, has the country of origin of your goods become important to you?
- 21. SOME TRENDS According to Adobe’s analysis, since the advent of the ongoing virus, there has been an 817% surge in sales when it comes to products like hand sanitizers, antibacterial sprays, masks, and gloves. The online sale of medicines for flu, cough, and cold has increased by 198%. While the sale for pain relievers has increased by 152%. “Home Schooling” and “Garden furniture” have seen a rise of 130% and 110% search trends in last 2 months in UK and USA. According to data from Rakuten Intelligence, the online orders volume from e-commerce merchants increases 210.1% between the period of March 12 to March 15. U.S. retailers' online year-over-year (YoY) revenue growth is up 68% as of mid-April, surpassing an earlier peak of 49% in early January. According to Digital Commerce 360, between March 22 and April 4 online sales saw a 52% increase compared with the same time last year. Walmart - In March, online grocery sales at Walmart Inc. reached nearly $900 million, according to data analytics firm 1010data, which tracks online sales via credit and debit card transactions. That was an increase of 21% from February 2020 and 99% from the previous year.
- 22. THE FASTEST GROWING CATEGORIES With online retail sales estimated to reach an eye-watering $6.5 trillion by 2023, the ecommerce sector was already booming. With Covid-19, there has been major shift. Many consumers are also using their newfound time to focus on their health, with 85% of consumers taking up some kind of exercise while in social isolation, and 40% of them saying they intend to keep it up when restrictions are lifted.
- 23. THE FASTEST GROWING CATEGORIES
- 24. THE FASTEST GROWING CATEGORIES
- 25. THE FASTEST DECLINING CATEGORIES
- 26. THE FASTEST DECLINING CATEGORIES
- 27. INDUSTRY REACTION Google Shopping - Merchants Now Can List Products on Google Shopping for Free Ebay - The e-commerce giant announced the launch of its Up & Running accelerator program, designed specifically to help the 70 percent of small businesses that lack any online presence to make the transition to e-commerce. eBay is pledging up to US$100 million in support of the program. Amazon - Amazon said it temporarily would not require sellers in its marketplace to repay loans it had made to them . Amazon said it would hire 75,000 more people for jobs ranging from warehouse staff to delivery drivers as the coronavirus epidemic keeps Americans locked in their homes and demand for online orders surge. Magento - Magento has announced three months of free Magento Commerce for all kinds of businesses. Also, it is offering free Magento training programs. Shopify - Shopify has extended its free trial from 30 days to 90 days
- 28. HAND SANITIZER