(English) Risks and Opportunities in Smart Retail Amid the New Coronavirus Epidemic
2020-02-28

(English) The sudden outbreak of the novel coronavirus has disrupted everything over the past month. Traditionally, the Chinese New Year is a prime time for marketing; this year, sadly, relevant marketing campaigns hurriedly lined up to take a bow before launch amid the new coronavirus crisis. It is business unusual, and huge challenges and uncertainties are overshadowing the retail growth outlook for 2020, posing daunting problems for marketers and advertisers.

Epidemics fan e-commerce and O2O demand

The sharp decline in customer flows and the temporary closure of retail stores are dampening retail activity in Q1 2020. Instead of the traditional fresh market, consumers buy food items online. The epidemic therefore is increasing the demand for e-commerce as well as online to offline (O2O) delivery services, and the uptrends are particularly apparent for fresh foods.

Analysis of relevant data before and after the 2003 SARS outbreak underlines major epidemics do change consumer purchasing habits; notably, outbreaks of epidemic diseases will usher in colossal growth opportunities for sectors engaged in health care, health and convenience products and services. Meanwhile, data as of June 2019 shows China has more than 800 million Internet users, with an Internet penetration rate of over 60%. In China, the Internet is part of life. Given that omni-channel is now the norm in the consumer and retail industry, e-commerce and O2O services are playing a key role in people’s life in the new coronavirus epidemic.

Digital transformation, differentiated competition and integration among giants

supermarket

Look at hypermarkets (i.e. superstores that combine a department store and a grocery supermarket). The reduction in customer flows subsequent to the virus outbreak is within projections. Their large scales of operations mean they are in a favorable position to adopt more flexible business models and multi-channel development strategy to find new growth opportunities via active digital transformation.

To new consumer communities such as Hema Fresh, differentiated competition gives them an edge in customer acquisition. Hema Fresh is Alibaba’s online and offline hybrid grocery stores, a data and technology-driven new retail platform. It stands out with high-speed, high-hygiene refrigerated transport logistics capabilities for its online fresh food purchases, promoting home delivery within 30 minutes. Drawing in new consumers and attracting customers to put more in their shopping baskets are vital to the growth of brick-and-mortar retailers while O2O services are evolving into standard practice in the retail sector. Yet, their response during the new coronavirus epidemic has been quick by rolling out shopping and delivery methods that require no physical contact and other innovative services to meet customers’ expectations.

Will rebound from rock bottom mean “retaliatory” consumption and new opportunities?

DiagramThe diagram above indicates during the SARS epidemic in 2003, total retail sales of social consumer goods fell sharply in the short term, followed by a fierce subsequent rise. As the epidemic faded out, the value of retail FMCG (fast-moving consumer goods) purchases shot up beginning from June that year after free fall in April and May. Hence, the current retail downturn should be just darkness before dawn. The Chinese government is implementing unprecedented containment and health measures to combat the new coronavirus. It is expected that the worst will be over in one to two months, after which enterprises will be presented with bright prospects—this is a get-set-go moment. In the medium and long-term horizons, this new coronavirus epidemic is forecast to drive daily necessities and apparel retailers to shift to high gear in their e-business and omni-channel development, which will speed up their transformation to smart retailing.

E-commerce and smart retail development accelerating

E-commerce business development now tops the agenda. Enterprises are upping their digital advertising investments to compete for online market shares. The increased online activities and more intensive promotional efforts are predicted to stimulate online sales growth. All this will result in a virtuous cycle. It is forecast that smart retail development will be strategized at a faster pace as strategic cooperation and resource replacement with major e-commerce platforms deepens. 

Epidemic situations put enterprises’ crisis response ability to the test. The current new coronavirus epidemic is highlighting the revenue role of e-commerce and O2O for retailers. There are digital marketing solution providers ready to assist and facilitate enterprises to implement successful e-commerce and O2O strategy. As the leading omni-channel marketing technology company specialized in the China market, iClick offers multi-channel network (MCN) end-to-end marketing solutions covering dominant social platforms and over 1,700 mid and top tier key opinion leaders (KOLs) in China to help global advertisers make the most of social commerce and smart retailing in order that they can sell to target Chinese audiences. Above all, enterprises must look to smart retailing and digitization to ensure uninterrupted operations and business growth in the interests of both themselves and the society.

 

更多媒体聚焦
唐健:爱点击下一个10年笃定“数字化运营” – Morketing专 ...
2019年06月26日
“当下,整个传统行业面临的最大问题是获客增长变的更为困难了,尤其是对于线下实体经济来说”爱点击(NASDAQ:ICLK)共同创始人兼COO&CTO唐健在接受Morketing专访时说道。 回顾过去几年的数字营销行业,各类新概念层出不 ...
爱点击唐健受邀出席“华为云杯2019深圳开放数据应用创新大赛”启动仪式 ...
2019年06月20日
北京时间2019年6月19日-深圳,由深圳市政务服务数据管理局联合坪山区人民政府、前海管理局共同主办的“华为云杯2019深圳开放数据应用创新大赛”正式拉开帷幕。爱点击(NASDAQ:ICLK)共同创始人兼COO&CTO唐健博士以香港 ...
爱点击唐健:数字化转型是传统企业全面提升生产力的必由之路 ...
2019年06月03日
数据在商业竞争中发挥的价值越来越显著,经过业界不断的实践探索已经开始进入帮助各行各业优化业务、提升效率,进而创造出新商业机遇的阶段,企业拥抱数字化的重要性不言而喻。当前在全球新一轮科技与产业革命中,抓住“信息技术”推动各个产业“数字化、网络 ...
爱点击唐健:2019,坚持创新、把握节奏、赢得未来 | 广告之家“领导者说” ...
2019年01月30日
知名行业媒体广告之家“领导者说”年度特别专题日前专访爱点击COO、CTO兼共同创始人唐健博士,回顾企业成就,探寻智能创新,共同展望2019行业发展。 “风云变幻”往往也预示着“更多可能”。2018年,我们看到了互联网流量逐渐缩紧,然而三、四 ...
Morketing发布爱点击等《MarTech企业功能链路图》 ...
2019年01月19日
2019年1月,Morketing旗下行业研究分析品牌Morketing研究院发布《MarTech企业功能链路图》,首批发布包含爱点击等Martech企业。 《MarTech企业功能链路图》从广告主角度出发,梳理各营销服务机构在整个营销决策 ...
请回答2019:爱点击与你跳出营销看营销 | Morketing年度盘点 ...
2019年01月11日
热闹的2018年成为了过去式,翻开日历,2019年已然到来。新年伊始,身为一名营销人,会在Ta的日历上写上哪些关键词?知名泛商业媒体Morketing邀请爱点击等行业领导者参与年度盘点,谈谈各自眼中2019年的营销行业变化与挑战。 “201 ...
Fmarketing专访爱点击,与数字营销大佬对答2019 ...
2018年12月27日
每年岁末年初之时,都是总结过去和展望未来的关键时刻。站在新旧交替的十字路口,知名营销媒体Fmarketing访谈爱点击等营销领域大咖,对过去的一年进行了总结,同时也对2019年的行业发展趋势进行了展望,为行业在2019年以及未来的数字营销发 ...
环球旅讯 | 爱点击中国出境游旅行购物白皮书:海外消费追求独特,商务旅行者潜力大 ...
2018年12月18日
近年来,中国出境游人群已成为全球旅游零售业的一支中坚力量。2017年,中国出境游人数快速增至1.29亿,随着海外消费量的增加,中国出境游游客被当做旅游零售、奢侈品、休闲、酒店和交通运输等许多相关行业的重要收入来源。因此,对许多品牌来说,采取 ...
爱点击《中国出境游旅行购物白皮书》打破“套路”,全新视角解读三大发现 ...
2018年12月11日
小程序、短视频、垂直社群,三大关键词回顾2018双十一营销 ...
2018年11月11日
随着新零售强势发展、互联网全面移动+社交化,一个分散化的中国零售图景正在展开。刚刚结束的2018年双十一,天猫总交易额以2135亿元再创新纪录,但这一天已不是阿里巴巴一家的狂欢。 双十一走过10年,期间经历了移动互联网、移动支付、新零售、全 ...
有数据未必有好决策,想接近“正确答案”还需要哪些工具?| Morketing ...
2018年10月12日
大数据已经深入到人们制定决策时的方方面面。 早在十年前,谷歌就尝试利用大数据和搜索引擎去解决如流感预测等实际问题上。工程师们假定:一旦人们患上流感,就可能会在搜索引擎上输入特定的检索词条以获得与流感相关的信息。通过汇总和分析这些检索词条,谷 ...
观潮Nasdaq:非常态演变的中美关系与非惯性跟涨的中概股 | 雪球 ...
2018年10月12日
【 自今年3月份中美关系出现波动以来,特朗普的强硬给中美经济蒙上一层阴霾。距8月底美股续创盘中新高8030.04点还不到一个月,特朗普再次宣布将对中国加征关税,美元兑人民币汇率再次兵临”7″字关口。】 中美关系波动, ...