The retail sector contributes to 10% of the nation’s GDP. Retail sales have been an economic indicator because consumer spending drives the Indian Economy. Once the lockdown ends, consumers will want to make themselves feel better – which usually means they would step out to shop. The pandemic, however, would have an impact on how we would feel about crowds and tight spaces.
As retail outlets in the country remain shut, retailers have accelerated and activated campaigns on their online channels. A lockdown extension would result in a disproportionate impact on the retail sector which would eventually lead to a loss in jobs. The sector directly employs around 50 million people. If the lockdown continues a 25% loss in jobs is expected.
In a recent webinar by India Retailing.com, mall owners have suggested the government to open up the organized sector as it would be convenient for them to manage a billion square feet area with all the necessary hygiene checks in place.
It’s about time retailers start moving to online channels. Once the pandemic comes to an end online shopping is expected to boom. One of the largest increases in eCommerce shopping is in India.
The post COVID world would witness a change in consumer behavior. Consumers would be extremely cautious with their spending as well. Here are a few suggestions on how retailers should work on their retail strategies during the current pandemic.
1. Focus on current customers
2. Upgrade your website
3. Develop relevant content
4. Optimize internal processes
5. Prepare for logistics and supply chain to come back online
Nielsen has identified three distinct time horizons for global market regeneration beyond the novel coronavirus (COVID-19) global health emergency and attached likely scenarios to each. The three-tiered framework identifies the conditions for businesses to rebound, reboot, or reinvent as they confront expected unprecedented recessionary conditions.
BCG has shared an exhibit with probable strategies retailers can use to reach various objectives. The exhibit suggests ways retailers could align their markdown program closely with the retailer’s objectives.