How Modern Retail Should Respond To Covid-19
Retail in India has always been a lively affair. The act of shopping is generally an exciting event, and often family focused, with consumers keen to touch and feel products, and engage with store staff.
While these activities have been absent for the past three months, June 8 represented a significant milestone with shopping malls opening again in safe zones. Naturally, this will provide retailers with a significant boost, but does it mean the sector will return to ‘business as usual’?
Recent weeks have accelerated thinking and execution of digital transformation across almost every sector. It’s often not about new thinking, but more rapid implementation of plans that have been developing for some time. The opportunity to enhance experience and service for customers through technology has become clearer during this turbulent time. One third of Asia Pacific CEOs are leading digital transformation themselves—but how much thinking have they put towards unleashing the right brand experience for their customers?
For weeks, the thinking of India’s consumers has been reconditioned, and behaviours have seen remarkable shifts. Carefree shopping has now been dampened with concerns about social distancing and safety.
For many, the desire to spend has been curtailed by economic uncertainty. For those who can, home confinement has boosted buying online. A quick look on Swiggy, a prominent delivery app, shows that a host of major FMCG players, physical grocery stores and even more niche retailers have signed up to sell their products on it—entering the online space.
Just precaution is not enough. India’s fondness for retail sales will only do so much in luring back shoppers. Newly introduced industry-standard queuing systems and increased store cleaning regimes can’t be considered as unique selling points.
Faced with less customers, but the same amount of competition, India’s retailers need to re-examine their place in a post-pandemic world. Proper precaution is a must have, but one has to go beyond.
Creating an ownable and unique retail experience should be top of mind on any given day; recent events mean this has become more crucial. Equally, retailer responses should be viewed through the lens of the brand.
The requirement is more than just ‘restarting’ operations. Retailers need to consider the need for a fundamental ‘restage’. Retailers have to create places where people want to be; the desire that they create in consumers must make their physical stores preferable to other options—whether they be competitor stores or online channels.
As a starting point, there are three vitally important necessities that retailers can flip into opportunities that will help restage their brands.
Display empathy and generosity: Covid-19 represents, perhaps, the first global experience that has affected us all. If retailers continue as normal, they will appear disconnected and out of touch. Displaying empathy and generosity (of spirit rather than discounts) will be more important than ever.
Improve service: The human dimension of face-to-face contact can’t be replicated online. People crave human contact, now more than ever, and retailers should be doubling down on useful, authentic service rituals.
Also, if social distancing continues, brands need to own it, because queuing is a perpetual problem in retail. Taking a leaf from the online grocery playbook, can pre-booked time slots translate to store visits? It would solve the problem of overcrowding and elevate the retail experience by establishing a more personalised, consultative and solution-based service experience.
Create emotional peaks: Finally, retailers need to trigger excitement and think more like film directors to create emotional ‘peaks’ within the customer journey. It’s high time that retail experiences moved the needle from consistently good to extraordinary. Done well, this approach displaces competition and leaves customers with powerful memories.
The context has changed, the need is more pressing, but the challenge is familiar—give customers compelling reasons to visit your stores. Now is the time to introspect, act and restage.
Originally written for and published by The Financial Express.
By Dominic Twyford, Business Director at FITCH India