How Brands must Evolve Online to be Relevant in a Post-COVID World

In April of 2020, Schoen Retail Consulting (SRC) conducted an informal instagram survey of over 400 respondents (97.6% female, 92.6% ages 25+) on how their shopping habits have changed since Shelter-In-Place orders have been introduced during the COVID-19 pandemic. While the results are mostly anecdotal, there are several key takeaways from the responses that lead SRC to believe that although both online and brick and mortar shopping behavior will change dramatically in 2020 and 2021, brands can still engage with their audience and make sales in impactful ways by evolving their online experience.

Of the results and feedback from the survey, there are three key takeaways that highlight the changes brands will have to take in order to stay relevant and drive sales. Brands will need to improve virtual shopping, offer within-the-day delivery capabilities and create product urgency in order to appeal to customers who are spending more time in virtual environments, are less impulsive and are more interested in local brands.

Improve Virtual Shopping

Over two dozen responses emphasized the need for increased virtual shop-ability, from YouTube store walkthroughs, to better e-commerce experiences, to personal text messages, to utilizing Instagram shopping features. One respondent went as far as to say, “It’s hard to imagine trying clothing on in a store (in the future)” and another stated, “(Local Shops) need up-to-date websites with ordering potential from their brick-and-mortar,” highlighting the desire to shop locally but lack of interest in actually stepping foot in the door. Companies that are able to quickly adapt to emerging online technologies and train their customer to shop virtually will win in the long run.

Fashion brands will need to step up their game regarding sizing and fabric quality through an increased use of video. Luxury retailers like Net-A-Porter have been incorporating video into their product descriptions for years, and smaller brands will have to take note in order to compete. Even less produced ‘behind the scenes’ smart phone videos are adequate for smaller brands to give the customer a better look at the quality and hand feel of a product, and allow them to feel more comfortable making a purchase. 

Lifestyle categories such as books, toys, crafting and fitness categories still have plenty of room for improvement in photography alone. Videos of toys being used by actual children have shown to increase sales immensely (and not currently a capability on large websites like Amazon), and close-up detail scrolling is important for most product categories. ‘Suggested’ cart add-ons are also key, showing the customer complimentary items that they may not have known to look for on the site, but will increase UPT and enhance the experience to an even better one than in-store (i.e. matching thread color to a fabric at Joann’s, or a stuffed animal toy that corresponds to a book selection for a baby shower gift).

Beauty is the one category that leads the pack in terms of virtual shop-ability, with custom AR (Augmented Reality) filters allowing users on social and proprietary apps to ‘try on’ products before purchasing. Mac Cosmetics, NARS and Kylie Cosmetics have been offering this for years, which at the very least has proven to be a long-lasting way to engage with their consumer.

Example of NARS instagram shopping and AR filter capabilities. Photo: Planoly

Within the Day Delivery

85% of respondents have tried local delivery or pickup for food, whereas only 30% had tried it for clothing, beauty, wellness, children’s categories, or crafting categories. The more familiar people become with curbside pickup, “within the day or hour” delivery, and shopping via instagram, apps, and other virtual experiences for food, the more comfortable they will become for other categories. Numerous responses highlighted the need for ‘faster shipping,’ ‘more curbside pickup’, and ‘contactless, smooth porch delivery,’ as fundamental for successful shopping experiences for local shops. 

B2C grocery delivery companies such as Instacart, Seamless and Shipt have trained the customer to be familiar with buying their grocery and commodity items through an app and delivered by a local ‘gig economy’ worker, and fashion and lifestyle categories are next. Local brands and stores will find success in working with local ‘gig’ workers as well, who can complete and deliver fashion, beauty, toy and craft orders within a scheduled timeframe. 

Professionalism, traceability and timeliness can be a competitive advantage for smaller and local shops to compete with Amazon Prime and other big box shipping capabilities. Delivery will need to be contactless and seamless, providing the same convenience that grocery and meal delivery currently provides. Within the day delivery or even curbside pickup can only be accomplished if the virtual shopping experience is vastly improved, which will continue to be the biggest opportunity for smaller and local brands.

Urban Fashion and Lifestyle deliveries could look similar to today’s bike messengers. Photo: Uber Eats

Create Product Urgency

Several responses highlighted the shift in spending as a movement away from impulse shopping. One respondent stated “If I cannot make the purchase online then I don’t need the product,” which supports another respondent’s claim “I am less likely to return an online purchase since I had more time to think about it”. 

In order to appeal to these less impulsive shoppers, brands will need to create product urgency again. Much like the emergence of flash-sale sites after the financial crisis of 2008, after the pandemic of 2020 shoppers and brands alike will look to exclusive, timed, and online sales events to drive sales.

However, in order to allow the customer to be prepared to shop, they will have to be extremely familiar with what the product or offer is ahead of time. What does this mean? @SororiteVintage trains their customers to shop new product drops every Friday at 2pm EST, and shows them exactly what will be in the new product offer days ahead of time through their instagram channel. Shoppers are encouraged to follow along with their daily Instagram stories to see what will be in the weekly release, including size availability. What isn’t included in the pre-shopping instagram story reveal? Prices. Therefore the customer is encouraged to sign up for the email list to receive first notice of the live products for sale, as well as the pricing for each item. This type of engagement and activity allows the customer to understand the timeliness of the sale, get their eye on a special piece ahead of time, keep up-to-date with the brand’s social media, and sign up for their email list, which will eventually convert customers.  

@SororiteVintage teaser images from instagram stories. Photos: @SororiteVintage

The question lingers as to whether these shopping behaviors will be short lived or remain as a permanent pillar in the shopping experience. SRC believes that while impulsive shopping may diminish in the short-term, virtual shopping and within the day delivery options are here to stay. For any brand large or small looking to engage with their community and protect themselves against the next recession, a brick and mortar presence will need to be buoyed with a robust online experience.