The E-Commerce Pandemic Boom
The current global pandemic has undoubtedly had a huge impact on businesses and how they operate. Retailers have had to deal with massive disruptions to their operations, with some brand’s sales coming to a stand-still. Online business has naturally taken precedent, seeing a whopping 52% increase on online sales compared to the same period last year. While most are fortunate that business is still moving, albeit in an altered state, some businesses have had hustle to keep up.
As many big businesses have struggled to adapt, managing staff welfare in huge warehouses and managing customer expectations as delivery times have extended, many smaller businesses have hit their stride.
With a large portion of small business owners suddenly finding themselves with more time on their hands than expected, they have been able to dedicate themselves to the e-commerce side of their business. As many smaller businesses typically have a smaller staff, if not a solo operation, launching a whole new side of the business when their existing model required so much attention was just an impossible task for most.
E-commerce is booming - Des Travers, Chief Executive DPD Ireland, the largest courier company in Ireland reported “an absolute tsunami of parcels” in the last number of weeks. Initially anticipating a dip in demand, he has admitted that he got it completely wrong. The increase in demand for online shopping in Ireland has seen volumes of parcels being delivered shoot up by about 10pc, higher even than the busiest periods for online shopping, usually Black Friday and Christmas. If consumers are spending they have little option but to buy online as long as physical shops remain closed.
While all is not rosy for some businesses - a study from Slackline revealed that the fastest declining product categories have been luggage, briefcases and cameras, that still leave plenty opportunity for smaller brands to snap up this business. People are more interested in their home, garden, self care and hobbies and are shopping accordingly. Compared to March 2019, transaction volumes increased by 97% for home products and furnishings, 136% for DIY products, 163% for garden essentials and 26.6% for electronics. These categories are often spearheaded by independents and small business who have learned to adapt to their new demand at breakneck speed. Through necessity, small businesses have become hugely innovative on their approach to e-commerce. Independent bookshops who never had an online presence have begun home delivery, supported by story telling on their Instagram pages, small garden centres have begun phone orders and small stores have set up their first online sites.
As the economy is suffering from job loss and store closures the message his clear, if you can you should continue to spend while supporting small businesses if possible. Choosing to shop with independent businesses is an easy way to do this. Ireland’s creative industry is thriving, and this time has given many creators a newly engaged audience eager to support thriving ventures. At Hunter we keep a close eye on proceedings, sharing our favourite Irish companies on the Hunter Instagram channel each Friday in our 5 For Friday series. For example, we work with sustainable store The Kind, who started their journey as an e-commerce business so inevitably had a stronger footing when switching back to online-only sales. Having launched a retail space in conjunction with eco-toy store Jiminy in Dublin for Christmas 2019, the unmitigated success of this venture meant The Kind were able to relocate a few doors down on Fade St to a more permanent space in the beginning of 2020. The Kind has differentiated themselves from other similar business with a high-end luxury lifestyle offering, bringing sustainability to a new customer. One who is just as interested in sleek design as they are the planet. Like most other stores, they shut up shop in March in accordance with government guidelines. Founder Sheelin quickly switched tact, refocusing her efforts on the online store, while simultaneously increasing er presence on Instagram. This has proven to be massively successful for The Kind, with sales far exceeding expectations. No doubt the limited run as a ratio space introduces the brand to a new customer base who have remained for this new chapter.
Another Irish success story is Industrial Design brand Kopper Kreation. They made a home for themselves at trade shows and in design stores around the country. Using reclaimed and recycled materials to create their unique homewares, creator and founder Emmet Bosonnet created designs inspired by an industrial aesthetic, putting form and function at their core. This sustainable brand has garnered a huge number of fans over the last few years, but with Emmot’s usual retail avenues closed for business, he has had to dedicate himself to the emerging e-commerce side. As a one-man operation, the website understandably took a back seat to the more profitable shows but this time has given Emmot the space to create a beautiful website that will sustain his business over the coming months. This approach will leave Kopper Kreation in a much stronger trading position moving forward, with an always-on approach to business that will open up a new market who may not have come across his brand before.
Cult condiment brand White Mausu have been steadily building name for themselves with foodies in the know for the last number of years. Their Peanut Rayu has fans all over the country, but previously was only available in deli’s and select stores, meaning getting your fix was harder than ever when the pandemic hit. The brand quickly set up their online store, ensuring business would keep moving over, with sales coming in from all over the world.
It’s not just brands who are pivoting their business structure - Dublin based photographer Ruth Medjber has a successful career photographing the worlds best music talent at concerts and festivals around the world. This usually keeps her pretty busy but as events have been cancelled over the next year she found herself at a loose end work wise. Setting up an online store had always been put on the long finger, despite repeated requests over the years from fans of her work. During this downtime, Ruth has managed to create a new website under her Ruthless brand showcasing her stunning work and selling prints. Hugely active on Instagram, Ruth has used this platform to inform people, build hype and direct followers to the store, generating a new revenue stream at a time when her usual work is not possible. Ruth is also offering portfolio reviews and private tutorials to budding photographers, capitalising on her talent and popularity in the industry, while creating something of value to consumers. This pivot perfectly encapsulates the ingenuity of the creative industry and how best to utilise this time at home.
Global brands have also switched their focus, with the likes of Heinz taking their goods direct to consumer for the first time ever, also delivering their product to front-line workers. This is a perfect example of a brand pivoting their strategy while doing their part simultaneously. Shopify, the software company who provide online store-fronts to businesses all over the world have extended three 90-day free trial, also offering their email free to merchants. As one of the largest companies providing this service, they are really stepping up to assist their customers who are under additional pressure at the moment. Lindt had originally predicted a 5-7% organic growth this year have had to reaches this figure, but have continued to sell their iconic foil-foil bunnies on their website, boosting this side of their business.
When business returns to the new normal, whatever that may look like, smaller brands who have spent this time wisely will reap the benefits for years to come. This time has altered how people spend and refocused their priorities. Conscious consumerism is on the rise and that can’t be a bad thing.