Westpac’s SME COVID-19 response report revealed that 49 per cent of Australian small businesses have changed the way they function due to the COVID-19 hit. For most this has been in the form of adding additional products and services 29%, shifting business to online 21% and transferring the focus of their business 19%.
With a plethora of new businesses popping up during the last couple of months and the diversification of almost every business, we have been noting the trends.
Shift to online
Firstly, although we do live in a digital age - it is interesting to note that pre-COVID many businesses did not have an online presence. Considering your local cafe, butcher, florist or supermarket - many shoppers were so accustomed to visiting the store and deciding what they wanted to buy on the spot, however, there has now been a forced shift to online.
Australian Study conducted by McKinsey & Co surveying Australian customers suspects that post COVID-19 or during a COVID Normal 25%-65% of customers will make a portion of their purchases online in most categories while 70 -145% anticipate they will make all of their purchases online. This spans not only groceries, apparel and household supplies but also makeup, snacks, alcohol etc.
Small business tip: Websites such as Wix, WordPress, Squarespace and Shopify are becoming a must for small businesses to rise in the online space.
Identify and push products within your business that meet current consumer needs
It’s no surprise that the COVID-19 Pandemic has forced a sudden shock on consumption and consumer spending with partial and total lockdowns all around the world. This has resulted in a change in what consumers are buying and prioritising which is consequentially pushing businesses and retailers to adapt and push products that weren’t normally selling as well.
Namely, there has been an identifiable increase in the purchasing of loungewear, candles, masks, care packages, graze boxes, pre-packed groceries and takeaway items as consumers seek convenience and value with stay at home orders. Many businesses are recognising this need and the products they already have to centre marketing campaigns around this.
One retailer that is paving the way and demonstrating its adaptability, placing relevant products front of mind to their consumers is The Iconic. Now including a #StayHome section - you are able to find all relevant items such as workout wear, WFH footwear and even face masks all in one unique hub.
A shoutout to small business in Metro Melbourne, Mini-Me Mango @minimemango cafe who have managed to utilise their current staff members to do free delivery within 25km of the store. Noticeably with tighter restrictions, they have also expanded their takeaway menu offering and pushed items like their vegan donuts which are a perfect gift for #isobirthdays.