1

RETAIL

LOCKDOWN

IN

ACULTURE

May 2020havas integrated retail team

havas integrated retail team 2

Nobody would have predicted a devastating global pandemic that would see a huge proportion of the world’s population under some form of social restriction.

The effects of the current Covid-19 pandemic on the retail sector are obvious and it’s been one of the hardest hit sectors so far: shops are closing, online retailers are having to adapt, and consumers are reprioritising their spending as they become increasingly worried about the effects of the economic downturn.

It’s easy to get caught up in the many negatives – and although this is unquestionably an extreme and unprecedented crisis, the retail sector is no stranger to the requirement to adapt.

PANDEMIC CULTUREA purposeful response from retailers is a crucial step to creating and sustaining a new kind of economic activity. The relationship we have with ourselves, friends, family, colleagues and the brands that we choose to buy has changed: this pandemic has altered the retail landscape, probably forever.

Those that will survive and perhaps even thrive during this pandemic and its aftermath are the brands that continue to express clarity of purpose and enact their values with meaning; empathy, openness, agility and honesty have never been so important.

Clear messages and more meaningful interactions from brands are empowering for customers, helping to turn feelings of vulnerability into an increased sense of security, turning anxiety to calmness, fear into fortitude.

UNPRECEDENTED.

3havas integrated retail team 3

WHO IS SUCCEEDING SO FAR AND WHAT CAN WE LEARN FROM THEM ?

havas integrated retail team

We are actively tracking the behaviour of consumers and exploring the retail brands that are already adapting to this ‘new normal’ retail landscape, in order to predict some of the outcomes of this crisis and some of the potential winners and losers in the retail sector.

4havas integrated retail team

As clothing stock begins to pile up in warehouses we’re seeing fashion giants and high-street brands alike temporarily refocusing the efforts of their employees and supply chains to help produce personal protective equipment (PPE) to help key workers tackle the outbreak.

H&M Group has asked its whole supply chain to support it in developing, manufacturing and delivering protective garments and masks across Europe. Its Head of Sustainability, Anna Gedda commented: “We see this as a first step in our efforts to support in any way we can. We’re all in this together and have to approach this as collectively as possible.”Reference

www.ecotextile.com/2020032225865/fashion-retail-news/ h-m-suppliers-to-make-ppe-to-tackle-covid-19.html

1 BE EMPATHETIC,

&CONTRIBUTE.

FORTHRIGHT

havas integrated retail team

5havas integrated retail team

2 BE OPEN, BE FLEXIBLE

INNOVATE.AND

Referencewww.springwise.com/innovation/fashion-beauty/lin-qingxuan-livestreaming-coronavirus/

5

With the majority of physical retailers and personal interactions on hold, we’ve seen brands exploring innovative new customer experiences online – maintaining a personalised experience for customers and motivating and retraining their workforce in the process.

Israeli beauty brand Ahava turned all its retail staff across China into beauty influencers, live streaming product demonstrations and driving sales online through Weibo. As a result, it’s enabled its workforce to expand its skill-set, find new ways of working and protect employment.

The cosmetics company, Lin Qingxuan was forced to close 40% of its stores during the crisis, including all of its locations in Wuhan. As a response to this, the company redeployed its 100+ beauty advisors from those stores and re-purposed them as online influencers, leveraging digital tools – such as WeChat – to engage customers virtually and drive online sales. As a result, its sales in Wuhan saw 200% growth compared to prior year.

6havas integrated retail team

While the UK population have rallied in support for the NHS and all key workers in this crisis, some brands have also been quick to respond. Supermarkets have opened dedicated shopping slots, Shell garages are offering frontline workers free food and drink, Nero and Costa – free coffee and Deliveroo are offering opportunities to buy key workers meals through its app.

Following a commitment to providing one million meals through its SalutetheNHS.org alliance Tesco have started to open pop-up convenience stores at NHS Nightingale sites nationwide, to provide frontline health care workers easy access to essential products.

3 BE COMPASSIONATE,BE CHARITABLEAND GENEROUS

Referencewww.salutethenhs.orgwww.retailgazette.co.uk/blog/2020/04/tesco-eyes-pop-up-stores-at-nhs-nightingale-sites/

7havas integrated retail team

4 Referencewww.feedbritain.com

With restaurants, pubs and leisure spaces closing during lockdown, we’ve seen companies react quickly to reinvent their offers – with many having to find innovative new ways to sell existing stock and support their suppliers.

When panic buying took hold, many were left without essential items at home. Leon were one of the first UK brands to adapt by becoming grocery stores. It introduced and delivered ready meal boxes, store cupboard essentials and fresh produce, providing an essential service to the local community, maintaining business and even enhancing its brand awareness in preparedness for the time that restaurants reopen.

BE ENTREPRENEURIAL, BE AGILE AND REINVENT

7

8havas integrated retail team

SUPPORTIVE,HONESTANDBUILD

5

Referencewww.elle.com/uk/fashion/trends/g31778444/independent-clothing-brands/

Since the crisis began, consumers have been largely confined to their homes and local areas. When the big brands failed to provide the essentials, consumers turned to local, independent retailers – loyalties started to shift.

Fashion magazine Elle recently launched a list of the ‘top 100 independent clothing brands to support’, with the tag line ‘if you’re considering shopping during the Coronavirus outbreak, then try shopping independently.’

havas integrated retail team

Brand building has never been so important. Short-term actions can have lasting consequences. It is key to offer consumers reassurance and the confidence that things will return to (some form of) normality.

Demonstrating that your brand is true to its purpose and mission – the things that define you – really matters to your customers and staff, more than ever.

WHAT THIS COULD MEAN TO THE SECTOR AND TRENDS LONGER-TERM

A POV9

10havas integrated retail team

havas integrated retail team

WE’VE USED INSIGHT INTO THE BEHAVIOURS OF CONSUMERS AND BRANDS ADAPTING TO THE ‘NEW NORMAL’ TO MAKE SOME PREDICTIONS OF OUR OWN:

TIMEWELLSPENT

EMPOWERING PEOPLE

THE NEW ECONOMICS

ALTERNATIVE RETAIL

10

11havas integrated retail team

TIME

WELL

It will bring opportunities for new types of retail and leisure experiences. Driven in part by a heightened appreciation of health and well-being, travel and a ‘seize the day’ mentality will encourage people to more actively seek out experiences that enrich their lives and make the most of time shared together.

After enforced working from home, expectations around traditional working hours and practices will change. This renewed sense of work-life balance represents a lifestyle shift for consumers. This in turn will influence the expectations on the ‘retail destination’ and how it will need to evolve.

SPENT

12havas integrated retail team

EMPOWERING PEOPLE

Many of the businesses that have worked to support and encourage their employees, will enjoy a return in the form of a renewed sense of loyalty and a drive to contribute to the business in the future. Both employees and consumers will feel empowered to make more critical choices about who they work for and with, or who they buy from.

A new form of transaction is emerging. Kindness is a real currency; delivering against purpose, and clearly communicating it, pays off.

13havas integrated retail team

THE NEW ECONOMICSPeople have and are experiencing real financial strain. The need to shop, eat and live differently has exposed people to products and services which had previously been unfamiliar. Food retail in particular is seeing real shifts in demand, with canned goods, cost-effective cooking ingredients and preserves now the staple on kitchen tables around the world.

Sustainability will continue as a driver in decision making, with hygiene now even more important. Retailers who embrace this across range and experience can empathetically align with consumers’ beliefs and behaviours.

€

$

£

14havas integrated retail team

Social distancing has forced consumers to explore places, products and services online. This trend looks set to continue, with consumers embracing more innovative (virtual) outlets, across all products, for all ages.

Bricks and mortar stores now need to create a clear link across all platforms and consider what this new retail dynamic means for their brands. Digital ethics – privacy, transparency and security – will be an important message in this revitalised virtual high street.

ALTERNATIVE RETAIL

havas integrated retail team

havas integrated retail team The End.

ABOUT THE

HAVAS INTEGRATED

RETAIL TEAM

HKX Village in King’s Cross, London, is home to more than 20 Havas agencies. We established the Integrated Retail Team to bring together the best retail expertise from across all of those agencies to encompass everything from retail trends and insights, through strategy to business transformation, creative concepts, employee engagement, design, media planning,PR and social activation.

We are founded on collaboration – delivering an holistic approach regardless of channel or sector – and continually supplementing agency skills to deliver the best results for our clients.

Contact

If you would like to know more about what we do, please email us on HKX-RetailTeam@havas.com

havas integrated retail team