We just got through a market-shaping year in 2020. Consumer habits totally transformed as health and safety precautions became a purchase motivator, and we saw technological adaptation in a relatively short time that would normally have taken years. All this was caused by COVID-19, but the impacts will linger long after the pandemic. As a result, new ways and problems arose for retailers. According to a study by Deloitte, supply chain resilience ranks top 2 in the Retail Investment priorities for businesses in 2021.
With the last quarter of the year approaching, retailers should already consider them ready for the coming holidays. Last year was a blow for all businesses, and the retail industry experienced the same thing. Disruptions since 2020 have revealed current supply chain vulnerabilities. These revelations urged retailers to realize how ill-equipped they are to forecast and meet market demands in unprecedented times. Since a year had passed, retailers are now expected to have a better understanding of the situation and to have adjusted their supply chains accordingly.
With the peak season just a few months away, here are two areas that require special attention for retailers to work on:
1. Be accepting of change
The immediate goal is to ensure that the company can handle what is expected to be high e-commerce demand during the holidays. According to Accenture’s 2020 Holiday Survey, consumers plan to do some of their holiday shopping online, and nearly half plan to do all of their holiday shopping online.
The upcoming demand is not a light thing to be overlooked given the popularity of e-commerce platforms in the Philippines like Lazada and Shoppee. Filipinos are seriously preparing for the coming of holidays sales. To meet new e-commerce consumer expectations, retailers must respond and improve their supply chains, fulfillment operations, and digital strategy to meet current demands. Those who have already made this much preparation are more likely to be in a better position to step up. Carefully planning out demand peaks will also assist supply chains in managing the holiday season. This entails devising strategies to persuade customers to shop earlier than normal. Just like how Lazada and Shoppe are doing, sales are not just for the holiday seasons. Retailers can scatter their sales at specific times to distribute demands.
2. Do not neglect the power of data
Nobody knows what the next twelve months will bring because of the pandemic. As a result, retail planning for this year must be far more receptive and resilient. It is crucial to introduce new ways of working while remaining operationally flexible. This necessitates good data and strong analytics. Similar to how a pilot utilizes data from their instrumentation to fly in low visibility, retailers must use advanced data insights to guide their businesses through the coming uncertainty. Data are vital in providing sound business intelligence. As retailers, a better understanding of patterns and behavior is what will keep you competitive.
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