Johannes Altmann, owner and CEO of consulting firm Shoplupe, is one of
the most important e-commerce minds in Germany when it comes to the
customer experience. The current situation presents a real paradigm shift,
not only for brick and mortar stores but also for online retailers. We
asked the online prophet how the corona crisis is changing the buying
behaviour of customers.
Due to the corona crisis, the current consumer behaviour on the
internet has turned around by 180 degrees: People are forced to spend more
time at home and pursue their hobbies. Consumption, the fulfilment of
desires and the need for self-fulfilment have been reduced to a minimum.
Factors such as the desire to belong, originality and stimulation do not
really help consumers right now. Those shops whose business model consists
of staging and inspiration are having a tough time and the demand for
luxury, fashion and lifestyle has decreased. “For some of our fashion
customers, sales have reduced by half,” says Johannes Altmann.
Hobby and sports segments emerge as winners during the crisis
It is only logical that the current situation benefits mainly those
stores that deal with hobby, home and leisure products. There are countless
sports apps, free videos on the internet, and the springlike weather
entices people to go outside to jog or cycle. Therefore, it makes sense to
feature sportswear ranges as well as home wear or loungewear. “A large
online sporting goods store told me about doubling their order volume”,
comments Johannes Altmann and adds: “A shop for craft supplies such as
knitting and crocheting is currently even struggling with their capacity
limit because the volume of orders has quadrupled.” He sees Amazon as the
main beneficiary of the crisis because the company created the image of a
supplier of basic goods even before the corona crisis. Recent news from
Seattle seems to prove this assessment right as Amazon made waves with the
news of wanting to hire 100,000 new employees.
Fun entertainment in times of boredom
Even though many online fashion retailers are reporting losses in
revenue during the current crisis, according to Johannes Altmann, they can
also now bank on targeted buying impulses. “Although large discount
campaigns are probably not of much use at present because many consumers
apply very targeted shopping behaviour at the moment, you can accompany
potential customers in their ‘boredom’ and supply them with content,”
reflects Altmann. Before and after tips, styling ideas, interviews with
designers and information about sustainability topics is an easy, pleasant
and meaningful conversation. Illustrated with videos and picture galleries,
for example, which are an invitation to linger. Even an argument like “The
holiday is cancelled, now there is a budget for other purchases” could be
part of the communication.
Johannes Altmann has put together some tips for us as to how fashion
retailers should now respond to the changed needs of their customers:
– First of all: Make it clear that your shop is ready and products are
available
– Adapt your communication to the new needs: Entertain, give insights,
styling tips, etc.
– Feature sports and hobby product ranges
– Increasingly advertise home wear or leisure wear
– Come up with pro-purchase points that can be useful in the current
situation, such as money saved on a holiday, wanting to be rewarded, etc.
This article was originally published on FashionUnited DE. Edited
and translated by Simone Preuss.
Photo: Shoplupe
