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In the middle of March 2020, we published an observation based on corroborating 2 data points on the potential upside momentum during the escalating COVID-19 crisis. The observation was based on 2 data points extracted from a dipstick study conducted by Stratos Consulting Group (https://stratos.com.my/). We mentioned that online purchase could potentially surge by 15%.
What has been the result of this observation?
For the purpose of direct comparison, we extracted the following datapoint from each relatable industry in order to piece together some insights. The data was sourced through respective google analytics panel and e-commerce transactions from 1 January to 24 June (2019 vs 2020).
In the medical related industry, we have seen an increase of +21% in website traffic from Jan-June 2019 vs 2020. On the other hand, e-commerce transaction grew over 250% during the same corresponding period on a year to year basis.
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Source: Garganto (Internal)
The expected increase in website traffic was expected from the organic growth trajectory but phenomenal increase of 200% in e-commerce transaction was staggering. The data point is as it is and it does not take into account MCO promotions, new offers, new product launches and others. It could be said that many passive shoppers turned into active consumers during this period though there is further investigation required.
In another industry, the electrical related business generated a +30% website traffic increase and a strong +20% growth in e-commerce revenue growth. We understand this data is directly sourced from their own branded website and did not account in the other Marketplace online transactions. Market place transaction refers to the likes of Lazada and Shopee.
According to Shopee, they claimed that they have seen a spike of 20% increase in time spend on their platform for online shopping during the pandemic in which almost 3 million chat messages was initiated during the Movement Control Order (MCO). They have reported that consumers have been shopping more essential items such as groceries, pet, gaming consoles and home appliance. (The Star, 2020)
Further to the claims made by online providers in Malaysia the national logistics arm of Pos Malaysia reported a huge surge of 600,000 parcels on a daily basis which has overwhelmed their capacity which resulted in prolonged delays of deliveries. This was attributed and corelated to a massive increase in e-commerce transactions triggered by the movement control order. (Tan, 2020)
Source: Garganto (Internal)
In the fashion related industry , the results have also been very similar to the medical industry. Website traffic has increased by +48% on a year to year comparison. Meanwhile e-commerce transactions have exploded by +260%. As mention earlier, the datapoint is as is numbers and did not take other factors of product launches, seller’s promotions, paid campaigns etc.
Source: Garganto (Internal)
In conclusion, taking stock of this strange times, e-commerce journey has been seen as an outpost that powered through the lockdown. For some partners who have embraced it earlier, it has helped to alleviate and continue to provide much needed cash flow into their operations although e-commerce contribution is still a low/mid double-digit overall business channel contribution . From a broader perspective, the digital marketing dedication have helped to keep the lights shinning despite the gloom of restricted movement. Maintaining a baseline of brand awareness was essential as they kept probing new methods to address the marketing funnel.
The more progressive activism, they are embracing and investing into better consumer journey , initiating automation, exploring newer story telling angles and some expanding into different product categories.
Regardless whether its 20% or 250% growth, strengthening your digital journey with the ability to check out appears to be the new normal. A catalyst has been thrown into concoction, its time to navigate through with fresh wind.
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References
Tan, M. Z., 2020. www.malaymail.com. [Online]
Available at: https://www.malaymail.com/news/life/2020/04/30/pos-malaysia-urges-public-to-be-patient-for-packages-receiving-600000-parce/1861758
[Accessed 30 June 2020].
The Star, 2020. www.thestar.com.my. [Online]
Available at: https://www.thestar.com.my/business/business-news/2020/05/19/shopee-new-normal-in-world-of-retailing-here-to-stay
[Accessed 29 June 2020].
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author
Doh Hau Goh
Goh Doh Hau is in the leadership team of Garganto, a boutique style digital marketing agency and ecommerce builder. He enjoys marrying evidence-based research with observation insights to curate gems of practical information. He is a MBA graduate from Sydney Business School (University of Wollongong)[/vc_column_text][/vc_column][/vc_row][vc_row equal_height=”yes” content_placement=”middle”][vc_column width=”1/6″ offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_single_image image=”1715″ alignment=”center” style=”vc_box_outline_circle”][/vc_column][vc_column width=”5/6″ offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_column_text]
author
Doh Hau Goh
Goh Doh Hau is in the leadership team of Garganto, a boutique style digital marketing agency and ecommerce builder. He enjoys marrying evidence-based research with observation insights to curate gems of practical information. He is a MBA graduate from Sydney Business School (University of Wollongong)[/vc_column_text][/vc_column][/vc_row]