With tech monopolies challenging the traditional set-up, the desire for instant gratification, as well as the huge cultural shift induced by COVID-19, it has never been harder to achieve long-term brand equity in retail. Phrasee wanted to create something that would be valuable to help navigate through the coming weeks and so have collated some thoughts and insights from Julio Lopez at Movable Ink, April Mullen from SparkPost, and themselves.
This post was originally featured on the Phrasee blog.
Q. The onset of the novel coronavirus has created a dynamic situation and a sense of uncertainty for many businesses. What do you think are the implications for retailers and ecommerce in the short term and long term?
A. We are seeing the short-term results now. Store closures, even if temporary, continue to increase, and supply chain challenges are also forcing ecommerce closures, bringing many companies to a complete standstill. This is going to have the expected financial implications in the short term, but brands that have worked hard to foster brand loyalty will come back strong. In the long run, what we will see is more companies investing in technology that will allow them to react quickly – not just to a massive pandemic – but to anything. That is the lesson retailers will take away from this: the need to be nimble. That’s the reason digital-first D2C brands are changing the retail landscape – they are digital-first and nimble. We’ll see traditional retailers making the investments that will allow them to be more like those digital-first brands.