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Best ideas from the McKinsey & Company report: Digital in the Post-Covid Era

The Covid-19 pandemic has received a lot of attention and been talked about. In fact, it may seem that we will not learn anything new from this period. However, this is not the case, as pandemics have affected consumer behavior, trends, companies, sales and many other aspects. It even affected luxury sales. But thankfully, we have a lot of reports that allow us to talk about it.

Today’s article presents information from McKinsey & Company on digital numbers in the post-COVID era. So let’s figure it out!

Goes online

Luxury shoppers choose brands and goods even more based on digital information. Today, luxury shoppers stick to a mixed journey online and offline, seeking advice from their peers on social media, visiting trusted blogs before going to the store, and then writing about their purchases. Online sales of personal luxuries – clothing, footwear, accessories, jewelry and watches, leather goods, beauty and perfume – account for 8 percent of the 254 billion euros in the global luxury market. It is projected that by 2025, online luxury sales will triple to about 74 billion euros. This means that almost one-fifth of personal luxury sales will take place online.

Source: Digital in the post-covid era, McKinsey & Company report

New opportunities

The epidemic has opened up opportunities for new customer segments and e-commerce markets.

The coronavirus pandemic has affected many areas of the economy. Its effects can be felt in shops, restaurants and cultural institutions. But it has also significantly affected consumer behavior. As a result of the pandemic outbreak and the restrictions imposed, the whole process of making decisions about buying and purchasing products has changed. Purchases have primarily shifted to digital. In many countries since the beginning of the pandemic, online sales have been growing, and the number of new users of e-commerce stores has increased during periods of blockade, when access to traditional outlets has been limited or impossible. Obviously, the number of new e-commerce users is still growing.

Source: Digital in the post-covid era, McKinsey & Company report

Moreover, 24% of consumers first chose to shop online during COVID; 76% of them recorded a positive experience.

Source: Digital in the post-covid era, McKinsey & Company report

Personalized interaction

Personalization in e-commerce creates a shopping experience designed specifically for a single customer, not for a wide audience.

Instead of taking a one-size-fits-all, uniform approach to their entire audience, online retailers are creating critical elements of the customer’s path, including website content, email, social media activities and paid advertising, so they vary according to customer needs and previous behavior. This significantly affects the intimacy of the client.

Source: Digital in the post-covid era, McKinsey & Company report

Growth and development

Since its inception, the luxury industry has been a history of growth. Expanding products, expanding chain stores, entering emerging markets – especially in China and digital commerce – have been the drivers of recent years. The growth is also due to the much greater attraction of consumers to luxury goods. As a result, we have a steady growth of luxury customers. As has been repeatedly shown throughout history, the consumer desire for the unusual will pave the way for the next frontiers of the luxury business. How are luxury business models evolving? Here’s how:

Source: Digital in the post-covid era, McKinsey & Company report

A brand story

Nothing stays in your memory as long as a well-told story. It is not only able to interest the audience with its story, but also often contains a valuable message. And for this, companies use social networks. Especially after the pandemic.

Source: Digital in the post-covid era, McKinsey & Company report

Brands help consumers contextualize luxury goods outside of companies controlled by the brand using social media.

To you

Most luxury stores closed during the blockade, so almost all brands decided to launch digital platforms and invest in digitizing sales processes. However, initially the pandemic slowed down the development of the luxury market, which is understandable.

But the finish must be completed well, because this situation did not last long and the luxury market is returning with force. And reports like McKinsey & Company only confirm those facts.

https://ecommercegermany.com/blog/top-insights-from-mckinsey-company-report-digital-in-the-post-covid-era Best ideas from the McKinsey & Company report: Digital in the Post-Covid Era

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