How to Repivot Your Business During COVID-19

There’s a significant decline in the number of mall visitors and overall spending, post-MCO, with Fashion Apparel taking the biggest hit

2019 left us with much to look forward to with the progress in trade talks between powerhouses USA and China, and the global stock market had posted their best year since the 2008 financial crisis (The Guardian). 

The optimism was cut short with the spread of COVID-19, which left the world in an uproar as many countries had to implement a movement restriction initiative. It was estimated that over a third of the planet’s population was under some form of the restriction by April 2020 (Business Insider). 

“A common mistake many businesses make is to assume that once they have data, it will magically solve all problems and answer all pertinent questions. In reality, they need to gather insights from the data, which then leads to action, and ultimately turns into clear business outcomes”

Back home, in response to the pandemic, the Malaysian Government implemented a Movement Control Order (MCO) in March. Relaxation on restrictions gradually phased in by early June as the number of active cases of COVID-19 reduced, and to help reinvigorate the economy. 

However, this has led to a change in consumers’ spending behaviour from the implementation of lockdowns and a general fear of the pandemic. To better understand this shift, we performed an online survey across Malaysia last July 2020.

With the data analysed, we found that only 72% of respondents were returning to malls and the data shows an overall decline in monthly visits as compared to pre-MCO.

The average spend and categories of items purchased had also changed as seen below. There is a major decline in overall spending, with Fashion Apparel taking the biggest hit with a 35% slump. The trend shows that mall visitors are only physically purchasing essential goods and have shifted their non-essential shopping online. 

How do you, as a business, move forward? 

With consumers less reluctant to visit malls and the drop in overall spending, there is now a need for retailers to adapt their business strategies. We propose the following 4 steps businesses can take to still make 2020 their year:
1. Let Data Do the Talking
2. Brand Building Means More than Ever
3. Tug at the Heartstrings of your Consumers
4. Steal the Spotlight

Data-driven marketing may have been a buzzword for a while now, but it’s more than just hype. At ADA, we think of it as much more than a passing fad – because we live and breathe data. But data on its own is more than just random numbers on a screen. To glean value from data, you need insights.

A common mistake many businesses make is to assume that once they have data, it will magically solve all problems and answer all pertinent questions. In reality, they need to gather insights from the data, which then leads to action, and ultimately turns into clear business outcomes. 

This is easier said than done, of course - which is why we coined a simple framework: IDEA. 

IDENTIFY the problem in as precise a manner as possible
DATA ANALYSIS is then applied to reveal specific and actionable information
EXTRACT unique insights and perspectives from the information
ACTIONABLE strategies and solutions are created to deliver results

With the increasing pressure around performance, and the advent of digital, which allows you to track what seems like everything, there has naturally been a move towards a shorter-term performance-based activity. 

This has sometimes come to the detriment of the brand. A lack of emphasis on what your brand stands for allows competitors to steal mindshare, erode brand perception, and even degrades value with short-term thinking; resulting in heavy discounting of categories or products. 

Various studies show that despite the tremendous changes precipitated by technology, the ideal ratio between brand building and activation remains the classic 60:40. 

“A lack of emphasis on what your brand stands for allows competitors to steal mindshare, erode brand perception, and even degrades value with short-term thinking; resulting in heavy discounting of categories or products.”

When times are tough, marketing is naturally one area that receives extra scrutiny. Rather than eliminating activities like brand building which are perceived as hard to measure, to save costs and raise return on investment (ROI), business should focus on finding and eliminating waste. This starts with the mindset of not compromising on the impact of the media.

A budget of 10-15% for insights generation and more than 20% for creative is recommended for non-working media while 60-70% is recommended for working media.