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DIGITAL FUTURE RAPIDLY ENHANCED BY COVID19 PANDEMIC

As consumers shift to buying goods online, leaders have to develop direct-to-consumer channels. E-commerce was poised to transform the goods industry before Covid-19 struck. But the pandemic is speeding change or can be referred to as the catalyst to the digital future.

Consumers are now flocking to online platforms to buy everything, including large appliances. Direct-to-consumer channels are now powering a growing share of large appliance sales, putting manufacturers under intense pressure to reshape their strategies.

Local consumers are now more willing to buy goods and services online than they were before the pandemic. A significant shift in consumer behavior could increase online purchases. Overall, consumers are likely to switch to digital sales channels faster than anticipated in forecasts made before the pandemic. The consumers now see that given the uncertain future due to the covid19 pandemic,  going digital is the only way.

 

THE MESSAGE FOR MANUFACTURERS

For manufacturers, the message is clear. Digital sales and marketing savvy will be vital to maintaining a share of the market. Already digital channels deliver the bulk of industry growth. In the coming decade, Internet-savvy consumers, especially younger ones, will accelerate the industry shift toward digital sales. In this fast-changing landscape, retailers’ outlets should also implement e-commerce for them to survive competition by manufacturers. As more consumers shift online, retail stores will lose market share if they do not digitalize their sector.

Leading manufacturers have to rapidly develop an omnichannel retail strategy to compete in an increasingly digital market. In addition to traditional retail outlets, they have to begin collaborating with large online platforms such as COLCOM as well as regional e-commerce challengers and investing in well-designed direct-to-consumer channels. At the same time, they have to speed the development of connected appliances, laying the foundation for a wide array of future digital services. The first movers should aim to use digital tools to build loyalty, create lifelong client relationships, strengthen their brand image and capture a larger slice of after-sales services.

Manufacturers that lag in building direct-to-consumer relationships early in the purchase process will be less effective at direct marketing and sales. Covid-19 has shown how vital a digital link can be for manufacturers and their customers.

E-COMMERCE IS AN EASY WAY OF DOING BUSINESS. DON’T YOU THINK SO?

 

As change accelerates, successful manufacturers are investing in digital marketing, tapping social media, and launching direct-to-consumer channels. Digital tools allow companies to connect faster and more effectively with different segments of consumers. Leaders are increasing their return on marketing investments by shifting away from traditional multimillion-dollar national marketing campaigns to hundreds of smaller test-and-learn campaigns tailored to specific consumer groups. Cross-functional teams rapidly apply lessons learned and speed decision making.

Take the case of the tech company that launched a direct-to-consumer marketing campaign amid Covid-19 to promote purifying water filters. The mailing, which was sent to customers registered on its website, delivered powerful results. Traffic to the company’s website rose dramatically—the number of visits in one month matched the total for the previous year—and water filter sales increased fivefold compared with the same period a year earlier. In this case, e-commerce is proving to be an easy and effective way of doing business.

Direct-to-consumer marketing helps build a vital link to individuals before purchase, paving the way for increased post-sale interactions. Digitalization makes it easier for customers to report a problem, arrange or reschedule an appointment and provide feedback. Those experiences, in turn, can improve a brand’s image and help sell new services, or persuade buyers to remain loyal when it’s time for a replacement purchase.

Leading manufacturers can also develop new business and service models linked to online marketing. A pay-per-performance service contract might give customers priority service if their goods break down as opposed to them waiting in line for an appointment.

 

E-commerce and customer satisfaction

When it comes to consumer satisfaction, in an increasingly competitive market, loyalty counts. But with online sales surging, traditional brands will need to work harder to win loyalty. Digital tools will reshape sales, marketing, and even products, as consumers are now shifting to the internet.

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