The Impact of Coronavirus on Consumer Goods Industries in Australia

Delivery

This report comes in PPT.

Key findings

A shift from the physical to the virtual

The impact of COVID-19 on retailers relying largely on in-store revenue has been more severe than those trading through multiple distribution channels. Those with stronger e-commerce capabilities are in a better position to overcome a drop in foot traffic and revenue from stores, as consumers shift to online channels for the entire path of purchase.

Flexibility key to adapting to changing times

Flexibility and agility will be paramount in mitigating losses from the impact of the lockdown. Retailers that have successfully found new ways to continue to engage with customers and focus on new product ranges that respond to the current situation including “lockdown” and “stay at home” essentials, will be better positioned. Virtual services are also proving a successful tactic to mitigate lost revenue.

Crisis response efforts by government and retailers successful in restocking store shelves

Panic buying has disrupted supply chains and has resulted in the successful introduction of temporary measures by retailers and/or the government. These include limiting quantities of products purchased, the lifting of transport curfews to support essential retailers in replenishing their shelves and factories operating 24/7.

Consumer’s preferences and priorities change

COVID-19 and preventative measures by the government have influenced consumers’ purchasing behaviour, with spikes in demand for products perceived as enhancing overall wellbeing, including feel-good and pampering products and hygiene boosting items. In contrast, demand for categories influenced by restricted socialising, including cosmetics and apparel, has declined.