The effects of the coronavirus pandemic have not only affected daily life, but have been felt at the level of every industry and technology. After the initial shock, many of the economic sectors suffered major disruption and considerable losses. Unlike these, however, segments such as eCommerce and digitalization have experienced unforeseen growth, their development accelerating strongly.
In the context in which the lockdown measures have extended to each country, both companies and consumers have made the transition to the digital environment. Thus, demand and supply have increased significantly in the online space. According to a report by the United Nations Conference on Trade and Development (UNCTAD), the share of e-commerce in global retail operations reached 17% in 2020, from 14% in 2019. Businesses and consumers who have entered the digital environment have thus helped to alleviate the negative economic effects caused by the pandemic.
Thus, both the percentage of people who started buying online and that of companies that made their products or services available on the internet increased significantly. These behaviors are expected to continue in a post-COVID era. Thus, in the objective of maintaining competitiveness in the market, digitalization is no longer a simple option, but becomes a necessity.
In order to remain relevant in the new economic environment, companies have had to develop new strategies, which are based on strong investment in online channels and technological adoption. Thus, most managers have recognized their strategic importance not only as tools for productivity development, but also as critical elements of a business.
The rate of interaction between businesses and consumers in the online environment has increased significantly, as has the number of channels used for this purpose. According to a survey conducted by McKinsey, company representatives are 3 times more willing to say that at least 80% of their interactions with consumers are done digitally.
Perhaps even more significant is the rate at which businesses have developed online sales channels for their products or services. Of course, the percentage differs depending on the industry, and the differences are more noticeable not between B2B and B2C companies, but in relation to the types of products offered. For example, according to the same survey conducted by McKinsey, organizations in the automotive or consumer goods industry reported limited developments in the digital environment. In contrast to these, companies in healthcare, finance, and services have had a considerable lead.
Digitization efforts are nowhere more evident than in the eCommerce area. Businesses that were already operating online tried to develop their platforms to adapt to the increasing demand and diversity of consumer needs. On the other hand, companies that did not have a digital presence were forced to enter this environment in order to guarantee the maintenance of a level of competitiveness. Thus, the effects of the pandemic could be clearly seen in the significant increase in internet purchases, despite the difficulties encountered by businesses in responding to customer demand.
Moreover, companies have now received a detailed picture of the benefits that being present in multiple channels (both offline and online) can offer in carrying out their activities. New ways of generating income were thus identified, digital strategies being developed around them. Regardless of the future course of the pandemic, the trends of digitization and adoption of technologies in this area will be maintained, with businesses realizing not only the need for multi-channel expansion, but also the financial potential of the online environment.
Klain can help you develop an optimal online presence. Whether we are talking about a website, constant communication in Social Media or a general communication strategy, our team contributes to your success in the digital environment, with tangible results in the medium and long term. Contact us now to find out more about our services.
