Jeweller - April 2020

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STRATEGY FEATURE | Coronavirus Survival Guide Illustrating this phenomenon is the trend for engagements to increase during recessions and in wartime. While jewellery retailers may wish to focus their marketing efforts on this theme of love and family, even more important is keeping the channels of communication with customers open in any way possible. Some may be tempted to cut advertising and communication costs, yet retail experts advise that a more useful strategy is remaining ‘front of mind’. Some may be tempted to cut advertising and communication costs, yet retail experts advise that a more useful strategy is remaining ‘front of mind’. Ellen Fruchtman, director of Fruchtman Marketing, advises retailers to “think ahead”, telling US jewellery industry publication The Centurion, “I can tell you from experience that the retailers that remained front and centre in [the US recession of] 2008 got stronger. “Sales volumes increased, without a doubt… I’m not saying that because I’m in advertising, I’m saying it because we’ve seen it.” While she acknowledged that recent weakness in the stock market – the ASX200 recently fell to its lowest level since 2013, while the Australian Dollar dipped below $US0.60 – has left many consumers “not in the mood to buy jewellery”, the effects are likely to be temporary. “The bigger picture is that we don’t know when the stock market will rebound,” Fruchtman explains. “It always does, but the question is when, which no-one knows. Will that have an impact on the psyche of the consumer? That’s what all retailers need to be thinking about now.” In the meantime, others advise retailers to embrace the e-commerce side of their business, both in terms of digital marketing and online shopping. “You must have a strong online presence during this period,” says Jeff Gordon, director of The Gordon Company, a jewellery sales, strategy and promotion business based in Florida. “Let customers know you have options [beyond] in-store shopping.” Jewellery retail and training expert Jimmy De Groot advises retailers to “stay in the game”: “Stay in contact, keep the faith, and always be doing something to stay in touch with customers.” He cites texting, phone calls, social media videos, FaceTime, and video-conferencing with a printed 3D design as some of the ways retail jewellers can interact with customers who aren’t able to visit the store. Indeed, with many consumers working from home or limiting their outdoor activities, researchers are predicting a boost to the consumption of digital media. MARKETING FOR LEAD GENERATION Organic posts on Facebook and Instagram are ideal for communicating with existing customers Social media advertising – paid and promoted posts – reaches a wider audience of potential new customers YouTube advertising can be very costeffective and is both targeted and far-reaching Email marketing and newsletters keep a brand front of mind for regular customers SMS and WhatsApp messages have a far higher open rate than emails and feel more personal In its recent report The Biggest Business Impacts of the Coronavirus, international digital marketing research firm eMarketer predicted “digital media consumption to increase across social media, over-the-top video and online gaming – similar to what we’ve already seen in China. “Social networks could be a major beneficiary, as people turn to these platforms to connect with friends and family who may be at a distance or to access news content.” It also stated that video streaming apps like YouTube would likely see an increase in usage. These trends present an opportunity for retailers to advertise at low cost on these platforms. “Stay in the game, stay in contact, keep the faith, and always be doing something to stay in touch with customers” – Jimmy De Groot, jewelrystoretraining.com The eMarketer report also noted that “changes in online shopping habits may be particularly prevalent among older customers – the group most susceptible to the coronavirus and most likely to avoid stores because of it, but least likely to shop online.” This shift could not only provide shortterm sales, but permanently shift their purchasing pattern to online shopping. Meanwhile, the ARA has advised members to invest in delivery services: “The retailers that have an advantage will be those who are set up to dispatch from local stores and E XPERIENCED PERSPECTIVE Dealing With Crisis JIMMY DE GROOT The morning of 9/11 [Sep 11, 2001], my team and I were about to step on a plane to go to a Hearts On Fire event in Las Vegas. We were soon told there would be no flights to Vegas – or any flights at all. In the ensuing weeks we had meetings and discussions about what we should do about our Christmas plans, our promotions, our inventory coming in, our flyers, and our business in general. We decided to stay all in – in fact, increase our efforts. The result was the best holiday season to date. We didn’t know what was going to happen in our country or the world, but we chose not to let fear govern our lives and our business. I completely understand your trepidation and the trepidation in many people’s minds about the future, but I do know one thing for sure. If we start letting fear rule our lives and our businesses, and if we start pulling back on all of our efforts, from marketing to planning to customer service, and just the day-to-wonderful things that happen in our stores, then our actions will become selffulfilling prophecies. When we went through one of the most uncertain periods in our country’s history, we knew we owed it to our customers to continue doing what we do best, and that’s being a crucial part of our customers’ most important moments. 12 | April 2020
Coronavirus Survival Guide | STRATEGY FEATURE are not as reliant on those who operate from a central warehouse.” Retail consultant Nathan Bush adds, “Physical footfall will drop and visits to public spaces will be more purposeful. With consumers in a task-oriented mindset, think about how you make those tasks easy to achieve. “Home delivery options are essential. Click and collect, reserve in store and accurate views of store inventory give customers certainty. Subscriptions can guarantee access to product.” Long-term thinking While putting resources towards e-commerce and marketing can help retailers survive the temporary financial shock of the virus, Ryan warns that the changes in consumer behaviour may last for many months. “By all means, move to online – but functional options will not overpower the fear and panic that is enveloping people right now,” he says. Restrictions on travel, social distancing, school closures, and reduced trading hours, as well as employee absences and shipping delays are just some of the factors that combine to hamper service-based businesses. However, in addition to federal and state government support, all four major banks have announced relief packages for businesses in financial stress due to the COVID-19 pandemic. These initiatives range from waiving fees on merchant terminals to deferring TAKE A LOOK IN THE MIRROR Examine your brand message if necessary Review your competitors and learn from their successes Assess and marketing strategy Audit your website and assess analytics Undertake online courses in sales and business repayments on vehicle and equipment finance loans, providing restructuring and extension options, and providing business counselling services. “Use this time to reinvent how you do what you do, bring consumers new alternatives, new value, and in the process even reinvent your own brand” – Doug Stephens, retail futurist Guil Lima, chief executive business division, Westpac, said, “This is an extremely difficult period for some Australian businesses. We want our customers in any affected sectors to know there’s a range of ways we are ready to support them.” From a long-term perspective, Canadian retail futurist Doug Stephens believes there may be a ‘consumption spike’ once the pandemic is brought under control. He likened this ‘brush with mortality’ effect to the one that occurred after the September 11, 2001 terrorist attacks. In an interview with Business of Fashion, he advised businesses to adopt a futurefocused perspective: “Use this time to reinvent how you do what you do, bring consumers new alternatives, new value, and in the process even reinvent your own brand. Don’t let innovation stop, because this could be the window of opportunity.” Meanwhile, retail and consumer product consultant Robin Lewis and global fashion supply chain expert Margaret Bishop believe the aftermath of the coronavirus could “level the playing field” when it comes to discounting. Writing on the Robin Report blog, they note, “Supply disruptions that reduce inventory offer the legitimate excuse brands and retailers need to reverse the overproduction and deep discounting they have come to depend on and now regret.” They advise retailers to “make less, sell at full price, meet profit goals on lower volume and higher margin – and reduce pervasive waste”. Most importantly experts say businesses and individuals should avoid panic. Professor Ilan Noy, chair in the Economics of Disasters at Victoria University in New Zealand, told the ABC that the economic impacts are “largely because of the changes in behaviour and not directly because people are sick”. “There is no necessary panic. There are necessary changes in behaviour, but panic is unadvisable in any case,” he said, adding that governments and media should work to keep people calm. Ultimately, the full impact of COVID-19 cannot be predicted with total certainty; but the lessons of the past and the experience of the present can help prepare business owners as much as possible for what lies ahead. HELP & HOTLINES Australian Government Department of Health COVID-19 Hotline 24/7 Hotline 1800 020 080 Healthdirect Hotline with a registered nurse 24/7 Hotline 1800 022 222 | healthdirect.gov.au Head to Health mental health support Call 1300 368 041 | Text 0477 131 114 headtohealth.gov.au/covid-19-support/covid-19 Australian Treasury 1800 020 008 | treasury.gov.au/coronavirus Safe Work Australia safeworkaustralia.gov.au Australian Government Business Services 13 28 46 | business.gov.au Australian Retailers Association (ARA) 1300 368 041 | retail.org.au Business NSW 02 9228 4567 | business.nsw.gov.au Business Victoria 13 22 15 | business.vic.gov.au Business Queensland 13 74 68 | business.qld.gov.au ADDITIONAL RESOURCES Australian COVID-19 Case Numbers & Alerts www.health.gov.au/news/health-alerts/novelcoronavirus-2019-ncov-health-alert Johns Hopkins University COVID-19 Tracker coronavirus.jhu.edu/map.html World Health Organisation (WHO) www.who.int/emergencies/diseases/novelcoronavirus-2019 April 2020 | 13
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Jeweller - April 2020

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