Status quo: inflation in Europe and Germany reached a high number of 8.7%. It is the first time since 1973 that people have faced such an increase. S&P indexed lost almost 17% during the last few months. Sales in many segments are also decreasing as consumers have a more selective spending strategy. A few retail companies, like eBay and Shopify, leaders in the Retail industry, are showing a drop in share prices. As follows:
So the evident and classical approach will be to lay off employees, cut costs and reduce investments in innovations. And this is what the majority of companies are doing. At the same time, if we try to analyze the past data, it shows that companies who decided to innovate during the crisis became leaders in many industries afterward:
So the main question is whether businesses have to innovate or not? If we consider the recent crisis during the COVID times, a lot of revolutions in banking areas and in automotive happened overnight while in “normal” times it might have taken years.
So the conclusion is that crisis is the right time to innovate and try different approaches, and if you can save costs but at the same time increase revenues, that is an even more win-win solution that every board of directors will be looking for.
The retail and e-commerce industries are not an exception. So you should be looking for solutions that are part of the shopping experience, reducing costs and increasing sales potential simultaneously.
Last-mile delivery as part of the shopping post-purchase experience is a good example. We at VanOnGo offer a unique approach that reduces the delivery cost and simultaneously enables brands and merchants to increase sales as we convert the post-check-out experience into new retails.
Want to learn more about why the crisis is the time to innovate and how you can increase sales while reducing the cost of delivery? Please get in touch by e-mail - email@example.com