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Building peak resilience The key to navigating the first-ever ‘eCommerce Christmas’
By Joe Farrell, VP of international operations at PFS
For retail, 2020 has been a year unlike any other. From continued Brexit uncertainty to ongoing economic disruption because of the pandemic – all adding to the struggles of the already rapidly dissolving high street. Now, with all non-essential stores in England closed once again as part of a second national lockdown, retailers are facing the very real possibility of the first-ever ‘eCommerce Christmas’, with nearly all shopping having to take place online.
F
or growing brands, large-scale online promotions can seem daunting at the best of times – let alone in 2020, a year of
uncertainty and epic change. Without careful planning and the availability of additional labour and resources, promotions can present a logistical nightmare for even the most well-established of brands. Thanks to the added pressures of political and economic uncertainty, along with increased online demand across categories, brands are facing the most challenging peak season yet.
Black Friday has a new name In recent years, Black Friday deals have been starting earlier and earlier. In 2020, we’ve seen this taken to a new level with many deals starting as early as mid-October. Alibaba’s Singles Day, which began in China this year on November 11th, saw a record high – achieving US $75 billion in sales over its 11 days. Brand competition is heightened as some retailers continue to try to stay ahead in the promotions game with a “Black November.”
In 2020, though, this is about more than the competition. For many retailers, the earlier deals are an effort to get the peak shopping season started sooner in hopes of f lattening the demand curve. The aim is to better manage
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increased demand with engagement on a scale never seen before. For many brands, a sudden and sustained inf lux of peak orders could cause complete chaos – putting additional pressure on carriers who will inevitably struggle to keep up with such high demand. And, potentially leading to longer delivery times and dissatisfied customers as a result.
Up and coming online brands such as SHEIN, an apparel brand with an established global presence and which has steadily been growing in popularity in the UK over the last year, are way ahead of the Black November trend. SHEIN began their #OneMillionSHEINBucks campaign in alignment with “Early Black Friday” messaging shortly before Halloween. Their flash sale had a clear emphasis on ‘buy more save more’ and offered add-ons on each page to encourage “on the fly” bundling. This sort of stamina is manageable when a retailer is selling online only. However, for multi- channel brands with online stores and brick- and-mortar locations, there are other options.
Uncovering the risks to achieve peak resilience To achieve resilience, brands need to be accepting of the new reality; the changes to social conduct – and the risks that accompany
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