Digital Revolution 2021
The changes brought about by Covid-19, such as the increased use of digital devices and services during lockdown, made 2020 the year of digital transformation. According to Comscore data, the time spent on Social Networks during the pandemic increased by +69% at the start of April compared to mid-February. In addition, time spent messaging increased by +50% and time spent reading Financial News increased by +24%. The first weeks of March especially saw a spike in the use of information and entertainment websites by over +50%. In this article we will discuss three key points, essential to be competitive in 2021.
E-commerce in 2021
Food is never boring! In 2020, not only did the turnover of traditional e-commerce grow, but the turnover related to food grew substantially as well (an increase that in June 2020 was +20%, and today is about +50% especially in Lombardy). Stats by Emanuela Varva, Head of Eataly.
So, if you’re a supermarket or grocery store, you’ll have no excuse not to launch your e-store soon. According to the B2c Observatory of the Polytechnic University of Milan, e-commerce will reach 22.7 billion in 2020 (+26%), 4.7 billion euros more than in 2019. What awaits us in 2021?
To give you an idea of the growing power of e-commerce, we’d like to tell you about a useful new feature of many online supermarkets: the intelligent shopping cart. This feature memorizes your favorite products and gives you the possibility to repeat the whole grocery purchase with a single click, without having to physically go to the store. What if we combined this function with the delivery of groceries right to your door within 24 hours? Convenient, right? According to the Observatory, the food & grocery sector generates 2.5 billion euros, digitally alone (+56% compared to 2019). Furniture and home living take second place, with a turnover of 2.3 billion euros and a growth rate of +30%. Evidently, people decided to invest more into making their homes as comfortable as possible during the infamous lockdown.
Digital transformation is perhaps one of the most important issues for the survival of most companies. It implies transforming a traditionally physical business model into one that is highly digital, by developing a second channel of monetization online. A simple example would be preparing your (physical) restaurant to sell through a delivery services like Deliveroo.
According to Jing Daily, many luxury stores were forced to make a leap forward in terms of digital innovation during the first six months of the pandemic. Many found themselves having to learn and use social platforms which they had no previous experience with. “At first, many believed that live streaming wasn’t the best way to get their message across, but now they’ve started doing it,” affirmed Chloé Reuter, founding partner of Shanghai-based Gusto Luxe consulting firm. Reuter’s clients are mainly based in the luxury fashion world and include Harrods and Estée Lauder.
Brand Entertainment in 2021
Apple, Disney, Amazon: some of the biggest entertainment companies in the world are now challenging each other to take the ‘King of Streaming’ crown away from Netflix. Sure, for us consumers it’s a bit annoying to juggle so many subscriptions, but it gives us the ability to watch any movie or TV series with a single click. At the same time, TV broadcasters are also retaliating, scared of losing the entertainment streak that has characterized TV for decades. Such broadcasters have produced shows that have become famous globally, including The Genius Friend by Rai Uno: the first HBO TV series ever shown on TV in a foreign language (with subtitles), which also achieved great success in the U.S.
Those who work in marketing and communication know that the real challenge of 2021 lies in the various promotional campaigns. Today’s campaigns, or rather the most interesting Original Content, thrive on audio/video streaming platforms such as Netflix, Spotify or Amazon Prime Video. We aren’t talking about invasive advertising, but about content that people will want to see. In order to demonstrate the effectiveness of this content, new KPIs will be developed, such as what we like to call Hook Rate (i.e. the parameter used to assess how many people actually enjoy the content they’ve started watching/listening to and how many enjoy it until the end).
Brands in 2021 will have to move out of their comfort zone and trust in digital marketing experts in order to continue being competitors in their market. While corporate know-how is essential for sparking change, it is equally important to be daring and to allow your brand to be guided by digital professionals who will help to create an active online presence.