During the pandemic, retailers recorded the largest growth in e-commerce sales ever, with an increase of 31.8% compared to the previous 12 months. However, the industry has now entered a new period of uncertainty with concerns of a looming recession.
The rise in inflation rates post-pandemic have had an overwhelming effect on Australian consumers, with over 80% expressing concerns about rising living costs, according to data sourced by McKinsey and Company. This means e-commerce businesses must determine how they will pivot their brands to counteract the current decline.
“A common issue we are seeing with e-commerce businesses who are looking for growth is that they made the mistake of getting started with only a short-term strategy and later found it difficult to incorporate longer term tactics, such as building a memorable brand or being set up for international markets,” BlueRock associate director of digital, Sarah No said.
Tips on brand building solutions
“Every brand has a story, whether it is the founder’s story, or the story of a customer. By understanding the market and your brand’s position, you can develop brand stories that resonate with your customers to further cement the connection while encouraging loyalty and referrals over time.”
Demonstrate your values
“Most consumers want to buy from a brand who gives back. If you have worked this into your operating model, ensure it is part of your marketing and the story you share.”
Be market oriented
“To be market oriented is to shape your business, the brand, and product to what the market needs rather than what the business thinks the market wants. This doesn’t mean the market needs to know they want your product.”
Expand your online audience
“With a historical trend among digital agencies to focus on Return on Ad Spend (ROAS), there can often be poor acquisition strategies that have too much of a focus on retargeting existing audiences and not enough allocation to marketing to new and expanded audiences.”
User generated stories and social proof
“Almost six in 10 (59%) customers prefer to buy from brands they already know about, so it is no wonder user generated stories and social proof can help reinforce the credibility of your brand. Utilising customer reviews, case studies, video content and testimonials can be effective ways to showcase social proof and can help build trust and confidence in your brand.”