A Comprehensive Covid Report

A closer look at how industries have been affected by the pandemic that swept the world.

Source: IbisWorld. Note: This is based on Stage 4 Restrictions.

---

Recently, we asked our followers what they wanted. What would be truly helpful to them in these unprecedented times, and the answer? Industry specific breakdowns.

We all know that every sector has been affected in one way or another, there's heaps of generalised statements floating around that provide helpful overviews. But what people were after was a more specific breakdown of exactly what the impact would be to their area of operations and ideas around how they could pivot, adapt and thrive as we move forward into the new world normal.

So, here it is. A comprehensive deep dive into 18 different industries - we hope you enjoy the read.

What's in the report?

Setting the Scene
Impact: How exposed is your industry?
Impact Analysis: Exposure Definitions

Industry Deep Dives
Accommodation & Food Services
Arts & Recreation Services
Education & Training
Manufacturing
Professional, Scientific & Technical Services
Retail Trade
Mining
Construction
Health Care & Social Assistance
Transport Postal & Warehousing
Administrative & Support Services
Public Administration & Safety
Agriculture, Forestry & Fishing
Wholesale Trade
Electricity, Gas, Water & Waste Services
Finance
Information Media & Telecommunications
Rental, Hiring & Real Estate Services
Bonus Article: The Importance Of Innovation

Global Trends to emerge post Covid-19

We take a closer look at the trends affecting countries across the world as we emerge form the changes caused by Covid-19.

1. Connected Work

Connected work scenarios will drive the need for cloud everything. New subscription-based models will see growth in demand for unified communications as a service offerings.

2. ‘Lights-Out’ Operations

Autonomous “lights out” operations will drive demand for remote asset management solutions, and service providers will focus on data management strategies and data-driven business models.

3. Connected Living

An increased adoption of contactless surfaces post-pandemic will drive home automation and security markets.

4. Technology Advancements

Pandemic preparedness will speed up AI deployment and accelerate the pace of AI innovation.

5. Supply Chain Optimisation

Seamless integration of end-to-end digital supply chains will increase traceability, sustainability, and transparency within the supply chain ecosystem.

6. Human Augmentation

The adoption rate of customer behaviour analytics by enterprises will grow by 20% for the period 2019-2025.

7. Smart Cities

Increased spending on technology by smart cities will lead to a surge in the adoption of digital tools like crowd analytics, and increased focus on developing digital platforms and apps for citizens.

8. Digital Health

Digital health driven by telemedicine and robotic care will become the new standard of care delivery. Will require an increase in the number of service and technology providers.

9. Geo-Political

To protect themselves from economic fallout due to COVID, global organisations are coming together to restore geo-political and economic balance.

---

Looking to capitalise on these trends and ensure your business is poised for success? Let us help.

Whiteark is not your average consulting firm, we have first-hand experience in delivering transformation programs for private equity and other organisations with a focus on people just as much as financial outcomes. We understand that execution is the hardest part, and so we roll our sleeves up and work with you to ensure we can deliver the required outcomes for the business. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au

SOURCE: Frost & Sullivan 9 Critical Trends Reshaping all Industries Post-COVID, 2020

Resetting Your Customer Experience For Post Covid

We are nearing the end of 2020… the year that changed the world with months in lockdown, travel bans, restrictions on gatherings, working from home enforcements and rising unemployment. No one saw these things coming.

For vulnerable consumers and the customer teams that serve them, Covid-19 has forced companies to rethink what customer care means to ensure they are addressing their customer needs.

A customer’s interaction with a company can have an immediate and lasting effect on their sense of trust and loyalty. During a time of crisis, it is essential that businesses deliver service and experiences that meet customers new needs with empathy, care, and concern. It is important to use real-time data to understand shifts in consumer behaviour so businesses can quickly pivot innovating redesign journeys to align with constantly changing customer preferences.

Below are customer experience practices that build resilience and prepare companies for success in the days after Covid-19.

Care

People need extra information and support to navigate during these unprecedented times.

To show that you care, REACH OUT and offer genuine support, not through marketing or blatant attempts to gain competitive advantage. These experiences are important for customers in the short term, and the impact will build positive, lasting relationships.

Meet your customers where they are

Your customers’ normal patterns of life have been put on hold, and as a result there has been a shift in demand patterns - customers need digital, at-home, and low-touch options. Digitisation has accelerated because of the coronavirus pandemic and digital-led experiences will continue to grow in popularity as we recover from the crisis. Businesses that act fast and innovate in their delivery model to help consumers navigate during the pandemic safely and effectively will establish a strong advantage.

Redesign operations to support the new world

It is to be expected that consumer preferences and business models will last longer than the crisis. Once covid-19 subsides, economic challenges will remain, so it is key for companies to deliver on customer experiences that are emerging as most important, whilst realising productivity efficiencies, to remain competitive.

A keyway to simultaneously improve your customer experience and business efficiencies is to increase digital self-service and to make smarter operational trade-offs, driven by what matters most to customers. Migrating customers to digital channels is often a successful way to boost savings and satisfaction.

Agility

Sustaining a strong customer experience during a crisis requires prompt research to interpret the changing dynamics and new pain points as well as agile innovation to address them. Businesses that can master that tactic will generate value for customers in high-priority areas in an environment of intensified competition.

Customer experience has taken on a new definition and dimension in the uncertain times of Covid-19. Companies who show care towards their customers, reinvent their customer journey and anticipate how customers will change their habits, will build deeper relationships that will continue beyond the crisis.

---

Looking to redesign your own customer experience? Reach out.

Whiteark is not your average consulting firm, we have first-hand experience in delivering transformation programs for private equity and other organisations with a focus on people and customers just as much as financial outcomes.

We understand that execution is the hardest part, and so we roll our sleeves up and work with you to ensure we can deliver the required outcomes for the business. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au

Household Consumption

Covid Impact Report

Household Consumption

Covid-19 has caused household saving ratios to hit heights not seen since the early 1970s.

---

OVERVIEW

Household Consumption Spending:

50% of households expect to have less income available after meeting commitments.

Disposable income expectations in a year from now:

• Increase: 17%

• Decrease: 50%

• Remain the Same: 25%

• Unsure: 8%

Household disposable income outlook…

• Employment is increasing as pandemic restrictions ease

• Population growth has slowed from 1.5% to 0.5% - less people receiving income than previously expected

• Wages growth has slowed from a low 2.2% to 1.8% and may decline further given the weak labour market

• Federal income support will be progressively reduced over the next six months

• Interest payments on savings have declined and so have share market dividends
  

Household Consumption Expenditure Outlook

• Household consumption expenditure growth will improve slowly as more spending options

  become available

• Weak income growth will constrain the rate of growth, although a build up of savings is likely

  to reduce slowly and support spending to some degree

• In annual growth terms, spending will likely still be in decline over the September, December,

  and March 2021 quarters

• Underlying growth will then settle at around 3.5% to 4%, which is similar to the growth rate

  before the pandemic

• Pessimistic estimate of underlying growth in consumer spending is 1.5% to 2% and optimistic

  estimate is 5% to 6%. The optimistic estimate is still below the pre-GFC growth rate of 5% to 9%

*Data Source: Foreseechange, Charlie Nelson

Digital Commerce

According to Gartner, five areas of digital commerce are being transformed due to the effect of Covid-19 on customer behaviours and businesses accelerating their adoption of online and digital alternatives.

1. Contact Purchasing

Contactless purchasing has become a preferred payment. Gartner predicts 80% of ordering and replenishment  will be contactless by 2024.

Customers:

Contactless payments and pickup/delivery

Operations:

Contactless business operations where companies can use robotics, artificial intelligence and computer vision to assist employees across the supply chain

2. Virtual Product Reviews

Currently the adoption of 2D and 3D product previews remains light.

Gartner predicts the uptake  will increase - software vendors offering visual configuration tools have reported a rise in business due to the pandemic.

Virtual Product Reviews may reduce the need for samples and showrooms and enable more customer self-service when buying configurable products.

3. Live Commerce Streaming Services

Live commerce involves video streaming to demonstrate products and interact with shoppers in real time to encourage purchases. Brands that have implemented livestreaming for selling or customer engagement are seeing early signs of success.

4. B2B Buying Experience

Businesses that sell B2B should think about transforming their shopping platform into one that has a more consumer-like feel to gain traction with younger professionals as they will expect a B2C like experience.

5. Enterprise Marketplaces

Enterprise marketplaces are online marketplaces operated by organizations that enable third-party sellers to sell directly to end customers.

Need to make the most of digital commerce trends?

Let us help. To learn more about how to leverage digital trends and pivot your business, contact us on whiteark@whiteark.com.au

Consumer patterns and implications for brands & retail

Covid Impact Report

Consumer Patterns & Implications for Brand & Retail

Covid-19 has created several new consumer segments as a result of varying attitudes and spending habits are changing.

---

OVERVIEW

Consumer concerns are centred around health, the economy (including income and unemployment), and climate change which is still a prominent issue.

80% are not willing to return to life as it was.

Driven by ongoing concerns about health and finances but also as a result of rethinking and resetting priorities.

50% expect to have less disposable income.

Driven by high unemployment and the imminent reduction of government income assistance.

A high priority to build savings.

As a precaution, to buy residential property to live in, or to invest.

Only 9% feel they have discretionary funds and want to spend on discretionary items.

Consumers have adapted their shopping behaviour.

As a result of the pandemic and lockdown restrictions; consumers have adapted to online channels at the speed of lightning.

With more consumers adopting new ways of doing things, the online grocery channel has increased market share.

Convenience customers are going to drive a surge in e-commerce

Retail entrepreneur Ruslan Kogan, says the next wave of e-commerce growth in Australia will be driven by consumers interested in convenience as much as price.

Kogan predicts  e-commerce will surge from 8% to 30%.

If Kogan’s prediction is accurate, that still leaves 70% for physical shops (which may also sell online)for shoppers who prefer local, personal customer service, unique merchandise, instant gratification, or other attributes satisfied best by physical shopping.

Keeping it local…

Independent and specialty stores are benefiting from consumers shopping closer to their location and wanting to support local businesses.

Key reasons consumers are shopping locally:

• I’m supporting local businesses

• I’m shopping more at stores that are closer to my location

• I was looking for better quality products

• I was looking for products that I couldn’t find at larger retailers

• I was looking for better prices

• I always shop at this store

Shopping locally is more important for Insulated spenders.

Constrained or insulated?

As published in Nielsen’s “Reboot or Rebound – The New Normal For Australia” communication, the polarisation of consumer spending habits continues…

Insulated spenders prioritise convenience whilst Constrained spenders prioritise value. Constrained households do not necessarily correlate to lower income.

In this report we unpack how brands and retail can cater for the two types of spenders: constrained and insulated and what trends we can expect to see as the retail landscape continues to evolve and change.

*Data Source: Foreseechange, Charlie Nelson