Adapt and overcome

For the next few weeks, instead of our normal insight on consumer sectors, we will at look at how consumer businesses are responding to the pandemic. We are already seeing an increase in community engagement, open and timely communication, free digital content, and resources being redeployed.

Staying connected
With a lot of people self-isolating and home working, appetite for virtual media is high, making it an ideal time to offer something in this space. Many fitness studios and athleisure brands, including global chain Barry’s Bootcamp and Hotpod Yoga, as well as London locals Digme and Pyscle have cancelled classes in their physical studios. However, recognising the importance of staying active and motivated, they are offering free or donation-based classes ranging from HIIT to yoga presented via YouTube or Instagram Live. This is a great way to continue engaging with the community, strengthen and build its brand with existing and new customers, and support their teachers and freelance instructors.

For businesses that already have an established online offering, this is an ideal time to consider offering introductory content to help out consumers that normally would not consider paying full rate for the product. Popular physical and mental wellbeing programs Peloton and Headspace are on this trend, offering sections of their apps to new users for free for the current period.

Supporting the community
With a collective solution being required to combat the pandemic, isolation and distancing is in some ways bringing disparate communities closer together in spirit. In the UK, high street F&B chains Pret (seen above), Nandos and others are offering discounted or free products to NHS workers. Large retailers including Iceland have introduced special shopping  hours for the elderly or vulnerable, allowing these groups to avoid unnecessary transmission risks from crowds of less concerned younger people.

At the same time, consumers are very aware of the impact on local businesses without the cashflow to weather the storm and want to help. Brands are looking at ways to let loyal customers pay in advance for a modest discount to maintain cashflow through this time. For example, the Harts Group (parent of restaurants El Pastor, Barrafina and others) is offering gift vouchers at a discount, and hip eatery Kricket is following suit, with an offer of a bonus 20% on any gift vouchers over £250.

Being honest
There has been a steady flow of news of companies cutting hours and jobs or putting staff on unpaid leave, which generally builds negative associations for consumers. The brands leading the way have been upfront about the difficulties they are facing instead of letting the news leak to the media via unhappy staff.

Being agile
The more agile organisations are looking for sensible ways to make the best of a bad situation -- globally, we've seen Australian airline Qantas negotiating with supermarket chain Woolworths, to temporarily transfer staff between the organisations while air travel demand is low and supermarket demand high. Fashion and beauty conglomerate LVMH and Beer company Brewdog are retooling factories to produce hand sanitiser, which is being supplied at cost or even free of charge to health authorities for as long as necessary.

Many businesses will have to adapt their business models over the next few weeks, and we will be reporting on the most innovative and interesting.

Shelley Guo