The big work-from-home experiment of 2020 familiarized many employees with the home office. Last summer, 86 percent of consumers surveyed for an Accenture study said they would continue to work from home, or more often than before. The home workplace is not only permanent, it is also set up and upgraded for it. The space requirement increases accordingly. The desire for an additional study is growing.
Those who no longer have to drive to the office every day can live further outside, where more living space is tempting at (even) lower prices. On the other hand, the less often the personal, fixed desk is used in the office, the more it belongs to the past. In the future, office space will be used more for personal meetings, discussions and workshops or for concentrated individual work and will be redesigned accordingly.
Even in the first phase of the pandemic it was evident that retail companies with a high degree of digital maturity can get through the crisis relatively unscathed or even grow. The less companies are dependent on physical presence, the better they are doing in the current crisis and probably beyond. Whatever can be obtained virtually, it will be. But not all. Because the second decisive factor is the positive experience of the consumer. When digital maturity is high and the consumer experience is great, a company is well on its way to thriving. However, if digital maturity is low and / or the consumer experience is poor, start with the experience and work your way backwards to technology. After all, digitizing a bad consumer experience does not help a company.
A permanent decline in consumer spending could trigger significant ripple effects in the global retail industry, which is responsible for about $ 6 trillion in economic value. A persistent decline in demand could have detrimental secondary effects in areas such as warehousing, wholesale and many other retail-related industries. However, there are some positives as well – some early signs reflect possible improvements for certain areas of retail. In Germany, private consumer spending, along with exports, made a decisive contribution to the economic recovery that could be seen in the autumn. This shows how important it is for companies to adapt quickly enough in terms of digital maturity, workforce agility and costs.
The recession will pass and consumers will start spending more again. In the longer term, however, it is critical for businesses to recognize the changing factors that are increasingly influencing consumer purchasing decisions. Before the pandemic, we saw a growing demand for sustainable and ethical products. During the crisis, the focus on brands with a purpose continued in certain categories – i.e. those with clear values, an attitude, authentic transparency and an overarching corporate purpose.
Even after the crisis, responsible consumption will remain a long-term trend and an important factor influencing future success. Companies that put sustainability and the customer at the center of their actions will position themselves well to gain market share and grow over the long term.
