How the Coronavirus is Impacting eCommerce in China (so far)
With the necessary measures taken to contain the Coronavirus, physical retail, travel, F&B and hospitality are essentially shut down in China. Many businesses are off 97-98% since late January and have simply opted to “close their doors.”
So you may think e-commerce is booming. After all, wouldn’t offline demand simply move online? Well, it didn’t.
We run some sizeable brands and one of them is in a category that I thought would definitely go UP during this crisis…alcoholic beverages! But my client, who’s #2 in their space in China, is being hit hard by the crisis. During the last 6 weeks, their online stores are OFF BY 80%.
So the idea that online consumption is stable or benefiting from offline closures is dead wrong. Comparing average weekly sales pre-crisis, we are seeing drops anywhere from 50-90%.
However, medical supplies, personal fitness, wellness and online grocery continue to perform. Those are the rare exceptions.
We’ll be posting more data on the impact soon including category level trends. For those who seek to understand…stay tuned.
#China #eCommerce #Coronavirus #Crisis #CrisisManagement