{"id":10148,"date":"2020-11-16T16:57:25","date_gmt":"2020-11-16T15:57:25","guid":{"rendered":"https:\/\/www.adoneconseil.fr\/en\/?p=10148"},"modified":"2026-01-16T09:41:19","modified_gmt":"2026-01-16T08:41:19","slug":"how-does-covid-impact-e-commerce-and-transform-the-luxury-industry","status":"publish","type":"news","link":"https:\/\/www.adoneconseil.fr\/en\/news\/how-does-covid-impact-e-commerce-and-transform-the-luxury-industry\/","title":{"rendered":"How does Covid impact e-Commerce and transform the luxury industry?"},"content":{"rendered":"
The COVID-19 pandemic has drastically changed all economic forecasts for the year 2020. With the closure of international borders and <\/span>shops,<\/span> and the isolation of people at home, the pandemic has not only forced many sectors to re-evaluate their economic strategy for the future but has also forced consumers to abruptly change their consumption habits.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> The luxury sector is no exception to the rule. With China and Italy in complete isolation, the luxury market quickly experienced its first losses for several years. Thus, it can be said that even the industry that is not experiencing the crisis has wavered in the face of the Covid-19 epidemic.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> To make up for these losses, luxury houses will have to innovate and adapt their strategies to th<\/span><\/b>is<\/span><\/b> new reality.<\/span><\/b> <\/span><\/p>\n<\/div><\/div><\/div><\/div> Lockdown <\/span>has influenced consumer<\/span>s\u2019 buying <\/span>behaviour<\/span> by <\/span>leading <\/span>them essentially towards two distribution channels<\/strong>:<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> New e-commerce consumer profiles<\/span><\/i><\/b> <\/span><\/p>\n<\/div><\/div><\/div><\/div> T<\/span>he large distribution sector that was the first to benefit from these new <\/span>buying <\/span>habits.<\/span> This sector has been able to adapt quickly to the new demands of consumers, especially in France, where most of the food-processing giants ” have shown remarkable agility and great reactivity during the crisis, finding new solutions and developing <\/em><\/span>click&collect<\/em> to get around the logistical difficulties<\/em> “, according to Marc <\/span>Lolivier<\/span>, general delegate of <\/span>Fevad<\/span>.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> According to a study carried out by Nielsen on 26 April 2020, the market share of generalist e-commerce on PCG (consumer goods) and FLS (<\/span>fresh <\/span>self-service) has almost reached 10% during the <\/span>lockdown<\/span>, <\/span>a gain of more than 4 points <\/span><\/b>(5.7% in 2019, 5.3% in 2018). This success is mainly due to the recruitment of new consumers!<\/span><\/p>\n<\/div><\/div><\/div><\/div> Also, according to Nielsen, in the first week of <\/span>lockdown<\/span>, <\/span>more than 1.2 million additional households tried PCG and FLS online purchases<\/span><\/b>, of which 500,000 were retirees, representing more than 40% of new households trying e-commerce. According to <\/span>Foxintelligence’s<\/span> e-commerce barometer, more than one in three people who have made a food purchase online since 16 March did so for the first time, the majority of whom were not “digital natives”.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> Baby boomers (born between 1946 and 1965) are the target group with the highest penetration, with more than 70% of new online shoppers and 39% of Generation X (born between 1965 and 1980).<\/span><\/p>\n<\/div><\/div><\/div><\/div> In order to<\/span> <\/span>meet <\/span>this <\/span>sudden increase in online orders<\/span><\/b>, food retailers had to innovate quickly. <\/span>As a r<\/span>esult: Auchan.<\/span>fr<\/span> <\/span>proposed time<\/span> slots<\/span> for orders<\/span> (no orders on Wednesdays for example). Others like Carrefour.fr created a virtual waiting list.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> With <\/span><\/b>home office<\/span><\/b>, sales of computer and office equipment have increased fivefold<\/span><\/b> according to a spokesperson for Amazon France. To do this, Amazon had to draw up a list of items deemed “essential” for this period which were delivered as a priority, such as food, maintenance, information, etc. All the rest of the deliveries were postponed to distant or post-<\/span>lockdown <\/span>dates. Darty.com and Fnac.com, for their part, gave priority to certain products and certain customers (including <\/span>carers<\/span>) while keeping their entire catalogue.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> Contrary to the agri-food retailers, for many non-food cyber-merchants, e-commerce is their only distribution channel and, more precisely, the delivery points at retailers’ premises. The cessation of <\/span>MondialRelay’s<\/span> activity since 17 March has only lengthened delivery times and even blocked others. “This represents about 20% of deliveries<\/em>” according to Fran\u00e7ois <\/span>Momboisse<\/span> (President of <\/span>Fevad<\/span>).<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div> For some, the problem lies in their warehouses<\/span><\/b>. Amazon France unions have complained about the new health security measures. Despite the safety distances of 2 <\/span>metres<\/span> between people, some employees have<\/span> been<\/span> tested positive for coronavirus. The management of Amazon France has not yet put a figure on this, but the productivity of order preparation has deteriorated: one out of two packaging lines is now operating, due to health measures. The e-commerce site persists but with difficulty.<\/span> <\/span><\/p>\n<\/div><\/div><\/div><\/div>I. A RADICAL CHANGE IN CONSUMER HABITS <\/span><\/h5>\n<\/div><\/div><\/div>
\n
<\/figure>\n<\/div><\/div><\/div>II. E-COMMERCE BUSINESSES FACING THE CHALLENGES OF THE PANDEMIC <\/span><\/h5>\n<\/div><\/div><\/div>