The ‘New Normal’
The 'new normal' is the state that constantly settles over e-commerce as most webshop owners continuously adapt to developments. The 'new normal' is dynamic. It never stands still, but there are still some elements that last a bit longer than others. At the same time, there are developments you should keep up with, even if there isn't a definitive solution yet.
It is especially within the three elements that create sustainability that one must keep up with developments. These three elements are: environment, economy, and social aspects. Often, the focus is on the environment when trying to make a business more sustainable, but it is equally important that the business is economically and socially well-functioning. This includes ensuring there are no significant economic fluctuations or large deficits, as well as considering the employees within an organization.
Throughout the presentations, I noticed four recurring topics. At the same time, there were many interesting ideas on how to run a business in the 'new normal' by focusing on these four areas. The topics are: online customer service, eco-friendly packaging, sustainable businesses, and the 'new Danish market.'
As online shopping has become part of the new normal for consumers worldwide, the online store experience has as well. Webshop owners are trying to create a personal connection and a memorable experience for shoppers. In this way, online customer service has evolved into an industry of its own. There are many ways to approach this, but overall, it’s about putting the consumer at the center. Some try live shopping events and auctions, while others aim to create memberships and communities.
A great example of how to use live shopping and auctions is Totteland, which hosts live shopping events every Wednesday at 7 PM. It's a weekly event where they invite their customers into the store and sell directly through the screen. Of course, it requires a lot of preparation to ensure the customer feels like they are part of an event, not just an 'open store' where they have to manage on their own.
As mentioned, there are many ways to make the customer service experience and online shopping experience fun and personal. One example is Champagne For Alle, which has created a membership through their 'champagne box.' With this, customers receive two bottles of champagne delivered either every month or every other month. They’ve also personalized the experience by including a handwritten card in the first box.
It doesn’t have to be something grand for customers to feel seen and special. The most important thing is to find a way to show your customers that they are important to you. You need to find a way that reflects your business’s personality and identity. Look for a method that feels natural for you to build a relationship with your customers. It must not feel forced, as that would come across as fake, and customers can sense that.
Another focus that is becoming more and more prominent over time is being environmentally responsible. With global warming and increasing amounts of waste in the oceans, it has become customary for businesses to consider what they can do. Consumers expect their favorite brands to make it easier for them to shop with a clear conscience. Therefore, it is your responsibility to take a stand on what you can do to make your products and shipping as sustainable as possible!
When it comes to shipping, you might quickly imagine that you should just use cardboard and paper, but that’s actually not entirely true. Cardboard and paper can only be recycled about eight times before the wood fibers break down. On the other hand, plastic can be recycled infinitely, as long as it goes through the proper processes. So what is actually better for the environment? If plastic ends up in the right recycling processes, it’s better for the environment, but when it ends up as waste in nature, cardboard and paper are clearly less harmful.
However, there are some tips you can consider, no matter which direction you take with your packaging. First of all, it’s a good idea to go down a ‘mono-path,’ meaning you choose packaging made from just one material—either plastic or cardboard and paper. This makes it easier for consumers to sort the packaging. Additionally, the best thing you can do is find a way to align your production and shipping with the reduce – reuse – recycle model. This could include using as little packaging as possible and ensuring customers can reuse the packaging for returns.
When it comes to your production, it is also this model that provides the best opportunity for sustainability. Always research if there are alternatives to the materials you are currently using. With the advancement of technology, there could always be new methods or materials you should consider. One example is swimwear. Some brands use old nylon fishing nets to create the fabric for their swimwear. Or take bottle deposits! There are clothing brands that have implemented a deposit system on their clothes, meaning customers get money back when they return items that are no longer usable. This way, the clothing brand can reuse the material instead of it ending up in an incinerator.
As mentioned earlier, there are many things a company can consider to be sustainable. Globalization has made people, in general, more aware of their role in creating a sustainable world. This applies to both your consumers and your employees, who are now more conscious of what they can expect from you as a producer. Even the big, world-renowned brands can no longer avoid having to think about this.
Most employees expect various benefits and a work culture that aligns with the 'new normal.' People have become a valuable resource, and they are well aware of this. At the same time, people have become more informed and quality-conscious, so bad excuses and justifications no longer hold up. This applies to both your employees and consumers. They expect the social and environmentally friendly initiatives that they can follow on social media and in the news.
The 'new normal' means that a business is dynamic and keeps up with the developments happening in its surroundings.
For this reason, it can be a good idea to find a cause to support.
Maybe you've seen examples of companies that donate a certain amount to a good cause with every purchase. In this way, the consumer becomes a donor every time they buy a product. You should incorporate this into your storytelling. Tell how you are contributing to improving shopping habits and work environments by leading the way. Show that you understand what creates a great workplace and what the expectations are for considering the environment.
Last but not least, you can also ensure a sustainable business by having control over the financials. Make sure you have a solid grasp of the numbers or know what’s required to secure your business and, by extension, all your employees. This can be done in many ways, but one takeaway from the e-commerce conference that stood out to me was new methods for achieving this.
Benjamin from Teeshoppen shared how they optimized their bottom line by getting their financial processes in order. This included implementing a system to help automate the process. So, take the time to explore how you can make this easier for yourself.
The e-commerce conference kicked off with a presentation about the massive developments happening in China. However, it was also concluded with a talk about what we can expect to see in Denmark. These are the points I will go through here. While it’s exciting to hear about drone deliveries, online-to-online purchases, and all-in-one apps, they might not be as relevant for the Danish market.
The developments that are relevant, on the other hand, are those within live shopping, the use of apps, and the DtC competitors that are emerging. In China, online live shopping has become a whole new trend, similar to TV shopping, but much bigger and faster. It may not hit the Danish market in quite the same way, but many of the elements should be considered. It’s a great way to create dialogue between the business and its customers, as well as among the customers themselves.
It's important to remember that peer-to-peer is the new trend. Influencer marketing has become a huge industry. The more you can get your customers to interact with each other and influence one another, the greater success you're almost guaranteed to have. This applies to both live shopping and new social media platforms.
TikTok has become the most downloaded app globally. Consumers are seeking inspiration from each other on everything on TikTok—only imagination sets the limits. This is something companies should take advantage of. You can gain thousands of followers in just a week and reach far and wide with just two or three good videos.
TikTok has also just launched an integration with Shopify, which is currently being implemented in the U.S. market. Although it hasn't reached the Danish market yet, it's probably not far off. So, if you haven't started using TikTok yet, you should consider how you can create content for your consumers.
There is one last thing I want to ask you to keep an eye on: the DtC market. Direct to Consumer (DtC) refers to foreign companies that no longer need a Danish distributor to sell their products in the Danish market, but instead sell directly via the internet. Some good examples of this are Wish and Shein. They have millions of products, and although the quality is questionable, they break through worldwide because they are cheap. Be sure you're aware of how they capture your consumers so you can win them back.
Team pensopay