The Coronavirus impact on Retail operations
Since DynaLux has gone live in early 2019, the qualitative measurement solution has helped several brands and retailers grasp a better and deeper understanding of the audience that visits their retail stores. In short, the DynaLux solution allows every physical retail store to capture non-confidential data about the visitors, focusing on four key areas: Demographics, Engagement, Customer Experience and Customer Lifestyle.
The latest strain of the Coronovirus (COVID-19) was firstly noticed in Wuhan, China, in December 2019. By the time of publishing of this article, the highly contagious virus has spread to several countries in Asia, Europe and started spreading in Africa and North America. Although it presents a relatively low mortality rate of 2.5-3% with particularly weak populations (elderly), the virus has had disastrous effects on the global economy that are increasingly felt since the end of January 2020.
With this global pandemic creating a massive lack of confidence, it was to be expected to see retail performances around the world, especially in tourist shopping destinations such as Hong Kong, Dubai, Macao, Paris or London, collapse. Indeed, the different travel bans combined with the overall slump in everyone’s morale makes it extremely difficult for brands and retailers alike to retain the same level of performance as what was initially planned.
The data captured by DynaLux for its clients over the last three months (December 2019, January and February 2020), has shown a steady decline in a specific type of audience visiting the stores as well as – and it is not a surprise – a steady growth (albeit relatively small) on another type of audience. Without getting into the sales performance itself, it is extremely interesting to notice that the expected decline in tourist footfall has been partially offset by an increase of locals. Indeed, as brands and retailers alike are eager in capturing as much sales as possible, several have been running all kinds of promotion campaigns in order to try and improve on a very challenging situation.
The current DynaLux clients have been able to track on weekly basis, sometimes even on a daily basis, how the audience trend was evolving and accordingly, they were able to quickly implement a number of measures that are allowing them to reduce the blow on this sudden drop in traffic and change in audience demographics.
Omar Chaoui – Founder & CEO DynaLux
DynaLux Consulting DMCC is a firm established in Dubai and servicing the Luxury Industry. DynaLux has developed a proprietary technology to assist luxury retail stores understanding in detail the actual audience that visits luxury stores unlike standard CRM tools that focus only on paying customers. By understanding the complete audience of visitors, DynaLux assists brands and retailers alike to improve their conversion rate by addressing the specific issues that can be noticed thanks to data collection and analysis. For more information, write to: firstname.lastname@example.org