First-Quarter Analysis of Consumer Brands in the Year So Far – nitronet

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This iteration focuses on various nonmedia companies in the 2020 first quarter.

Nonmedia insights 

Significant increase in purchases in Q1 may just mean we see a slowdown in Q2 (e.g., toilet paper, 90-day medications, Tylenol, etc.) Stores will evolve to become fulfillment centers, click and pick and more self-checkouts. Self-checkout will go beyond just supermarkets to retailers, etc. Supply chain management is critical—that will be a very popular college degree. Enhanced sanitizing procedures are here to stay. Digital ordering is here to stay, especially order ahead. Malls are dead—acceleration of the future. Additional customer service agents are being hired and will work at home for the foreseeable future. A shift to lower price per ounce offerings as many consumers experience financial constraints. May see upward pressure on prices because manufacturing will be brought back to the U.S., and it’s going to cost more than manufacturing in China. No new stores will be opening and many may be closing. Commercial real estate gets cheaper—hopefully leads to more small businesses opening storefronts. Existing stores probably need smaller footprints. Seeing a pull forward of purchases; purchases made in March/April will not be made in Q2/Q3. Normal travel may be three years out. Forward-looking companies are planning for Q4, Halloween, Christmas, etc. The recovery will be dictated by our customers feeling safe both physically and financially. Some marketers are coming back strong in Q2 with new messages around new products and safety procedures.

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