Covid-19 And The Economy of 2020


Published: November 24, 2020

Ecommerce And Holiday Shopping

Well, we are two days away from Thanksgiving (11/24/2020), and a new way of doing business and fellowshipping with friends and family is at hand. As of October, the unemployment rate rose from 1.2 million to 3.6 million people who are out of work. We must wear masks, not be involved with large social gatherings, and suggested that we video conference our loved ones. People are not shopping as they did in 2019 and staying away from large crowds due to the anxiety of catching the virus; they are doing their shopping online. Consumers started their holiday shopping as early as October 2020, but their shopping trend is now online.

Green sheet speaks about how the holiday shopping season will be the same if not more than last year due to consumers’ e-commerce shopping. Black Friday, the celebration of the end of the year shopping, will not decrease but have a different approach due to digitalization. Within the last two decades, digital marketing or transformation has taken traditional marketing by surprise. Due to the advent of the internet of the 1990s becoming more ubiquitous in the 21st century, more commerce is done online.

And a matter-of-fact, if it were not for the internet, society would be in trouble with the pandemic at hand and trying to do commerce globally. From the beginning of the new millennium, the digital transformation from the old unto the new is beginning to shape how we now do business digitally. The moving of goods and services is no longer or minimized in the physical touching. The personal interaction with one another is all or mostly done using technology such as video conversing.

Ecommerce Strong Demand

Merchants have changed their marketing method (those who sell a physical item) from the tradition of promoting their storefronts to online shopping. Digitally promoting their brands and merchandise and making it easier for consumers to shop at the time that fits them best. The re-building and shaping of small business websites and making the website more consumer friendlier so that consumers can stay longer on the website and spend more money. The TransUnion report 2020 Consumer Holiday Shopping Report found that three out of four shoppers will go online to shop this season, which is up for the same period in 2019, whereas it was 57%.

This survey that was performed by TransUnion was done in October 2020 on 2,600 adults and showed most people would shop from their mobile phones over any other method of technology. The consumers also looked for additional layers of security when shopping online from the merchants whom they patronize. Consumers still wish to interact with their retailers of choice; only do it safely. Merchants must meet these consumer needs as online shopping becomes the new norm while the pandemic has us under its siege.

Consumers view clothing and accessories (54%) as gifts they are looking to give away this year, while another 49% say gift cards would be the way they intend to go. Even though many citizens are out of work, holiday giving to be the same if not more of what it was in 2019. The National Retailers Federation predicts $27 billion in gift cards consumers would pass out this year. The most popular way of paying for holiday goods and accessories would be credit cards at 42%. And coming up with second place would be debit cards at 41%.

All-in-all, this holiday season will not be a bust economically, but a transitioning to digitalization or the use of technology in place of the consumer being physically able to make their purchases.

Virtual Events

We are so blessed to have this knowhow in our lives that can bridge the gap of physical encounters to virtual. With the advent of various teleconference systems today, we can continue business, albeit we must learn it, but it is here to utilize in our different practices. But then again, this can save business organizations money from traveling. The epidemic has caused us all to change how we have done things in the past to a brand-new way of doing things in the future.

Even this new challenge will open opportunities for new entrepreneurs to take advantage of, like Zoom and other such organizations that promote teleconferencing to move business and consumer campaigns. We are social animals and long for intermit contact with others like ourselves; however, this is a substitute for that interaction until this plague is brought under submission. The public has found a personal aspect of teleconferencing, which is visiting families during this holiday season.

Conclusion

So all-in-all, this Thanksgiving will be different from all others we have faced due to corvid-19. Various health care professionals condemn traveling to see loved ones with the fear of virus breakouts in the coming weeks. Nevertheless, travelers know this and choose to do so. Others heed the call and elect to stay home under the day-to-day nuclear family setting and simply call family and loved ones rather than the traditional family and friends gatherings.

Due to covid-19, most of us are not traveling as we have in the past on this holiday season. The use of technology is being used instead of travel to keep family and friends close, united, and together. Welcome to our new normal as far as celebrating holidays from a distance to control this disease’s spread at bay. If all goes well and the vaccine is found and distributed in 2021, this could very well be the end of such practices. But we will know more about this subject sometime in the future, but for now, let’s be cautious—and happy Thanksgiving to you and yours.
Dr. Donald E. Mitchell

Donald E. Mitchell, D.B.A., M.B.A., B.B.A.

Small Business Consultant-Specializing in Business Management, Entrepreneurship, Marketing.

Toll-Free (866) 400-3040 Email: donaldemitchell1@msn.com Website: www.donaldemitchell.com

Addresses: 860 N Dewitt Pl # 1501

Chicago, Il 60611

2000 Town Center 19th Fl.

Southfield, MI. 48076

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