Business Administration and Economics

Department

BA

CBE3115: Sales Management & Techniques

Fall 2021

Sales During Covid

SUBMISSION DEADLINE: 13.12.2021

ACTUAL SUBMISSION: 11.12.2021

STUDENT REG. NUMBER(s)

BS18058
BS19030
BS19097

Declaration:

All sentences or passages quoted in this coursework from other people's work have been
specifically acknowledged by clear cross referencing to author, work and page(s). I understand
that failure to do so amounts to plagiarism and will be considered a reason for failure in this
coursework and the module examination as a whole.

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Contents
Introduction..........................................................................................................................................3
Facing the challenges of the pandemic by shifting to e-commerce.....................................................3
The Case of Zara..................................................................................................................................4
Sales Strategies During a Pandemic.....................................................................................................5
Changes made to selling by COVID-19...............................................................................................6
Covid-19 effects on B2B......................................................................................................................6
Covid-19 effects on B2C......................................................................................................................7
Conclusion............................................................................................................................................7
References............................................................................................................................................8

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Introduction

For nearly 2 years the world has been dealing with the COVID pandemic, and its safe to say that it has immensely
changed our society perhaps indefinitely. Aside for the way we look out for our health, the way we interact with others,
socialize, consume and sell has been drastically changed and shifted. The many lockdowns, mask mandates, vaccination
certificates and other restrictions have forced us to adapt to new challenges placed by world governments. An economic
crisis occurred, on one hand many businesses completely collapsed, on the other hand new business models were
created and certain businesses thrived and reached their highest peaks in the “new normal”. Sellers and businesses were
forced to completely innovate the ways they sell to consumers, with no notice or preparation, a serious in the moment
switch was necessary in order to remain afloat. The shift to online retailing, home delivery services, the banning of
selling “non-essential” items are some of the challenges which many sellers faced in this ongoing pandemic, pushing
towards a new trend in B2B and B2C selling which might transition into a permanent and new norm of selling.

Facing the challenges of the pandemic by shifting to e-commerce

Online retail was long present before COVID-19, however the pandemic truly created a paradigm shift in the retail
world centered towards e-commerce. In May 2020, online spending hit upwards of $82.5 billion, which is a 77%
increase year-over-year (Lopez, 2021). Additionally, the businesses which survived the lockdowns and restrictions of
the pandemic had an e-commerce service already or quickly and efficiently transitioned to it (Lopez, 2021). It is evident
that the only way to survive the pandemic is to embrace the world of digital selling, however this can prove to be an
advantage and disadvantage for sellers.

The most traditional way of buying/selling something is to go to a store/service provider, choose an item/service and the
sales person is here to sell it to you. There is a certain freedom and security when you are selling or buying in real life
such as bartering or actually seeing the product in real life which can determine the outcome of the sale. Some
consumers can be more easily persuaded to buy an item if they actually see it, touch it, asses its quality and therefore
value, they can be more confident and secure with their purchase, and the seller is here to help them achieve this
security of purchase, thus building strong consumer relationships which increase sales (Mujtaba,2008). E-commerce
hinders creating customer relationships, there is no physical interaction therefore sellers need to find new ways to show
their gratitude and support to their customers. Thank you e-mails, promotional codes for discounts, direct
communication through social media are ways of achieving this goal (Malone, 2020; Fuggle, 2021).
A different perspective is that managers faced challenges with their employees, especially the sales department. The
ongoing lockdowns forced many people to work entirely from home, meetings and other activities which required social
interaction were replaced with zoom calls, google meets, and other forms of online communication. The fact that people
no longer had to dress up, leave their house, try and be presentable and integrate into society, and the confinement of a
single space proved to take significant toll on mental health and the subsequent decline in productivity, motivation, and
performance (Banks, et al. 2020; Etherigde, Tang, et al. 2020). In order to keep a sales force alive, managers have to
constantly check up on their employees, to provide mental support and motivation. However, as previously mentioned,
e-commerce sales have sky rocketed since the pandemic, with little to no interaction from sales representatives it seems
as though people still had needs to consume and spend money without any kind of interaction with a sales person, store

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clerk, waiter, etc. A new anti-social type of market is forming, where products and services can be enjoyed in complete
isolation, without the need to leave their homes, interact with people, with a single press of a button.
With this in mind, would it be wise for managers to completely transition to a digital business framework, where all
services/products would be sold through an online marketplace, employees would work remotely (therefore no need to
buy/rent an office space, building, storefront, etc.), or cut down on job positions? Why should there be a sales team
when clever and proper placed marketing is clearly enough for consumers to spend their money?

The Case of Zara

According to Zara’s parent company Inditex, the fast-fashion giant has managed to recover from the 2020 revenue
damage that was a downside of the pandemic, as Inditex disclosed during their recent earnings reporting. Zara’s parent
company has also other significant fast-fashion brands such as Pull&Bear and Massimo Dutti. (Barkho, 2021) When
combining all the brands, the company’s reported revenue marked up to 8.25 billion USD between the trimester of
May-July, which is an improvement of 7% over the same trimester of 2019. (Barkho, 2021)
As a result, Inditex managed to reclaim the market leader position in the global clothing retailer market. Zara’s sales
were able to be recovered faster than its counterparts due to the brand’s capacity to provide in-store pickup, rather than
limited fulfillment choices. (Barkho, 2021) While traffic kept increasing and assisted sales numbers to raise up, Inditex
established that 99% of their stores have come back to operation as of September 2021.

Moreover, e-commerce sales face a continuous rapid growth; Inditex forecasted that online sales will reach 25% of total
sales by the end of 2021, which is two years earlier than the goal was set. Back in 2018, the company reported that e-
commerce sales reached 12% of the total sales. (Barkho, 2021) When it comes to competition, H&M has a significantly
slower recovery pace. In the company’s latest reports sales saw a 9% growth compared to last year (6.46 billion USD).
Although, H&M’s net sales are decreased by 11% compared to 2019. (Barkho, 2021)
Investing in online order fulfillment played a vital role in Zara’s growth of post-pandemic sales. Way before the covid-
19 pandemic, Zara had been providing in-store pickup for a couple of years. Back in 2018, Zara offered “click and
collect” locations that exclusively served online order pickups. (Barkho, 2021) These locations are not associated with
Zara’s conventional stores, which usually are packed and have long fitting room and checkout waiting time. During the
pandemic, Inditex released its objective to invest 3 billion USD on technology aids that will blend and enhance its
online and physical shopping experiences. (Barkho, 2021)
On the other hand, the Zara brand has to adopt significant changes in order to create an up-to-date e-commerce
experience. An example includes that Zara owns a mobile application for a couple of years, but its desktop interface is
old-fashioned and hard to browse around and does not permit customers to filter goods by parameters such as the price.
(Barkho, 2021) In spite the fact that the brand’s sales recovered to pre-covid numbers, Zara still has to tackle constant
booming competition, especially when it comes to internet fast-fashion rival retailers such as Blushmark or Shein.
(Barkho, 2021)

Sales Strategies During a Pandemic

In the course of the pandemic, there is a great possibility that a company will not enjoy the same amount of
conventional success as it would at normal circumstances. Probably, the corporations and potential accounts that will
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reach out to you will be under purchasing restrictions. (Goldstein, 2020) On the opposite side, this may not be the case,
but they may still be resistant when in come to purchasing decisions as a pandemic is a time of insecurity and
instability. If they’re not under one, they likely will still be hesitant to make new purchases during this time of
uncertainty. So, companies have to opt for the new meaning of successful sales model post covid-19. (Goldstein, 2020)
A first important step is to retain carefully the process of acquiring more business leads as it can be an efficient way to
stay on track towards the company’s goals during these tough times. By the constant promotion of the company’s
product, potential customers will keep it in the top of their head when the market is stable again. (Goldstein, 2020)
As the entirety of the globe is affected by a pandemic, it is not wise for a company not to incorporate it into their sales
strategy as it will seem socially inconsiderate to the customer. Otherwise, the company’s sales pitch must be remodeled
with great detail in order to reposition the product or service where it satisfies the needs of a customers who faces the
struggles that occurred during the pandemic. (Goldstein, 2020)

Albeit many products do not have direct selling points that encourage people to normalize their life while staying at
home such as technology tools that assist at remote work. In that case, the company must adjust its pandemic sales
strategy by addressing the points that hurt sales. Probably these points have not changed during the pandemic times and
the company is facing the same issues even during normal times. Most problems derive from areas such as disfunction
at the supply chain, employee communications and safety procedures. (Goldstein, 2020)

Changes made to selling by COVID-19

The COVID-19 epidemic compelled B2B buyers and sellers to go completely digital. Producers, retailers, and
marketers have all had to struggle to keep up well with flawless online purchasing process. What began as a rapid
response has evolved into the new reality, with significant consequences for how producers and consumers conduct
business in the future (Etzkorn, 2021). The majority of buyers and sellers nowadays choose online self-serve and virtual
contact with humans over face-to-face encounters, a stance that has only grown stronger since the quarantines finished.
This implies that in the digitalization post-pandemic era, a bulky stable webpage with an unlimited catalog of items is a
rapid competitive market. However, simply having an online presence is insufficient. The whole online experience
should be centered on the customer, with self-service at its core (Gavin et al., 2021).

Covid-19 effects on B2B

We've reached a digital peak, and B2b ecommerce practices in the future will look completely opposite than they did
just before the epidemic. Whereas the entire globe is experiencing an economic catastrophe as a result of the epidemic,
certain businesses have been able to sustain or even boost expenditure. Companies' investment is influenced by a
number of factors, including their region, industry, and, of course, their size. Clients have gotten accustomed to getting
everything they need online, therefore the purchase procedure must be fast. Buyers must have no trouble finding items,
pricing, and details, navigating the site, and even making a purchase. You can boost customer happiness, loyalty, and
sales over time by providing an excellent consumer online experience that is simple, accessible, and convenient to use
(Harrison, et al 2021). Online platforms are now almost twice as essential as they were previously. Customers demand
the same depth of understanding from b2b salespeople as they did from face-to-face sellers, and they are no longer
prepared to tolerate anything less from their professional experience. For example, live chat provides efficiency,
accessibility, and expertise. All of which are important to customers.

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90 percent of sales have shifted to a video conference, phone, webinars, or even an artificial intelligence chatbot in an
environment where habits and practices have evolved so swiftly and will likely continue to do so. This tendency is
clearly more prevalent in some industries, such as software, television, and telecommunications. As a result, the
efficiency of these measures appears to be similar to that of traditional approaches prior to the epidemic (Gavin et al.,
2021).

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Covid-19 effects on B2C

Customers have been accustomed to internet shopping, and it may now feel even better than walking out and browsing
cabinets for the items we need. Implementing same-day courier-based shipping as well as in store pickup for anything
from groceries and medications to impulsive buying we make out of boredom has become critical for businesses.
Retailers have also learnt to provide an appropriate online customer experience by indicating capacity and product
availability concerns to customers in real time while they search. They've invested in innovative technologies like
augmented reality (AR) and 3D scanning to bring things to customers' homes (Harrison, et al 2021). For example, Goat,
a clothing resale software, allows customers to see a pair of sneakers that they are interested in with their phone camera
on their own feet by the AR technology, so they can see how the sneakers appear on their feet. In terms of marketing,
retailers have figured out how to increase consumer involvement by prioritizing personalization and loyalty. They
implement customization to provide customers with interesting, relevant products while gathering data on everything
that a customer is interested in when surfing their website or app. For example, if you search for gloves on the Nike app
or website, you will be shown with items that you may also need, such as beanies or cold-weather sports equipment, as
a way of increasing consumer engagement.

Conclusion

As a result of the COVID pandemic, we now look after our health in a new way, engage with people in a different way,
and even consume and sell in a different way. As a result of these changes, we've had to adjust to new difficulties posed
by governments worldwide. While many firms failed as a result of the economic downturn, others thrived, and the
majority of them developed new ways to market their goods. What started as a quick response has turned into a new
norm, with huge implications for how manufacturers and consumers do business in the future. In both b2b and b2c
businesses, online selling and shipping have become essential. The majority of consumers and sellers increasingly
prefer online self-service and virtual communication over face-to-face interactions, a trend that has only intensified
since the quarantines were lifted. The consumer should be at the core of any online website. Sellers on the internet are
now nearly twice as helpful as they were before (Etzkorn, 2021). Retailers have developed tools like live chat that give
efficiency, accessibility, and competence in order to be as beneficial to the customers as they were during live
encounters (Harrison, et al., 2021). Customers value all of these aspects. While it has been determined that 90% of sales
have changed to video conferences, phone calls and webinars, this may only be the beginning of how humans connect
and purchase items, whether they are needless apparel or vital supplies (Gavin, et al., 2021). Perhaps, in the not-too-
distant future, we will only be able to purchase online.

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