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Embracing adidas’ next

normal
Connecting with today’s shopper

Charly Maltagliatti
adidas/Reebok Client Partner - LAM
In the next 20 min
01 Today’s landscape

02 Reimagine retail’s next normal

03 Key Take Away

04 Q&A

Facebook company
These are unprecedented times
Stay at home Work at home Train at home Entertain at home Doing all at Home

Facebook company
Brands and retailers are
responding in
unprecedented ways
People are changing their
behavior

94%
of people surveyed globally
say they have changed their behavior due
to the COVID-19 outbreak

Facebook IQ source: Global Web Index, survey of people in AU, BR, CN,
DE, ES, FR, GB, IT, JP, PH, SG, US, ZA, Mar 16–20, 2020.
Taking on COVID-19

The COVID-19 outbreak quickly brings changes in


consumer behavior

85% 85% 70% +77% 40% +40%


Consumers have Say the coronavirus delaying or thinking Spent time on Consumers have Spent time on
gone into home will have a financial about delaying a their smartphone tried a new brand or researching and
quarantine or self impact on them and major purchase (BRA) product because buying online
isolation their families (MEX & BRA) their regular brand (MEX & BRA)
(MEX & BR) (MEX & BRA) was not available.
(MEX & BRA)

Sources: 1/ Nielsen, 24/feb thru 1/mar 2020 ( first full week after outbreak) 2/ Nielsen ScanTrack, PCG+FLS, March 2020 3/ ParcelHero March 2020 estimate/Facebook Intenal Data / Kantar Public reports
Taking on COVID-19

The COVID-19 outbreak quickly brings changes in


our platforms.

+70% >50% 2X 2X
more time spent Increase on Time spent in Increase on
across our apps Messaging on Messenger Instagram &
since the crisis Messenger & Video Calls Facebook Live
arrived. views
(Italy)
WhatsApp (Globally) (Italy)
(Globally)

Sources: Facebook Internal Data


Like so many things, over
the last few months
shopping has
fundamentally changed

Shoppers have adopted new


behaviors and a new set of
expectations
Among people surveyed
from 19-21 March

MEXIC
BRASIL
O
+43 +41
% % e-commerce
say they are using
more to purchase products they
would normally buy in-store

"Tracking the Coronavirus" by Ipsos, Mar 19-21, 2020.


During 1st week of April in
Brazil (vs 1st week of March)

ECOM
ORDERS
+26
%
ECOM SALES
+31
%
Source: EBIT Abril 2020
People are shopping online more across categories
% of global respondents who say are shopping online more for the following
things

Food/grocery products Entertainment items Home/garden items

Household Cosmetics/beauty
Home appliances/furniture
essentials products

Personal care
Treats for yourself Gifts for other people
products

Clothes Alcohol

Source: Global Web Index Coronavirus Research, wave 3 April 2020


02
Reimagine retail’s
next normal
02.01
Reimagine
communication
They still want to hear from brands
- as long as they deliver relevant
value.
70% 64%
Completely Agree Completely/Somewhat Agree

I want to continue to I expect companies to


hear from brands and acknowledge today’s
companies on what crisis and situation in
they have to offer and their advertising.
what they stand for.

Ipsos Study 2020: Base: 999 adults 18-65 | Q: Please indicate your level of agreement with each statement.
We’ve seen three guiding mindsets separate those who are standing ahead of the rest:

Lead with empathy Be yourself Add value


It is important to first empathize with The more honest and true to who you The ideas you build should contribute
the changes and disruptions are and what people have come to something to your audience and
happening in the lives of your expect from you, the better you’ll communities you care about - not just in the
customers and community. connect. immediate aftermath but the future, too.

As the situation evolves, be sure to Think about how your brand can inspire or
regularly revisit your marketing efforts As great as something sounds, if your enable them around something they need,
to ensure that your messages resonate competitors could do it, find a different for example support - mental, emotional,
and remain relevant to your audiences. approach. financial

Play to your strengths and be uniquely


you.
Reaching your Customer

CONTENT IS KING BUT DISTRIBUTION IS QUEEN

Mexico
SUPERSTAR
FASTER THAN
Reach
Facebook
ECOMMERCE
Reimagine Commerce
With physical stores closed,
focusing on ecommerce and
liquidating inventory is top of
mind

Many retailers are doubling down on


ecommerce and using stores as
distribution centers
Be more efficient

DRIVE TOP-LINE INCREASE MOVE


GROWTH PROFITABILITY INVENTORY

• Develop the ecom Storefront • Increase higher margin products • Sell excess inventory

• Attract new customers • Increase higher value customers • Expand your audience

• Increase value of current customers • Increase marketing efficiencies • Leverage brand partners

• Protect brand equity

Facebook company
New habits and expectations will emerge in the
next normal

>40% 55% 62%


of survey respondents say they Respondents say they increase in curbside pick
will shop online more frequently would like to see more up and Buy Online, Pickup
after the outbreak ways to allow you to In Store between Feb-Mar
enter and exit as 21 year-over-year in the
quickly as possible US1
from essential stores

BUY ONLINE,
PICK UP IN STORE
Source: Global Web Index Coronavirus Research, wave 3 April 2020
Reimagine
conversations
58%
Shoppers in Latin America are already
messaging businesses

65%
Shoppers seek are more likely to shop with a business
they can contact via chat.
conversation with
businesses
59%
will use messaging more to
make purchases

2/ Facebook IQ source: “Facebook 2019 Holiday Study” by Ipsos Marketing (Facebook-commissioned online study of 43,884 people ages 18+ in AE, AR, AU, BR, CA, CL, CO, CZ, DE, DK, ES, FR, GB, HK, ID, IN, IT,
JP, KR, MX, NL, PH, PL, RU, SE, TH, TR, US and VN who answered yes to “will you be or have you been shopping during the 2018 holiday season, whether it is for yourself or someone else?”), Jan 2019.
Unless otherwise specified, numbers are an average across markets.
.

“The Evolution of Ecommerce: Conversational Commerce” by BCG (Facebook-commissioned study of 8,864 people across BR, ID, IN, MX, MY, PH, TH, US and VN), Jul 2019.
.
CONVERSATIONAL
COMMERCE

"When people and businesses


connect with each other through
chat with the intent to drive the
purchase of goods or services"
(BCG)
CONVERSATIONAL
COMMERCE
1. Asia is leading conversational commerce
(30-45%) penetration, but Latin America CC
penetration are growing fast (Mx 6% / BR
11%)

2. +50% of CC transactions in Latam are


happening in Social/Messaging platforms
(Messenger & WhatsApp)

4. Over 60% of CC buyers pay using Credit Card

6. Penetration cuts across income classes


Key
takeaways

Facebook company
Key takeaways

Embracing Retail’s
Next Normal
• Keep constant communication with consumers
balancing organic-paid efforts

• Scale ecommerce to win more new customers,


drive the business and move the inventory

• Build more frictionless digital commerce


channels as wholesaler ecom partnerships,
drive adidas APP install and embrace
conversational commerce

Facebook company
“Be nostalgic about the past,
realistic about the present and
optimistic about the future.”

Indra Nooyi, former Chairman and CEO of PepsiCo


Q&A?

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