1. Freelancing
2. expand return and exchange options?
3. Country Population
3.1. Decrease in immigration-more and more jobs, teams and education/ development going virtual people will realize they do not need to immigrate to get 1st world benefits.
3.2. People from safe countries are going back to where they are from
4. Employees
4.1. Work from home
4.1.1. Remote work
4.2. Continuous learning
4.3. Multiple Jobs
4.4. Will not want to travel for work
4.5. "Safety Salary Premium" for workers who have to meet customers physically
4.6. More prestige and higher pay for blue collar workers
4.7. Increase in AI and Robots replacing workers (i.e. cashiers, or sales assitants)
4.8. More sick leave and health benefits
4.9. Expect employers to have free skills/learning certification/development programs as part of HR policy
4.10. employee-sharing program among partnering company
4.11. Caring for work-life balance
5. Travel Restriction
5.1. Decreased Demand for Tourism
6. Industry
6.1. Extinction- Need To rethink business Model
6.1.1. Consulting / Auditing
6.1.2. Traditional retailers
6.1.3. Tourism
6.1.3.1. Hospitality
6.1.3.2. Duty-free shop in airports
6.1.4. Cruises?
6.1.5. Traditional Retail Banking
6.1.6. Fast Fashion
6.2. Survivors- Model needs to be adapted
6.2.1. Restaurants/Bars
6.2.2. Amusement/Theme Parks
6.3. Thrivers- Models are agile for Post COVID
6.3.1. Pharmaceutical
6.3.2. Amazon
6.3.3. Cosmetic
6.3.4. Grocery Delivery Service
6.3.5. DTC Models
6.3.6. Video Streaming (Netflix)
6.3.7. SAAS
6.3.8. automobile
6.3.9. Online Healthcare Services
6.3.10. Social Networks
6.3.11. Digitally Optimized Banking
6.3.12. Mobile Gaming (animal crossing)
6.4. Retail in general
6.4.1. Readjusting Price
6.4.1.1. Price hike: Luxury brands - Chanel, Louis Vuittons, Hermès
6.4.1.2. Mark-down: Unsold items across the whole sectors
6.4.2. New services
6.4.2.1. Untact, touchless
6.5. Luxury
6.5.1. Travel Retail
6.5.1.1. Source: 6 Ways Luxury Travel Will Change After Covid-19, As Predicted By The Experts
6.5.1.1.1. focus on hygiene and cleanliness
6.5.1.1.2. Search for sanctuary: less crowded destinations + More privacy + calm and peacefulness
6.5.1.1.3. Rise of wellness travel
6.5.1.1.4. Rise of Staycations and local destinations
6.5.1.1.5. Travel, but with purpose
6.5.1.1.6. emphasis on travel that gives back and brings a connection with the local communities.
6.5.1.2. Source: Luxury Convalescence
6.5.1.2.1. The concept of following customers = idea behind Travel Retail affected by two phenomena
6.5.2. Model
6.5.2.1. Cost Structure
6.5.2.1.1. Source: Luxury Convalescence
6.5.2.2. Wholesale
6.5.2.2.1. Luxury sectors dependent on wholesale channels (Like watches) will buy back stock to preserve brand image and equity and take the hit to P&L. The business will continue to be wholesale because very few watches and jewelry brand are capable of creating a profitable single POS that generates sufficient traffic
6.5.2.2.2. For Fashion and Leather- already primarily via direct retail so the remaining wholesale business will be in very strategic locations where brands are unable to access the location via a direct retail store
6.5.2.2.3. Wine and Spirits- no change to model. But will accelerate E-commerce and data acquisition
6.5.2.2.4. Perfume and Cosmetics- wholesale model is resilient bc of investment in digital presence and negotiating power and quality of relationships with distributors. But more brands will sell both wholesale and e-commerce creating competition for resellers
6.5.2.3. Direct Physical Retail
6.5.2.4. Ecommerce
6.5.2.4.1. More luxury maisons will activate digital presence and increase e-commerce logistics
6.5.2.4.2. Ecommerce will complement Physical stores and vice versa
6.6. Acquisitions
6.7. Industry Disruption
6.7.1. contactless delivery
6.7.2. Untact service in the physical store
6.7.2.1. Amazon Go!
6.7.2.2. Lotte duty-free city mall
6.7.3. seasonless fashion cycle
6.7.4. distant selling need
6.7.5. Investment in Touchless Technogy
6.7.6. Industry Collaborations
6.7.6.1. Cross Industry
6.7.6.2. Within Industry
7. New-Old (?!) Technologies
7.1. Turn to technology
7.1.1. Video conference - Zoom
7.1.2. Reservation Apps
7.1.3. Voice ID
7.1.4. Thermal Vision
8. Healthcare
8.1. Citizens will share health data for better safety with government and trusted companies
8.2. Government will track health data in more detail to protect citizens
8.3. Importance/need for Public Healthcare is hiking
9. Economic impact
9.1. Global shares take a hit
9.1.1. Potential risk of high yield bond market
9.1.2. Currency Swap between countries
9.2. Unemployment rate at a record high
9.3. Oil prices crash
9.3.1. Oil War between Russia and Saudi Arabia
9.3.1.1. Diplomatic tensions between countries
9.4. Risk of recession
9.4.1. China as a world's biggest consumer experiences economic slowdown
9.4.1.1. Government promote the Street-Stroll in small cities, and it became heated topic
10. Customers
10.1. Retail Customers
10.1.1. Spend less
10.1.2. Will shop more online
10.1.2.1. Growth in e-Commerce
10.1.3. Expect ROPO
10.1.4. community shopping pooling
10.1.5. Rise of social commerce
10.2. Luxury Customers
10.2.1. Chinese Customers
10.2.1.1. Purchase more domestically
10.2.1.1.1. Chinese Market will grow by the overall share of Chinese customers will decrease
10.2.1.1.2. Gen Z and Millennials want Immersive digital experiences
10.2.1.2. Still the number 1 luxury client for the next 5 years
10.2.1.3. What is Chinese Sensible shopping?- Very schizophrenic
10.2.1.3.1. They want a safer world and responsible world. But it doesn't necessarily mean sustainable or environmentally responsible
10.2.1.3.2. Return to safe investments and classic style such as Hermes
10.2.1.3.3. But also prefer Militant brands like Balenciaga and Gucci to display their individual value
10.2.2. Local Customers
10.2.2.1. Cannot be the miracle cure to make up for drop in revenues from travel retail
10.2.2.2. Have to rethink access to this customer and how to connect with the end client
10.2.2.2.1. After access- the challenge is Collecting Data and using it
10.2.3. Need to know customers and personalize the overall experience
10.2.3.1. Traditional Luxury= Product Centered versus post Covid Luxuryl= customer centered
10.2.3.2. Maisons already collect data and customize for VIC but can now pay special attention to more customers beyond VICs
10.2.3.3. Avoid a standard experience and adapt to customers and devise tailor-made experiences
10.2.3.4. Engage in direct and constructive dialogue with customers from VICs to lower third of CRM pyramid
10.2.3.5. Train SAs to Clientele
10.2.3.6. Rise of Experience based E_commerce like Live streaming
10.2.3.7. The experience should be seamless from Physical to digital
10.2.4. Communicating Meaning and Sustainability
10.2.4.1. Most initiatives are at group level and lack of concrete and tangible statements in boutiques
10.2.4.1.1. Opportunity to define Brand Purpose and go beyond product and storytelling of craftsmanship
11. Sustainability measures impacted?
12. Still crave a physical retail experience but with safety measures
13. Safety
13.1. Hygiene Issues
13.1.1. Avoid face-to-face contact
13.2. social distance
13.3. In need of antibacterial products
13.3.1. Masks
13.3.2. Sanitizers
13.3.3. Alcohol
13.3.4. Gloves
14. Social Distancing
14.1. Unconventional attempts for personal gatherings
14.1.1. Teleconferencing
14.1.2. Balcony concert
14.1.3. Birthday parade (USA)
14.1.4. Plus do not want to bump into conducted tourist
15. Lockdown / Shutdown
15.1. Slow down
15.1.1. back to basic (house renovation, wardrobe cleaning, cooking)
15.1.2. spend more time on mental health
15.1.3. worry about self-competitiveness (online-course/education)
15.2. Environmental impact
15.2.1. Positive
15.2.1.1. Limited activities from factories, offices
15.2.1.1.1. Slashed greenhouse emissions
15.2.1.1.2. Air quality level improved
15.2.1.2. Reduce air flights, road traffic
15.2.2. Negative
15.2.2.1. Increasing hazardous wastes: Disposable masks, gloves and bottles of sanitizer, single-use packaging from take-away food delivery
15.2.2.2. Rise of organic waste due to severe cuts in agricultural and fishery export levels
15.2.2.2.1. Rise of levels of methane from decaying leftovers
15.3. Stress
16. Education (USA)
16.1. Less people willing to pay for 4 year undergraduate degree
16.1.1. More gen Z will take gap years after high school to invest in skills and internships instead of going to college
16.2. Shift from "Prestigious" colleges to "Prestigious" Professors. People only willing to pay for professor and curriculum
16.3. Rise of online learning
17. Consumer behavior
17.1. Goes to two extreme sides: i.e. Luxury and fast fashion, Chanel and Zara
17.2. Revenge Buying
17.2.1. i.e. Hermès in China
17.3. increasing sportswear/yoga-wear for work-out (health is wealth)
17.4. crave for more transparency (can't get out)
17.5. more trust on SA who know them well
17.6. Increase local consumption
17.6.1. local currency
17.6.1.1. Buying luxury goods locally despite of the price difference between Europe and Asia
17.7. More sensitive to value for money
17.7.1. looking for “investment” pieces — minimalist, last-forever items, that feel more responsible- Per BOF "Cautious Consumption"
17.7.2. invest on more valuable items like handbags/jewelry
17.8. Continued rise in sustainable clothing
17.9. Increasing secondhand businesses
17.10. Purchased products for safety (Antibacterial products)- Masks, gloves
18. Social Trusts
18.1. Racism
18.1.1. Afraid to go abroad in case of Asian
18.1.1.1. Boost localization
18.2. Hatred
18.2.1. Western toward Asian
18.3. Violence
19. Supply chain
19.1. Vendor relationship
19.1.1. Will request shorter payment terms
19.2. IDT escalation (Intra Division Transfer)
19.3. Factories
19.3.1. Bankruptcy/Acquisition
19.3.2. Creation of own DTC brands
19.4. Investment in local supply chains
19.4.1. Nearshoring
19.5. Inventory Flexibility
19.6. Investment in Antibacterial Materials R&D
19.7. Warehouses
20. Corporate Management
20.1. Cash Flow
20.2. HR / Marketing Budget hold
20.2.1. Layoff
21. merchandising/buying
21.1. sleeping old stocks due to COVID
21.1.1. Where does those old stocks go? Discount? Staff sales? Outlet?
21.1.2. new discount strategy?
21.2. Virtual visual merchandising (360 degree store visit)
22. Sustainability
22.1. An opportunity for businesses to re do their entire supply chain in a sustainable way
22.2. Could Coronavirus Spark a Sustainable Fashion Awakening? BOF Article
22.2.1. sustainability will now be an act of conscious living, whereby we acknowledge that ‘more and more,’ ‘faster, not fewer’ and ‘bigger is better’ will not sustain us anymore.
23. Psychological impact
23.1. isolation
23.1.1. The rise of tiktok, Youtube
23.1.1.1. Contents creating
23.1.2. Depression
23.1.2.1. Riots and Protests
23.1.2.1.1. Racism
23.1.2.2. Domestic violence
23.1.2.2.1. Intimate partner violence
23.1.3. Familism
23.1.3.1. Localization
23.1.3.1.1. Blockchain
23.1.3.1.2. Racism
23.1.3.1.3. Anti-globalization
23.1.4. Find new hobbies
23.1.4.1. Demand for educative/informative content
23.1.4.2. Home Training
23.1.4.2.1. Care for Health
23.1.4.3. Home Dining
23.1.4.3.1. Dalgona coffee making
23.1.5. Increased Internet Data Use
23.1.5.1. Streaming Services
23.1.5.1.1. VoD Industry
23.1.5.2. IPTV (Smart TV)
23.1.5.3. Smartphones
23.1.5.3.1. Gaming Industry
23.1.6. Rethink of Essentials (Necessary Goods)
23.1.7. Uncertainty
23.1.7.1. Fear of an uncertain future
23.1.7.2. Financial insecurity
23.1.8. rethinking relationship
23.1.8.1. divorce rate go up dramatically
23.1.8.2. Might not be an imperative for companies