During the pandemic era, due to the lockdown and WFH policies, some brands like outdoor, and consumer electronics met booming sales back in 2020. However, those products basically have longer life cycles, they have been facing a significant revenue drop ever since then. Lululemon… Pelton… Intel…
Recently, the US retailer Best Buy has been making some changes, hoping to regain sales growth. Best Buy is focusing on getting consumers to replace devices they purchased during the pandemic, aiming to maintain sales momentum. The company has introduced several key strategies:
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Dedicated Staff: Best Buy is allocating staff to crucial areas within its stores to better assist customers in making informed purchase decisions.
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Engaging Content: They're creating more videos to spark customer interest in new products.
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Marketing Campaigns: A new marketing campaign is being launched to further drive sales and highlight the need for upgrading older devices.
Actually, Best Buy is not the only one facing tremendous pressure after the pandemic:
Logitech: During the pandemic, Logitech experienced a 76% revenue increase in the fiscal year 2020, driven by the surge in demand for webcams, keyboards, and other home office equipment. However, post-pandemic, the company has faced a slowdown in sales and market pressure to sustain its growth.
Peloton: Peloton saw a 172% increase in sales during 2020 as home workouts became popular. Despite this, the company has struggled post-pandemic, leading to significant challenges including supply chain issues, product recalls, and a major decline in stock value.
Lululemon: The athletic wear brand saw a 47% revenue increase in 2020. However, it has since faced challenges with overexpansion and balancing inventory levels with fluctuating demand.
The North Face: The outdoor brand benefited from a surge in outdoor activities during the pandemic but has since had to navigate the complexities of maintaining sales in a more competitive and less growth-oriented environment.
And here, what have these brands done to battle the situation:
Logitech: To address slowing demand, Logitech has diversified its product offerings, focusing on gaming and content creation tools. The company also streamlined its operations and adjusted its pricing strategies to better align with current market conditions.
Peloton: Peloton has made efforts to stabilize by launching new products, such as a more affordable rowing machine, and expanding its content offerings. The company has also shifted focus to international markets and has been working on reducing operational costs, including layoffs, to manage its financial situation better.
Lululemon: Lululemon has continued to innovate by expanding its product lines beyond athleisure into fitness equipment and personal care products. The brand has also invested heavily in digital experiences, such as virtual shopping and workout classes, to maintain customer engagement.
The North Face: The North Face has focused on sustainability by launching new eco-friendly product lines and improving its supply chain efficiency. The brand has also emphasized community-building through outdoor events and partnerships, which helps to keep the brand relevant and connected with its core audience.
To sum it up, retail brands that are struggling to maintain pandemic-level growth can adopt several strategies:
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Expand innovative product lines
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Focus on customer retention
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Enhance omnichannel experience
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Pay attention to cost management
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Build brand value on sustainability and social responsibility
Source:
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