Post lockdown, online-to-offline strategy to get prominence in retail industry: LOTS Wholesale

More and more retailers will be bound to cling to e-commerce platforms and mobile apps as the prevailing situation amid coronavirus lockdown is expected to lead to shift in consumer behaviour, according to LOTS Wholesale Solutions.

Subsequently, there will be a need to have an omni channel strategy -- Online to Offline (O2O) -- for the retail industry in order to cater to the changing needs of consumers.

LOTS Wholesale Solutions, a wholly-owned subsidiary of Siam Makro Public Co Ltd - Thailand's leading cash and carry operator, said there will be an impact on its business due to the current situation as both industry and suppliers are facing problems ranging from shutdowns, labour shortages, supply chain disruptions, etc.

"No doubt, there will be some impact of this current situation in the near future. However, in phase-II of the lockdown the situation will normalise with time and the retail sector will embark on its journey towards recovery, albeit slowly," LOTS Wholesale Solutions Managing Director Tanit Chearavanont told PTI.

He further said that anticipating the challenges retailers might have already started working on several strategies.

"They will also need to optimise their omnichannel approach in order to cater to targeted customers," Chearavanont added.

According to him, the current situation has reinforced the importance of O2O strategy for the retail businesses.

Meanwhile, the government on Sunday prohibited e-commerce platforms from selling non-essential items during the lockdown, four days after allowing the companies to sell all kinds of goods.

The April 15 order had said e-commerce platforms were allowed to sell such items from April 20.

On the prevailing situation and its impact on the retail sector, Chearavanont said, "This situation has also highlighted the importance of the O2O strategy for businesses in India. Retailers will increasingly provide services through e-commerce platforms and mobile applications," he said adding as "more customers are expected to switch to e-commerce options and digital payments".

He further said, "The impact is also visible on suppliers who faced some challenges with production due to mass labour migration and other movement restrictions."