Top 10 Brands Responding To
COVID-19
HOW TOP 10 BRANDS FOUGHT COVID-19 CRISIS COVID-19 pandemic has been a brutal year for so many businesses (large and small). As lockdown restrictions are easing up across the globe, local/global brands started resuming operations adhering to the health & safety guidelines.
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TIME TO CHANGE! Let’s take a look at the top 10 marketplaces in different sectors and how they are resuming (or planning to resume) operations amid COVID-19.
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AMAZON The eCommerce marketplace giant incurred over $600 million COVID-19 related costs in the first quarter globally. This includes the procurement cost of personal protective equipment (PPE), enhanced cleaning facilities cost, and the drop in productivity due to social distancing measures implemented.
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AMAZON’S COVID-19 RESPONSE ● Amazon has waived off nearly half of the “Selling on Amazon (SoA)” fees or referral fee till June 30. Also, the storage fee for all products at its fulfillment center was suspended till April 30. ● From food/groceries to healthcare items, the retail giant prioritized delivering high-priority products and canceled orders containing lower priority items. Moreover, to reduce the impact of these cancellations on seller partners, Amazon is refunding all fulfillment and referral fees.
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DRIZLY Considered as the Amazon for liquor, Drizzly is an alcohol eCommerce marketplace operating in over 100 markets across the US and Canada. Hit by the pandemic and lockdown restrictions, Drizzly has partnered with retailers to promote healthy delivery practices across its network.
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DRIZLY’S COVID-19 RESPONSE ● For legal and safety reasons, deliveries must be made in-person to a corporate/residential address. Drizzly encourages both customers and the driver to designate a delivery spot outside the house/building. ● While ID scanning is still mandatory before delivery, Drizzly is encouraging drivers for contactless scanning (i.e. a customer will simply hold the ID for a driver to scan). ● Working with retail partners to forego the need to sign a driver’s device during delivery. www.yo-kart.com
ASOS Amid the pandemic, ASOS – the online fashion and cosmetics retail giant recorded a 25% drop in sales. It also confirmed nine warehouse workers to be infected with COVID-19.
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ASOS’S COVID-19 RESPONSE ● ASOS paused all deliveries and incoming shipments from suppliers as well as third-party brands to make time for adjustments and manage stock. The retailer continues to serve its customer deliveries as usual offering an additional 10% discount through its mobile app to lure customers. ● The retailer ended the agreement early with all employees on fixed-term contracts citing the coronavirus crisis.
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ASOS’S COVID-19 RESPONSE � ASOS tested the augmented reality (AR) technology via its See My Fit service at the start of this year to simulate real-life model photography. The tool allowed shoppers to check how their clothing selection will look on different body types. Scaling up the AR technology, ASOS is now offering a simulated view of up to 500 products every week on six real-life models ensuring that the product representation remains engaging and realistic.
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NYKAA An omnichannel lifestyle retailer Nykaa turned eight in May amid the pandemic. While the physical stores were shut, the retailer quickly converted its website to sell only essentials and in turn recorded a turnover of around 10-15% at the start.
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NYKAA’S COVID-19 RESPONSE ● Amid lockdown restrictions in March, Nykaa started taking pre-paid orders only for hand sanitizers, napkins, personal hygiene products, and other essentials albeit with longer delivery timelines. ● Considering the capacity constraints in the warehouse, Nykaa wasn’t accepting orders below ₹ 1500 (or $19.91). This pushed the average order value up by 30-40%.
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NYKAA’S COVID-19 RESPONSE � Being an inventory-led retailer Nykaa had large amounts of inventory available in the physical stores shut amid the pandemic. These stores became mini-warehouses as Nykaa smartly began operating hyperlocal deliveries for essential products ( but only from the stores). It took orders by phone as well and helped bring down the supply chain cost to a great extent.
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STEAM A prominent online gaming marketplace, Steam enables users to join groups, chat in-games, and do more. Initially started as a digital content distribution channel by Valve, Steam soon grew to a leading platform for thousands of creators/publishers to sell games online and establish a direct relationship with the community.
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STEAM’S COVID-19 RESPONSE ● With Steam setting new records for concurrent players amid lockdowns, Valve confirms only games played within the last three days will be updated immediately. ● To reduce bandwidth usage, Valve encourages gamers to uncheck automatic updates for games they have in the library but no longer play. Also, they can self-throttle their connection to steam and ease the load on the network.
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NETFLIX Amid stay-at-home orders, binge-watching boosted Netflix profits by a significant margin. It generated a net income of around $709 million with a revenue of $5.88 billion up by nearly 28% from a year earlier.
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NETFLIX’S COVID-19 RESPONSE ● Netflix decided to cut its bit rate by 25%, streaming videos only in standard definition across Europe, as requested by the EU commissioner. This is the company’s statement: “Following the discussions between Commissioner Thierry Breton and [Netflix chief executive] Reed Hastings, and given the extraordinary challenges raised by the coronavirus, Netflix has decided to begin reducing bit rates across all our streams in Europe for 30 days,” the company said. Source: BBC
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UBER From offering healthcare workers free rides and meals to making masks mandatory for riders & drivers, the ride-hailing marketplace giant is doing everything in its power to scale operations and survive the darkest hours.
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UBER’S COVID-19 RESPONSE ● Uber now uses facial recognition tech to determine if drivers are wearing masks. So, before starting a ride, uber drivers must take a selfie and submit it within the app for verification. Even for riders, the use of face-scanning technology is being considered by Uber. ● Drivers must verify they are sanitizing the vehicle every day and riders are prompted not to sit in the front seat of a vehicle. ● Both drivers and riders must abide by the new COVID-19 safety guidelines i.e. regularly wash or sanitize hands and confirm they do not have COVID-19 or any related symptoms. www.yo-kart.com
UPWORK The top freelancing marketplace that unites talent from over 180 countries, Upwork registered nearly 50% increase in freelancer signups since the pandemic began. With a third of all Fortune 500 companies such as Microsoft using the platform, client spending has become stable on Upwork.
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UPWORK’S COVID-19 RESPONSE ● A $1 million grant program to support businesses working directly towards mitigating coronavirus impact on communities and economies. ● Partnered with Veem – global payments platform to enable American clients and talents to apply for the SBA paycheck protection program.
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UPWORK’S COVID-19 RESPONSE ● With the announcement of faster payouts, Upwork has cut the payment wait time in half for top-rated freelancers and agencies. ● Specific COVID-19 jobs feed connecting companies with key projects (including critical coronavirus initiatives) to skilled remote workers.
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BEST BUY Best Buy – the consumer electronics giant marketplace reopened its stores in May with in-store consultation for customers available by appointments at 200 locations. With its one-on-one service, the retail giant ensured only a limited number of customers could be inside the store at one time maintaining the social distancing measures norms.
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BEST BUY’S COVID-19 RESPONSE ● A dedicated sales associate will greet customers at the door and items/surfaces will be cleaned during the sales process. ● Staff must wear gloves/masks and sanitize the store area before and after every appointment. Also, an employee app is available for self health-checks daily. ● Sneeze guards at checkout stations, credit card terminals wiped before/after every transaction, and many more changes to the day-to-day approach as Best Buy reopens its stores. www.yo-kart.com
AIRBNB Airbnb – the vacation rental online marketplace is gearing up to resume operations and prepare for the future of travel with enhanced cleaning initiative. It has developed the new standardized protocol for cleaning and sanitization in the home-sharing industry under the guidance of Dr. Vivek Murthy (former US Surgeon) and other experts in hospitality and medical hygiene.
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AIRBNB’S COVID-19 RESPONSE ● Learning and certification program to empower the host community. Also, specific information on COVID-19 prevention such as the use of personal protective equipment or disinfectants approved by regulatory authorities will be shared. ● As hosts enroll for the program, guests can quickly identify and book accommodations accordingly.
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AIRBNB’S COVID-19 RESPONSE ● As per the US Centers for Disease Control and Prevention (CDC) recommendation, a 24-hour waiting period is essential before entering the rental space. ● Also, if hosts are unable to commit to the cleaning protocol, they can opt for a vacancy period called Booking Buffer. Here, reservations are blocked for a time frame (currently set at 72 hours).
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