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The past few years of our lives have been quiet challenging. We went from normal everyday life to a full lockdown in a matter of 3 days and our life was never the same since. We went into a lockdown and the government was supporting us with stimulus checks and other financial aid since 90% of US population was jobless. Everything was closed except for grocery stores. People had nowhere to go therefore online shopping started to prosper. Shaley E. Kohan in her article “Amazon’s Net Profit Soars 84% With Sales Hitting $386 Billion” mentioned that Amazon delivered a record performance in 2020 with annual revenue up 38% to $386 billion, a yearly increase of over $100 billion. Net profit for Amazon was up 84% for the year as compared to last year”. Visithttps://www.forbes.com/sites/shelleykohan/2021/02/02/amazons-net-profit-soars-84-with-sales-hitting-386-billion/?sh=585144bc1334 to read the whole article. Amazon is only one of numerous companies that profited from COVID-19 pandemic. 

Although the “new” economy has started developing way before the pandemic, I feel like it has completely taken over a lot of people’s life and made them realize that the “old” economy does not exist anymore and that this is a new normal and people need to get comfortable with it.  

What are some of the benefits of the “new” economy to customers? 

First and foremost, the “new” economy has given customers a lot of liberty. It gave them an opportunity to find new information about basically everything that can come to mind. It has also given shoppers access to a wider variety of products. For example, if earlier the customers were shopping only at Publix or Walmart because it is located close to their home then nowadays with online shopping being available everywhere customers can simply search for an item or service on the Internet, compare the items available, and even get the desired items delivered to them within a few days. This makes the customers feel free, valued, but at the same time powerful. 

Another benefit of “new” economy is that it gives shoppers an opportunity to interact with other customers and get a better understanding of the item’s quality and overall performance by simply reading comments or asking questions in forums and chats. For example, if we purchase a vacuum on Amazon and do not know how to use it, you can easily ask questions in the “feedback” area on the website and get help from other users. 

The third benefit of the “new” economy is that it has made ordering and shipping products a lot easier than before which makes customers not even want to come in the store and do traditional shopping. Every store nowadays offers either delivery or curbside pickup if not both.

But what does the “new” economy do for business?

First of all, with the new ways to track and control sales, the companies can operate a new sales channel to promote their product. For example, based on the geographic location of the company it can decide which products are performing better and solely focus on those products to grow their business.

Secondly, the “new” economy lets the companies to get a better insight on who their customers are, how and when they prefer to shop and what products they are buying. This will help the companies to create a more unique marketing strategy and attract customers who are actually interested in products or services offered. This approach makes customers feel taken care of and valued and overall people are more likely to buy when they receive the genuine, personalized experience. The article “Personalization Influencing Most Online Shoppers” states that: “a good majority, 84%, of online shoppers report that personalization influences their purchases and even more, 88%, are more likely to continue shopping on a retailer website that offers a personalized experience”. Visit https://www.retailcustomerexperience.com/news/personalization-influencing-most-online-shoppers/#:~:text=A%20good%20majority%2C%2084%25%2C,that%20offers%20a%20personalized%20experienceto learn more about this topic. 

Thirdly and most importantly, with the “new” economy companies are able to provide deliveries for their customers in a speedy and efficient manner where years ago that was nearly impossible. Some companies even take the experience to the next level by offering price matches with other retailors to make sure that they do everything possible to provide an excellent customer service. All these things would be impossible to accomplish if we were still living in the “old”, traditional economy.  

How do real companies implement the “new” economy?

Let’s take a look at Ralph Lauren as an example. As we all known Ralph Lauren as a company has been around for a while. In 1967 when the company was founded there was nothing other then an in-person experience inside the store. In 2000 the company launched their first website www.polo.com which in 2007 was changed into www.ralphlauren.comwhich is the website we use nowadays to explore Ralph Lauren online. Although, in 2020 when we reopened after COVID -19 lockdown we started seeing a decrease of traffic in stores which is when the company rolled out “More Ways to Shop” which include concierge services, phone orders, and virtual shopping. If you want to learn more about the company’s innovation strategy feel free to visit https://corporate.ralphlauren.com/innovation  The company has been working on making the shopping experience more elevated while at the same time convenient for the customers. Nowadays 12% of our yearly sales profit comes from more ways to shop. Also, they are expecting us to outreach our customers and either convince them to come in store or do a phone order. The company’s overall traffic in 2020 is down 25% compared to 2019. This is a quarter of the amount of people that we do not see in stores anymore due to the new economy and the prosperity of online shopping. 

Conclusion

In my opinion, the “new” economy is definitely overpowering the “old” economy, although it will never completely take over it. We see less people coming in the store, although the people are still coming in. There will always be that 5% of people who are too conservative to give up the “traditional” way of shopping, but how can we blame them?

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