Accenture: Pandemic triggering innovation across industries, including retail

The COVID-19 pandemic has changed the way people live, work, socialize and shop, fueling a new wave of innovation amid retailers, consumer goods and travel companies as they shift from reacting to the crisis to reinventing products and services.

That’s according to the findings of a new global survey from Accenture, which found that after a year of lockdowns, 95% of respondents said they made at least one change to their lifestyle that they expect will be permanent. The survey supports Accenture’s previous findings that many changes in behavior will likely be long-term. 

Working from home, changing travel patterns, and a growing desire to shop locally are challenging industries to fundamentally rethink how they cater to the pandemic-adapted consumer. Successful consumer-facing companies are repurposing physical locations, exploring new business models, and rapidly adopting advanced analytics and other disruptive technologies to find new sources of growth in this new landscape, according to Accenture.

“The ripple effects of the pandemic will be felt for some time and serve as a powerful illustration of the need for consumer-facing companies to be agile, resilient, and responsive to change,” said Oliver Wright, senior managing director and head of Accenture’s global consumer goods industry group. “Born out of disaster and necessity comes opportunity; the pandemic has sparked a new wave of innovation.”

The new research also supports Accenture’s previous findings that the dramatic rise in e-commerce is likely to remain or accelerate further.  For example, the proportion of online purchases by previously infrequent e-commerce users  —  defined as those who used online channels for less than 25% of purchases prior to the outbreak — has increased 343% overall since the outbreak. 

The increase is even higher in certain categories, such as apparel, footwear and accessories where it rose 375%.

“Leading retailers were quick to adapt to the surge in e-commerce and are using technology to serve customers in new ways,” said Jill Standish, senior managing director and head of Accenture’s global retail industry group. “Many adopted disruptive technologies such as augmented reality to recreate the physical store experience and help shoppers better visualize a room of furniture or an outfit, while others repurposed closed stores into local fulfillment centers with picking and packing technology.”

Even in a post-pandemic world, Standish added, companies will need to satisfy consumers’ appetite for online shopping with fast delivery and “get more intentional about the investments they will make in their people, supply chains, physical stores, and digital channels to be well-positioned to drive growth.” 

The pandemic has also forced a rapid shift to employees working from home, with many expressing that they want flexibility in how and where they work moving forward. More than three-quarters (79%) of respondents said they would like to occasionally work from a “third space,” or a location other than their home or place of employment.  And more than half said they would be willing to pay up to $100 per month out of their own pockets to work from a café, bar, hotel or retailer with a dedicated space. This highlights a potential opportunity to grow revenue for the hospitality and retail industries, noted Accenture.