Call to Action - How specialty stores are facing the situation

Traditionally focused on the summer selling season (What Sells Best Now), in light of this year’s events, this edition of the survey has been necessarily adjusted in order to monitor the emergency and provide a detailed overview of what the stores going through during this global pandemic, how they are managing through this unprecedented time, and how they see their future in this new reality. Intimoda shares the results of the survey held in two parts: the outbreak, back in spring, and the ongoing COVID situation, up until mid-August, this survey collects the comments, feelings, and hopes of  lingerie retailers all over the Russian Federation. Financial assistance, new strategies, current - sometimes creative - customer service approaches, and updated relationships with brand suppliers. We invite you to find out how the retailers managed to get through this unprecedented time and how they see their future in the new reality.

This survey was started at the very early stage of the pandemic, as soon as the store closures were announced. In the emergency, store owners immediately tried to secure their business minimizing costs and asking for financial support from the State. Many store owners (60% of respondents) approached their landlords and managed to have their rent postponed for several months, while others agreed on a reduced rent fee (65%). 65% obtained some social security measures for their employees, 30% benefited from tax reliefs while only 10% managed to obtain financial support. 5% of the respondents did not receive any assistance at all.

Despite the fact that absolutely all the surveyed shops were closed, everyone did the best they could during this period. Therefore, the majority began to master online sales and platforms. Some entrepreneurs were forced to switch to remote work for the first time in their lives, which means using the Internet increased significantly. The store owners immediately realized that, right now, their loyal and potential customers also went online and that they could create different forms of contact to advertise their goods. Of course, when the first wave of shock and discussion was over, people began to treat themselves with online shopping. And it is no secret that one of the most popular online sales categories was homewear and erotic lingerie.
In Russia, the vast majority of boutiques (95%) decided to use Instagram as the main social network for promoting their stores and products, as well as the other social networks such as Facebook and VK (60%). Overall, stores appreciate the simplicity of use and the efficiency of Instagram: here, with little or no text at all, you can share a beautiful photo or a catchy video enticing followers to buy! In addition to most basic photo posts, the stores have fully developed their creativity and started conducting Live sessions on Instagram, Facebook, and Zoom (5% of respondents), as well as webinars and interviews with well-known magazines, such as Intimoda (@intimoda.magazine)! Those who already had a relationship with their customers, having their own client database, opted for a more individual approach and used tools such as Whatsapp and phone calls (65%), as well as text messages (40%), not forgetting about the traditional email newsletter, which was used by more than half of the respondents (55%).

Over time, even the most desperate retailers pulled themselves together and began to act in the spirit of the new era. In order not to lose contact with their customers, some store owners (35% of the surveyed) began to provide a service for pre-ordering or putting items on hold. Half of the respondents took up remote counseling (bra fitting, styling, and advice on underwear care). 85% of retailers said they used promotions, discounts, or special purchase conditions to attract customers. 70% of stores began to introduce online presentations of the new collections. Of course, at the very beginning, there were skeptics who did not believe that online sales would work in such a difficult time, but nevertheless, the reality, perseverance, and hard work of entrepreneurs proved the opposite.

On the question about what sales channels retailers decided to use, the absolute majority (80%) answered that the main online channel for them were social networks, such as the already mentioned Instagram, Facebook, and VK. This is not surprising since these are the most effective and accessible sales methods for all, which also reach the maximum audience. In addition to these social networks, online stores and marketplaces were also popular. If the owners did not previously have enough time to start updating their website, now they do, and (35%) of offline stores began to offer the option of buying on their website. 5% of retailers chose to use platforms alternative to their own stores such as eBay, Ozon, La Moda, and others. And only 10% were afraid of taking the risk and simply closed their stores without going online.

Having established communication and online sales, retailers also had to choose the best way for delivering goods. Given the fact that courier services had the free right to move in the Russian Federation's territory, 80% of respondents used this method to ship to their customers, while only 25% used regular mail services. In some regions, citizens were allowed free movement for only a few hours a day, and as such 50% of store owners personally delivered goods to their customers' homes. In the same regions, customers themselves could pick up a purchase curbside (30%).

Everyone, including brands and suppliers, had to adapt to the new reality. The lockdown happened immediately after the winter collection presentations and fairs: orders had been made, part of the summer was already shipped, and all of a sudden everything froze. In this difficult context, both the brands and retailers had to make some concessions: flexibility of payments was achieved by 75% of respondents. 70% of stores stated that they achieved an extension on payment and delivery for already ordered collections. Only 25% of the interviewed stores said they had to cancel orders. While the return and substitution of unsold goods to a new collection was agreed by only 15%.

Of course, after the end of the lockdown, almost all respondents immediately began the sales in the new conditions. Unfortunately, there were those who could not cope with the crisis and preferred to keep their stores closed. However, it is important to note that according to the results of the second part of the survey, 61% of the stores affirm their sales have resumed fairly well, which is good news. Moreover, 8% answered that their sales increased! Still, 31% mention the activity is still not resuming well.

When asked how they would view the decline in sales in the first six months of 2020, 62% of the store owners estimate the drop in sales of less than 30%; 23% consider a decline comprised between 30% and 50%, and only 15% expect a sharp drop of more than 50%.

We decided to ask the owners of lingerie stores about their forecasts and visions for the future of their business, and on this issue, the opinions of retailers were almost equally divided. Only 7% of the respondents are very optimistic, therefore the general forecasts for the future of stores look more uncertain, 31% expressed their uncertainty about the near future, 31% stated their positive attitude, and the remaining 31% answered that their forecasts remain quite pessimistic.