I Hope This Finds You in Good Health…

As the Coronavirus continues to rear its ugly head, organizations are trying to stay in business while employees work to keep their jobs, save their money, and survive financially until it’s safe to go outside again without wearing a mask. We at AFK Strategies, Inc. understand the daily impact of this unprecedented worldwide event. Due to the nature of this virus, many lives, livelihoods, and institutions have been affected —including brick-and-mortar merchandisers such as Bed Bath Beyond, Target, The Home Depot, and others.

Overall digital shopping has risen by 20%, including a 4% rise in the average amount spent per visit. Interestingly, consumer behaviors have also been affected. Before the virus made its debut, online buying activity peaked around 7 p.m., but now it peaks around 9 a.m. Unfortunately, the rise in digital shopping does not appear to make up for the loss of revenue gained from in-person shopping. Stores like Bed, Bath, and Beyond or TJ. Maxx (and its affiliates) have been forced to close nearly all locations, taking devastating revenue losses. A notable positive trend in the textile industry has been the rise in home improvement projects. With more time on their hands, people are turning to renovation projects like repainting rooms or livening up their living spaces. This trend is confirmed by the 24% uptick in Turkish rug sales this June as compared to June 2019. Retailers confirmed in a survey commissioned by the International Market Centers (IMC) that they will soon be in need of core products from their existing vendors and that this is their top spending priority. Many are in favor of digital markets, but have found that physical trade shows have better results. Many responded favorably to methods of greater buying efficiency and inventive ways to explore all that the markets have to offer.

Some businesses have been thriving in the post-COVID world. Walmart and Whole Foods have all remained open, benefitting from panic-buying shoppers stocking up on supplies. Home Depot profits have also soared as a result of an increase in interest in home improvement projects. Amazon and Target have neither benefitted nor lost as their sales rose, but their expenses did as well. Many already weak companies, such as Pier 1 Imports, have been further weakened by the pandemic. In the case of Pier 1 Imports, completely abandoning the going-out-of-business process because of the devastating blow.

The companies that survive are doing everything they can to keep in contact with their customers and make their services relevant. Home furnishing markets —held yearly by the IMC— have been postponed, but not canceled, in response to the survey taken by over 180,000 buyers and 6,000 vendors. Though people are wary about the risk of exposure, there is still hope that the markets can be made to accommodate safe social distancing practices. To accommodate, IMC employees are drawing up plans for a socially distant marketplace safe from the Coronavirus. Dr. Carlos del Rio, professor of epidemiology at the Rollins School of Public Health and chair of the Department of Global Health, has been recruited by IMC to advise on best practices for the rescheduled markets. Likely changes include the use of PPE (personal protective equipment) by all attendees and controlled building occupancy so as not to overcrowd the convention centers. In addition, hand sanitizer will likely be widely available and diligent cleaning and wiping down of surfaces will be encouraged. IMC is also working in collaboration with its partners to create contact-free methods of arrival, entry, attendance, and departure.

Although Coronavirus has drastically changed the way we do business, ultimately these challenges will make businesses in the United States stronger and more resilient. Here at AFK Strategies, we are monitoring these trends and predictions to help us advise our partners in the United States, Turkey, and China. Build business opportunities within the Turkish market by contacting us at AFK Strategies Inc. for support and solutions.

AFK Strategies Inc. is a boutique strategic advisory and business development company that is committed to serving our partners as their associates in China, Turkey, and the United States. AFK consulting services help companies identify and solve their business challenges via an extensive global expertise. The company assists the growth of small and medium sized enterprises (SME’s) in the United States at the local level, while at the same time aiding the growth of U.S. companies in China and Turkey. The services encompass three key areas: business development, supply chain management and brand development. Contact AFK Strategies Inc. to learn more.