‘Cocooning’ Trend Drives Growth for Local NetSuite Customers

‘Cocooning’ Trend Drives Growth for Local NetSuite Customers

Over the past months, online shopping has skyrocketed. Online sales were up 41% in April, compared to last year, and the postal service saw up to two million parcels processed per day for weeks.

 This shift in consumer buying habits has meant people are turning online to search and shop instead of visiting physical stores. So just what exactly have Australians been buying? With restrictions keeping many people at home more than usual, many have re-invigorated a passion for decorating, maintaining, and improving their homes.

Around one-third of Australians have taken up additional DIY projects since lockdown and are investing in other items for the home, like furniture, linens or even extra entertainment and sporting equipment.

While many are starting to return to work and kids back to school, ‘cocooning’ is expected to stay – at least until we hit the warmer months. Limitations on gatherings and travel, as well as long-lasting WFH arrangements, mean Australians will be spending plenty of time at home and looking to make it as cosy as possible.

“It’s been interesting to see this renewed focus on home related purchases, surpassing even trends from TV shows like The Block. From exercising in your own backyard to hosting dinner parties, people have taken the adage ‘your home is your castle’ to heart and are buying and decorating accordingly. For some of our customers, this has meant a notable increase in business that’s required smart thinking and a quick response to meet the demand,” - Oracle NetSuite general manager for Australia and New Zealand, Jason Toshack.

Several local NetSuite customers have tapped into the ‘cocooning’ trend and experienced impressive sales growth.

Canningvale Australia

190515-Canningvale-004With increased time at home, many Australians found it the ideal opportunity to refresh or upgrade their homes and décor. For Canningvale Australia, a vertically integrated online retailer of towels, bed linen and homewares, having an established e-commerce platform allowed it to capitalise on this demand.

With close to 80% of the business coming through its own website, canningvale.com, and another 5% through platforms like eBay or Catch, it was able to identify the increased opportunities, and double down on their marketing spend and activities by driving traffic online, through a combination of broadcast and online advertising.

“Orders increased across the board, from quilts to pillows to towels, sheets, and quilt covers. It’s quite extraordinary and was indicative of the change in consumer shopping preferences during the lockdown. We have had a big focus on how we can provide a best in class customer experience and unbeatable value through canningvale.com to help meet customers’ needs online for some time now. That’s how we were able to capture their attention and keep it,” Canningvale Australia managing director, Jordan Prainito said.

April sales were up over 400% YoY for purchases made through its online store and in May, it was 200%, with sales expected to remain high over the coming months with purchase orders already delayed.

“Running our business processes on NetSuite meant we could identify opportunities to adjust our sell prices and plan inventory orders based on demand, seeing which areas of the business are performing well and further capitalising on those strengths,” Prainito said.

This article was originally published on the RetailBiz site. Read the the full article.

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