In order to attract more consumers and cater to the increasing demand for online shopping due to the COVID-19 epidemic, the traditional furniture retailer Bed, Bath & Beyond (hereinafter referred to as 3B) has begun vigorous reforms to achieve omni-channel digitalization.

3B's omni-channel digital reform is firstly a website rework, so that consumers can choose online purchases, self-pickup at the store, self-pickup at the roadside, and same-day delivery options on the website.

"This reform was originally a three-year reform plan for the company, but the COVID-19 epidemic and a large number of consumers choosing online shopping make us have to speed up the reform," said Cindy Davis, chief brand officer and executive vice president of 3B. Experts analyzed that even without the factor of the new crown epidemic, traditional retailers such as 3B will find that traditional retail can no longer keep up with the pace of the times.

Earlier this month, 3B launched the "Home, Happier" slogan, which was promoted in electronic promotion, paid media, radio broadcasting, and TV advertising. Davis said that in order to attract more young consumers, the company is ready to enter TikTok and pay close attention to trends that can change consumer habits.

Davis also said: “Even with the mass production of vaccines and the lifestyle before the epidemic, consumers’ perceptions of the market, brand marketing, or consumption patterns can no longer go back to the past, so this year the company needs to invest more and distributes resources to digital propaganda."

It is reported that in 2020, 3B will invest $12.6 million in media promotion. Although the vice president did not disclose how much the investment in this area has increased over the past, she mentioned that the company has gained 11 million new online consumers, a year-on-year increase of 95%.

When the epidemic hit, the store was temporarily closed. Because there was no omni-channel digital service, 3B lost many opportunities to increase revenue, but it also made them accelerate the pace of reform. Digital transformation is only part of the 3B brand reform plan. The company has not yet understood consumers seriously, so it has missed many development opportunities and exploring new channels that need to attract consumers, Davis said.

In order to realize the transformation from just a multi-channel retailer to an omni-channel retailer, 3B invested 2.5 million US dollars in the supply chain to help the integration of physical stores and online stores. This investment has upgraded the enterprise resource planning, inventory management system, distribution center and other aspects. At present, it takes about 35 days for physical stores to replenish inventory, but after implementing this reform, their goal is to shorten the time to ten days.

In the fourth quarter of 2020, 41% of 3B's online orders were shipped directly from retail stores, an increase of 5% from the previous quarter. However, this data is compared with 95% of target, the eighth largest retailer in the United States, there is a big gap.

At this time when the epidemic is about to end, although many people have visited physical stores, it is always an important strategy for retailers to prioritize digitalization. Digital platforms are more able to provide or recommend products to consumers, thereby bringing in more revenue. Brands that vigorously promote convenient digital services will also be more competitive in the future.