impact of covid19 - digital signage summit

DSS 2020 - The Show | invidis Market Insights

#ISE_DSS | invidis.cominvidis.comImpact of COVID19

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#ISE_DSS | invidis.cominvidis.comUnprecedented Global Lockdown

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#ISE_DSS | invidis.cominvidis.comStatus Quo Digital Signage

Digital Signage was never more useful than today, but it does not leadnecessarily to new business

Challenge DS sales: not just win business, but win business with the right customers

Cutting DS costs not priority for businesses (rents, staff are much higher)

Short term effects tend to skew the picture

B2B2C industry - time lag between consumer spend and B2B

Project business (18 months lead times)

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2019 2020* 2021*World: 2.9% | Adv. Economies 1.7% World: -3% | Adv. Economies -6.1% World: 5.8% | Adv. Economies 4.5%


#ISE_DSS | invidis.cominvidis.comIMF Global Economic Development (2019-2021)

Source: IMF April 2020

A Crisis Like No Other, An Uncertain Recovery• deeper recession with wider divergences• bleaker global outlook as the pandemic hits emerging markets• gradual turnaround is taking place• Update June 2020: More negative impact in 2020 -> World: -4.9% | Adv. Eco -8.0%• 2021 global growth +5.4% | 2021 GDP still 6.5 % lower than pre-COVID-19 projections


#ISE_DSS | invidis.cominvidis.comEuropean Economic Development (2020-2021)

Source: European Union 30JUN2020

-0,5-1,1-2,4-1,3-3,7-2,5-1,9-2,7-2,9-3,5-4,3-4,4-3,8-4,6-5,8

PolandDenmarkSwedenGermanyFinlandNetherlandsAustriaIrelandBelgiumGreeceUKPortugalFranceSpainItaly

2021 recovery

2020 base

Gap to 2019

-11,2-10,9

-10,6

-9,8 -9,7

-9,0 -8,8-8,5

-7,1 -6,8-6,3 -6,3

-5,3 -5,2-4,6

Growth in 2021 will not compensate losses in 2020EU 2020: -8.75% | EU 2021: +6% | 2021 GDP still 4.5% lower than pre-COVID-19 projections

• Cash management• Immediate actions-> Hibernate

First shock Restart Learn & adjust (or survive) Adapt Grow

• Manage cash & costs• Invest selectively (RoI)-> Stabilize

• Manage cash & cost• Rewire business model-> Set for growth

• Adjust processes• Rebuild consumer trust-> Operations focus

• Heavy invest into new business model

-> Grab market share

• Invest freeze• No new projects

Level of uncertainty

Cash reserves

Investment level

Moment of truth

DS Impli-cations:

• Quick solutions, e.g. access control

• “Nice to have” not relevant• Financing models

(CAPEX->OPEX)

• Novel solutions, e.g. Offline-Mobile

• Trusted partnerships• Relevant competencies


#ISE_DSS | invidis.cominvidis.comBusiness Reaction


#ISE_DSS | invidis.cominvidis.comVeja vs. Nike | V- or Swoosh-shaped recovery

Types |

DS Actions |

Examples |

Offer solutions that help to reduce costs, leverage existing systems

• DIY• Banking

Offer turn-key services that can be implemented quickly

• Food• Home, Beauty• Corp. Comms

Trigger strategic discussions on the value of DS for changed business models

• Airlines & Travel• Hospitality

Emphasize scalability of DS solutions, fast implementation and speed to market are key

• Education• Healthcare

Keep working on digital transformation

• Services

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Rapid recovery after the crisis to normal level or even beyond

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High demand after the crisis but not at peak level

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Slower recovery after the crisis to normal level

Time Time Time Time Time

Slow recovery after crisis, changed customer habits

Demand remains at a high level in the medium and long term

COVID-19 does not fundamentally change the business model

Offer solutions that help to reduce costs, trigger discussions on mid-term solutions to win back customers

• Fashion & Lifestyle• Electronics / Telco• Restaurants • Automotive


#ISE_DSS | invidis.cominvidis.comImpact of COVID19 - scenarios & actions

62% 51% 45%

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of consumers will refrain from being in proximity with retail staff

of consumers will refrain from unnecessarily touching products

of consumers will refrain from testing / trying products


#ISE_DSS | invidis.cominvidis.comCOVID19 Challenges - Consumers lacking confidence

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#ISE_DSS | invidis.cominvidis.comMost wanted digital touchpoints

84% 78% 65%of consumers want an app and QR code on smartphone to find out more about a product / brand and for final payment

of consumers want digital screens displaying ongoing content about brand/product‘s history, origin, ingredients, usage, etc.

of consumers want guided sellingdisplays offering personalized recommendation & advice after answering a few profiling quest.


#ISE_DSS | invidis.cominvidis.comCommunicating the New Normal

Mandatory Communication -> compliance• Mainly regulatory e.g. number of

shoppers allowed, mask regulations, sanitation rules (pay contactless, avoid touching merchandise, wear mask, disinfect hands)

Feel good Communication -> buying mood• We care about you• Keep calm, wear your mask and

buy sneakers• Don’t worry, we are wearing

masks and disinfect all surfaces regularly

Emotional Communication -> consumer-brand relation• Welcome Back• Great to See you again • We’ve missed you• Buy local, save jobs


#ISE_DSS | invidis.cominvidis.comExperience in the Store

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Pandemic changed store concepts

Experience -> Throughput -> back to experience

value & promotions

Shopper attitudes & expectations:

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Less Density, Faster Flow

67%experiences in the store58%


#ISE_DSS | invidis.cominvidis.comConsumer Behaviors - new priorities

Consumer behavior changes

Consumer Restraint

Contactless

Sustainability

Video Communication

Mobile-enabled Commerce

Consequences for Digital Signage

Limited budgets, innovation / ideas needed, “new simplicity”

Full process perspective, push for non-touch technologies (Voice, Gaze, Gesture, etc.)

Consumer and government funding requirement; Greenwashing not enough – holistic concepts incl. HW, operations, smart infrastructure

Competition with AV and IT; Role of display manufacturers?

Not just shopping, but engagement on mobile phones

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#ISE_DSS | invidis.cominvidis.comImpact of Technology

Complementing Touch

Personal Digital Assistant (e.g. Amazon Alexa, Google Assistant)

Eye/Gesture Tracking

Others

Data & Analytics | Adaption of AI platforms

Connected Journeys (DXP) incl. Mobile (QR)

Front line employee devices

Sustainable technology | Green Signage

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#ISE_DSS | invidis.cominvidis.comImpact of COVID19 - Key Takeaways

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We’ve only seen the beginning

Behavior changes require agility (new cust. Exp. /touch point /technology competencies)

New opportunities – Digital (signage) is part of the solution, not part of the problem


Download for free invidis Yearbook 2020 for more Data and Analysis #ISE_DSS | invidis.cominvidis.com

impact of covid19 - digital signage summit

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