China – 2 months ahead of us

POPAI and Shop!* chapters keep in touch and the member organizations are constantly informing each other about the consequences of the virus situation, with particular regard to the development of the Retail, the FMCG sector and the instore industry. We pick from these news daily. We are starting with China, where perhaps the hard times are over and the economy is starting to recover.

It started in late December 2019 and we are over three very difficult months – says Morena Luo Operations Manager of Shop! Greater China. By February 2020, China’s Retail growth decreased to 4% from 8.2% in the same period last year. “Only” 26 shopping malls were opened this 3 months instead of 40 shopping malls opening in same period last year. However, online grocery sales have doubled or tripled, depending on the region.

Survival strategies
Shopping centers advertise promotions through various applications, such as the Tik Tok, trying to attract customers. However, photos and testimonials show empty plazas.
Also in the shops of the plazas, in the first position, on the promotional islands, the disinfection products of hand washing, wipes and cleaning are almost everywhere.

Grocery store chains encourage online orders, and the need for home delivery has increased greatly. Bicycle delivery is typical. The preordered goods which are paid for in advance by the customer are placed at the border of closed areas into shelves.

As restaurants and cafes were not open in February, China’s largest supermarket responded quickly. The management of Ha Ma immediately searched for closed restaurants in the vicinity of its stores and recruited their employees to provide more flexible and effective webshop operation.
Even the smallest shops – bakeries, vegetables, tobacco shops, etc. – started selling disinfectant products.

Pharmacies can only serve customers through the window opening to the street.
A variety of companies – cosmetics, auto parts, furniture, etc. – including the display and POP manufacturers have joined in producing masks and other protective gear.

Half free, half closed
We have begun to recover, with very few numbers of new diseases, but we must remain very vigilant – says Morena Luo, before summarizing the measures in place. Guangzhou, one of China’s largest cities, asks its residents the following:
When leaving home, everybody must wear a mask in open space areas.
Thermometry is required at the entrance of every shop and interior – pharmacy, public transport, restaurant, etc. – places.

Name and phone number are required when visiting restaurants and cafes. Starbucks is also open, but on the small table to the right of the entrance is an informative display: when you enter, they check your body temperature and ask for your name and phone number. There are paper, pens and a thermometer gun on that table.

People arriving from outside China will be tested of the virus and asked for 14 days of isolation.
Breaking news: as of March 28, China is closing its borders again, and nobody, regardsless of any visa or permit from any country can enter the country.

* POPAI, from 2015 named Shop! is an international organization of the Marketing and Retail industry which headquarters placed in Chicago and Hollywood Florida, representing nearly 2000 local offices. Hungary joined with the POPAI Hungary Association in 2003, which has since then been a nonprofit professional, educational, research and knowledge transfer organisation active mainly in the FMCG sector. Read more: popai.hu