Despite the ill effects of the COVID-19 pandemic on shopper spending, AllHome Corp. (PSE: HOME) capitalized on the silver lining behind the challenges posed by varying levels of community quarantines—increased market interest in home appliances and essential items.
AllHome Vice Chairman Camille Villar reported that the company’s wide range of products contributed significantly to sales growth, despite the imposition of a modified enhanced community quarantine (MECQ) and general community quarantine (GCQ) in most of AllHome’s areas of operation. “During the 2nd Quarter of this year, appliances contributed 40% of our sales, generated by our tactical pop-up stores placed near All Day Supermarkets. We recognized and capitalized on our AllValue retail ecosystem, of which AllHome is an integral part.”
As the country moved to a more relaxed GCQ, AllHome’s sales saw improvement, with shoppers resuming home projects and select businesses started reopening.
Due to the pandemic, shoppers had a surplus of time at home, and their respective incomes was diverted from travel and non-essential entertainment to renovations and passion projects. This time presented opportunities to continue and start DIY home improvement projects, while others bought new kitchen appliances to further culinary hobbies and refrigerator and freezers to assist their business ventures. Some purchased air conditioners to make their home cool and comfortable at the height of summer during the second quarter.
With the new normal of work from home arrangements and online classes, AllHome saw an increase in sales of furniture and equipment for home office and virtual classes. These shifts in shopper behavior cushioned somehow the disruption caused by the pandemic such as closure of stores and stoppage of construction activities during the ECQ. As reported in the shopper survey commissioned by the Bangko Sentral ng Pilipinas, the upper-middle economic class priority levels on home furnishing remained the same—both online and in-store.
Validating AllHome’s quick pivot to e-commerce during the pandemic, Nielsen Philippines online survey Pandemic Impact on Shopping Behavior, fielded in April 2020 at the height of the COVID-19 situation showed that ABC1 segments are more positive that online shopping habits will continue post ECQ. It further stated that the purchase of appliances and furniture in the ABC demographic remained unchanged by ECQ. Shoppers from the same segments foresee returning to usual online shopping for home appliances after the community quarantine.
This insight was further supported by the National Economic and Development Authority’s (NEDA) statement that businesses need to make online shopping easy, affordable, and secure for shoppers so that they need not go out to buy what they need and want.
“This community lockdown has pushed AllHome to find new channels to bring its products and services closer to its customers,” says AllValue Chairman Manuel B. Villar Jr.
AllHome has introduced four easy ways for to shop for home and hardware needs while still ensuring safety of its customers. Shoppers can go to allhomeclick.com and browse thru AllHome’s products, add to cart, and check out; Chat with an AllHome personal shopper thru Shop online at AllHome’s Viber Community where promos are posted regularly; and, for specific construction and hardware needs, one chat and order from AllHome Builders Centre Shopping Community.