Despite E-Commerce's Growth, Human Contact Cannot Be Replaced

Q: How did COVID-19 accelerate C&A’s plans toward e-commerce?

A: When the health crisis hit Mexico and all of our stores were forced to close, in just two weeks we had to migrate to digital platforms. This was a huge challenge but it has been a very interesting and exciting journey. We saw this in a very positive way, which has helped to cheer up the entire C&A team.

We currently have an alliance with Mercado Libre – that is currently acting as our marketplace – to be present in the digital market and reach consumers faster. Once the pandemic ends and we can return to our physical stores, we are sure that we will continue with our digital and e-commerce project. Gradually, we are going to post more products in our digital store. For now, we plan to continue with Mercado Libre since the response of our clients has been positive. Proof of this is that in the early days of the Hot Sale, the largest online sales campaign in the country, C&A positioned itself as the brand with the best-selling items on the platform.

Having said that, we are also working on improvements to our own cyamoda.com website, adding more products, promotions and more sophisticated visual campaigns. Towards 2021, we will introduce loyalty programs both in our physical stores and online, as well as our own digital app, to offer our customers the option of mobile and e-commerce, as well as an integrated service. This means that if the customer is looking for a product on the C&A app or the website, the system will recognize who the client is, what they want to buy and will even communicate this to the physical store so they can pick their product after buying it.

Especially in markets like Mexico and Latin America, smartphone adoption is very fast and we see the importance of mobile commerce, which is equal to or even more important than e-commerce. I firmly believe that the future is digital and, especially in this region, adoption will be accelerated due to the COVID-19 pandemic. Yet, there will never be a replacement for human contact. 

C&A has been in the Mexican market for 20 years and during this time we have learned to design clothes that perfectly fit our clients’ needs and taste. Plus, we have created a close relationship with them. This has given us great success and the experience we generate at our stores is what helps us understand our customers to continue innovating and subsequently offer those products in digital markets. There must be a combination of both. Even Amazon has started to open physical stores to be closer to customers.

Q: Given that Mercado Libre is now your main marketplace, how does the digital tax that went into effect in June hit C&A?

A: It is definitely a very complex situation. For now, what we do know is that the digital transformation in the world is not going to stop. We are on track and there is no going back. I think these kinds of situations we have to understand as we go. At C&A, we are in favor of fair competition and fair law enforcement. We are not concerned; we believe that this is part of the maturity that the digital transformation is reaching in Mexico and at the end of the day, we will have to understand it. It is always good to have healthy competition, which only benefits the customer.

Q: How is C&A preparing for the reopening of its stores in Mexico?

A: Since we started seeing the impact of COVID-19 in January, at C&A we have put the health and safety of our collaborators first. At the end of May, we opened three stores in the state of Coahuila with all the necessary precautions to keep the environment in the store as pleasant but also as safe and healthy as possible.

Currently, our collaborators in open stores are wearing facemasks, gloves and protective helmets. In the cash register area, there are plastic dividers between our staff and we follow safe-distancing guidelines. We also limit the number of people inside the store and the fitting rooms are closed. In addition, we are offering more time for people to return products in case they do not feel safe to try on clothes right away.

Q: How is C&A preparing for 2Q20, which is when the economic crisis will hit the hardest?

A: COVID-19’s impact on the economy will be significant, not only in Mexico but around the world. At least until a vaccine is found. At C&A, we are reconfiguring our strategy to be able to sell a greater quantity of products at a more accessible price. C&A has positioned itself as a brand with highly accessible but quality products and we will maintain that philosophy.

C&A is a fast-fashion retailer with headquarters in Belgium and Germany and presence in more than 20 countries. In Mexico, its 79 stores located in cities like Ciudad de Mexico, TIjuana, Monterrey, Guadalajara and Merida.