Online business as the new normal Opportunities and challenges brought by digitization

The epidemic has not only changed people's lifestyles, but also completely reshaped business models. GoDaddy's survey shows that businesses' reliance on digital channels is increasing, especially in the UK where e-commerce has become a major source of revenue for many businesses. Currently, over half of entrepreneurs rely on online channels to generate revenue, a trend higher than the 45% during the pandemic.

The rise of e-commerce is not accidental, but driven by multiple factors. On the one hand, the lockdown during the epidemic has made consumers and businesses accustomed to online transactions. On the other hand, the high cost of offline operations, especially commercial rent and tax pressures, make the survival of physical stores increasingly difficult. Despite fierce competition in digital business, it remains an important direction for the future development of many enterprises.

Online has become mainstream, and traditional business models are being impacted

In the past, e-commerce was more of a supplement to offline business, but now it has become the core business model for many enterprises. According to GoDaddy's survey data, e-commerce has penetrated into various industries and become an important pillar for the survival and development of many businesses. This change is not just short-term, but a long-term trend.

As more and more companies turn online, traditional business models have been greatly impacted. During the epidemic, the physical retail industry suffered heavy losses, with a large number of brands closing down or being forced to transform. However, even though the impact of the epidemic has weakened, physical businesses still face challenges such as high rent and high operating costs, forcing many enterprises to continue relying on digital channels.

Online marketing competition intensifies, making it difficult for small businesses to break through

Although digitalization has lowered the threshold for entrepreneurship, it has also brought new challenges - market competition has become more intense. According to a GoDaddy survey, an increasing number of businesses consider online marketing to be a challenge, with the proportion rising from 15% five years ago to 20%. This indicates that with the surge in the number of online businesses, attracting consumers has become more difficult.

At the beginning of 2024, the number of small and medium-sized enterprises in the UK reached 5.5 million. Facing a huge market, how to stand out among numerous competitors has become the core issue faced by enterprises. Enterprises need to continuously optimize their brand positioning, digital marketing strategies, and utilize social media SEO、 Promote through multiple channels such as advertising, otherwise it is easy to be eliminated by the market.

Physical commerce still has room for survival, and the combination of online and offline is the future direction

Although e-commerce dominates, physical commerce will not completely disappear. Data shows that there will still be over 320000 new retail enterprises established in 2024, indicating a continued demand for physical commerce in the market. Especially in the fields of catering and experiential retail, offline stores still have irreplaceable advantages.

In the future, the combination of online and offline will be an important direction for enterprise development. Many companies adopt a model of "online traffic diversion+offline experience". For example, customers can browse and purchase products online, and then choose to pick them up in store or experience services. This model can not only reduce the rental cost of physical stores, but also fully leverage the advantages of online and offline, providing consumers with a better service experience.

The epidemic has accelerated the digitalization process of business, and e-commerce has become an important component of the global economy. Although offline commerce still has some room for survival, the future development direction of enterprises will be more inclined towards digitization. How to stand out in the fierce online competition will be a challenge that all enterprises must face. For enterprises, flexibly adjusting business strategies and combining online and offline advantages will be an important way to adapt to the future market and survive.