Applying the online consumer behaviour model ,illustrates and elaborate five key variables to predict the decision that consumers make in the online marketplace within the context of the case study

InNature ramps up e-commerce to ease store-closure pain during FMCO WITH its retail stores forced to temporarily close under Malaysia's Full Movement Control Order (FMCO) that took effect from June 1, InNature Bhd - the holding company of The Body Shop (TBS) is doubling down on e-commerce. "All 81 of our stores nationwide are closed, but we are ramping up e-commerce," managing director Datin Mina Cheah-Foong tells The Edge in an interview. "We will be running spike offers and different things online, and we've already increased our advertising on Google and other search engines) to make sure that when people key in searches for skincare, pimples, hair loss and things like that, they would be directed to our site," she adds. Cheah-Foong says the aim is to get as many as possible of the usual walk-in customers to switch to online channels. Already, the Main Market-listed group had experienced a sharp rise in sales through its website and mobile app on the first day of the FMCO itself. "The number of transactions [over our e-commerce channels] were up by just under four times compared to the same day last year, and in terms of turnover, it was up by 3.5 times. And these numbers don't yet include TBS (sales) over Shopee, Lazada or any of the marketplaces. So, people will switch," she states. Nevertheless, a surge in e-commerce sales will not make up for the loss of business from the retail stores. Under normal (non-lockdown) circumstances, retail outlets account for close to 90% of the group's total business, she says. "We have 81 doors, so when we close all of them, it really is a significant impact. A lot of people still prefer to go to the shop, so that's the worst thing about this full shop closure." Additionally, there is the matter of rent. Most TBS stores are located in malls. "Generally, we have a very good relationship with our landlords. They've allowed us to go rent-free for the times when the stores have been mandated to close. However, some landlords still insist on collecting service charge, so that's a sore point for us," says Cheah- Foong. Malaysia's latest lockdown initiative to combat the recent surge in Covid-19 cases, which will run for two weeks unless extended further, has been frustrating for retailers like InNature as they had just started to see traffic return to stores. Under MCO 3.0, which was in place prior to the FMCO kicking in, almost all TBS stores had been allowed to operate, albeit at slightly shorter hours. The longest that TBS stores have ever had to stay closed was during the first MCO last year - stores were closed from March 18 and were able to reopen in stages only from early May that year. Continued profitability seen Despite the challenges, Cheah-Foong is confident that InNature will stay profitable in FY2021 and also be able to continue with its dividend policy of paying out at least 30% of its profit to shareholders. "Based on our experience last year, when there were store closures during the first MCO, we still managed to record a profitable year. We don't know how long this (current strict "For now, we will continue to monitor our store performance closely and if need be, take the necessary action to exit underperforming locations upon the expiry of the lease term. Subsequent to 1Q2021, we closed two underperforming stores in Malaysia," says Cheah- Foong. The group may open two to three new stores in Vietnam this year, she adds. InNature's share price has gained 28.3% so far this year to close at 68 sen last Thursday, valuing it at RM480 million