We are all tremendously concerned about what is happening with the coronavirus. The figures are scary, very scary. But as is normal, we all try to see rays of hope.
We look at China, at the first good news from Italy, at some positive data in Spain,… we are all looking forward to this happening as soon as possible.
Although there are many families affected, but the reality is that most of us are fine. So much so that we are not aware of how lucky we are.
The economy is stopped, our income, isolation… but you just have to try to put yourself in the shoes of the affected families and it gives you chills. And next act, the only way is to start thinking that we are lucky.
And that is why our path is to consider what we can do to help (from clapping on the balconies, calling loved ones to support them, sewing masks, making donations (I leave you the Red Cross link , but there are hundreds of initiatives), and professionally what we are going to do to get out of the coronavirus crisis .
What will happen to the economy after the coronavirus?
In addition to the health of those Honduras Phone Number List around us, the second thing that worries us most is the state of the economy. The questions that arise very numerous:
What will happen after isolation?
How will the markets react? And our pockets? Will we be willing to spend? Have our consumption habits changed?
As a consequence of all this, what companies / sectors have a better future after isolation?
How will the government behave? What about companies?
What will happen to the bag? It should follow the market. After the big crash, it has been going up and down for a few days, but it has not recovered 7,000 points.
And we could keep asking questions, but they would be no more than guesswork.
Do we have reason to be slightly optimistic after COVID-19?
That is what we are all hoping for.
To try to solve or at least shed some light on these questions, there are many consulting firms, governments, etc. studying data and trying to give the first answers.
In this regard, I found the article on the study being carried out by the Mckinsey consultancy on consumption in the Chinese market after covid-19 very interesting .
This is a survey of 2,500 people (at the moment they have 2 waves), which tries to measure the attitude of consumers towards 8 categories of products: alcohol, makeup, skin care, snacks, cleaning products, personal care, fresh food and baby care.
The results should be taken as a trend, rather than conclusive (being a survey and given the current situation it is convenient to be prudent).
The economy will recover in two to three months
I was surprised by the optimism of the responses, as 49% of those surveyed think that the economy will rebound in two to three months and will again be the same or stronger than before COVID-19.
Mckinsey survey Chinese consumers are optimistic after coronavirus
Perhaps it is because the Chinese economy and government are peculiar, or because we are several steps behind China, but they seem too optimistic to me. Although of course, they still seem positive to me. It is a way to start and China is the engine of the world economy.
There is an increase in the percentage of pessimists (6%), but perhaps it is due to what they see happening in the rest of the world.
Consumer habits have changed during the coronavirus in China
What I found most interesting, and reliable due to the type of question, is the variation in consumption of the aforementioned eight categories during COVID-19 and in the weeks following after the gradual activation of the Chinese economy.
Unsurprisingly, the non-essential product categories have suffered the most. But this depends on the economic level, in the total of the data they say that they used 30% less skin products, but if we focus on the more affluent neighborhoods, consumption would have increased by that same percentage.
McKinsey Study – Product Categories Most Affected During Coronavirus in China
The majority (between 60 and 70%) say that after the crisis they will consume the same, while 10% will consume more, and 20-30% will be cautious.
What could our marketing strategy be after the coronavirus?
We have seen that product categories have behaved differently during the coronavirus in China. Logical, because habits have changed radically.
What can we expect when the economy starts to kick in?
I understand that we will see a progressive activation of economic activity and of our freedom of movement. But how will our consumption habits have changed after isolation? What will we consume more or less? Will we go back to normal consumption patterns?
Online shopping will increase after the coronavirus crisis
It seems logical that in the first months we should be cautious. The normal thing is that we go out less, and therefore we do more shopping from home. What is not clear is which categories will benefit (I am clear that Amazon as a dominant figure will be strengthened).
Therefore, ecommerce platforms should be prepared to start their activity as quickly as possible.
We have to earn the trust of our customers
After the crisis, more than ever, we have to earn the trust of our customers. We have to become advisers, rather than salespeople. We have to make it easier for them to pay, not only with discounts, but also with different forms of deferred payment and financing.
We have to present ourselves as more humane and close brands (not like certain companies, which after years of silence send you an email saying they support you), and show a clear brand purpose that makes them trust us.
Remember that your customers don’t buy WHAT you do, they buy WHY you do it .
Define strategies to bring traffic to physical stores
And of course, if we want the economy to reactivate, we need customers to go to shops.
This will be a matter of time (due to the virus situation and government measures), but the extra precautions that our clients take will also have an important part.
So if we want to take them to our physical stores pushing DE Phone Number with the actions of our digital marketing strategy, first we must comply with the previous point (trust), and second, think why, in addition to what I already did, will my customers to my stores? How am I going to advise them more than to sell in my stores? What extra facilities can I present to you?
Before we jump into lowering prices and running promotions, I think we should start by asking ourselves the kinds of questions I just mentioned. And once solved, we can ask ourselves if we also lower prices, give payment facilities, etc. etc.
To do all this, it is essential that we take advantage of this downtime to prepare ourselves, to rethink our strategy and what would be the best way to approach clients who will be damaged by the crisis.