It is undeniable that many businesses have been affected by the coronavirus outbreak, or the official name as COVID-19 without prompt preparation and reaction, especially in the tourism and hospitality sectors that affected from the China Official that restricting group tours travel to other countries, along with some Chinese F. I. T. that restricted to stay at home and avoid non-essential travel, etc.
Although the percentage of fatality is utterly low and the numbers of recovery are increasing, or the good news from Thailand Medical Team that capable of cured coronavirus patients well, furthermore China Medical Team being tested for medication with real patients. But it takes quite some time in the process of researching and treatment. After following the situation and talking with the Chinese people, some businesses, factories and logistics industries that they are slowly getting back to order. Many people predicted pessimistically that it will restore by April or May, but may not have a full recovery as before.
As we mentioned earlier, how to adapt the business and what is the opportunity in the midst of crisis. PRIMIO has gathered some guidelines and case studies for you to rethink and adapt your business once the crisis has passed.
Businesses/Brands can take advantage during this crisis by using reactive & proactive communication as what Starbucks, McDonald’s, Muji and HEYTEA did. Their primary businesses are offline oriented traditionally, but they had created content through social media to build more confidence and stay connected with their customers all the time. For example; the steps of in-house cleaning, body temperature measurement, safety card check for delivery order and implementing proactive communication to teach customers to prepare the homemade beverage.
Businesses/Brands can deploy necessary immediate communication with their customer by presenting a safe production process or using this opportunity to emphasize the strengths of their products as clean, safe, protecting bacteria, nutritious ingredient and etc.
BUSINESS MODEL ADAPTATION
During the epidemic crisis of the COVID-19, we had talked to several Chinese people that they prefer to stay at home and avoid going out unnecessarily. It is showed that consumer’s behavior spending most of time online and relying on delivery service. From the data of various Fresh & Grocery Delivery Applications such as Meituan Maicai, Meiriyouxian, indicating that orders are 2-3 times more than during the Chinese New Year. The purchase of fresh vegetables from 500 tons increased to 1,000 tons including the value of order per order increased.
Transforming the business model from the traditional, such as Mala Hotpot instead of providing offline service and it also can serve as a friendly delivery service to any customer household. (Example in Thailand, some Moo Kata-Thai Style BBQ provided delivery service), yet even Alibaba’s Hema further shift focus on food & grocery delivery or Luckin Coffee came up the coffee vending machine that integrated AI & Face Recognition to enrich the purchase experience with less physical human contact.
Businesses and brands may have to rethink, how businesses possibly adapt to this critical situation and vast online activities increment significantly.
MARKET TREND PREPARATION
As a result of this epidemic, the behavior of Chinese consumer has changed into characteristics of self-awareness, searching more detailed information. And also creating new opportunities for businesses & brands to prepare and plan for developing their product and service. The upcoming trend after the epidemic virus we reckon would be:
1) Healthy & Hygiene Production:
Healthy-related products & services, products with safety standards in both transparency production processes and traceable raw materials. If you already had those, then emphasize the strengths of your products. For example, fried pastries may be transformed into a healthy process, or present about products that are resistant to bacteria or viruses. Hence those who are not in this industry could think of vertical collaborating with other related business/brand to develop new types of products or services.
2) Multi-Sales Distribution:
Don’t limit your sales channels to just a single traditional channel. The trend of trading through E-Commerce or using Live streaming all the way through the Delivery service will increase rapidly after the crisis. This is including the development of sales staff to become Key Opinion Business (KOB) for businesses and brands. As well as taking advantage of creating a community to encourage Group Purchase. We must think that if this kind of epidemic or crisis occurs again that whether our sales channels and business models must be well ready to cope or at least can minimize the impact that may occur.
3) Product Customization:
Developing a variety of products or services forms that support many customer groups and applicable to diverse scenarios/places. For example, Luckin Coffee, which provides fresh coffee through Express kiosks for added extra convenience and efficiency. Modification of packaging that is easy for mobility so that people can bring it home or other places for consumption.
4) Digital transformation:
Enforce technology to enhance marketing. It helps to prevent and reduce risks in the event of an epidemic or other crisis, whether it is Medical Technology for Face Recognition, AI Technology, or even new technology in the production of products and raw materials, etc.
Soon after the crisis, it is hoped that businesses and brands will return to foothold and plan to deal with the situation from now on. This Includes that being prepared for the upcoming business opportunities when the epidemic crisis began to resolve and back to normal.
Credit photos: Starbucks, McDonald’s, Muji, HEYTEA, Luckin Coffee, Meituan Maicai, China Money Network