Welcome back to pLAYbLOG, today we want to talk about China, the country’s situation concerning Covid-19 is getting better day after day, while pandemic epicentric has moved to Europe,
Which are the main changes in China at the end of the fight against the virus?
We can separate them in two main categories:
- Customer behaviour changes
- Business model changes
Firstly, customer behavioural changes are differences to life’s routine of the population before the virus, we can resume which are the most important:
- Digital importance, the population has spent 60% more time on Social media, Streaming tv, E-commerce websites etc. These behaviour has remained during these days, giving to companies’ brands to collect market’s share with investement in digital advertising more quickly and easely than before
- Raised consumption of new goods, during the quarantine population has spent huge amount of money on health food, home fitness equipments and disinfectant products. Given these facts people has implemented these habits in their routine and now the market demand has been stabilised at an higher level.
- Entertainment impact, exercising at home, health food, streaming tv, videogames have substituted gym, restaurants and cinemas, people have understood that they can satisfy the needs of these structures from their houses, this will impact on market demand of these entertainment places.
As you can see people have changed their habits to stay at home more time, and for marketing it means that companies have to invest on digital media more than ever before with the best chances to capture their target attention.
Secondly, we have to talk about business model changes, companies brands had to face very difficult situation concerning adapting their structures and flexibility of their workforce, this emergency has generated modifies on business models:
- Digital and lean models, the spreading of the virus have obliged enterpreneurs to change quickly and adapt their business model to survive the situation, and this mean that in the future the possibility that an other emergency could occur will influence companies’ future, so we will see creating new business model based on smartworking, turnover of workforce, backup’s suppliers in different countries and emergency plan.
- Increase importance of digital channels, the quarantine has brought new customers to the web with the raise of all digital media over 60% and as we have seen above also the customers’ behaviour has changed, companies that before the crisis have not invested in digital as web and social media, now have to be there, because the risk to lose a lot of market share against competitors that are ready to use their digital channels is higher than ever.
- Investments in public betterness, many companies have helped the community during the crisis with donation of goods or moneys and the population has memorized their efforts to fight with them against the virus, and this business behaviour will be recognized for long time by the market. This has underlined the importance of social responsability actions and the fact that companies has to be close to their country and population.
Finally, we can say that companies that have fought better against the emergency in China are:
- Companies’ brands able to change their production and adapt quickly to the situation.
- Companies’ brands that have been able to listen to customers voice and adapt their digital strategy to satisfy them.
- Companies’ brand able to donate something to the population.
Would you like to be ready to face these trends? Ask us info@playmarketing.ch
