For businesses and brands looking to leverage on the CoVID-19 crisis, there are plenty of opportunities to take advantage. Here are some of the things you should look for in a crisis-oriented growth opportunity, as well as what the crisis represents for the economy overall.
The crisis represents a time of unprecedented change, where the business world is dealing with a new set of demands that had not been considered feasible just a few years before. The key driver for the crisis is the failure of global economies to regain their footing after a period of sustained stagnation. As we are seeing now, businesses have a greater opportunity to seize this opportunity and gain a foothold on their industry.
What the global economic situation is all about is not the recession itself, but its effect on consumer spending. Many consumers are not able to enjoy high levels of disposable income anymore, which has led to a huge spike in credit card spending. However, credit card companies have not recovered from the recession yet, and as more consumers find themselves with lower disposable income, it is a great time for companies that provide a high degree of consumer service to grab this opportunity. Companies such as hotels and restaurants can take advantage of the growing trend in credit card use.
There are also several other opportunities for businesses and brands that can capitalize on this crisis. These opportunities include the ability to capitalize on consumer spending without actually being able to make their products available. This is because consumers are forced to make do with what they have and they are not able to do without it. Consumers are thus faced with high levels of disposable income, but not being able to make full use of it. This creates an opening for companies and brands who offer a high level of consumer service, such as hotel and restaurant chains, to make their products available for consumers at relatively low prices, especially if consumers can get it for free or at discounted rates.
As the economic decline accelerates, consumers will begin to make more investments in their future. Many of these will be spent on products that offer immediate gratification, such as clothes and gadgets, rather than products that need to be bought years in advance in order to save money on later purchases. As people learn to make their purchases now, they will be less willing to spend money that is required for future consumption on things that cannot be made in the future.
As the economic decline accelerates, this trend will likely continue into the next decade. And when the recession finally ends, consumers may not only find themselves in a better position to save money but also to invest in longer term goods and services. That will lead to a rise in corporate revenues and profit margins.