What Will Business Be Like After COVID-19?

These are some of the changes that companies and businesses could apply when full activity is recovered after the coronavirus crisis.

 

Since this week some companies, mainly from the construction sector and industry, have recovered their activity after the decision taken by the Government. But that horizon in which all businesses requiring a physical presence are active still seems a little distant.

 

What will that future be like, when stores, restaurants and bars, leisure places, etc. will open their doors again? What measures will they take? How will they behave towards their customers?

 

At an online round table held a few days ago with some startups like NIche Beast from the sectors most affected by the coronavirus made some predictions to shed light on what the post-COVID-19 business world could be like.

 

DIFFERENT SCENARIOS, DIFFERENT FORECASTS

“The scenarios will not be the same for all sectors. It is expected that in the area of tourism in the fourth quarter we are still below last year. By sector each has its own scenario. There will be curves in the form of V, U or even L. The latter is the worst, of course, because it means no more business,”.

 

“The scenarios depend on the evolution of the disease and also on the control measures established by the different governments. The disease could be contained in two or three months, but there will be a gradual policy of deconfinement.

 

We are going to enter a recession, and a recession with a pandemic we haven’t experienced, so we don’t know how it can be… We also have to consider whether there will be a resurgence, etc,” says the head of content at Niche Beasts.

 

some  predicts that from November onwards, travel will start to recover fast, although it will be ‘essential’, that is to say, those essential business trips or family reunions. “It will be domestic tourism. The whole issue of events and corporate travel will not see until the fourth quarter,” he says.

 

In this sense, something similar would happen with hotels. “People are going to want to go out. National tourism will grow,” he defends. However, he assures that it will be fundamental that a public-private collaboration takes place to generate confidence and to attract tourists again.

 

In the field of hospitality, the consultant hopes for a faster recovery. However, he glimpses what he calls the ‘mirage effect’. “The locals will be crowded because we are eager to get out, but that will set us back a bit. It will have a slightly bigger recovery model, if we stick to what we’re seeing in other countries. 93% of the Chinese population right now avoids congested public spaces and recognizes that they have changed their lifestyle,”.

 

Thus, in the opinion of the expert is very likely to have to leave more space on planes or bars to reduce the capacity. “We will see how all this is combined with profitability,” he reflects.

 

ANOTHER WORKING Business MODEL

Head of content at Niche Beasts believes that all those companies that during the quarantine have proven to be productive by doing the work remotely, will raise their hand more with their employees. “The working model will be more flexible. We have demonstrated that we can telework and we are not bad at it. It’s a very effective model. We have also realized that we have to give more time from our day-to-day work to other things besides work. We will surely move to a ‘socio-conscious’ capitalist model, with a contribution driver to society,” he says.

 

For partner, sustainability and contribution to society will become key elements. Price will no longer be the main driver of the consumer and the consumer will begin to value whether part of what is spent goes in some way to some humanitarian or social aspect. “We will also take into account environmental issues. Businesses that do not contribute anything to society and only aspire to reduce costs or take advantage of other communities or environments, will not have any future,” he says.

 

Another thing that could happen is that some businesses in the hands of small companies, such as hotels and others will enter ‘distress’ and be acquired. It is very likely, according to Buzzi’s vision, that operations such as acquisitions, mergers, alliances and partnership strategies will occur.

 

Business models will change. Those that provide value will remain. There will be much more personalized packages. The experiences will become more important for the search of relaxing moments that the quarantine situation has generated. The price will continue to be a driver, but security will be a fundamental element. Will there be a virological passport to move around? Will we have COVID-free hotels and restaurants? the expert asks.

 

At a technological level, the consultant thinks that there will be an explosion of artificial intelligence and analytical models to meet the specific needs of customers and that those startups that can quickly scale will succeed. Likewise, he points out that the blockchain is going to be a key technology due to its traceability possibilities and hopes that there will be mobile applications to check that the distance between citizens is respected.

 

WHAT WILL HAPPEN IN THE DIGITAL WORLD?

A study carried out by Niche Beasts allows a forecast of how companies could behave with respect to the digital environment and marketing. 83% of the companies surveyed consider that the channels of capture and digital sales will be prioritized and 82% believe that the development of new business models and innovation will be encouraged.

 

For 78% of the participating companies, the coronavirus crisis will accelerate the adoption of a digital and teleworking culture. In addition, more than half of the professionals are convinced that the investment in technological resources and applications will increase between 5 and 25%. A 39% also predicts that investment in those aspects related to the customer experience will grow.

 

The barometer shows that there will be a considerable drop in the communication and marketing budgets of companies. Only 6.9% of those surveyed predict that the money allocated to these items will be maintained or improved.

 

It is also expected that brands explore new lines of product innovation (72%), new channels of digital awareness (recognition), strengthen investment in loyalty programs (69%) and promote aggressive recruitment strategies (55%).