- Posted April 07, 2020
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Your Business The time to prepare for the recovery is right now
By Bill McLoughlin
BridgeTower Media Newswires
The impact of the recent shutdown across much of America seems likely to ripple through society for some time to come, although certainly opinions differ on how quickly things will return to "normal."
However, if you define "normal" as exactly the way things were before coronavirus then the answer is never.
And the simple reason is that things are always changing, and events like the tariff war or this pandemic simply give shape to those changes. Before the first tariff was imposed, there was already a gradual movement underway to find new global sourcing alternatives as the result of rising wages and costs in China.
The tariff accelerated that dramatically and continues to impact the future of global sourcing with new countries looking to enter the mix almost daily. Layer in the impact of the pandemic, and the sourcing equation is likely to become more complex and more diverse after coronavirus, not less.
This crisis has also highlighted American dependence on external sources of critical supplies as well as the country's ability to ramp up new manufacturing capabilities when needed. It doesn't seem much of a stretch to imagine a more thorough re-examination of America's manufacturing capabilities across a host of business segments.
Before the first coronavirus case ever emerged, there was a growing surge toward e-commerce, and even with home furnishings lagging, other consumer product segments in that migration of e-commerce share was rapidly approaching 20% of the furniture business. With so many brick-and-mortar stores closing their doors to accommodate social distancing requirements, e-commerce has only become more deeply entrenched in consumer consciousness.
Any argument that posits consumers rushing back to stores because they've been cooped up in their homes should take into account that store visits have been trending down, not up, for years. The factors driving that migration remain and have actually intensified. Additionally, there is a reasonable likelihood that some regional and demographic segments will retain a residual concern about social gatherings that includes store visits.
The important thing is to start thinking now about what the aftermath of this might be and begin thinking about potential solutions.
Fewer store visits, for example, means finding new ways to engage consumers. It may mean rethinking your sales funnel and engaging before they ever begin thinking of a purchase. It might also mean realigning your sales structure, focusing more on live chat and customer service with less reliance on in-store sales. Certainly it means having a more robust e-commerce, digital and social marketing strategy.
It's also worth remembering that the flip side of challenge is opportunity, and there is no question that consumers right now are very focused on their homes. Many are discovering just how ill-equipped they are for home schooling or working at home.
Some employers, having discovered the cost-benefit of work-at-home employees, may rethink high-cost office space. We could well see a home office boom that makes the personal-computer-driven surge of the late 1980s and '90s look meager by comparison.
Many things will change coming out of this crisis because things always change. Those changes will just be faster, deeper and perhaps more profound. Waiting to see what happens and hoping to react is not a strategy, it's wishful thinking.
There are many things you cannot control right now. What you can control is how you prepare to meet tomorrow's challenges.
Published: Tue, Apr 07, 2020
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