By Ken Lerona
ONE of the dangers brought by the COVID-19 pandemic is set to hit the economy. Global analysts have already declared that the world is sliding into recession. We must do something about this in the local front to avoid getting badly crashed. As we fight the COVID-19 pandemic, let us not forget to gear up our Ilonggo businesses, too!
It is just right that we prioritized the social welfare of our fellow Ilonggos in the earlier stage of the crisis. We thank the business community for its quick and unselfish response to the call of the local government to help. But we must realize that this sector is also one of the hardest hit by with establishments padlocked, manufacturing plants not operating and general commerce at a standstill. We cannot afford that this sector will suffer any much deeper, longer.
If we do not seriously consider the possible impact of this crisis to our local businesses, we put to risk the future of our entrepreneurs, their employees, suppliers, contractors, and even customers. The closure of businesses these past weeks has frozen trade in Iloilo. We can only imagine the millions of pesos of lost income for the whole local economy.
For us to keep the local business crisis at bay, we need to start the conversation on how to support our local entrepreneurs. We need to engage with our stakeholders today.
Business not as usual
As we move through the struggle to prevail over the global crisis brought about by the pandemic, our local businesses is forced to face a new kind of reality. We will no longer see the comforts and convenience that we used to enjoy. Running the Ilonggo business may now be business not as usual.
In the post-COVID-19 world, Ilonggo customers may not go back to their usual spending. Purchases of non-essential goods may take a back seat, leisure activities postponed, and social gathering avoided. The fear to go out and get contracted by the deadly disease may linger so consumers may prefer to transact business online. The usual transactions in the brick and mortar stores may see lower footfall. Consumer demands for new products to address their new reality may rise, more aggressive competitors may come in, and new market structure may take shape.
Our traditional way of doing business here in Iloilo may need to dramatically shift.
Adapt to survive
As proven in the natural world, only those who adapt survive. This may be true to our local businesses as demanded by the new world order. We noticed in the past weeks that those who have quickly shifted to the digital platforms continue to run their businesses. We have seen how local online marketplaces for essential goods have mushroomed, skipping the need for brick and mortar stores to do business.
Some of our business owners are taken by surprise that the order has shifted 180 degrees. If it used to be that the customers make the effort to go to the physical stores, it is now the merchants who bring the store to the customers’ doorsteps. E-commerce will be big and will grow bigger in Iloilo. The market will no longer be dominated just by national brands; more local players are seen to take the opportunity. We will see that the demand for logistics and fulfillment infrastructure will explode in the next several months.
Those who are slow to adapt may die.
Gearing up local businesses
As we move forward to combat the negative impact of this crisis, the mode that we need to adapt is not just to survive. Ilonggo businesses need to thrive. Cliché as it may sound but it is always true that in every crisis, there always presents an opportunity.
So how do we gear our local businesses to win in the new normal?
Revisit the roadmap. This may be the best time for us to revisit our local trade’s roadmap. The environment and the climate has changed so should our roadmap too. What may have worked in the past may need tweaking. We may need to fast track innovation and shift to digitization as quickly as we can.
Build the infrastructure. By infrastructure, we do not only mean roads and bridges. Infrastructure may come in the form of technological backbone. This may also come in the form of logistics and supply chain infrastructure. We need to be ready to support both the virtual and the real-world requirements of both businesses and customers in the new normal.
Support omnipresence. During this time of lockdown, we have seen that only those that are available are being bought. Brand loyalty started to wane. Kun ano lang may-ara, amo ang baklon. Distribution and availability have become important more than ever. This is why, local products and services need to have a solid support to be present in both online and offline channels. Omnipresence will require an urgent support and conversation.
Build the brand. This is quite counterintuitive from the observation above that customers are becoming less brand loyal. This part talks about building brands that are important to the customers. These brands speak to them, add value to their lives, and stick with them during the time of crisis. Now is the best time to build brands when all the others are afraid and quiet. Ilonggo brands may want to take advantage of this market lull to build their leadership though calibrated relationship-building.
Promote the brand. No, this is not another call for tone-deaf advertising and promotion. Promoting brands during a crisis needs to be done carefully. The message should add value to the customers, the communication needs to be done strategically. Be present but do not be annoying. Brands who stick with the customers during the time of need will be the brands that customers will remember when the better days come. How about building a collective Made in Iloilo brand?/PN
