25 September 2020

Covid 19: Big opportunity for MSMEs to succeed!

Every challenge always comes with an opportunity. Though Covid is a serious challenge, to enable ease of doing business for MSMEs: The government has set up the stage, consumer perception can be made favourable, and means available with MSMEs are several. This provides them with the perfect platform to emerge stronger in the post-Covid-19 world.
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Image Source : financialexpress.com

To get businesses get back on track, the Prime Minister of India announced a host of relief packages to help India become ‘Atmanirbhar Bharat’ or self-reliant.

Ease of Doing Business for MSMEs:

The Covid-19 pandemic has affected over 150 countries, and has disrupted international trade, its economies as well as the lives of its citizens. The governments have been quick to respond to deal with this unprecedented crisis by. Closing down its borders, imposing nationwide lockdowns, ramping up testing and healthcare infrastructure and announcing fiscal stimulus/relief packages which are of unimaginable proportions. The response from the Indian Government was no different. India is under a strict nation-wide lockdown for more than 70 days, followed by a relief package to the tune of 10 per cent of the country’s GDP, that is, Rs 20 lakh crore to kickstart economic activity.

Due to the lockdown, the Indian MSME sector suffered the most with its collective production decreasing by more than 90 per cent. This sector comprises around 64 million enterprises and employs close to 120 million people. It contributes 30 per cent to India’s GDP and constitutes 45 per cent of exports. Out of these, 14 per cent are women-led enterprises and close to 60 per cent are based in rural areas. Hence, its importance to the Indian economy is quite significant and critical for bridging the growing rural-urban divide.

Know the consumer

Governments and organization continue to work to word containing covid-19 and stemming the growing humanitarian toll it is exacting. Meanwhile consumer globally are feeling its economic effects and are still pulling back dramatically on discretionary spending. Consumers have moved towards digital channels, product, and service across categories. However, that shift has not come yet to offsetting the overall reduction in spending. 

Consumers are dramatically pulling back on  spending.  Some of the categories showing the most precipitous declines include restaurants, footwear, jewellery, accessories, travel, and entertainment out of home. This behaviour is consistent with large scale shelter in place orders around the globe as well as consumer stated expectations of reduced spending.

Consumer expect to spend more on basis such as groceries, household supplies, and in some countries personal care items. Consumer are also trying new brands when the ones they are used to are unavailable. Bigger brands with more robust supply chain are growing faster as a result, giving unique opportunity to earn consumer trial and loyalty.

Covid-19 will permanently change consumer 

Consumers attitude, behaviour and purchasing habits are changing - many of these new ways will remain post pandemic.

While purchase are currently centred on the most basic needs, people are shopping more consciously, buying local and are embracing digital commerce.

To manage the situation, consumers are using digital to connect, learn and play and we are sure they will continue to.

° Moving forward, we will see an increases in the virtual  workforce as more people work from home and enjoy doing so.

Know the crisis of consumers

Consumers are deeply concerned about the impact of covid-19, both from health and perspective. People are responding in a variety of ways and have different attitudes, behaviour send purchasing habits. People across the globe are are afraid as they strive to adapt to a new normal. 

Evidently, covid-19 has caused the shift in consumer behaviour and it is likely to handful to these new habits will remain in the long term, why others will fade over time below is look at consumer habits that are predicted to stay 

• online purchasing will continue to be prominent channel for consumer buying going forward. Brands and organisation that haven't historical Been easily available online must rapidly adapt to the the new normal or they won't survive.

• out of home campaigns and in-person events will likely see a declined for months to come.

• luxury purchase will likely decline significantly as consumers continue to reduce their discretionary spending. However, people will continue to spend above average months on products related to to disease prevention, pandemic prevention, health, food and medicine.Consumers are deeply concerned about the impact of covid-19, boot from health and economic perspective.

People are responding in a variety of ways and have differing attitudes behaviour and purchasing habits. People across the globe are afraid as they strive to adapt to a new normal. Fear is running high as individuals contemplate what this crisis means for them, but more significantly, what it means for their families and friends, and society at large.

At the other extreme, some consumers remain indifferent to the pandemic and continuing their business as usual despite recommendation from Government and health professionals. CPG companies will need to understand how their own consumers are reacting, and develop customized and personalized marketing strategy for each. Details of one-size-fits-all marketing are over

Covid-19 has changed nearly every aspect of our daily lives, and consumer spending is no exception.

Generally, spending this down across all industries, as lockdown  measures have restricted what we can spend money on, due to restaurants and shops being shut and air travel suspended. 

By understanding this completely, we could definitely convert this crisis into an opportunity.

By understanding this completely, we could definitely convert this crisis into an opportunity. This is what all good businesses do. For. change is bound to happen in all of our life and business. When we open to adapting ourselves, this can surely made an opportunity for adaptation for that is what good business is all about.


Conclusion

We know that all crisis can be made an opportunity if we are open to adapting ourselves to changing circumstances. This is something we can certainly think of doing especially when the digital world has made many things easier for all.


Ref : https://www.financialexpress.com/industry/msme-eodb-covid-19-big-opportunity-or-doomsday-scenario-for-msmes-stage-set-for-firms-to-decide-their-future/2011215/

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