During the new normal, traders will change their business policies to make up for the losses
Throughout 2020, there was almost no business for many products, except for daily essentials. We did not go for any new investment and could not recruit new employees either. We refrained from all kinds of expenses, except for essential expenditures.
Despite a fall in demand due to the pandemic, many companies are continuing production out of the obligation to use their capacity. As a result, some have accumulated inventory while some have incurred losses by keeping their capacity idle.
During the new normal, traders will change their business policies to make up for the losses. Thus, organisations competing with each other need to do a lot more aggressive marketing for recovery.
On the other hand, people's mindset is changing due to a decline in their earnings. Outside their basic demands, they will not buy many luxury products. A specific class will even look for basic products at a lower price.
As a result, all companies will try to remain competitive in the market by lowering prices. That is why consumers will win in the win-win situation for consumer-supplier behaviour in the post-pandemic period. Even if sales increase, it will be difficult to make profits.
With the changes in business strategy in 2021, the manufacturing sector will have to bring changes to the value chain. Strategies need to be put in place to bring back consumers who refrained from making purchases due to financial crisis. Organisations need to be much more consumer- and trade-centric.
During this period, only advertisements and communication will not do. To capture the market again, consumers need to be given benefits.
GM Kamrul Hassan, CEO of Abdul Monem Group (consumer section).