in their homes, and most retailers
closed, consumers are shifting to online
purchases as they avoid public places. In a
recent global survey by IPSOS, up to 50%
of consumers are shopping online more
frequently than they did before.
Exploring new ways to reach consumers,
given the reigning circumstances, is
critical for business survival. Historically
companies such as Alibaba significantly
grew during the SARS crisis of
2002/2003, an indication that re-looking
at your business model may be one key
way of cushioning companies against the
economic shocks caused by the current
epidemic.
Be Launch Ready
Sharpen the saw! Maybe we have been
busy sawing to take time to sharpen the
saw. Take time during the slowdown to
renew and refresh ideas. Innovation is a
sure way of positioning yourself through
the tough times in readiness for future
growth post-recession. It may also be the
opportune time to pull the plug on some
zombie projects that have dragged on for
months or years.
Think Different
Technology has allowed companies to
think and do things differently. Zoom
has been trending, and many have joked
about Zoom being the person behind
Covid-19, given that thousands of
corporate employees are spending hours
daily on Zoom calls while working and
collaborating with their colleagues.
This is not the time
to stop innovating,
but a time to review
your
innovation
pipeline and identi-
fy projects that can
help the business
cope. Striking a bal-
ance between reduc-
ing debt and invest-
ing aggressively in
the future during
tough
economic
times is critical. Cur-
tailing innovation ef-
forts may deny the
company long-term
competitive advan-
tage.
Working from home has forced companies
to think differently about how they can
leverage technology work virtually. Many
have also argued that the future of work
is virtual.
Disruptive Innovation
During times of crisis, both consumers
and businesses suffer. Offering a cost-
effective alternative gives your company a
big chance to win. Innovation during this
time should aim at solving real consumer
problems. Some of the most disruptive
innovations, such as Uber and Netflix were
launched during the recession and became
successful because these companies offered
consumers cost-efficient alternatives.
Bringing It Together
Should companies innovate during
economic slowdown? I would say yes!
Standing still is much riskier than
changing, so do something even if it is
on a small scale. If your competitors have
stopped innovating, they are inviting you
to take market share. Maybe it is the right
time to listen to the new choices made by
the consumers when they have little money
to spend and are fearful of the future.
It has been well-documented that
maintaining marketing and innovation
spending during recessions creates a
significant bounce effect once the market
stabilizes, so if you gain market share now,
your growth will be exponentially larger
when the market recovers. DON'T STOP!
Senorine Wasike is an innovation
catalyst with over 10 years’ experience
in FMCG, currently working as the
Senior Innovations Manager at
Kenya Breweries Limited. You can
commune with her on this or related
matters via email at: Senorine.
Wasike@gmail.com.