It seems as if we’ve collectively embraced the mantra of this unprecedented uncertainty to describe the current social, cultural and economic climate. We all feel it and live it, personally and professionally on a day-to-day basis.
For business entities and brands, this must be a period of hopelessness. Some may have capitalised on the uncertainty by changing their company’s core competency or somehow leveraged the ‘feel good’ vibe of social media. But for a large part of commerce, this is a time of mourning and perhaps even introspection into how their brand has fallen prey to an invisible enemy.
Communities connect in crisis.
In the wake of tragedy, displacement or destruction, people and places come alive in collective spirit – creating new ties and stronger communities grow. A crisis naturally increases our reliance on, and support of each other. It heightens our duty of care, compassion and empathy.Current relationships grow stronger but equally, bridges are built and opponents are unified – all for the common good.
Industries innovate in crisis.
Ingenuity thrives on limitations. In every major global crisis or period of tension, we’ve seen a sharp rise in innovation and creative problem solving. While emerging technologies are often at the forefront, social and cultural advancements often have an more enduring, long-term impact.
Brands are built in crisis.
Resilience in the face of adversity grows affinity and loyalty for brands. From World Wars to Global Financial Crises, we’ve seen hardship and pain as the birthplace of brand love and reputation.
Recessions naturally increase the need for genuine utility, and we look towards brands who can help fulfil these needs. Those brands that can be there for people when times are tough, are more top of mind and mean more, when times are better.
Broadly speaking, this crisis can be divided into 3 phases:
Response:
We’ve been in rapid response mode for the last month and we’ll most likely continue in this state for a short while longer. People will continue to seek clarity of information, help and entertainment.
Recovery:
As we come to terms with the realities of COVID-19, we begin to find our feet again as a collective, marking another moment in human existence wherein the community becomes key to success.
Revival:
As we leave limitations behind and rebuild, it is at this time when we start going back to our lives prior to COVID-19, albeit markedly different.
Post-isolation we’ll see people experience a renewed appreciation for life as they make the most of what they’ve been separated from, while striving for a sense of normality.
The economic impact of COVID-19 is inevitable. Many small to medium-sized entities will face financial difficulty and bankruptcy. Brands will have to reconsider their core USP for the competitive landscape post recovery. While the timeline is hard to predict, companies in the position to do so need to take steps now to be ready to gain market share, enter new markets, and offer new products. Brands and marketeers must use this period to showcase their importance in the lives of consumers, who might now be hesitant in purchasing items deemed non-essential to them.