The novel Coronavirus has affected markets worldwide. The Chinese market, which is considered one of the biggest markets in the world, is no exception. With global markets coming down to a halt, the future of South Asian startups is uncertain. However, market trends and experts have revealed that 2020 could prove to be a great time for startups to thrive.
With China being the origin of Coronavirus, 2019, and 2020 have been the toughest years for South Asian markets. It brought even the most established businesses down to their knees. Chinese government fought hard to contain the virus. However, they couldn’t stop it from spreading to the wider world. The uncertain economic scenario kept venture capitalists from investing in new projects and startups.
Why is 2020 a good time for South Asian startups to thrive?
The global market is in shock. Even then, experts believe it is the best time to be a startup in South Asia. The reason is everyone has a lot of free time on their hands during the quarantine stage. It is easier to find good talent in times like this. The competition in the market is low. It is the best time for those who wish to set themselves apart from the rest to set foot in the market. The majority of the people won’t have the confidence to come out in the most sensitive times like this. According to Chinese experts, we are living through the toughest of times. Companies are laying-off their employees and raising money is more difficult than ever before. This makes it the right time to bring one’s talent to use and put the best efforts to make your startup survive.
With a lot of time at hand, startups can experiment with different ideas. According to the experts, the startups who survive this tough environment will create the leaders of the next generation.
How Coronavirus pandemic changed South Asian consumers’ behavior?
It won’t be wrong to call the covid-19 pandemic one of the most devastating black swan events South Asia has encountered. However, it is not the first one of its nature. Similar to the previous crisis South Asia has experienced, the Coronavirus pandemic is going to leave a long-lasting impact on consumer behavior. Consumers have started to adapt to the latest digital economic landscape.
The outbreak of the SARS virus introduced the world to e-commerce. Just like the coronavirus, SARS also caused an inevitable financial crisis. This crisis caused the shared economy and service marketplaces to spur. The digital economic revolution started in the US and took over the entire world. Similarly, the MERS epidemic laid the foundation of e-commerce in South Korea.
Now that Covid-19 has taken over the world, more consumers are moving online. In-store shopping is no longer possible because stores all across the world have been on lockdown. This is a major challenge that established companies are facing. Most of their sales were in-store. This has provided startups the opportunity to grow.
How a change in consumer behavior is favorable for startups?
With a global pandemic gradually taking over the world, startups have the opportunity to set up and grow their business online. They don’t need to invest in physical stores. The global market is shifting online. Setting up and running a business is easier than ever. All you need is an internet connection to go live with your business.
With the development of digital ecosystems, various new consumer goods companies are emerging. These companies are partnering up with delivery services and online market places, benefiting all parties involved. Startups have plenty of time to experiment. They have ample time to adapt to market conditions and prepare for the future. Entrepreneurs are coming up with thoughtful agile strategies that ensure their success today and post-Covid19.
For the past three years, exponential growth in South Asian digital consumer behavior has been observed. To completely adapt to the new normal, it is important to understand what has changed and what has remained the same. This is going to help startups to understand their future better.
The Coronavirus pandemic has served as a catalyst that has initiated important changes in the global market. It has intensified the in-store to online switch. Three factors have been immensely affected by the change in consumer behavior. These factors include:
-
Online purchasing
-
Digital consumption
-
Average online basket size
With online marketplaces growing at record-setting rates, large marketplaces to traditional businesses and startups need to change their approach to running a business. By adapting to a more digital economic ecosystem, businesses of every scale can thrive.
How startups can cater to changing consumer needs?
The earlier a business adapts to the changing business landscape, the better it is. With more businesses going online, the competition in the market is expected to rise. In times like this, a startup needs to understand its audience’s needs to thrive. So let’s learn what startups can do to attract more customers and build positive long-term relationships with them.
-
Make online shopping easier:
The majority of the customers who used to shop in-store will now be shopping online. Most of them will be using the internet to shop for the first time. The easier the shopping experience is the higher will be the rate of conversion. Therefore, to prevent shopping cart abandonment, a startup needs to choose the latest technology with intuitive features to make online shopping a breeze for its customers.
The introduction of AI technology can prove to be a game-changer for new businesses. Chatbot technology can respond to the concerns online shoppers have in a matter of seconds.
-
Motivate them to shop with coupons:
With thousands of people losing their jobs every day, coupon marketing is the best way to build positive consumer relationships for startups. Coupons and promo codes motivate consumers to purchase the item they couldn’t afford at its full price. Moreover, unlike paper coupons, digital coupons are easily redeemable. Dedicated coupon sites such as ClothingRIC can make this job a whole lot easier.
You can also achieve various goals by offering your customers online coupons. For example, you can ask them to share their reviews on online platforms or subscribe to your newsletter.
-
Be more responsible with your marketing strategy:
We are going through a global pandemic. People have lost their jobs, loved ones, and even their homes. Consumers are more emotionally vulnerable than ever before. Being insensitive to your marketing strategy can get you into hot water. Therefore, it is important to be as sensitive as you can with your marketing strategy. Startups need to understand what their customers are going through before designing their marketing campaigns.
Wrapping up!
Coronavirus pandemic has caused both businesses and consumers to change. This has provided startups a great opportunity to thrive. All small business needs is an internet connection to go live. Since in-store shopping is no longer an option, startups don’t need to invest in a physical store. By creating an effective marketing strategy, they can reach out to their target audience online.
To make that happen, startups need to understand the needs of their consumers. They need to simplify the online shopping experience for them. They also need to offer discount incentives such as coupons and promo codes to their target audience. Moreover, they need to adapt their business strategies to the current global situation. This way they can thrive online.
