The new world calls for clarity between business leaders and their consumers in terms of providing a defined prospect for their brand engagement and strategies, especially during times of uncertainty. A business leader should have a basic understanding that a crisis is an economic opportunity that seeks to solve a problem and generate a return on investment.
The 2019-2020 year is known as the era of “deglobalization,” a term used to define the evolution of a fragmented world because of the pandemic, nations withdrawing more than being willing to collaborate, difficulty in participating and facilitating mutual relationships due to trade restrictions, and restriction of the supply chain in the marketplace as a result of new trade rules leading to the recessive economy.
This trajectory has opened doors to facilitate technology-improvised platforms in many ways such as communication, transportation and other basic factors, but the downsides are that there is an increased level of geo-regional tensions and countries have become more unstable in their economic growth than ever before, leading to price hikes and inflation.
A Growth Mindset For Trying Times
Having a growth leadership mindset during a time of economic uncertainty such as this is indispensable. Leaders around the world and in different marketplaces can set the pace for the new season, but to achieve this, there are three levels of thematic investments into personal performance to thrive in the next seasons. These investments are as follows.
1. Executive Intelligence.
Leaders of various levels need to develop more critical thinking skills before taking action. It is important to engage and interrogate the market dynamics properly by defining what and where their value should be pitched.
2. Discovery-Driven Planning.
The organization, corporate body or institution that governs what, where and when the product gets to the consumer should be driven by the interest of the consumers at the time. This is why, in my opinion, political correctness, business correctness and social correctness are the current narratives today.
3. Cluster Market Value.
We are in the era of collaboration and regional-based economics, which means that for you to make the most of any given initiative or commodity, you have to think of different strategies that offer your value to a cluster—or large, heterogeneous groups of consumers—rather than an individual.
In the context of inflation, the rate refers to the pace at which prices increase or decrease over some time. However, it is important to note that a fall in the rate does not necessarily mean that the price of a commodity has dropped; instead, it simply indicates that the pace at which the price of a commodity increases has slowed down.
A theoretical example is the price of a product in the central market space. When there is a drop in the inflation rate, the product price does not change drastically. You might have gotten the product at $2 last week and still get it at the same price this week. In contrast to this, when there is a hike in the inflation rate, the same product purchased for $2 this week may increase to as high as $5 in the next two days.
Predictions For The Next Wave
Inflation hits stakeholders through an increased cost-of-living crisis, and the penetration points include food, transport, health, education, imports and household utilities. Understanding these core areas can help significantly as the world economy goes through the next wave. This can birth new creative ways through which a business leader can gain traction and increase profitability. With that in mind, here are outlooks for the next season.
1. Higher risk as monetary challenges continue in the next wave, relating to foreign and local exchange rates and other interest rate factors.
2. Inflation is likely to worsen and increase the cost-of-living crisis due to structural imbalances and a lack of policy reforms to combat the hike in inflation.
3. Consumers are demanding new propositions. They expect the same level of satisfaction at a cheaper price or they need a higher level of satisfaction at the same price; either way, a business organization cannot afford to overly increase the price of their commodity consistently, otherwise they might fizzle out.
To remain relevant and thrive as a business leader or organization in the times and seasons we are about to experience in the next wave, propositions must be geared toward the evolving marketplace in the post-pandemic era. A few tips:
1. Think of affordable premiums as a business organization.
2. Deepen your value proposition more than increase prices, which may not be sustainable in the long run.
3. Push for strategic revenue, engaging and leveraging social narratives and commitments.
4. Keep in mind that consumers are willing to buy cheaper brands or shop at lesser volumes.
In conclusion, business leaders should rethink their values, identify who appreciates their value more and where, and deepen energy in those identified areas. This can help business owners realize that their target is not just the consumers who seem to have the money but also the consumers who inhabit the cluster purchasing power market.