The current situation is an uncertain one and if what we’re seeing is anything to go by, chances are good that we will not be seeing a return to normality in the near future or ever again. Having virtually crippled the global economy by significantly reducing consumption and spending, the COVID-19 pandemic has exposed widespread cracks in the way business have been run.
Already under pressure from online stores and service providers, brick-and-mortar enterprises have been dealt another devastating blow by the global lockdown brought about by the COVID-19 pandemic.
The extremely contagious nature of COVID-19 has made social-distancing and self-quarantines mandatory in order to flatten the curve of infection as a means of preventing healthcare systems from becoming overwhelmed.
With a third of the global population under lockdown and government torn between continuing with mass quarantines and restarting their economies, analysts predict that we could be heading towards or are already in the midst of a global recession that could rival or even surpass that of the Great Depression in the 1920s.
This has sparked fears that millions could be left unemployed as businesses begin closing or downsizing their operations. Despite rapid advancements in COVID-19 vaccine research, viral mutations and the threat of reinfections mean that it may be impossible to develop an effective vaccine for the coronavirus.
Hence rather than waiting and hoping for the economy to return to normal, business owners need to take steps to prepare for the “new normal” i.e. operating in an environment where the risk of infection remains high.
1. A Focus on Contactless Transactions
According to the WHO, COVID-19 is spread primarily through the inhalation of respiratory droplets expelled by an infection person or by coming into contact with a contaminated surface.
Hence in a post-pandemic economy, businesses would need to ensure that contact between staff and customers are minimized as much as possible This could mean implementing cashless payment systems as can be seen in China that allows for patrons to pay for a purchase without having to physically hand over cash.
While a business may be forced to invest in additional payment infrastructure, the benefits of doing so are plentiful and can range from minimizing the risk of disease transmission to reducing criminal activity due to the absence of any cash on site.
However, concerns related to privacy and cybersecurity will likely be at the back of every consumer’s mind which in turn can affect their spending patterns.
2. The Shift Towards E-Commerce
In recent times, the e-commerce industry has rapidly grown into the behemoth that it is today whilst becoming an important part of most people’s lives. With just a few mouse clicks and an internet connection, one would be able to purchase just about anything online from the comfort of home.
E-commerce enables business to be conducted with essentially zero human contact – a trait especially crucial now that social distancing has become a regular part of life.
As countries attempt to break the cycle of infection, consumers have begun making e-commerce a regular part of their lives and the convenience offered may convince them to make it a regular part of their lives even after the lockdown has been lifted.
Hence, it would be fair to expect businesses to make the shift to go entirely online in order to cater to the needs of a new market. Online casino betting became an option for gambling companies and the future of physical casinos might be at risk.
Another example, in Malaysia where a widespread quarantine is in effect, most restaurant owners remain in business by turning to online food delivery services to help them stay afloat.
Even with the relaxation of quarantine in Malaysia, fears of continual infection has ensured that business is still booming for most online food delivery service providers.
3. Remote Working and Telecommuting
For years now, many businesses viewed remote working and telecommuting options as a privilege and not a requirement for their employees. Given how the COVID-19 pandemic has forced a widespread shelter in place, instead of being a privilege, remote working is now a necessity for most businesses.
Besides reducing contact between employees and eliminating the risk of infection, remote working options also allow businesses to significantly reduce their operating expenditures.
Instead of having to incur additional expenses from rent and other utilities, providing employees with the option to work from home will help to free up much needed cash to keep the business running.
While there have been arguments against remote working from some quarters, the benefits are undeniable and there are plenty of companies that thrive under remote working arrangements.
Hence it is highly likely that we will continue to see the implementation of remote working arrangements in one way or another.
In order to survive in a cutthroat world with an unprecedented economic crash looming on the horizon, businesses will have to adapt and completely reevaluate the way in which they operate. Only by doing so will they be able to survive the oncoming onslaught.
