Post-COVID-19 economic model, the time for transformation?
The business model of companies is about to change, for many industries. The COVID-19 pandemic has been impacting the operation of local businesses and businesses since 2020. The first to evolve were professional events. Indeed, during the year, no gatherings, especially in closed places. The events are then digitalized, and are held in the form of webinars. Webinars that answer questions from business leaders, for all sectors of activity. An update on state aid, strategic advice, feedback… So many tips to better address the aftermath of the pandemic.
Changing its business model, adapting to new needs
Faced with the closure of shops, or the change in purchasing behaviour, companies must adapt… By changing their business model. It is no longer a choice, but a matter of survival. In France, the bankruptcy rate of companies following COVID-19 could reach up to 15 to 20% in the most affected sectors. We think in particular of culture, tourism and catering… As well as all the sectors that depend on it, such as laundry for restaurants.
Restaurants are among the first to adapt. Closed in March 2020 and reopened for the summer, they have been closed since the end of October 2020. Their recovery is not expected until the end of January 2021, if conditions are optimal. To continue working, the restaurateurs evolve, and start to sell takeaways, or in delivery. For example, establishments such as Philippe ETCHEBEST’sFourth Wall, or Bordeaux,offer their take-home card. A new temporary economic model, which allows the accumulated deficit to be partially depreciated.
In the run-up to Christmas, not all local shops have stars in their eyes. After two past containments closed, and a sharp increase in purchases via platforms like Amazon… It is difficult to get a positive result for the year. For businesses, therefore, the evolution of their economic model was essential to pass the course. A cape marked by digital. Online sales and the consolidation of your digital identity is essential, at a time when online shopping is becoming a norm.
A different strategy, rethinking its business to get back on track
Admittedly, this is a new strategy to be put in place. But it allows us to continue to sell our products, especially to more distant customers. No more local radiation, the business model including digital is the ideal solution to keep an activity. As well as setting up the click and collect,to buy a product online… Then picked up at the store, to avoid the crowds.
Other companies are also expanding their business to other targets. For example, some clothing professionals produce fabric masks. Masks for both individuals and professionals. The wider the target, the more it is possible to reach a new clientele.
Faced with the aid proposed by the Government and the Regions, companies want to look further afield. See the light at the end of the tunnel. However, current strategies, economic models are only possible on a day-to-day basis. Faced with constant changes in the health situation, it is difficult to build a new long-term strategy. Every industry, every business in the country, clings to government decisions. The application of strict health measures and the use of partial unemployment are obstacles that must be overcome.