Diperbarui: 14 Agu 2020
On Sunday, 21st June 2020, we held our first Hebe Talks in collaboration with Shirvano Consulting to discuss the opportunities that COVID-19 might bring amidst the crisis.
COVID-19 pandemic has impacted many sectors in the industries which include, but not limited to, public sector, urban development, business, and youth lifestyles. Moreover, it has divided our society into three different segments; those who set aside, those who test, and those who pave the way.
Understanding the Environment
“Indonesian Economy in 2020 is affected significantly; with possibility of facing negative growth and worst scenario."
To understand the landscape where we are operating, it is of utmost importance to assess the Indonesian economy in this pandemic setting. According to Bank Indonesia, the growth of our economy will be less than 2.3% as of 2020 (1). On the greater degree, World Bank forecasted that the Indonesian economic growth will shrink by 3.5% if large-scale social restrictions (PSBB) last for 4 months (2). The Indonesian economy is dependent on Small and Medium Enterprises (UMKM)'s contribution as much as 60% in which their value chain is currently halted due to COVID-19.
Changes in Consumer Behaviour
On a side note, it is apparent that our society's behaviours and habits have immediately changed drastically within a very short amount of time. There are two factors that illustrate such an argument; first, some trends are predicted to stay until after the pandemic and will not return to the previous state, and second, the main priorities of the business are to strive and to improve their resilience to beat the crisis.
Turn Challenges into Opportunities
“How can young people and business take advantage of the benefits that the pandemic has brought during and after crisis?”
To answer the abovementioned question, it is important to consider the real changes done by the companies within multiple industries to survive this challenging situation. In F&B industry, the so-called concept known as a virtual environment as well as take-away and delivery is noticeable. For retail, it focuses predominantly on online customer experience. In transportation, delivery is becoming more prevalent. While for hospitality, 'pay in advance' policy is posed to preserve cash flow. Taking a real-life case study from Boga Group, its outlet has been shifted digitally into a cloud kitchen. While another example from UMKM entrepreneur like Mark the Barber has shown its branding strategy of the safety protocols during COVID-19, the extended line of services to hair cut delivery, and strategic direction to enter the E-Commerce market.
This is an Opportune Time
It is time for business to thrive as 3 to 4 people in Indonesia are experiencing decreases in their income and savings, but most of them are improving their spending. As the scopes where COVID-19 has unprecedented negative effects and positive transformation are not mutually exclusive within the industry, it is up to us as youth as well as business to take the lead in the direction we want to go.