The disruptions to health and food systems caused by the pandemic, and especially the global economic recession it has triggered, will probably continue at least until the end of 2022,
Back to the industry level, The offline retail channel of maternal and baby products may decline by about 30% this year. Many stores were on the verge of losing money or being basically flat. Affected by the epidemic, the loss of the whole industry has become an established fact. Why 30%? First, the impact of a downturn in purchasing power, combined with lower expectations of future income, it may be reduced by 5-8%. Secondly, the online business grab offline marketing share, Traditional offline channel may reduce 10-15%; Thirdly, the birth rate continues to fall, and it is still in the same range of 6-10%.
There is no doubt that Covid-19 has irreversible impact on all industries , Facing to the depressed environment, Maternal and baby brand companies had better think more about how to break the barrier. Now there are many brands that focus on industries and build core products. Meanwhile, they also pay more attention to the promotion of social media, such as Tiktok, Ins ,Facebook and so on. With the help of some Internet celebrity to improve brand awareness. No matter how to operate in market channel, the core point is to build the competitiveness of products, constantly improve the quality of products, so as to obtain more trust from end users.
As uncertainty swirls around how long the COVID-19 crisis is going to last, many businesses are temporarily shuttered. The definition of “temporarily” is yet another unknown. Without knowing how long the crisis will continue, it’s critical to get a handle on your company’s funding needs. In the worst-case scenario, the economy doesn’t improve until the fourth quarter, causing the GDP to contract 6 percent. That would be the sharpest year-over-year decline since 1946. This forecast, like the other two, assumes the virus doesn’t re-emerge in the fall.
so It’s important that entrepreneurs understand that profit is very different from cash flow:
• Every business model has a distinct profit and cash flow signature.
• In a crisis, you must have a keen understanding of when profit turns to cash.
• Expect a disruption of normal terms (expect to get paid slower, but you may have to pay faster)
Post time: Oct-18-2022