Page 17 - IMDR EBOOK 20 OCT 2020

"Pandemic and Beyond: Naviga ng the New Normal" E - Book Year 2020

The top 3 challenges appear to be difculty in staying connected with customers,
reduction in corporate spending and decrease in productivity due to remote work. It is
evident that ‘Work from Home’ is not suited to the manufacturing sector and some
service sectors, particularly Hospitality and Airlines. Employee layoffs and issues with
employee morale are the outcome of the overall climate of uncertainty.
4.3 Impact on Sales

72% respondents reported reduction in sales while 20% respondents reported zero to
negligible sale.

92% respondents have reported a negative impact on sales. Respondents have reported
between 40-95% reduction in sales. Analysis of qualitative data revealed the following
reasons for drop in sales as given in Table 7:

Table 7: Reasons for drop in sales

Reasons for drop in sales:
1. Government restrictions on travel and social distancing: this was
particularly true for airlines, restaurants, entertainment and leisure
businesses. As one respondent puts it, “Entertainment and
Communication are secondary to survival of organisations, so spending in
our Industry has gone to nil...Social distancing does permit events to be
organized.. (but)...Covid has struck at the very basic existence of our
craft/Industry”.
2. Operations have shut therefore businesses are not able to honour
production and delivery commitments.
3. Customers have put projects on hold
4. Budget cuts by customers

5. Restrictions on sale of products: such as cigarettes. This is what one
respondent had to say, “almost zero consumer contact considering laws for
cigarette industry, Being a non-essential commodity stocks in transit are
very high, Overcharging at various channels..”.
6. In banking services there is a substantial reduction in fee related
businesses; no new CASA and opportunities for cross-selling

However, the cloud does have a silver lining. A respondent from the insurance sector
notes that while overall business has reduced, health insurance business has gone up.
Market research rms are undertaking more research projects related to COVID-19. A
company with a strong presence in eld sales is shifting tracks to online and tele-calling.
It appears that companies are trying to adapt themselves to the new realities.

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