What Can We Learn from Brands in China Thriving During Covid-19?

Businesses around the world are struggling due to Covid-19, and brands have responded to this crisis in various ways. From the outbreak to the recovery phase, China has always been a few weeks ahead. Here it's what we've learned from brands in China, for you to use as a reference for your business.

In times of global emergencies, people seek possible solutions from history books. For the Covid-19 virus, some hoped it's similar to SARS and slow down during the hot summer. For the economic crisis, many have been comparing it with 2008 and the Great Depression.

However, I'm afraid the challenge we're facing today is bigger than in 2008, 2003, or even in the 1930s.

For China, the outbreak started in January and calmed down already in March. In March and April, many regions and businesses in China were already trying hard to get back on the recovery track.

With the "time difference" and information gap, it's worth looking at how brands in China have tried and recovered. I took a look into Chinese businesses to see how they have managed to get back and to run. I divided the crisis into 4 stages: outbreak, containment, recovery, and the new normal.

1. Outbreak

China was in a full outbreak in January. Suddenly, people were drowning in an overload of information, and everything was about the virus and public health. People were panicking without solid preparations, both physically and mentally.

Brands fast reacting to donate, showing the corporate responsibility.

For companies, during the outbreak stage, the rule No.1 is to survive. Make the right arrangements on the cash flow and how to manage resources with halted business. Right after, businesses need to be fast to provide responses for clients and consumers, be supportive and informative, and at the same time, be sensitive to monitor the whole situation.

2. Containment

Most parts of the world have passed the Outbreak stage (in my definition) already, we understand more about the crisis and are entering now in the next phase: Containment.

Many businesses are still closed, employees laid-off or furloughed, and working from home is the norm. The containment stage may last from weeks to months, depending on the virus situation. 

To stay alive in these extraordinary times,  brands need to be flexible and find innovative ways to stay connected to their clients. Since many are still spending most of their time inside, it is essential to focus on online media and digital solutions more than ever.

Here in China, I've seen a few shifts to digital: 

Fliggy virtual traveling livestream

• Gyms are turning into livestream training sessions

• Movies are released on short video platform (e.g. Douyin)

• OTAs and the travel industry are promoting the destinations even before people can even travel

• Traditional retailing is seeking alternative solutions for the time being, even for real estate sales. 

3. Recovery

China has been in the Recovery stage for weeks already. Businesses are reopening, and all players, including the government, are encouraging consumers to buy. 

This is the best, most important, and most competitive time for businesses to boost sales and do everything possible to secure the previously lost cash flow.

In China, I've witnessed innovative while essential actions in sales and marketing, just some examples here: 

Double Five Shopping Festival in Shanghai

• The huge Double Five (May 5th) Shopping Festival in Shanghai city pulled in US$2.2 billion of sales in the first 24 hours, showing that consumers are ready to spend again.

• The Chairman of China’s largest OTA Ctrip Group, Mr. Liang Jianzhang, was cosplaying during several WeChat mini-program live streaming aiming for maximum sales of travel products. C-level employees must be ready to act like never before.

• A five-star hotel was offering a 365-day voucher for three-meal a day, desperately wishing to earn back more cash… sales and marketing tactics are booming more than ever at this stage. 

Is there something entirely out of the box your company could do in sales and marketing that has never done before?

4. New Normal

This is the great unknown.

Everything is uncertain except that the world is never going to be the same. Companies need to face it and embrace it. 

From what we have learned in the past, I can only suggest you hold on and prepare several scenarios alternatives, with possible solutions for your business.

And embrace innovations and digitalization as much as possible. 

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