New Normal” is a term in business and economics that refers to financial conditions after the financial crisis of 2007-2008 and the aftermath of the 2008–2012 global recession. The term has been used in a variety of other contexts to imply that something which was previously abnormal has become commonplace.
3 “New Normal” things of the business environment after Covid-19
After the pandemic, life will not be the same as before: Consumers will spend more sparingly, a new supply chain will emerge, and the existence of small businesses will become more fragile than ever.
Save more, spend less
This pandemic is the strongest demonstration of the importance of a “disaster preparedness fund”. Investors believe that consumers will increase savings, as for the past two months they had not bought any non-essential items.
The same thing had happened in the past: The rate of savings had increased by 2% per year during the 2008-2009 financial crisis. The experts believe that if savings become a “New Normal” thing, consumption will be reduced by $500 billion by the end of 2021.
A recent survey of McKinsey found that Americans will continue to spend carefully during the “New Normal” period, and it’s unclear how long this period will last. Meanwhile, 36% of survey participants believe that the economy will recover soon this summer.
New Supply Chain
The pandemic has given us a big lesson: We are too dependent on China.
The diversification strategies of the supply chain will bring advantages to big companies, helping them become more agile and flexible, depending on its products.
The supply chain transition also gets impacted from the government. Japan is proposing to grant multinational corporations $ 2 billion to repatriate and $ 200 million to leave China.
Small businesses become more fragile
More than anyone else, small businesses suffers from the impact most when the social distancing policy was applied. This is the sector that are easy to be vulnerable of the economy, and it is these businesses that provide the services such as restaurants, entertainment, hotels and event hosting.
Establish “New Normal” status at ITL after COVID-19 pandemic
At the Town Hall E-Meeting of ITL Corporation, Mr. Ben Anh – CEO of ITL Corporation said: “The crisis will eliminate the enterprises that are weak and lack of flexibility. The enterprises with lots of activities, flexibility and adaptability to the situation will better prepare for the post-crisis”.
At ITL, we are taking precautious actions but do not panic about the situation, the Board of Directors has implemented the activities to be flexible, adaptable to the market challenges for the business continuity, aiming to serve our customers better.
In addition, ITL also has taken some steps to prepare for the post-crisis recovery and development. A “New Normal” status will be established: Customer’s demands will be changed, higher demands; Consumers will be interested in other features and benefits in products that the business offers; Competitors will have the ways to compete differently; The supply chain will not be the same as before,…
All BUs and ITL employees ready to adapt to the “New Normal” status after this crisis by improving our operation activities; Completing the operation process; Flexibly find solutions and add values to meet the increasing customers’ demands,… and join hands to create a different ITL after the crisis.