When the economy is bad and inflation spirals out of control, consumption tends to contract. The worst possible scenario for companies, right? Maybe not. increase sales In this era, it requires common sense to seize opportunities and business intelligence, but it is not impossible.
The phrase may sound like a cliché, but it’s still true: “While some cry, others sell handkerchiefs”. In times of economic crisis there is Companies that reinvent themselves and they manage to grow despite the pessimism surrounding the corporate sector. In this article, you will learn the successful examples and understand the secret of how to survive the crisis.
Three examples of companies that have mastered the crisis
Below we will meet three companies that have in some way identified themselves in the economic crisis: a opportunity to increase sales.
One of the most emblematic cases among the stories of companies that have grown despite growth recession it is the American company IBM, in the great crisis of 1930 caused by the collapse of the New York Stock Exchange.
Executive Thomas Watson invested 6% of the company’s revenue in the investigation center, which many people thought was crazy. But the strategy worked: The investment made IBM the only company able to process the data of 28 million citizens who benefited from the American Social Security Act passed in 1935.
The 2008 crisis also hit many companies, mainly in the United States. Lego’s solution to the low demand for toy consumption was look for new markets: The company grew 63% in revenue in 2009 after investing in Europe and Asia.
The crisis often requires companies to reinvent themselves and analyze opportunities that had previously been neglected. It’s time to look at your business and ask yourself, “Is that me? seize every opportunity?”. Reflect or do a market study to find out if there are options you haven’t thought of yet.
innovation. That was the keyword for Amazon to grow sales by 28% in 2009 while the competition struggled. The company understood the behavior of its consumers and adapted its Kindle 3 to the verified demand, expanding the functionalities and improving the device.
Adding value is the secret to increasing sales
Avoid the luxuries and live with the essentials: this is the most common logic when it comes to the topic consumer behavior during the crisis. If you think so, it’s time to review the concepts.
There is a segment of the consumer that is referred to as the “flamboyant economy,” which derives from the English phrase “save and splurge”. It’s worth it for these people cut basic expenses to hold small luxuries. An example: Buy a cheaper toilet paper to get cable TV.
Regardless of your field of activity, it is important to check the importance of the product You sell or the service you offer customers. In other words: added value. When the consumer perceives the importance of your business in their own routine, they are less likely to scrap your product from the budget.
In addition, you should be on the lookout for opportunities, for example, as the drop in consumption means a favorable change in habits for your business, provided you have the ability to perceive and act on time.