The business future of the world seen from China

China was the first to be attacked by Covid-19. Almost two months ago, businesses there stalled, shops and amusement parks closed, people had to wear masks in public places, and a social space was held. And now, the world’s second largest economy is gradually reopening.

Meanwhile, the rest of the world is preparing to do the same. Companies with experience in initially responding to a pandemic in China now plan to roll out their operational strategies in their other regions of the world.

Business response in China has been the focus of Wall Street analysts in recent months. Global brands like Nike, Starbucks and Disney have shared the crisis experience in China for investors and teams in the United States.

Nike recently said that it “has seen another aspect of the crisis in China” and has learned best practices that can be applied to other markets. This week, when it reopened the factory in Wolfsburg, Germany, Volkswagen drew on the experience of re-operating 32 of 33 factories in China.

The new strategies companies are introducing won’t be able to come back to life completely like before Covid-19. According to economic leaders and experts, the crisis can permanently change the way we work, buy and manage businesses.

“This is a new normal,” said Alain Benichou, CEO of IBM China. “There is a lot that needs to wake us up now,” said the expert, saying that what is happening in China is the future that everyone will see about how business will change. translate

The way we work

For Despina Katsikakis, the workplace is generally very different. She is the director of business performance for Cushman & Wakefield, and advises companies around the world on how to get back to work after the epidemic.

In China, the company has advised more than a million workers to return to the office. The crisis said the crisis propelled the future of the work environment a decade.

The world’s business and commercial future is seen from China

The company is capitalizing on that change, starting with a visual guide for its customers about the “Six Feet Office” concept. The test model will take place at Cushman & Wakefield’s Amsterdam office, after drawing on experiences from China and feedback from workers and customers.

In this so-called “new normal” model, the desk is 6 feet (1.8 m) away; The recommended contact distance is recommended to prevent the spread of the virus. “This is a basic prototype to inspire people to think of solutions, how to promote social space, how to reorganize workplaces appropriately and encourage behavior change,” Ms. Despina Katsikakis said.

Also in the “Six-Foot Office” model, employees are instructed to walk only clockwise throughout the office, avoiding moving between them to limit the possibility of spreading the virus. Katsikakis said this guide is based on consultations with health professionals.

According to the expert, one of the biggest benefits the company has reaped from China is “guaranteeing the belief that we will return to a healthy work environment.”

For years to come, imagine sensors that will replace most of the shared surfaces we touch. For example, instead of swiping your card to enter, you can look at the camera for facial recognition or scan the QR with your phone.

The companies also plan to invest more in office air purification systems to reduce pollutants. Some may even attach protective mica boards to the water when they sneeze at their desks, Katsikakis said. To avoid contaminating surfaces, your company also recommends changing the surface coatings on your desk every day.

Since the announcement of the “Six Feet Office” prototype, the company has been inundated with questions every day, if not every hour. “We meet daily with our top clients to help discuss the implementation of these ideas and ways to be more creative with them,” he said.

Although this concept requires more space, it does not necessarily cost you more rent. With the trend of teleworking verified, Katsikakis said it meant that fewer people would use the same space than before the pandemic.

The way we communicate at work has also changed. The boom in demand for business software, like Microsoft Teams, is unprecedented, according to Jared Spataro, vice president of Microsoft 365. On Thursday, he said his messaging and video conferencing service had 75 million daily users, a 70% increase from the previous month.

“We have a time machine when countries like China and South Korea have returned to work and school, and the use of Microsoft Teams continues to grow,” said Spataro. CNN Business.

The way we buy

In a way, now is the perfect time for brands to welcome new customers and create lasting bonds, Deborah Weinswig, CEO of Coresight Research, a retail and technology research and research firm to know She said that when millions of people they sat inside, formed new habits and lifestyles.

“It usually takes 21 days to change a habit,” said Weinswig, “we are changing our shopping habits and some will remain permanent.” Nike is an example of adaptation to change customer habits. The company tried to boost online shopping before the outbreak, but Weinswig said the business had “really accelerated” in recent months.

The company reported strong earnings growth in March, thanks in part to the acceleration of online business in China. CEO John Donahoe told investors that online sales from the mainland increased more than 30% in the previous quarter. The number of regular weekly users of Nike apps increases by 80%.

Application “nail” plays a key role of success. During the season, Nike introduced an online platform for virtual practice clubs in China while encouraging people to work from home. Weinswig noted that this free app should appeal to users.

The company also launched more products online, including limited-edition sneakers like the Air Jordans. Speed ​​is also important. In a fiercely competitive market, Nike was the first brand to closely follow the trend of customers staying at home. “They adapt very early,” said Weinswig.

How we manage the supply chain

In recent months, “a critical shortage of raw materials and supplies, coupled with the absence of workers, has posed potential risks,” said John Knapp, director of the Boston Consulting Group. That forces companies to rethink the way logistics operates.

Pandemics can also force the restructuring of global supply chains. Overall, the consumer goods supply chain is “designed to be more effective in flexibility and resilience,” he said.

Last month, Japan announced plans to help companies move production home, Andrew Staples, global editorial director, Economist Corporate Network, of The Economist, said. “I think that will continue,” he said.

IBM said it saw a “significant” jump as many customers looked to their artificial intelligence-based supply chain management program to anticipate the next crisis. The pandemic is “a wake-up call” for many companies, said Benichou, CEO of IBM China.

IBM researchers said the outbreak also revealed cracks in the supply chain that most companies were not even aware of.

That is, 90% of Fortune 1000 companies have secondary suppliers in Wuhan, the central city of China where the disease started, but “many people have little or no interaction with them,” Jonathan Wright, an IBM director, said.

“The things we used to take for granted no longer exist,” said William Ma, director of Kerry Logistics (Hong Kong). He said that it is now easy to see interruptions in the supply chain in each segment of the products.

Mr. Ma noted that rebuilding the supply chain requires considerable capital and time, two things that most companies lack at the moment. “More important to them is cash growth. If you cannot sell, you cannot pay your suppliers, and the suppliers cannot pay their suppliers,” he said. We just want to get through this as soon as possible. “

Session An (according to CNN)