Post Covid Services Sector in the Digital Era
According to popular belief, GDP of a nation is the yardstick of the growth of its economy. Economy of the nation is the health and well-being of the country and symbolises the modulus of stress bearing capacity or the time it can afford standing in the hangar. For the tax-paying population, the government needs to boost household consumption expenditure to boost demand, for which tax provisions that incentivize savings may need to be tweaked. Among corporates, the small and medium enterprises segment (SME) would be the hardest hit.
This sector is also important from the perspective of job creation and retention of existing jobs in this period. In this text, a sectoral comparative analysis of the service economy in the post Covid19 era is being done to better understand and put into use the practices and lessons learnt in line with changing para dynamics of the digital marketing and social media.
IT has been the backbone of Indian economy for the past 2 decades and is now crucial to it more than ever. The IHS Market India Services Business Activity Index stood at 5.4 in April, an extreme decline from 49.3 in March, and indicative of the most severe contraction in services output since records began in December 2005.. The SEO, analytics, social media marketing and advertising will have a huge impact in the post Covid era in terms of market sizing and capturing, CRM and the day-to-day purchase trends.
India is currently the world’s second-largest telecommunications market with a subscriber base of 1.20 billion and has registered strong growth in the past decade and a half. It can be classified into Handset & OEMs and telecom services. Handsets & OEMs have faced great impact due to global supply chain disruptions and suspension of manufacturing facilities. In telecom services, impact has been less though subscriber additions have been impacted Jio even landed the highest FDI deal in the Indian tech sector with Facebook. Eventually, comprehensive digitalization will be an absolute necessity for the vitalization of the Indian economy in the post corona era. The recent retraction from Chinese products have impacted the handset market channels as 65% of this market was captured by Chinese manufacturing mobile companies. This leaves a vacuum for the digital guru and calls for an empowered ‘carpe diem-ing’ situation by Indian companies.
The COVID-19 pandemic has thrown a spanner in the works of every single organization. Even as the media and entertainment industry comes to terms with this ‘new normal’, the digital over the top (OTT) industry seems to have got a thrust as digital viewership keeps on increasing week on week. A lot of advertising is moving from electronic to digital in COVID times. New OTT platforms are sprouting up with lucrative packages and an increased day-on thrust for internet access over an exponentially growing number of devices. This phenomenon has transgressed borders as Netflix, Amazon have paved the way for causing tie-ups of new entrants with existing local players, viz. Disney-Hotstar deal. Besides, many other utility contents have erupted anew landmass in terms of OTT content. Education has seen a complete overhaul in the past 3 months. Site speed is set to have a huge role as faster websites offer better SEO and hence better conversion rates which in turn plummets the cost per click.
The MSMEs provide employment to more than 114 million people and contribute about
30-35% of the GDP. Micro enterprises specifically in the services sector are considerably impacted. As per the reports by McKinsey, the estimates suggest a GDP growth of 5 percent in the best-case scenario and a drop close to minus 1 percent in
the worst-case scenario.
An economic stimulus namely the ‘Atmanirbhar Bharat’ and appropriate changes in working conditions of labour intensive activities might give a push to the MSMEs at this time. The way forward for such MSMEs is to promote their social branding.
As a conclusionary remark, a few bullet notes on the tech world marketing bloom…
User centric approach is now the way forward. Use of behaviour analysis with the use of
AI/ML or simply a chatbot can change the outlook of an SM platform page. The marketing guru will want to create not just the right product for the tentative customer, but also assist him who is working from home for most part of the day and is not seeing any friends through the site or the device she/he is using. SM marketing tools make a heck of a job easier to compile, post content, track and dominate the social media. Optimum usage of Google Adsense, Analytics, SEO and other marketing and connectivity tools will take the business cover the last lap to spread the word about the brand.