The only constant factor in trading is change. And the only way forward is to adapt.

Over the past few months, we've seen millions of companies show their ability to adapt to the unexpected and post strong sales numbers. However, 64% of global companies say they are still recovering from the negative effects of the pandemic.

Just when it seemed the worst consequences were over, the next global challenge arrived: Russia's invasion of Ukraine, and with it sanctions and other knock-on effects that fundamentally changed the world's logistical and trade networks. Fiscal instability has pushed inflation to the highest levels in the last 40 years and the economic climate is characterized by great uncertainty.

The challenges are many and, once again, flexibility and innovation have become factors that can determine which companies overcome the impending recession. Therefore, companies must review the following key areas to ensure their most immediate success:

Logistics
The effects of the supply chain crisis on businesses vary enormously, but brands need to recognize the vulnerability of their own logistics networks and prepare for uncertainty.

Single sourcing and storage may be worth reconsidering. Changes can be costly in the short term, but they can also result in logistics networks that are stronger and able to adapt to a turbulent landscape. You need to make sure that the business can detect outages as soon as they occur, or even sooner.

E-commerce may be growing at a slower rate than during the pandemic, but it continues to account for an increasing share of total retail sales around the world. By the end of 2023, one in five retail sales will be online.

Stores still need teams ready to help today's customers who are accustomed to using multiple channels and who often expect retailers to do the same. These expectations change the role of both the clerk and the store.

Economy
World trade reached a record $28.5 trillion in 2021, an increase of around 13% compared to pre-pandemic levels.

But trade growth slowed in 2022. And as the war in Ukraine contributed to higher oil and gasoline prices, the costs and time to transport small packages increased.

Fears of a recession are high, dampening investor sentiment. Something that, in turn, will be a challenge for the 73% of the brands that plan to resort to external investors this year.

For some brands, price increases have meant the introduction of new products at a higher price, rather than making existing products more expensive. Others are betting on long-term loyalty by freezing prices or introducing affordable product lines. Smart brands bet on their customers by investing in them now, hoping it will pay off in a future recovery.

Marketing
Unstable markets force consumers to try new brands. During the pandemic, three out of four consumers tried a new brand, a new product, or a new shopping method. But converting those leads is challenging: the already high cost of acquiring new customers increases while your return on ad spend (ROAS) decreases.

On the other hand, stricter data protection regulations force brands to rely less and less on third-party data to reach the people most likely to buy. For this reason, many brands resort instead to collaborations between non-competing brands to create products or experiences together that mutually exploit their target groups. This offers the opportunity for low cost mutual exposure.

Collaboration with influencers will also benefit brands. Lacking the ability to touch, feel, and try products in stores, consumers watched live streams of unboxings or product reviews to vicariously experience the products. Now, more than seven in ten companies expect online influencers to become even more important in the future.

Taken from: https://ecommerce-news.es/el-reto-de-atraer-a-nuevos-clientes-en-un-mercado-inestable/