Seven theses on the consequences of Corona for SMEs

For more than four months, the world has already been in a state of emergency due to the Corona pandemic. "Only those who digitize will survive this crisis. This is roughly how Visable CEO Peter F. Schmid's seven theses on the consequences of Corona for SMEs can be summarized.

1. consequences of Corona: digitalization in purchasing and sales is accelerated

The classic, well-known and proven marketing and sales tools were suddenly no longer available. The cancellation of numerous trade fairs and the delegation of sales staff to the home office brought sales to a standstill in many companies for a short time. Without the timely, targeted use of digital tools, a large number of SMEs in Europe would have to fear for their existence. To put it bluntly, this means that only those who digitize will survive this crisis. Especially in sales, new ways had to and still have to be found to reach purchasing without a personal visit. Whether sales pitches via video call or the use of a virtual trade fair stand - the possibilities are manifold and the demand for further training is high. For example, more than 350 interested people attended our webinar to learn how to use new digital sales solutions. This was a great success and a renewed confirmation for Visable as a digital partner for SMEs in Europe.

2. trade fair as a primary sales and marketing tool is no longer appropriate

Every fourth trade fair will no longer exist after the crisis. Even before the onset of the Corona pandemic, there was a discussion about the expediency of many trade shows worldwide. In the age of digitalization, it is neither appropriate nor ecologically and economically sensible to transport complex goods such as machines halfway around the world in order to exhibit them for one or two weeks at a leading trade show. The enormous amount of travel required by exhibitors and visitors and the use of financial and ecological resources are also out of all proportion to the benefits. The preservation of the trade show industry as an end in itself should be questioned for the time after Corona.

3. special need for personal exchange and knowledge transfer

For many, the annual trade show visits are also always an occasion for exchange within their own industry. Key notes, expert panels and master classes also serve to transfer knowledge and provide inspiration. The need for personal meetings, interpersonal exchange and networking will not have disappeared after Corona - on the contrary. Conferences and summits do without the usual pressure to generate as many leads or deals as possible. They offer real added value and will be in much greater demand.

4. spending on online marketing increases massively

The marketing budget freed up by the cancellation of trade shows will now be used by many companies for tools such as SEA, content marketing and social media. According to a survey by iBusiness, more than one in four companies (27 percent) want to rely more on virtual solutions. The advantages of online marketing are convincing even in times of crisis. Reach and content can be controlled in a targeted manner. Lead generation via platforms is simple and flexible.

5. the importance of digital sourcing in Europe is growing

Many companies were forced to completely rethink their procurement strategy as a result of Covid19 or had to rely on alternative sources of supply in the short term because they lost their established supply chains. There is also a renewed focus on local, national and suppliers from surrounding markets with shorter supply routes. The harsh shutdown in the Chinese market broke proven supply chains that were established over the last 20 years with the turn to Asia. They once convinced with flexibility, diversity and favorable conditions. However, the possibility of another global economic crisis was simply ignored by most. Through digital sourcing, purchasing secures its supply chains and can react quickly and flexibly to changes caused by crisis situations. Gone are also the days when procurement relied on only one, close supplier relationship. Especially after this crisis, no one will want to become so dependent.

6. Online platforms have never been more important for Europe's B2B market

A quick overview of all available providers, acquisitions of new customers locally to worldwide, measurability of budget usage and availability 365 days a year are just some of the advantages offered by platforms such as EUROPAGES and wlw. Visable saw a significant increase in traffic in the first few weeks after the nationwide lockdown. Traffic grew by an average of more than 25 percent on wlw and 22 percent on EUROPAGES year-on-year since the start of the Corona pandemic. At peak times, growth on both platforms was even over 50 percent compared to the same week last year. The potential for the digital B2B market remains enormous. Even before Corona, the market had been growing by an average of 13 percent annually since 2013. Forecasts show that this growth trend will not change.

7. purchasing takes the key role of the company

The consequences of Corona are having an impact on the status of purchasing: What before the Corona pandemic was considered more of a shadow growth of companies has now become one of the most important pillars of a company. Due to the failure of established supply chains and supply markets such as China, purchasing has become the focus of attention and ensures the survival of the company by reacting quickly and using digital tools. It has long since ceased to be just about purchasing goods. In the meantime, it is the digitalization know-how and the strategic negotiation skills that lead to long-term success.

Source and further information: www.visable.com