Where are the gems in the recession?
Posted on 06. Jun, 2009 by Franz in Cultures
by Franz Narcis – elioe.com/franz
The year 2009 got off in a bad start – The economy loomed at us and luck didn’t seem to be on the side of new, small businesses. Tons of outlooks, forecasts and beliefs were communicated between parties, from global leaders to the average person like you and me. Much of my time spent on the web was to seek answers: Answers that I may not find, misled to and worse, confused between the pendulum swing to expert opinion and inexperienced blab.
We as advertisers and marketers spend all night long thinking of a way to expand our reach, while business-centric laymen such as investors receive massive emotional eruptions as they gamble on every little decision or consensus made through their night and day. Funny – Web search is commonly thought of to be a recession-proof industry, so does education; but these assumptions made by experts in their own field slapped their masters in the face with harsh realities during the economy outbreak.
The Stormy Economic Outburst
I remember sifting through the newspaper with my morning coffee on the 15th day of December 2008, panning through page after page looking for interesting submissions – Whether they are ads or political news, I cannot get enough of it. The newspaper was thin, normal ad-space was empty, first few pages flooding with combination of related articles and interesting pictures but not many ad messages. First inaccurate sign of consolidation, so to speak. However, I needed more proof.
My office is situated in Mid Valley, Kuala Lumpur. Walking into Mid Valley’s shopping center and Mid Valley Gardens is almost a 2 minute walk. There were signs of reduced commercial activities, shows and events. It all seem quieter than before. Is it true that we in Malaysia, are as economically challenged as the US, UK or Australia? Look at our neighbour, Singapore. Some say they were literally begging for mercy. In Hong Kong, things weren’t going so well. Approximately 50,000 jobs were lost in Malaysia according to a reliable source.
Are all these press jargons eating me up, or am I just looking at one perspective — The press perspective? The economy in Malaysia may see gloomy, people may be much more wary when spending, businesses may be slicing their annual marketing and operational budget by half, mortgage volumes may drastically increase, BLR rates may drop, loan approval rates must be horrendously under-geared. Are these all the proof I need?
Definitely not. Little did I realize how much influence the press has on me, what more the general community. “Those little bastards,” I whispered.
If it’s not for the Web, I’ll turn donkey today and die stupid tomorrow. I was lured into an unnecessary hype and panic I was never ready for and, thought of. First off, professionals. Thanks to the amount of strain placed on trusted publishing brands today, ‘experts’ were suddenly throwing insulting comments at each other discreetly and bursting bailout plans without thinking of what implications those said might bring. First off, it was greed and high risk appetite that led us into this massive outbreak. Cleverly camouflaging, it was called economic miscalculations. Bah!
And to top the panic off with some zest and a little twist of heaven, mediocre professionals turn on the loudspeaker, repeated after these trusted sources and there you go – “Darurat” (Emergency).
An Enhanced Focus
Back to work. Things weren’t going well in my company, too. Not to say we’re affected heavily in all manners, but these public threats hurdled by trusted publishers, press and icons seemed to work almost too well. Every ounce and penny were calculated. Security increased. Both sides of this war parted ways to lick their wound. Some who were less or uninjured licked their wound as if they have one. So where does this bring us to? Enhanced focus, in a perspective. Let’s point out some positive outcomes:
- The Humbling Effect
Licking your wounds won’t completely cure your sore. The humbling effect has brought many back to their drawing board; and I can safely say there are many who’ve left their comfort zone in order to pursue a sustainable continuation of life: Survival. Marketers who left web analytics got back there – Those who were new, almost never heard of their management talking about it. Instead of RM100,000 on Pay per Click (PPC) with 2.2% conversion rate, it’s now planned RM20,000 on PPC and RM30,000 on miscellaneous advertising. - Accelerated Restructuring Process
The 2-week cure is now condensed to 5 days. The marketing plan which was left to attend to the week after is now revised and compared. The PN16 company quickly shuts their door and walk away quietly. - Promotions, Offers, Discounts; more more more
The RM10 McDonald’s breakfast is now RM6++, the 800% profit margin shrinks to a devastating 200%, property taxes and BLR rates dropped, the once out-of-the-question customer bargain is relooked and the angry customer service is now your new cute little wife. Good cash flow in a company is as important as blood traveling in a body. - Increased outsourcing opportunities
For some companies in certain industries, outsourcing could be an answer to their high operational costs. Small industries and enterprises jump in this way, make their profit and grow faster. - More bargain power
Some companies are desperate – Some face serious financial constrains (e.g. cash flow). Many are desperate for business, so do financially healthy companies who’ve been waiting for this moment for years. Now artwork + ads can go as cheaper. - Exponential business growth for certain industries
Insurance and debt collection agencies for example. Those God-forsaken one year old debt needs immediate clearance, and people want protection. Prudential recorded high sales volume in Malaysia during the economic downturn.
