Survival and Revival – Dutch Uncles

The Survival and Revival of Agritech

Anju Nambiar — Fri, 28 May 2021 03:35:04 +0000

It’s a great time for Agritech start-ups although the second wave of Covid-19 is raging on. In fact, the industry is suffering from minimal impact compared to other industries and there is high hope for quick revival from any and all business impact.

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Agritech as an industry is untouched by the pandemic for the simple reason being that food is a basic necessity for everyone, despite the circumstances.

Tips for survival of Agritech in the second wave of Covid-19

Be bold

Go forward with expansion plans despite the second wave of the pandemic. Since Agriculture companies come under the purview of essential commodities, chances are you will face limited hurdles and business impact.

Increase your international footprint

As a survival strategy, Agritech start-ups must focus on increasing their footprint. If domestic footprints are hard to achieve, it’s better to focus on growing your international footprint while India recovers from the second wave.

Identify opportunities in impoverished regions abroad

Farmers abroad, especially in impoverished geographical locales are no doubt faced with similar challenges like farmers back in India. Expand to these international geographies until the second wave abates in India. Thus, you can utilise this time successfully for equating your international footprints with your domestic footprint.

Target hyper-local consumers

Make a repository of direct local consumers and kirana shops in your vicinity. If your Agritech start-up is procuring fresh produce, target these customers. During lockdowns, people will be ready to purchase fresh, healthy produce. This is a good way to improvise and survive the pandemic.

Facilitate access through technology

The fact remains that the pandemic has had a significant impact even on Agritech supply chains. Crop harvests have taken a hit since stock sales have slowed down due to transportation restrictions. In this scenario, your Agri-tech start-up can facilitate access for sales and procurement through technology solutions.

Hydroponic Farming

Hydroponic farming is your key to surviving the pandemic as an agri-tech start-up since it’s a hot trend right now. The need for nutritious, homegrown, fresh, chemical free vegetables was felt right from the first wave of Covid-19. Invest in high-tech urban hydroponic systems. (For the uninitiated, Hydroponics is a soilless vertical farming method usually carried out on rooftops and indoor areas). Venture into Hydroponics since its driven by technologies like AI and Data Analytics which reduces cost of production and opens doors for quick scaling.

Innovations are the key to success in the second wave

The FMCG sector is bubbling with opportunities even in the midst of Covid. Come up with innovations to capitalise on these opportunities since innovations are the key to succeeding through the second wave.

Align food distribution strategy with lockdown consumption trends

Agritech as an industry is untouched by the pandemic for the simple reason being that food is a basic necessity for everyone, despite the circumstances. Tweak your food distribution strategy to align it with the lockdown consumption trends.

How Agritech can revive post Covid-19

Plan physical meetings during lockdown

Save in-person contacts to post the second wave. Plan your meetings during the lockdown period, so that you can revive quicker post covid. Plan out your meetings with producers, and farmers. Also, create a roadmap on your logistics. Once lockdowns lift, you can be on your road to recovery, undertake physical travel, meet farmers, and build supply chain links.

Build efficient and sustainable food systems

The aftermath of the second wave is no doubt an opportunity for Agri-tech start-ups to build an efficient and sustainable food system through technology solutions. There’s no better way to revive faster post Covid-19.

Capitalize on rural smartphone penetration

The smartphone penetration which has gone deep into the bowels of rural India combined with high digital adoption is a boon for Agritech start-ups. It will make revival much quicker because you can provide tech-based solutions to resolve the problems of the agricultural community. Since they are already very much digitally savvy, deploying these technology solutions won’t be a challenge.

Vaccination and Agritech in India

People-first industry responsible for vaccinations

Agritech is one unique industry which can achieve a lot in vaccinating people. The farming community makes up for a major chunk of the Indian population. During these trying times, you can take measures as a ‘people-first’ industry to make arrangements for stakeholders.

Organise covid response groups

For instance, you can organise Covid response groups and helplines for farmers. You can also tie up with healthcare providers to make services available for them in remote areas.

Arrange vaccination camps

You could also set up isolation centres, hospitals, and most importantly vaccination camps for stakeholders like farmers and suppliers.

Conclusion

The number of deals that were occurring on a yearly basis in the Agritech industry was tremendous up until 2019. The number of successful funding rounds have no doubt declined due to the first and second waves of Covid-19 in India.

However, the progress of the Industry is still positive compared to some of the other hard-hit sectors. It’s safe to say that Agritech has strong survival opportunities and will come out of the pandemic untouched.

In terms of revival strategies, start-ups that have suffered disruptions can bounce back by working around the restrictions through technology offerings and farmer focused solutions. The rate of technology adoption among the farming community has never been as high as it is now. Start-ups tapping into this need can expect to bag investments easily.

The post The Survival and Revival of Agritech appeared first on Dutch Uncles.

The Survival and Revival of Consumer Tech

Aakash Sharma — Thu, 27 May 2021 03:35:03 +0000

For over a year, the world has witnessed unparalleled challenges due to the COVID-19 pandemic. This once in a lifetime hardship has brought global leaders and business leaders together to combat the pandemic’s adversities and strategise to move towards normalcy. Despite the global challenges, we must survive in this turbulent wave and continue to fight for a successful recovery plan in the post-pandemic world.

To focus on a specific sector and driver of the Indian economy, let us look into the tips and methods for the Survival and Revival of the Consumer Tech Sector as vaccination drives against COVID-19 are in full swing across India.

Survival and Revival of Consumer Tech – Overcoming COVID-19 Challenges

As the vaccines are being administered on a pan-India level, the recent announcement by the government that allows companies to inoculate their employees and their immediate family is giving hopes for survival and revival to the business world. Health economists believe that India’s immunisation programme can contribute to economic recovery, as it is expected to improve working conditions for staff through health and vaccination programmes like workplace vaccination.

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In addition to the economic recovery driven by vaccines, the Indian consumer technology industry is also at the forefront of exciting change and expansion.

In consumer tech, the popularity of internet and networking technologies, the availability of the Internet of Things (IoT) and the benefits of cloud and analytics are becoming essential drivers for the industry’s survival, revival and subsequent growth. In a post-pandemic world, consumer technology companies will face significant challenges in reaching out to new-age consumers with hyper-personalised services across a multitude of media.

Tips for Survival and Revival of Consumer Tech Businesses in a Post-pandemic World

In the ‘new normal’ of the post-COVID era, consumer goods and technology companies must revive and secure their future by turning competition into an opportunity as well as introducing new business models.

Adapt to Changing Customer Preferences

As consumers globally respond differently to emergencies like the ongoing pandemic, their consumption patterns change significantly. Today, consumers are looking for safer, more reliable and more sustainable value products for environmentally friendly experiences, including the communities they live and work in. Your consumer tech business must cater to this emerging trend in a post-COVID world for revival.

Transform Your Supply Chain

Current events have drawn customers’ attention to constantly evolving products and their strategically added value. This potentially creates a significant competitive gap in the consumer goods market. To adapt to this change and fill the gap, widen your consumer tech resource bank and rely on more technology-driven sources rather than offline producers. This will incentivise the digitisation of the entire supply chain.

Rapidly Shift to E-Commerce

To do this, set up your e-commerce website or enter into a purchase agreement with an online marketplace to ensure that your products are available 24×7. The current crisis is forcing consumers to explore different sharing and consuming options. Accelerated changes in e-commerce and the transition to local commerce are the future of consumer tech.

It is also believed that e-commerce will bring many benefits to small and medium businesses. As the market expands, overcoming regional barriers will offer a playing field for SMEs to compete with more prominent players. Consumers generally benefit from healthy competition between MSMEs and corporate entities. The pandemic has opened the gates for e-commerce in the consumer goods segment, and striking a balance between demand and availability is fundamental for consumer tech businesses’ survival and revival.

Post-COVID Revival – A Focus on MSMEs

Many customer goods vendors engaged in supplying non-essential goods and services (such as electronics, clothing, etc.) do not have the sources to continue their fixed business expenses such as rentals, wages, EMIs, etc. As a small business in the consumer goods and technology segment, one way to support your small e-commerce platform is to get permits for non-essential products to be delivered while maintaining hygiene and social distance.

On the administrative end in the sector, reforming foreign investment rules, strengthening regulatory coherence and ensuring the sector’s proportional control can also go a long way in promoting the growth of smaller players in e-commerce and, therefore, in consumer tech.

Survival and Revival – A Vaccine Away

Many workers are engaged in the consumer goods and technology sector’s informal economy, including manufacturing and production, logistics and other parts of the process. Public vaccination will contribute to rejuvenating the economy of the industry.

Vaccination against COVID-19 is expected to wipe out the fear and instil confidence in the workforce and SMEs of the consumer goods and technology segment. This will increase their participation in growth and development and effectively revive the overall Indian economy.

The post The Survival and Revival of Consumer Tech appeared first on Dutch Uncles.

The Survival and Revival of E-Commerce

Shalmoli Sarkar — Tue, 25 May 2021 03:35:04 +0000

The devastating effects of coronavirus have boomeranged. With the second wave of virus hitting us harder, the government is reimposing a lockdown to contain the spread, subsequently impacting the e-commerce business in the process. Apprehensions to shop out and limit shop hours have increased people’s appetite to shop from online channels that have led to skyrocketing of grocery purchases, but there is another side to the story.

Online Grocery Sales Enough to Sustain?

Although online grocery purchases have increased, e-commerce businesses are battling the underlying challenges of the pandemic. A pause on selling non-essentials has aggravated losses in the e-commerce businesses since food and grocery contribute only $2.5-$3.5 billion to the overall $38 billion e-commerce sector in India, according to Technopak, a management consultancy firm. To ensure business continuity, e-commerce businesses are ramping up their e-grocery segment that is high in demand but has low value and low margins, which is unlikely to compensate for the losses incurred from low demand and sales from non-essentials. The other challenges of e-commerce business include working with reduced manpower, increased waiting times of delivery, slow operations, and irregularities in supply chain and logistics. Therefore, this demands an overall transformation in business functions spanning from inventory and warehouse management to tapping new consumer segments and surviving the pandemic as well as post-covid environment.

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A pause on selling non-essentials has aggravated losses since food and grocery contribute only $2.5-$3.5 billion to the overall $38 billion e-commerce sector in India, according to Technopak.

Survival Strategies to Tide over the pandemic

The survival strategies should focus on building efficacy in business operations and growth. Below are some of the survival strategies that e-commerce businesses can implement:

Robots in the warehouse

Due to control measures, e-commerce businesses are countering manpower shortage, therefore, reducing efficiency in operations and impacting the revenue. Robots are being deployed in the warehouses of e-commerce giants to aid with tasks like sorting, shipping, and packing. The adoption of automation in the warehouses will help control the spread of infection and smoothen the operations. The use of collaborative robots in e-commerce businesses can be implemented for distribution and order fulfillment, palletizing, labelling, barcode scanning, etc. thus ensuring frictionless operations.

Inventory Management Software

Proper Inventory management is integral to boost customer acquisition and retention. Businesses need to maintain adequate stock as well as avoid overstocking, which can lead to wastage majorly in perishable goods, this is where inventory management software comes to the rescue. The software will help businesses predict the required stocks and forecast sales based on the current demand. It cautions sellers regarding any surge in demand and avoids mismanagement of supplies.

New Payment Method

The electronics segment holds a lion’s share in India’s e-commerce business. To motivate shoppers to purchase non-essentials such as TV, smartphones, laptops, and tablets, e-commerce businesses should introduce ‘Buy Now Pay Later’ (BNPL) payment at the checkout stage. In BNPL, the customer does not need to pay the full amount at the time of purchase but it breaks down a large amount into small easily payable EMI. In this manner, the customers can afford to purchase expensive items and encourage aspirational buying.

Focussed marketing through App

The app of an e-commerce business is the new online storefront. With varying consumer preferences, businesses should emphasise more on integrating AI and ML in their apps to gather consumer insights and execute more intent-based campaigns, target channels, and better communication. The integration of machine learning algorithms with apps will utilise past data to decode consumer data whereas AI simulates human intelligence. This benefits the e-commerce businesses by offering improved user segmentation and a personalised customer experience. Marketing for e-commerce in the post-covid world will change its gear from discount and sales to customer experience and satisfaction.

Unlock new target customers and nurture them

E-commerce businesses have witnessed many first-time online shoppers from semi-urban parts of India. According to EY India Internet penetration in rural and semi-urban areas is expected to more than double to 45% by 2021. Increasing aspirations to live like urban dwellers is also a reason for e-commerce shopping, therefore they should focus and nurture them to get the first-movers advantage.

Reviving e-commerce from distress times

The roll-out of vaccines is a beacon of hope in such distressing times. The frontline workers comprising delivery executives, workers in fulfillment centres, and warehouses are the wheels of the e-commerce chariot. They have been serving the nation tirelessly despite being most vulnerable to contract the virus. One of the determiners that customers will shop from your brand is the efficient delivery system Therefore, it is imperative for the companies to proactively invest in vaccination activities for their frontline employees and in-house employees to ensure that they can work in full capacity. Currently, Indian e-commerce and retail collectively employ around 40 million. This raises a question: how will the businesses vaccinate their workforce?

Below are some of the strategies that will help businesses to vaccinate their workforce:

Reimbursement of vaccines and education

Companies can reimburse the cost of vaccination and encourage more employees to take vaccines. They can also organise awareness sessions with their employees to clarify ambiguities about the vaccine and foster the confidence that the vaccine is safe.

On-Site vaccination

Businesses can organise vaccination drives in association with licensed health care providers in their workplace free of cost to ensure none of the employees is remaining.

Partnering with hospitals

Companies can book vaccination slots for their employees and organise a ticket system that will help employees to reach the hospital at the designated time slot to get vaccinated.

Incentives for employees

Amazon US will offer $100 as an incentive to the new hires with proof of Covid-19 vaccination. Similarly, e-commerce businesses in India too can offer incentives to their employees for getting vaccinated after showing the proof.

Though vaccination programmes have launched, companies need better planning for allocating the vaccines as the supply is limited. They need to find out who is more vulnerable based on age, or department-wise like the delivery executives as they are commuting to various places to deliver and hold a higher risk of infection.

The post The Survival and Revival of E-Commerce appeared first on Dutch Uncles.

The Survival and Revival of the Retail Sector

Aakash Sharma — Mon, 24 May 2021 03:35:04 +0000

With the collapse of Indian health and economic infrastructure in 2021, the only hope for survival and revival of the country is an accelerated vaccination effort against COVID-19. Only a joint effort between the central government and Indian states, along with the contributions from the civil and business society at a large scale, would help India to come out of the pandemic crisis faster. That, in turn, will help in the survival and revival of the economy and create jobs in a post-pandemic world.

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The disruptions that the COVID-19 pandemic has brought barely need any explanation. While similar to other countries, the economic contraction that India has witnessed is unlike any in scale.

The only flicker of hope for revival and survival in these unpredictable times is the outlook that a vaccine drive will inoculate enough Indians to curb the virus’s spread in the closely packed, almost 1.4 billion people-big nation.

Apart from the elected government, which has till now been an underperformer in its COVID response, there is a massive responsibility on the corporate world and companies of all sizes to advocate for mass vaccination. This entails leveraging the forces of hospitals, doctors and attendants. There is also a crucial role of digital technology like effective online vaccine registration and immunisation certificates using QR coded details.

Survival and Revival of India’s Retail Sector: Pandemic Induced Transformation

It is imperative to look into all businesses that need a recovery path in a post-pandemic, primarily vaccinated nation. Here, we look into the vast Indian retail industry, which is the second-largest employer in India and provides a livelihood for a large segment of the population.

To put things in perspective, small and medium-sized retail firms in India employ about 400-450 million people and undertake a monthly business of about $70 billion. With e-commerce augmenting in India, growing at a 40% CAGR, enterprises have been on a reinvention spree with the channelling of new retail supply chains.

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E-retailers have given rise to a new generation of consumers driven by choice, convenience and discounts.

Fighting the pandemic while satisfying customer demands needs a fundamental understanding of customer value and a rethink of traditional retail supply chains not designed to handle large assortment at low cost.

Tips for Revival and Survival of India’s Retail Businesses

You Should Shift to New Channels

Rapid changes and increase in online, mobile, and social trade transactions have surged in 2020 and 2021 with changing customers shopping habits. The current 2020-21 rates of online commerce growth of 25-30% have already touched the 2025’s projections in India. MSMEs and the millions of small retail businesses in India must move to mobile-friendly solutions like apps and websites for their survival and revival.

Large retail businesses like Big Bazaar, Reliance and e-commerce players like Flipkart, Amazon India and Snapdeal must embrace the workplace vaccine policy to ensure a return to standard and growth of the country’s retail segment. Their newfound focus on connecting India’s vast sector of unorganised Kirana and other small retail stores will also find new life as more vaccines are injected, and businesses return to normal functioning.

Revival through Essential Items

The very meaning of product distribution and categories has changed during this pandemic. The change in basic product definition and requirement has triggered a complete overhaul of the supply chain, demand planning, inventory optimisation, and replenishment cycles.

Businesses, both existing and new start-ups, must capture this opportunity to launch themselves with caution and fill the new gaps in the supply chain by pushing their ideas, products and services. For funding support, they can avail numerous state start-up benefits as well as the aid from the recent $125 million Start-up India Seed Fund for start-ups and incubators.

Revival and Survival Hope: Sharp Economic Growth Predictions

After facing a downward financial and economic turn for multiple quarters now, the economic trends are bound to have a V-shaped recovery from the pitfalls in the sales cycle and logistics gridlock. While the GDP contraction has been a disaster for millions of businesses, healing is inevitable for most of them, if not all, as soon as the vaccination reaches its threshold.

The RBI and many private analysis firms predict positive growth for the Indian economy by the end of 2021. A growing vaccine manufacturing line by companies like the Serum Institute of India and Bharat Biotech backs this hope.

Migrating Online and Shifting Marketplace

The ability to adapt, seamlessly integrate, and sell anywhere with a seamless connection has never been more apparent than it came to shine in the past one and a half years. E-retail and e-commerce are decisively pegged as the accelerator of the retail sector’s growth.

Big players are throwing their weight behind the digital way to grow themselves while bringing small businesses and retail SMEs to the forefront with hyperlocal services like Flipkart Plus, Amazon Local Stores, Dunzo, The New Shop and many others. As the digital overhaul bolsters, the marketplace for all retail businesses, both small and large, will widen, and the opportunities will increase simultaneously.

Survival in Pandemic and Revival in a Post-pandemic World

Regardless of the scenario, several truths are starting to become straightforward for retailers as they look ahead to survive the challenges in a post-COVID-19 world. Undoubtedly, companies further down on the path of digital business transformation along with a self-vaccination plan will be better equipped to handle this disruption.

Digital Revenue Growth

In the coming months, retailers will need to focus on accelerating digital sales as shoppers stay at home and use online channels to meet their day-to-day needs. This puts extra pressure on the supply chain and contributes to the situation that retailers are already anticipating.

Data and Algorithms (AI/ML) in Supply Chain

The COVID crisis is also an opportunity to delve into the flexibility and strengths of retailers. A recent B2B e-commerce market survey found that many of the challenges faced by retailers in an interconnected space are related to the supply chain. Delays in products, problems with consumer confidence and insufficient stocks are the main challenges for retailers.

Businesses can use Artificial Intelligence (AI) or Machine Learning (ML) solutions in:

Invoicing
Consumer Behaviour Prediction
Inventory Management
Online Ordering, and
Checkout Services

This can help retailers of small and medium sizes to overcome challenges. Tech start-ups in this segment can further simplify solutions to benefit even the remotest retail businesses in both urban and rural India using mobile apps and simple scanning tools like QR codes, among many others.

Clearly, COVID-19 has redefined all the old normal and has set a new normal for the times to come. In a nutshell, the retailers who will survive through the COVID-19 crisis are the ones who try to look at the current situation more as an opportunity and start driving on the road to recovery with precautions and plans in mind.

By leveraging data technology to accelerate digital channel innovation and enhancing supply chain and warehouse capabilities, retailers can develop strategies to address future business challenges while transforming their organisation for the future.

The post The Survival and Revival of the Retail Sector appeared first on Dutch Uncles.

Beauty and Wellness Industry Amid The Pandemic: The Industry That Bore the Brunt

Tanisha Achrekar — Fri, 01 Jan 2021 12:56:24 +0000

Beauty and Wellness Industry Amid The Pandemic

‘Survival and Revival of the Beauty & Wellness Industry amid the Pandemic‘ was a roundtable hosted by Dutch Uncles on the as part of our ‘Rise Again’ series. The series was moderated by Sapna Bhardwaj, Editor-in-Chief, Dutch Uncles. Our esteemed panellists included: C. K. Kumaravel, Founder & CEO, Naturals Salon & Spa; Monica Bahl, CEO, Beauty and Wellness Sector Skill Council; Nikhil Kakkar, COO, Gold’s Gym India and Rajendra Dabade, CEO Studio11 Salon & Spa.

I remember back in December when people being killed by a strange virus in Wuhan, China made headlines repeatedly. Just like most of the world, I did not pay much heed to it. If only we all knew what lay ahead in the coming months. If there is something the entire world will remember from the year 2020, it is the coronavirus, also known as COVID-19. It was the first-time people all around the world witnessed a pandemic that bought their lives to a standstill.

During the beginning of the pandemic, there was an assumption that it will only last for a few weeks or months. Unfortunately, even right now after almost a year, the world is not what it used to be. The pandemic has had a lasting and scary effect on all our lives. It had drained the economy; many businesses had shut down during the lockdown months which further led to millions of people losing their jobs around the world.

Before the coronavirus, the beauty and wellness industry in India was expanding rapidly with a compound annual growth rate (CAGR) of 18.40 percent. However, the industry suffered a severe blow during the Coronavirus pandemic. This is because the foundation of this industry lays in “the human touch.” It seemed too risky in the beginning to open up salons, spas and gyms where social distancing is near to impossible.

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To pinpoint specific issues, during survival mode, places with high rentals, especially in metro cities, tier-1 cities I had to really go in the shell.

- Rajendra Dabade

Why did the beauty and wellness industry suffer such a severe blow?

According to the Founder & CEO of Naturals Salon & Spa, C. K. Kumaravel, the major reason why the industry suffered such a massive blow was unpreparedness. He added how an entrepreneur’s mindset can be a gamechanger for him/her during such unprecedented times. He stated, “When your mind is weak, the same situation will look like a problem, when your mind is normal, the same situation will look like a challenge when your mind is strong, the same situation will look like an opportunity.

Imagine you are going to a forest and suddenly one lion comes in front of you, you have a problem. Imagine you are going in a forest and the same lion comes in front of you. This time you have an AK-47 in your hand. Now, the lion has a problem. The lion which has come in front of us is the corona and we were all unprepared. After seeing that lion, whoever is going to win is going to be whoever is most prepared. Are we going to be equipped with new skills, new talents and new potentials? Are we going to go with the same thing?“

The Beauty and Wellness Industry witnessed accelerated growth over the past decade. However, an unexpected pandemic left everything at a standstill. Simply because people were not prepared for it and did not know how to react towards it. The industry by nature is a touch-and-feel industry. The social distancing norms during the pandemic were bound to hit an industry that works in such close proximity to its clients. When the lockdown was announced, salons and gyms were among the first to shut down completely.

The hygiene protocol became a major concern. Were you asked to keep a six-feet distance, how can you let someone else touch your face? The very nature of the industry is such that they have to work closely with clients and provide a service where the ‘human touch’ is non-optional. The nature of the industry and the social distancing norms that the coronavirus required us to follow were completely contrary, causing the industry to collapse.

Impact on the beauty, salon and spa industry

The CEO of Studio11 Salon & Spa, Rajendra Dabade spoke about his observation specifically regarding the salon and spa industry. “We saw a lot of observation during this time with high rental. So, to pinpoint specific issues, during survival mode, places with high rentals, especially in metro cities, tier-1 cities I had to really go in the shell. Even when they came out of it when the unlock-1 started and the coronavirus pandemic lockdowns were removed the same thing happened. The metro and tier-1 cities, majority of the salons which were in survival mode were struggling very badly.”

These big cities usually have a high rental cost and with the salons being completely shut down during the lockdown, huge losses were incurred. Rental being one of the biggest costs associated with the salon and spa business, its impact marked a hollow dent. With their businesses being at a complete standstill and real estate cost such as rent and other utilities still to be paid at the same time. Across the world, several salons and spa businesses could not bear the loss and had to shut down their businesses completely. Making no money but having a recurring cost to bear can dig a huge hole in any entrepreneurs’ pocket.

Impact on the gym and fitness industry

Gyms just like the salon industry were completely shut during the lockdown. The COO Gold’s Gym India, Mr Nikhil Kakkar shares how he saw an unexpected twist in the functioning of the gym industry. “The entire industry, the service industry specifically has gone through a tough time, a tough phase of the business. We are trying to revive and recover. The new normal is completely different. A lot of changes, a lot of cost-control methods have been applied to survive and sustain during the business. We are learning, we are also learning with time. We are adopting things l feel. New strategies, ‘figital’ is the new word that has been adopted I feel during the lockdown. So basically, there would be people who would be physically coming to the gym, there would be people who would like to use digital mediums to workout at their home. So, it is going to be a mix.”

Since gyms and other fitness institutions were completely shut down during the lockdown. There were huge losses incurred in the rental aspect of these businesses. However, some fitness institutions used the digital medium to reach their clients. Online workouts became one of the most popular things during lockdowns. It is continuing even after the unlock as people feel safer working out in the comfort of their home. Many fitness institutes also launched their apps to retain their clients and even make new virtual ones. Though the fitness industry suffered a huge blow during the pandemic, online classes and digital mediums proved to be their ray of hope.

The survival strategy of the beauty and wellness industry

The beauty and wellness industry did start picking up again after the lockdown was over. The unlock did witness some clients coming back. However, things are completely different from the way they used to be. As CEO, Beauty and Wellness Sector Skill Council, Monica Bahl rightly points out, “This is the time when an unlearning had to happen of the previous way the services were being done. A re-learning had to be done and an upskilling had to be done. We had the challenge of three things. First, to make them unlearn, which is the most difficult thing. As already mentioned, somebody who is used to doing a particular way, a particular thing would like to do it that way. So, unlearning is the first thing, re-learning the new skills and the hygiene protocols has been the most important thing. We make sure that our hygiene protocols have been approved by the All-India Institute of Medical Sciences. We are at par with any hospital or a lab hygiene protocol. So that being followed at the salons and upskilling in terms of the knowledge and skills have happened through an online media which has helped.“

The way to survive in the beauty industry that works in such close proximities with their clients is definitely by following all the hygiene protocols. How a business manages to keep their clients safe is going to be a big game-changer here. The brand value of a business will be directly impacted by how their staff is catering to a client while maintaining safety. The staff of salons who wear a PPE kit, gloves, masks and constantly sanitise themselves will be chosen over those who do not. It has become a non-negotiable requirement for the clients who are visiting the salons and spas.

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Unlearning is the first thing, re-learning the new skills and the hygiene protocols has been the most important thing.

- Monica Bahl

In the fitness industry, the gyms have started after the unlock. The number of people who come to the gym will be determined on how well a gym is adhering to the social-distancing and safety regulations. Having alternate treadmills to use, calling clients in batches to avoid overcrowding, conducting a routine check-up of the staff and sanitizing the place thoroughly will help in gaining the trust of your customers. The time is such that people want to feel safe wherever they are. Taking the above-mentioned measures will make them feel safe while working out in your gym or fitness institution.

Coronavirus – The time to enter or exit?

The coronavirus undoubtedly bought the entire beauty and wellness industry to a standstill. While many businesses could not bear the loss and had to shut down, there were others who were looking forward to venturing in the industry even more. This is mainly because the new entrepreneurs have nothing to lose. They have seen how the industry fell and can take the lessons without suffering any damage. They can also take advantage of low rentals, reducing one of the biggest recurring costs. Also, since the safety protocols for coronavirus are already known, the new businesses can train their employees accordingly from the start itself. Even entrepreneurs who are planning to venture in the fitness industry can have a pre-established structure that is following all the rules of social distancing.

Though the beauty and wellness industry crashed when the pandemic had begun. After the unlock, it is recovering slowly and steadily. As an entrepreneur, take lessons that you learnt during the coronavirus pandemic. Work on those loopholes that were existing for a while now but became more prominent during the pandemic. An entrepreneur’s journey is a roller coaster ride and any business is bound to have ups and downs. Take lessons from the past to build a stronger foundation for your company’s present and future.

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Travel, Tourism and Hospitality: An Industry on the Frontlines

Kiran Kennedy — Tue, 22 Dec 2020 08:15:46 +0000

A live panel discussion hosted by Dutch Uncles on the ‘Survival and Revival of the Travel and Hospitality Industry Amid the Pandemic’ as part of the ‘Rise Again’ series. Panellists: Ashish Kumar, Co-chairman of FICCI Travel and Technology Committee; Jyoti Mayal, President of the Travel Agents Association of India and the Chairperson of Tourism and Hospitality Skill Council under the aegis of National Skill Development Corporation (NSDC); Anshu Bhatia, Founder of ABR Hospitality; Saurab Saluja, Entrepreneur at Global E-Commerce and moderated by Sapna Bhardwaj, Editor-in-Chief of Dutch Uncles.

Coronavirus, otherwise known as COVID-19, first made its way onto the global stage way back in December of 2019. Back then it was considered as perhaps just another isolated incident of a viral outbreak, one which would be culled within a few days and within the bounds of the country it originated. Perhaps that was the first mistake – underestimating the magnitude of the virus. Within three months of the first reported cases, the countries of the world were clutching at straws to keep the order and to prevent further spread of the virus, which had by then been dubbed a pandemic.

In the initial days of the lockdown, we expected it to be perhaps just a few weeks indoors, maybe a month at most. What no one could have anticipated was that the world would still be fighting COVID-19 a year later! The impact of the virus not only took a toll on our socialisation but also surpassed all expectations in bleeding the economy dry, costing millions of people their jobs and ravaging the industries of the world.

One of the worst-hit industries were tourism, travel and hospitality. The tourism industry in Asia took the brunt of the impact as statistics from the World Travel and Tourism Council (WTTC) indicate that the region saw well over 60 million job losses by the month of April itself. The WTTC projected an estimate of over 100 million job losses by the end of 2020 in the industry and an estimated loss of over $2.7 trillion. When you consider that the travel and tourism industry accounts for over 10 percent of the global GDP, the true scale of loss is evident.

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The government has not been giving us any relief and it is on us to independently take our stance to support ourselves.

- Anshu Bhatia

How The Industry Is Going To Survive

According to Ms. Jyoti Mayal, President of the Travel Agents Association of India (TAAI), The tourism industry, especially the Indian sector, she feels is a very resilient one. She attributes the potential revival to the level of dedication people have towards reviving their livelihoods and the innate desire in all of us to travel – human nature if you will.

“We are a resilient industry and we will come back much quicker because we are a youth country, firstly, and we know how to survive. That is the first thing that goes very positive for India. Because the youth is all out to start working immediately and we have all the brains here and I’m sure it will happen. But it is a pandemic here which no one really knew would happen, so everyone is taking baby steps right now,” said Ms. Mayal.

This is very true in a way. Travelling is more than just an activity for leisure, it is a part of human nature to be curious, to explore and expand. That is why there is a tourism industry in the first place. Regardless of the dormant state, it is in now, it is an inevitable outcome that people will find ways to travel safely; as the old saying goes, “where there is a will there’s a way.”

When Dutch Uncles spoke to Mr. Saurabh Saluja, an Entrepreneur at Global E-Commerce, he said, “this is a challenging time but let us understand one very simple thing and that is travel is not only industry. For a lot of people, travelling is a dream. Travel is something that has always been there. The industry will definitely revive. What we can see from a direct selling industry standpoint, is that this industry will help the travel industry move fast, from a revival perspective.”

In order to give the tourism industry a good shot at survival and revival going forward, the panel of experts Dutch Uncles spoke to highlighted the following areas as crucial:

There needs to be a steady stream of revenue and a reliable pipeline to supply that revenue to keep things open and functioning.

Government aid relief is also much needed but it is purely a secondary resort and only temporary at that because, without a reliable and steady revenue pipeline, the relief packages simply act as crutches. Revenue will give the industry its own feet to stand on.

The government needs to put better operational strategies and industry policies in place in the event of a potential future calamity.

Technology and digital platforms need to be put to use in a better manner at the ground level.

There is also a need for a unified platform where those who work on the ground-level, directly with the tourists and travellers on a day-to-day basis, can voice concerns and suggest changes. Most often they are the first ones to notice the change.

Why Did It Hit The Industry So Hard?

According to the Co-Chairman of FICCI Travel and Technology Committee, Mr. Ashish Kumar, one of the main reasons that the industry was hit so hard was because the revenue pipeline dried up.

“So, if you look at it, strategically, it is over a pipeline of three months in various countries, the travel, tourism, hospitality industries saw the revenue drying up slowly and suddenly.

If you equate it to the flow of water, be it a dam, river or well, if the water dries up, suddenly you feel an impact of that water being dried up. So, the first reaction to that water being dried up, which is the revenue, in this case, was cost.” said Mr Kumar. It goes back to the old adage, “You do not know what you have until it is gone.”

The tourism sector, being such a large beast of an industry, sat comfortably where it was and there was very little in terms of backup funds. Another contributing factor is the technology that the industry so heavily relies on.

The digital realm made for an easy, affordable and quick travel and tourism experience, be it in the form of bookings, contacting agents, buying tickets or cancellation. All of which were fuelled by the trips we take and the money we spend through that vast interconnected network – a network that collapses when the people who fuel it are expected to stay put in one place for over a year. As Mr. Kumar puts it “We have had the carpet pulled out from under us.”

The major concerns now, even with the arrival of vaccines, are cash flow and safety. Though avenues will eventually open up to tourists and people will have the option to travel again, the industry may not see a revival in the immediate future. For one, with all the job losses, people are struggling to sustain their domestic livelihoods, which puts leisure travel out of the question. Secondly, even with the vaccine, widespread usage is limited and the effectiveness of the vaccine does not outweigh the risks of contracting COVID-19. With experts the world-over saying that the virus is not going anywhere anytime soon, it does not do a whole lot to inspire confidence for the average traveller.

Impact On International Travel

Airlines and cruise ships have become somewhat of poster children for the tourism industry amidst the pandemic. International air carrier groups like Delta and United Airlines had all but two months of reserve funds to cover expenses according to the International Air Transport Association (IATA). Cruise ships faced a different challenge altogether as they had to spend weeks if not months at sea because they were carrying passengers infected by COVID-19. In April of this year, IATA estimated a loss of $252 billion for the global air transport sector.

Cruise ships companies, by the same time, had lost well over $750 million in revenue and the big players like Royal Caribbean and Norwegian saw a drop in shares by approximately 70 per cent.

Impact On The Hospitality Industry

On the other end of the spectrum, hotels all over the world were also impacted by the lockdown with clients making cancellations on a scale never before seen. So much so that franchise giants such as the Marriott and the Hilton have had to furlough a large percentage of their employees. The average daily rate for a hotel room was not even close to the break-even needed to turn a profit.

For example, in the US, mid-tier, economy and upper mid-tier hotels saw the brunt of it with as much as a 10 per cent drop in the revenue per room. In terms of the most affected segments as per location, the small-town, interstate, suburban and resort sectors were the localities most affected.

When speaking to the Founder of ABR Hospitality, Mr. Anshu Bhatia, he re-emphasised the point of how badly local hotels and even his own business has suffered in the pandemic. “If we talk about the current scenario, there is no survivor of the hotel trade as of now. We are not even able to meet 10 per cent occupancy of the hotel. It is a challenge to even meet the daily expenses to maintain hotel operations.”

In early March there were signs of hope for the revival of the hotel industry in Mainland China – ground zero. According to Bloomberg, the hotel bookings saw a rise in almost 40 per cent as the country declared that the outbreak was under control. Regardless of a second or third wave, this transformation shows us that recovery is possible, even in such dire times. This brings us to the next point:

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The fastest way to grow will be to utilise the direct selling industry or the e-commerce industry. Once we have the vaccination, a lot of people will want to go ahead and travel, so that planning has to be done right now as to how we are going to cater to that segment.

- Saurab Saluja

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