News24.com | OPINION | The only constant is change: How businesses can survive Covid-19

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OPINION | The only constant is change: How businesses can survive Covid-19

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The Harbour City Shopping Mall - one of the Hong Kong's premier shopping destinations usually full of shoppers, was nearly empty on Monday amid concerns about the coronavirus. Photo: Getty Images
The Harbour City Shopping Mall - one of the Hong Kong's premier shopping destinations usually full of shoppers, was nearly empty on Monday amid concerns about the coronavirus. Photo: Getty Images
  • The global pandemic is forcing businesses around the world to change the way they operate.
  • In these times, successful adaptation depends on being adaptable and customer-focused.
  • New avenues may open - and business owners may need to experiment in order to survive. 


Andrew Smith, the CEO of South Africa's well-known kitchen and homeware store, Yuppiechef, says that from the moment the national lockdown was announced, things happened quickly at the business – or rather, even faster than usual.

The company had to close their physical shops and stop trading online, only to discover a few days into the lockdown that there was, in fact, demand for certain products that could be sold under lockdown.

So they geared up to start selling a whole new line of goods including cleaning products, food and beverages. 

The team also got busy on social media and their website, uploading new content to connect and engage with customers such as online cooking videos, which were all made free to people during the lockdown period. Because they knew people were at home with their kids and having nothing to do, the uptake was "huge", Smith says.

Yuppiechef is not alone in changing its approach, and quickly. Like most businesses around the world, the company is having to find ways to deal with the disruption to business caused by the unprecedented global disaster that is Covid-19 and strict regulations imposed by governments to contain it.

Like others in the same position, Yuppiechef is having to demonstrate customer-centricity and agility in challenging circumstances. A UCT GSB case study published in 2019 tells the business' story, and its unusual decision to move from e-commerce to retail – or clicks to bricks – in 2017, describing a business model that is supple in finding solutions and has a strong record of positive feedback and returning customers.

What sets businesses like this apart? Stanford University psychologist Carol Dweck describes a growth mindset, arguing that it is not talent or intelligence that brings success in life and business, but rather being open to learning and developing and seeing mistakes and failures as challenges and lessons from which to learn. Instead of being held back by a fear of uncertainty and possibly negative outcomes, like a fixed mindset does; a growth mindset actively looks for ways around the obstacles and shortcuts in the traffic jams.

There are many retailers, large and small, exhibiting this mindset at this time — and some are even adapting to support others. To help a small retailer located nearby, for example, Spar Plettenberg Bay removed all stationery from its shelves in order to divert foot traffic to the stationer.

At the other end of the spectrum, Facebook fast-tracked their move into the online retail space to take advantage of the surge in demand for e-commerce. In the planning phase for some time, Facebook Shops allows a small business to set up a shop within their Facebook or Instagram page. Some commentators think this gives the company a chance to take on online retail giant Amazon.

Smith believes the future holds more potential opportunities for businesses. As traditional supply chains are being disrupted, he suggests there are possibilities for others too to tweak their business models and find other ways for customers to get particular products or services that may be in short supply.

For instance, the earlier shortage of yeast on supermarket shelves may have had more to do with traditional packaging and a disrupted conventional supply to restaurants now closed, opening a possibility for a savvy entrepreneur able to find new ways to produce or package or distribute this product.

Changes in customer behavior are likely to be here for the long term, with people staying home more and preferring home-based activities. Online retailer OneDayOnly.co.za says South Africans have definitely been shopping more online during lockdown.

Since lockdown started, there was a 40% increase in page views per user and a 15% increase in basket sizes. Items like hand sanitiser, gloves and masks as well as fitness gear like activity trackers and watches were most popular.

According to Matthew Leighton from the site, they were surprised to note that many people were willing to buy wine and clothing and to wait for these items to be delivered after restrictions ended.

As some doors close (literally), others will open. For instance, gyms may suffer, but online fitness channels are already booming. 

For example, a restaurant in Cape Town, Our Local, which traditionally offers meals in a communal space with a 10m long shared dining table, has had to make some quick adaptations to their offering to cater to this reality.

Their meals are now available as takeaway options that come with specific instructions on how to heat and plate the meal to enjoy it at its best. The delivery option, an Italian meal, for example, comes fully equipped with an Italian music playlist to ensure the customer has a rounded Italian customer experience, even if that is at home.

The future may see more contact-less transactions such as online shopping, as well as the evolution of traditional retail, including the expansion of new avenues like click-and-collect services, delivery options and new payment platforms.

All business owners are facing an unprecedented challenge to their businesses. Survival may depend on learning to make decisions quickly - even if the outcome seems uncertain. 

Mignon Reynecke is Associate Professor of Digital Marketing at the UCT Graduate School of Business. Views expressed are her own. 

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