How to Fight the Current Economic Slowdown. Its Effects on Businesses.
India’s economy is at an all time low and is still slowing down gradually. According to the official GDP data that was released on 30th August, the country is going through the worst growth slowdown in six years. The crisis has finally reached the point where no one can deny its existence. From biscuit makers to automobile manufacturers, all types of businesses have faced a huge number of job losses which is extremely difficult to ignore. Shubhada Rao, a chief economist at YES Bank pointed at ‘job losses’ to be the key reason for the current situation. She said that people need “cash in their hands” so that they can make use of the supply. After June 2008 and March 2011, this is the third time that India is facing an economic slowdown in just a decade.
- There obviously have to be some catalysts that enabled this clear tumbling down of india’s economy. In this article we are going to point out some key factors for the same and how the world of digital marketing can be an angel in disguise for businesses. Let’s look at the causes and what the role of the government should be:
- As stated wisely by Shubhada Rao, if people do not have enough money to spend and also keep in their savings, the consumption will go down at a high rate. You don’t know what kind of circumstances might come up in the future. So, everyone wants to save as much as they can. The government needs to work tirelessly to cure the ongoing problem of unemployment and job losses.
- Another major factor is the demonetization in November 2016. It messed up the dynamics of supply and demand to a great extent because it led to the drying up of cash, which in turn contributed to the slowdown in the economy. Additionally, it is not just the private and small organizations that have suffered and caused the financial downturn. The big and established companies, that accumulated debt in past years have also contributed a fair share in this situation. The government should stop ignoring the dominos that started falling due to demonetization. Some drastic measures have become extremely important to stay in the category of developing nations.
- The Goods and Services Tax (GST) has also played a role in bringing down the economy, probably a bigger one than demonetization. Initially, it forced the small businesses to hold back their inventories until they became a part of the GST Network (GSTN). And then the flawed rules and regulations pushed the businesses even further downhill. According to the former Prime Minister Manmohan Singh, the government needs to simplify and rationalize GST and tackle the lack of credit for capital creation.
SBI Chairman, Rajnish Kumar rightly says that the next two months will be crucial for reviving the economy. The festive season is a great opportunity to monitor sales and come up with new strategies to increase profits. Businesses need to employ strong policy reforms to save themselves from plunging deeper into the darkness of economic downturn.
Economic slowdown certainly has the potential of having a prolonged effect on various companies, especially the small and medium-sized businesses and startups. Subsequently, the adverse effects will pass on to organizations depending on these businesses as well. Digital marketing is a boon in such unfortunate situations. Here are a few ways in which Digital Marketing can help in overcoming this economic setback:
Every organization is looking for rapid growth in their business. You can make use of the upsurge of social media and the omnipresent smartphones to reach unconditionally large number of customers in a short span of time. And in order to use the digital world efficiently, go ahead and employ a digital marketing company. Taking the help of an expert, who is already experienced and skilled through the years in this field, can only end in profit.
You cannot ignore the fact that the decline in India’s
economy has led to lower budgets on which the companies can thrive. But as they say, the show must go on. Your company still needs to continue growing to get over this financial speed breaker. Therefore, digital marketing companies can play an important role for your business. As compared to television and print advertisements, ads Google and social media sites, such as Facebook and Twitter are way cheaper. Moreover, as discussed above, these ads have the potential of reaching a wider audience in a short amount of time. So time and money, both are saved.
Due to the decrease in the budget, the companies will not launch new products and even consumers will stay away from trying new inventions. This will lead to a better market share. It is the time to focus on advertising for the existing services and products as much as you can. Digital marketing experts will take care of this for you through content marketing, on social media and blog posts.
Apart from advertising, Digital marketing companies also focus on improving your business. They perform market research and use data analytics to come up with new and more efficient strategies for your organization. The world of technology is constantly changing, so the business strategies also need to keep improving. The new technologies can help your company in reaching new heights continuously.
The unemployment and job loss in India is not news for anyone. Employment of Digital Marketing Companies will also help in the employment of more and more digital professionals. If theses companies have more business, they will undoubtedly need more human resources. So this can even contribute to the betterment of our nation by increasing the number of employments.
India has gone through such economic setbacks in the past, and recovered from it. The difference today is that, the country did not have the advantages of the digital world during those recessions. Today, your business has an added assistant to help you to survive the current situation. Moreover, an expert digital marketing company can keep improving our business after overcoming the economic slowdown of 2019.
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