Four lessons from the future

What we can learn from Chinese companies and their response to COVID-19 

Europe is two months behind China in the COVID-19 crisis. China’s industrial production fell by 13.5% and stock markets around the world took large dives. After being hit first, China was also the first country to experience an economic rebound. What lessons can we learn from the Chinese companies’ response to the crisis? 

Lesson 1: Look forward
With developments taking place at a rapid speed, it is crucial to (re)act rapidly. The most successful Chinese companies looked ahead and took proactive steps. The largest instant noodle producer of China, Master Kong, foresaw that a massive hoarding would take place and decided to refocus on e-commerce. This move allowed the company to increase flexibility in their warehouses. Flexible IT and optimizing data analytics are key in making fast and proactive decisions. Google Cloud offers several end-to-end data analytics tools, such as Big Query. If you are up for it, we have shared some best practices on Big Query during Next last year, which are summarized in this 45 minute video.

Lesson 2: Bottom-up in plus top-down
As the keyword for crisis is speed, a top-down approach might be tempting. However, one should also consider the variety of developments occurring on different levels in the organization, which requires a bottom-up approach and gives room to decentralized decisions. The most successful Chinese companies combined both of these methods. The hotel chain, Huazhu, held daily meetings with upper management for top-down guidance. On the other hand, it used its internal information app to provide different franchises with appropriate information on local requirements, allowing them to take the necessary actions on their level. Striking the right balance between bottom-up and top-down decision making might require more flexibility in your corporate internal communication. The range of G Suite applications offered by Google can provide collaborative tools that keep the conversation going. If you are interested in knowing more from the best, then Colgate has summarized lessons learned in this video:

Lesson 3: Be flexible
Drastic changes in demand and sales channels also mean a change in demand for labor. Some departments will face increases, while others will have less work to do. In China, hard-hit sectors, such as restaurants, took creative measures to prevent layoffs. They put employees at work in the recovery plan or even switched them to sectors that had a drastic increase in demand, like supermarkets or online delivery services. This applies to labor and, perhaps even more so, to the marketing mix. Some Chinese companies successfully redirected their attention to online sales. This has allowed them to maintain their customer base and sales. Such a shift requires flexibility in your company’s network capacities. Google Clouds eCommerce hosting can provide flexible and reliable capabilities for your eCommerce platform. This enables a seamless experience for customers, even during the most critical times for your business. Watch this 42-minute video on how Google Cloud Retail solutions help their customers in the most difficult situations.

Lesson 4: Buckle up!
The next step is to get ready for a recovery. This might happen faster than expected. Only six weeks after the nationwide outbreak, China's economy had already shown signs of recovery. Being ready for this recovery is crucial. After the crisis, consumers might develop new consumption habits. This made successful Chinese companies redirect a large part of their workforce toward innovation and improvement of the existing products during the downtime. Thanks to the wide variety of its applications, Google Cloud is a strong partner in your pursuit of innovation. Watch this video to see how Unilever used its partnership with Google to innovate faster than ever.

How can Google support you?
Whether your challenge is data analytics, effective communication, network flexibility, or your company’s recovery strategy, Google Cloud can support you with a range of tools for a speedy and flexible response to the crisis. By learning from these lessons, your company can build a strong strategy to cope with the COVID-19 crisis. Speed and flexibility are key during these times. Google Cloud provides both of these. Click here to learn more.