a company

On The Pulse:
Understanding Market
Shifts During COVID-19

APAC Webinar
18th June 2020

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 What we’ll be covering today
Impacts so far… Moving into 2021 and beyond…

Economic Effects Growth Expectations

Emotional Effects Future Approaches to

Business

Practical Problems Changes to Marketing

Strategy

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 Research Background

2030 Respondent Profile

interviews

North America Europe APAC ▪ Business professionals

n=611 n=878 n=541
▪ All company sizes (SMBs & Enterprise)
▪ Broad range of verticals
▪ Weekly fieldwork conducted
throughout April and May 2020

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Impacts so far…
 Economic Effects: Many have been impacted, but smaller businesses
have borne the brunt.
% reporting lower revenues vs. a year ago
(global data, unless indicated)
Revenue now vs. a year ago (Global)
Global average 62%
Considerably APAC 60%
higher Somewhat
Considerably 3% <50 employees 69%
higher
lower 10%
22% Singapore 66%
Japan 64%
The Australia 63%
same China 50%
25%
Personal / consumer services 88%
Tourism, Hospitality & Arts 80%
Somewhat Manufacturing: FMCG & Food 54%
lower Tech & Telecoms 52%
40%

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 Economic Effects: International comparisons of business sentiment –
Highly varied and linked with government action to date.
Balance of opinion Funding, employee Govt. handling of Prospects for Ability of our
among business retention programs pandemic economy business to recover

Mixed Positive Mixed Positive

Positive V. Positive Positive Positive

APAC
V. Negative V. Negative Negative Negative

Mixed Mixed Mixed Mixed

V. Negative V. Negative V. Negative Mixed

Europe Mixed Mixed Mixed Positive

Mixed Negative V. Negative Mixed

Negative Negative Mixed Mixed

N. America
Mixed Positive Mixed Positive

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 Emotional Effects: Varying patterns across the business community
Top 3 emotions felt during pandemic so far

71% However, in our most recent wave, 51%

62% expressed at least one positive emotion…
43%
33%
26% 26%
15% 17%
5%

Concerned Anxious Frustrated Sad Angry Optimistic Confident Safe Happy

Especially among…

SMBs (<50 emps) SMB biz. Mid-market (100-999)

owners

 During May

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 Practical Problems: By company size

% of businesses “very” or “extremely” concerned by each issue Top 4 rank

Rank of concern

Overall (APAC) SMB Enterprise

(<250 emps, APAC) (250+, APAC)

Technology issues (e.g. WFH, capacity of digital platforms) 69% 4 1

Uncertainty about future customer demand 69% 2 3
Sales/Revenue 68% 3 4
Employee health & wellbeing 67% 1 5
Supply chain issues (e.g. deliveries, suppliers etc.) 66% 6 2
Cashflow/liquidity 63% 5 7
Disruption to execution of business strategy 62% 7 6
The productivity of employees / colleagues 56% 8 8
Ability to cope with flexible working 53% 10 9
Staff sickness and absence 52% 9 10

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 Practical Problems: A deeper dive into problems faced

Supply chain Technology Productivity

• Border closures • Networking & • Employee motivation
connectivity
• Complex and • Staff utilization
fragmented deliveries • Tools to monitor /
• Work/life balance (but less
supervise staff
• Competition for limited commuting)
freight capacity • Poor collaboration tools
• Positives: More time for
• Concern rose steadily + reflection, creativity and
still rising! complex tasks

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Moving into 2021
and beyond…
 Where will growth be concentrated? By sector

High A Financial Services

B Government & Non-Profit
Most Ready
A C Manufacturing
Now
B D D Real Estate
C E Tech & Telecoms
E F Construction & Engineering
H I G Energy, Utilities, Oil & Gas
M 25% of APAC
Overall, Potentially
Confidence J FG H Healthcare
to recover businesses are notL Pivoting
I Professional Services
medium confident in their
ability to recover. J Retail / Wholesale
term
O K Business services
Uncertain
N L Education
K
Futures
M Personal / consumer services
N Media, Advertising & Publishing
P Existential
Low O Tourism, Hospitality & Arts
Challenges
P Transport / Travel

High Current disruption Low

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 Where will growth be concentrated? International markets

Inside-out: Business optimism in economic outlook for international markets (APAC companies only)

Optimistic 21% 19% 16%

32%
Neither / nor 42% 49%
52% 28%
67% 28% 28%
Pessimistic
29%
35%
37% 37%
51% 53% 56%
30% 39%
23%
10% 14%

Asia Asia Europe Europe UK UK N. America N. America

(excl. UK) (excl. UK)
2019 2020 2019 2020 2019 2020 2019 2020

NET Optimism 63% -8% 42% -30% 20% -34% 34% -40%

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 Where will growth be concentrated? International markets

Outside-in: Optimism in outlook for APAC within countries shown

-5

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-19
0

NET optimism* for…

APAC

* NET optimism calculated by subtracting % with negative outlook from % with positive outlook
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 Future Approaches to Business: More digital, more resilience but
perhaps not green for all.
% Agreeing there will be a focus on the following post-COVID-19 (APAC data)

62%
72% 71% 69%

Building capabilities Business model More collaboration Other major global

around more digital sustainability / between governments challenges (e.g.
business models diversification and enterprises environment / carbon
reduction)

Significantly higher agreement among “boomerang” firms – i.e. those extremely

confident in ability to recover & expecting increased profits in 5 years
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 1. Insight and understanding

2. Acting Responsibly
Post-COVID
changes to
business
3. Developing Direct Channels

4. A Less Human Touch?

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 1. Insight and understanding

Top changes anticipated (APAC data, b2b firms only)

Post-COVID Improving the data and insight we have on our

46% 26% 72%
customers / markets to anticipate future needs
changes to
business
Conducting research with our customers to
47% 25% 72%
better understand what they need

Investing in new systems to help serve

43% 22% 65%
customers better (e.g. CRM, ERP etc.)

Quite likely to do this Very likely to do this

Higher likelihood among “boomerang” firms

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 2. Acting Responsibly

Top changes anticipated (APAC data, b2b firms only)

Post-COVID
changes to More flexibility with customers to help them
54% 22% 76%
through the crisis (e.g. on payment terms etc.)
business

Taking a much more active role in community

42% 25% 67%
projects / social initiatives

Quite likely to do this Very likely to do this

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 3. Developing Direct Channels

Top changes anticipated (APAC data, b2b firms only)

Post-COVID Increasing investment in our eCommerce /

46% 23% 69%
online sales capabilities
changes to
business
Developing / investing more in our delivery /
46% 18% 64%
"last mile" infrastructure

Selling more directly to customers (i.e. not

44% 17% 62%
through retailers / distributors)

Quite likely to do this Very likely to do this

Higher likelihood among “boomerang” firms

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 4. A Less Human Touch?

Top changes anticipated (APAC data, b2b firms only)

Post-COVID
changes to Making fewer face-to-face / sales visits to
43% 22% 65%
customers
business

More use of automation, self-serve machines,

44% 19% 63%
robots

Quite likely to do this Very likely to do this

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 Top Marketing Strategies Being Followed by B2B Firms in APAC

Customer experience & loyalty Product development /

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innovation
=4 Environmental / green positioning New industry opportunities
Value marketing Raising awareness / Top of
2
funnel =10 Purpose-driven marketing
New location opportunities
=7 Competitor analysis Building brand positioning Employee engagement
3 (e.g. through thought leadership)
Modernizing brand

Top
Second strategies
Tier Third Tier

21 Base: Enterprise firms (250+ employees) with b2b customer bases in APAC
 Top Marketing Strategies in Selected Verticals

Tech Financial Biz & Prof. Construction & Manufacturing Energy &
Services Services Engineering Utilities

Brand positioning
Modernizing the brand / making more Raising brand
Driving greater share of wallet / thought
relevant awareness
leadership

Demand Segmenting New Brand positioning Product

Environmental /
generation / markets / opportunities in / thought development /
green positioning
converting leads customers new sectors leadership innovation

Competitor New Value marketing Competitor

Raising brand
analysis / opportunities in (aligning value props Employer brand analysis /
awareness
benchmarking new countries with customer needs) benchmarking

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 What we’ve seen today and what it means for b2b brands…
Market is looking for responses from brands that
It’s tough out there are grounded in realism and practicality

Assess the impacts on your customer base

Impacts are highly varied by size,
specifically – Have you asked about their needs
industry, country recently?

B2B brands are broadening their Consider growth opportunities in new markets
horizons when seeking opportunities and with new target audiences.

Determine the relevance of your solutions in a

Acceleration in long-overdue digital
more digital, more direct, more resilience-first
trends for many B2B firms business environment.

Understand CX given expected changes to how

CX remains vital as firms hold onto
b2b customers expect to transact with brands in
existing customers future

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Any Questions?
 Contact us:

Joe Boag
APAC Research Manager
www.b2binternational.sg
E: joe.boag@b2binternational.com
T: +65 6911 7838

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