Most people strive to attain financial independence — the moment when they are no longer concerned about how they will pay their bills, rent, or other basic amenities because they are already taken care of. Passive income, on the other hand, makes this dream a reality. Andreas Küffner, a German Entrepreneur, believes that passive income is the secret to true financial independence. Here, he talks about the major changes to the business industry due to COVID-19 and how the industry will change in the Post-COVID Era.
Local Supply Chains will become the backbone of the economy
With the pandemic, it has become obvious that centralized supply chains very nearly kill the whole system. Disruption in supply from centralized locations can be seen country-wide. Therefore, as a first step, supply chains will be set up much more locally than ever before to ensure a steady supply of products even in the worst of times.
Worldwide, governments will be forced to implement new regulations
There has been a clear difficulty in setting up laws in the rush of the pandemic. But now, since the situation has come a little under control, governments worldwide need to sit down and figure out new laws to implement to keep their supply chain untarnished. It implies rules and regulations regarding distribution in cities, truck queues, customs clearances, increased autonomous driving, smarter infrastructure, and other areas. Since air and ocean routes are more easily affected by disruptions, it is necessary to assist rail and road routes to meet the anticipated demands while ensuring that the existing infrastructure does not become overburdened.
Automation is the key to the future
Simply put, automated services cannot contract COVID-19. Or any other virus! The risk of exposure means that businesses and facilities will be looking for more non-exposure options. Automation will easily see a rise in the coming times.
New plans for businesses
The old way of doing business is probably dead. With less contact and more exposure, it seems that businesses will have to come up with new ways to display their products to consumers without risking or spreading infection. “Stressful times force people to become creative about things. This pandemic has certainly forced people to become more creative and approachable. Therefore, it is plausible that entrepreneurs seek other plans like VR events, digital showrooms, etc. to display their business. This method even allows them to personalize their business according to consumer needs,” says Küffner.
Essential Goods will see more focus against Non-Essential Goods
It is predicted that the retail industry will suffer the consequences of the pandemic for some years to come; it is also notable that there was a stark rise in sales for essential goods, compared to non-essential goods, the sales of which were so low that retail shops had to close. Although retailers are now taking stock of this scenario and acting accordingly, it is obvious that essential items will be the only mainstay for business for a while.
Online Sales are on the rise
Consumers’ consumption patterns are changing as a result of staying at home. Consumers are now wising up to the ease of online shopping for the first time, and their journey is shifting towards an online-only model. The benefits of online shopping during the pandemic are becoming even clearer. If they haven’t already done so, retailers should get ready to shift course by making their online stores as streamlined and user-friendly as possible. There are several methods to do this, which can be researched thoroughly and with ease to engage with users.
Physical spaces for retails become more casual
“The pandemic saw a major drop in the efficiency and value of physical retail stores. Many major brands suffered tremendous losses and had to eventually shut down when the lockdown hit. The situation is not likely to become any better. There is a very good chance that physical retail stores are going to lose focus in the coming year with a majority of the consumers opting for online sales. Still, it is too early to declare the death of the concept of retail stores. Even if the retail store loses focus, it is still possible that it will become something of an experience, existing only to serve customers who prefer it,” says Andreas Küffner.
Banking and transaction will turn digital
With everything going digital, it is not a surprise that banking is also turning digital. Traditional banks are strengthening their collaborations with financial technology (Fintech) services to bridge the gap between consumers and small businesses. Small businesses are likely to move towards Fintech services to obtain loans easily rather than struggle with traditional setups. Banks will therefore reach out for collaboration with Fintech services to help small business owners.