The picture below is an example of what we were taught till COVID19- The pandemic, was no where in the world.
We were always told everywhere in School, colleges in the workplace to network, network and network. We used to visit conferences, offsite, Business lunches' and everything in our capabilities to know and learn about people, but the scenario has completely changed in this current situation.
Now, we are told to maintain social distance from people, meet only when necessary. Use of masks & sanitisers has become an essential part of our lives. The roads, the malls, the theatres, the airport, the metro & all the other public places wear a deserted look.
It is always said that humans are social animal, but this animal today has been left alone, with limited resources.
Focus Point: We need to focus on achieving a single target than chasing many at one time- The times are different now, we do not have the liberty to do everything together. We have been put under a constraint situation, which will not allow us to break the rules and multitask, but right now focusing on a single target is more important than having multiple options. Achieving a single target is better than not achieving anything. "It's like something is better than nothing."
Connecting: Being connected to the stakeholders is of utmost importance, in a Business, where now boundaries have been drawn for physical movements. We should use the technology to communicate with our stakeholders for ex- they can be our retailers, their salesman, and others. We should initiate a dialogue with ourselves and upraise each other of developments of the trade, also connect with them emotionally. Viz asking them of any help that they may require.
Motivation: We need to motivate people in our Business as well in the community, this will give us a sense of belonging and responsibility. Business is always not just profit if the community is not happy, how can a business prosper. This is one point every Business, should keep in mind and work on making the community a better place.
Employees: One of the biggest assets of an organisation is the people who work for. Lot of companies we see nowadays like Wipro, HCL, Uber, Google are more of an employee-centric company, rather than a customer. The growth that these companies have been posting is way beyond imagination. The core value is to keep your employees happy and the company will prosper through the thick and thin. We need to understand the needs of an employee and have to fill that so that the employee doesn't feel or need to approach anyone else.
Investment: Securing one's Investment in this scenario should also be a priority. Though the time is not favourable, we need to understand that having a hole in our pocket can lead to a total collapse of the Business, hence it is important to realize the amount invested in the market by swiftly asking the partner. The partner should start the rotation of Business so that the bottleneck is not created.
Expenses: This is one of the factors a Business should seriously take care of. The unwanted expenditure needs to cut down. Today's saving in expenditure will be tomorrow's capital. This will help the Business in the long run.
These are common to all the Business across categories barring few like the Essentials and Items of need. Food, Medicine etc.
The most hit industry today is the Hospitality Industry, the fate of millions of people are hanging in dismay, will these properties will open for now or the airline will operate at full strength or the BnB will see another sunrise or not. The questions are endless and the answers are none. The uncertainty doesn't seem to be ending very soon. As the no. of confirmed cases rising day by day and Govt. relaxing the lockdown rules, the sentiments for the return of people to this sector still looms. What has now the case become is people lodges at these hotels are mostly the people waiting to return to their country or people who have opted for the paid Quarantine as per the extant Govt. rules. This not only has brought difficulty to the sector, the once-booming sector is now at the verge of collapse.
As per reports, the hospitality sector would be posting a loss of somewhere between $ 6bn to -$14bn( Report as per 'the business Hindu line') also if we go by the figures posted by the same newspaper, it may take almost 24-36 months for the industry to recover. The additional cost of maintaining the properties through this pandemic also is a burden on the property owner. The branded property may survive through the situation, but the burnt will be borne by the smaller and the so-called lodges and guesthouses. There are places other than our metro cities, where there are industry and another source of income, but there are places like Darjeeling, Parts of Sikkim, Himachal Pradesh, which are dependent on tourism. By tourism, I do not mean the Hotel industry, its a butterfly effect, which will push millions of people beyond the poverty line.
Now, the AVIATION Industry, This is one of the sectors, which has always been a controversial one. The "CAPA- Centre for aviation" according to the ibef.org, it says that India's aviation sector is seeing a surge year on year, but the ground reality is completely different. The passenger traffic grew by almost 13%-15% against LY considering both the international and domestic traveller, at the same the cargo movements are also growing at a steady rate of 7%-8%, but the same has seen a huge decline in the month of April-2020 due to the COVID19. Having said, the prediction of Indian Skies being the 3rd largest in the world by 2024, it truly shows a lot of opportunity for the industry. The crude oil prices were down to an all-time low, where it was trading in negative. Here it is to understand that, all that looks good in the paper is no reality. The latest example of Jet Airways, which served the country for over 25 years and was revered to be one of the finest products to come out in this sector, died of fund issues in 2019. There are many examples of full serviced airlines dying before the maturity age, the classic example can be of UB group's Kingfisher Airlines, which gave the true meaning of a 5 start flying experience, but that also could not survive the turf, to name a few airlines which started after that or at the same time like the non scheduled Air Pegasus, MDLR, Air Costa to name a few.
The reality is every airline that is operating the country is bleeding and bleeding profusely. The Indian Maharaja has a debt of almost Rs.60,000 crores, the other airlines they are also trying hard to keep them going barring some, which have a strong fundamental like the Air Asia India & Vistara backed by the strong TATA group along with Singapore Airlines, The low-cost carrier GoAir backed by the Wadia Group, The Spice Jet backed by dynamic CMD Mr Ajay Singh and the market leader today Indigo by Inerglobe. The only reason these are a no-frills airline, while Spicejet has ventured into the Business Class mode after acquiring some of the fleets from Jet Airways, even GoAir has Business Class in some of its fleet. So what is the main reason for the industry having so much potential not being able to perform to the limits?
There can be no. of classification for the bleeding. The major being the ATF and the State and Central Govt. infused taxes on them, The airport charges and above all in case of Air India, it is the manpower which has made the Airline sick. These are known factors, but the one biggest factor now being the cost of airline tickets which are being capped and the dynamic pricing of the same. The fierce competition between the airlines to woo flyers with an economic ticket pricing is one of the challenges that they face but what is the solution to all of these bring the sector back on profitability, so that the flyers get the best service out of these companies? The govt has to its part by allowing them subsidy on ATF, the airlines have to price the fare accordingly. The economies of scale can be an option. New routes, new infrastructure. New Developments.
The 3rd and the last one in my mind is the ENTERTAINMENT industry, with the surge in OTT platforms, the so-called crowd pullers are being reduced anyways, but there are fanatics like me, who wouldn't want to miss the big-screen entertainment for anything. But off late the content has been of the most important factor. In the current scenario, the Bollywood's crowd pullers are the star-studded theme of the film's being released. If we talk about the content, they fare almost 'zero', films like KALANK generate hundreds of crores in the collection, but content-driven movies like OMERTA & MASAAN do not even get screens to have a proper release. The media and entertainment industry is valued at almost Rs.307,000/- crores by the end of 2024 and the CAGR is of 13%-14%, so what does implies? This means that we are growing at a good pace and consuming content, the data pertains to the traditional form of media and entertainment. According to one report from KPMG, the growth of OTT platforms in India by the year 2023 will be more than 45% YOY, the value would stand to roughly Rs.138 Bn, another consulting firm E&Y predicts the total user base to cross 500mn subscriber in 2020, which will make India, the second-largest market after the US. The reason that the TV viewing experience is going down and a major chunk of the population is shifting base, to rightly call the millennials to shift to the device mode of the viewing experience is the content. The kind of content that the OTT platforms are investing in are not only luring the new talents, but the big names of the industry are also attaching themselves with the mode. For ex Excel Entertainment, Redchilles, The clean slate production and many more. It is will not be wrong to say that the future of entertainment lies on the devices rather than the big screens or the idiot box and the reason being the uncensored content. The popularity of series like Mirzapur, The sacred games, The test case, ASUR now in this scenario where the malls and multiplexes are closed and there return to business doesn't seem too early, the producers whose inventory is ready for the showcase are now turning their heads towards the OTT direct release, the major development being of the most awaited movies GULABO SITABO looking for a direct release certainly in the coming times the power of OTT will be nothing less than the Avengers'
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