Downturn to accelerate digitalization process

Hong Kong - The tough trading environment will continue over the next 18 months disrupting every business and every sector in the market around the world leading to a fundamental digital transformation, says Nigel Morris CEO for Isobar.

Morris (pictured) outlined four broad marketing trends during the economic downturn. They are the transformation of digital technology; the creation of demanding activist consumers who will have tools available to make and break brands; sustainability where brands have a role to play in being more responsible to society and the environment and the emergence of a new model of globalisation also known as world sourcing causing a significant rebalancing of economic power and the growth of Asia.

"With digital, the world is more interconnected, interdependent and transparent," he said.

Morris adds that online is where the majority of business will be done, which leads to more efficient and effective business models. This includes the customer relationship from contact, service, transaction to fulfilment that will all be web enabled.

He adds, "Companies that get it right will have a significant advantage in the market."

Morris says that digital is going to be the key platform to manage business on both vertical and horizontal levels and there will be a shift from advertising marketing effectiveness to business effectiveness.

He observes that the agency model has declined from an advisory role to one of management consultancies.

Morris says that the advertising business have to be much more business focused to drive business performance.

On the topic of sustainability, he says it is not just about being green or environmentally friendly but sustainability is about being more efficient with resources we have as a planet, as a country and as a company.

Consumers are demanding that goods produced are sustainable from being packaged correctly to being efficiently distributed and marketed.

While green marketing will increase the attractiveness of their brands, the reality may not match the communications. In a digital world, activist consumers will easily trace the authencity of the messages.

Therefore, he says brands needs to put in place practices and goods that are sustainable and make sure customers understand the added benefits.

Morris says this has a genuine impact on the competitiveness of business in many countries in Europe and expects Asia to lead the world in five years due to the lack of legacy and a possible leapfrog. 

He adds there is more social cohesion in Asia in terms of community and identity. The interdependence will drive brands to behave more responsibly to make a difference in being more efficient with resources.

Morris sums up his outlook of the current economic situation saying,"The recession will be difficult for many brands but amazing opportunity for companies that genuinely innovate will be the ones that will win."