STORIES AND ANALYSIS
NEW ECONOMIC PARADIGM IS AROUND THE CORNER? BY VUSAL GAMBAROV, PHD
In last few days we have two types of opinion leaders. It`s good that people started to obey doctors more, and take care of their hygiene. In the other hand new wave of “Conspiracy theorists” are among top selling. Unfortunately! Still… I`ll try to avoid 2 things in this piece: (1) Conspiracy theories and (2) Act like medical doctor. For the moment, we know too little about the virus. That`s why some political experts compare the situation with World War. And enemy is invisible.
This Nano millimetric enemy is not destroying only bodies.
Maybe it has started from lungs, but currently it is in our brains and overwhelming sanity. After killing some thousands, it lets in fear and trauma millions. And more than that, it collapses economic realities.
New Economic Paradigm is Around the Corner?
If the hysteria will last long all Marketing and Management books will be written from the scratch.
Marketing of 21st century will not be as it was predicted before this outbreak. Does it sound crazy or scary? Than follow the news of interrupting productions and closing businesses.
By Vusal GAMBAROV, PHD
Everyone is talking about her, everyone is afraid of her… COVID-19 phenomenon is changing World order and our daily routines. Highly probably conditions will be different than now (when I write down these lines) and now (when you read these lines). Even YouTube channels talking about Novel Coronavirus using phrase “Information I give is effective as this moment” and giving the date to not deceive viewers. But mid-March or mid-April, it seems like “New Economic Paradigm” discussions will be actual throughout a year.
In average scenario world will slow down for 2- or 3-months period and then it can accelerate. Even in this scenario some changing consumer habits will stay with us. As some businesses will not be able to recover overall world spending wallet will drop. Both financial shrinkage and habitual changes will affect leisure time industries. Restaurants, coffee shops, hotels, airlines etc. can be affected in long term. One of main economical drivers of almost every country – Real estate sector is in real danger as well. Even with current speed of digitalization world sooner or later seemed like movie Ready Player One. But Covid-19 insanity pushing us more virtual. Work from home, shop online, order food from apps, communicate friends virtually. Even sexuality encouraged to be virtualized. This is an outbreak! Outbreak of digital world.
Situation needs very attentive and comprehensive analysis. In the pollution of information, it`s very hard to detect what is right, what is not. World needs to take care of issue first of all medically.
People are dying and living in fear of invisible enemy. After overcoming it`s spread we will need delicate psychological care for people. One term from Consumer behavior literature matters in this point a lot: Consumer confidence. No one is confident about their incomes in near future. Governments around the world trying calm dawn this fear of their population by announcing financial aid packages. But even National treasures cannot sustain long term dawnfalls. Then... We go to new economic paradigm.
Current economic paradigm which is based mainly on consumer 25 culture is disappearing. In the building process of new one, keep safe and healty! Yourself and your businesses
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