Smart Business Consultancy in Al Quoz 3, Sheikh Zayed Rd, Dubai, UAE
RXT Management was founded because we understood and acknowledged the complexities of setting up a business in the UAE, especially as a foreign entrepreneur. The business set up process in the region is far from rocket science, however, without the added knowledge and experience, you may find yourself stuck in red tapes.
F07, Level One, The Curve Building, Al Quoz 3, Sheikh Zayed Rd, Dubai, UAE
When the pandemic began, most businesses were obliged to move their operations online. Some businesses had already incorporated technology in their workflow while others opted to remain ‘old-school’ – life before the internet. The pandemic had various effects on businesses in terms of technology, causing some businesses to bloom while others closed down.
Changes in Buying Habits
The pandemic was the catalyst to an increasingly online-based consumer; whether it’s shopping, services, meetings or academic classes, it seems people have adapted well to the current circumstances by shifting online. Businesses that focused their energy on online marketing and selling saw an increase in sales whereas those who chose poor online strategies were forced to close down. Ultimately, despite all businesses becoming a part of the e-commerce community, sales were not enough to make up for the sudden drop in the economy due to the pandemic.
Pre-pandemic, the availability of an online platform for a business was not crucial but now it has become an absolute necessity. The current situation raised the share of the e-commerce retail trade from 14% in 2019 to almost 17% in 2020.
Due to social distancing and the rising fear of indoor spaces, consumers have chosen to shop online through their favourite stores from the comfort of their own homes. This was the second motivator for businesses to become digital. For established businesses with a loyal customer base, going digital was the only missing piece to adjust to the pandemic guidelines. However, this was not the case for small businesses and start-ups. Going digital was not the issue, in fact, the problem now lies with maintaining the profits they once had before the pandemic. The increasing costs of delivery, returns, and digital marketing became a need and thus, decreased their profit margins drastically.
How It Affected Existing Businesses
The crossover of businesses to the digital world was a plus for all web hosting platforms and marketing agencies for a lot of businesses were unaware of how to become digital and market digitally. It is also important to note that at the beginning of the pandemic, there was an increase in demand for simple necessities like face masks and toilet panic (albeit all due to panic buying) and this resulted in a very rapid increase of online listings of daily products.
It is important to highlight that the pandemic affected businesses as much as consumers in terms of changes in the needs and demands. The pandemic’s force for a digital shift is not only applicable during the pandemic, but this will also have long term effects on businesses. The need for physical offices and spaces may become less of a norm now and any need for physical meetings will most likely be done via virtual meetings.
In conclusion, businesses of all types have been directly affected by the pandemic, and it is true that the drop in the economy is substantial. However, the digital transformation of businesses has given most businesses a chance to bloom rather than close down due to the pandemic.