How to sail through recession?

(Written on 30^th July, 2008)

We all know more or less to Ancash the bull run; up market trends in any industry, but when it comes to recession, it is a bit harder to push the escalator. The reason is very simple, running against the gravity is the matter of excitement to all of us but drawn towards the centre point of the gravity is always a matter of disgrace to all! Everyone loves to high rise the Kite but it absolutely dislikes letting it nosedive!

But there is not so panicking at all, only we need some patience and introspection. May be it is difficult initially but not impossible at all. As we all know that heydays are not for ever. In fact we can utilize these days of recession as the time for better preparation and opportunity to march towards new directions also.

Just look at the oil crises world over, it brought in recession in the entire global market, in almost every sector. From capital goods, consumer durables, FMCG to tourism due to its chain reaction in the form of input cost rise. Literally each and every country; whether third world or the developed, all took measures to reduce energy consumption and energy saving through different measures. The effects of these measures showed in the Oil markets too. We find that these days the Oil market is coming down towards normalcy. There are other reasons for that also, but I would only like to consider this one point which co-relates the subject matter!

Here is the clear case that the recessions are sometime result of excess demand, soaring prices of fuels and essentials, which are may be the reasons of early normalcy too. The phenomenon which pushes to slowdown, lessens consumption of certain goods sometime become growth booster in the tail ender also.

Even when we look at the human life, during different seasons our body behaves in different manners. We consume less food during the monsoon, but as soon as the monsoon is over and the winter knocks the door, our level of food consumption gets higher. The winter triggers demand for food, again in summer the demand for food gets slow and steady for some time and become very less during the monsoon. This process of demand and recessions is constant, only we need to learn to be adapting to changes.

Few days back one of my client said that this “Diwali” (Indian New Year) the season will be weak, there will be slake in the demand of Wall Paint due to failed monsoon. He said he was in no mood to spend on brand promotion. But I simply told not to panic; instead I gave him the example of Vegetable vendors in the local roadside vegetable markets. In the evening phase of trading, as the Sunset nears, these vegetable vendors start lowering the prices of different vegetables and also start shouting more and repeatedly the prices of the remaining vegetables in their puller carts. What happens is, there are some poor people who look for the cheaper prices of vegetables during dusk to buy them with whatever little money they have, and there are some other type of buyers who deliberately go to vegetables market in the evening to buy them at lower price in bulk! This is how I suggested my client the possibilities of market, the prospective customer in the recession also! The inspiration is around us, only thing is to take note of it and imbibe it in our practice for advantage. The example is only to show you reality, there is always high demand high prize mechanism and law prize “shouting high” mechanism to keep ball rolling according to my way of sailing through recession.

This is the time in fact to use your intellect optimally and get benefited marginally.

So kiss recession good bye and hold the sales counters tight; customers are waiting, entertain them!

Bakul Valambhiya.

FreemanKPO Consultants

url: www.freemankpo.com