Even during 2008-09 recession, 18% companies improved revenue

India witnessed one of its worst downturns in the 2008-09 recession, however, 18 per cent companies improved both revenue & profit margins even in that crisis.

According to a BCG research on COVID-19 perspective on India, the COVID-19 crisis has significantly affected the global as well as the Indian economy, however it may also pose some opportunities to differentiate.

It cited the example of the 2008-09 recession in which many companies improved their position.

India witnessed one of its worst downturns in the 2008-09 recession - however, 18 per cent companies improved both revenue & EBIT margin even in that crisis, BCG said.

"It is important to act fast to not only ensure business continuity, but also to navigate through the crisis and emerge strong in the new reality", it said.

The report suggests that companies planning the topline strategy in the near and medium term should re-strategise across sectors and geographies, re-imagine operating models for new reality and re-define customer value proposition.

Different sectors expected to experience differential impact on output growth this year and it will be important to re-focus exposure to most affected sectors. Global trade flow expected to alter in the post COVID-19 world and the report says it will be important to plan in advance and reassess international strategy.

Demand in India expected to vary across regions based on impact & propensity to buy and companies will have to re-prioritize efforts at a micro-market level.

Customer safety concerns have started to reflect in the preference on choice of channel/products, the report said. Companies have started to take measures to rebuild customer confidence and companies are building trust and r Re-engineering operating model to include safety protocols.

Companies will be innovating workflows to cater to changing fulfillment needs and being collaborative by forging new partnerships to enable last mile deliveries. They will also be leveraging digital by exploring E2E digital offering, BCG said.

Economic impact has started to reflect in the customer spend sentiment and companies have started to take measures to stimulate demand.

They are experimenting with new product offerings, re-assessing pricing strategy to manage price perception, protecting existing customer base through re-allocating investments and enhancing digital presence through digital marketing.