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Navigating Covid-19 a Guide for Brands to Survive and Thrive

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Navigating Covid-19 a Guide for Brands to Survive and Thrive NAVIGATING COVID-19 A GUIDE FOR BRANDS TO SURVIVE AND THRIVE Dentsu Aegis Network Hong Kong March 2020 In a few short months, COVID-19 has ravaged global economies and panicked entire populations. For Hong Kong, the disease has amplified an already unprecedented deterioration of its economy that began with the social unrest of 2019. Public health and safety has never been more of a significant concern, with entire cities quarantined and travel restrictions implemented the world over. Even places of work and education have closed to stem infection. The economic and social impact is shocking and will certainly last longer than with SARS. The future of COVID-19 is uncertain, so it is essential that brands understand the facts of today, learn from the past and implement strategies now to survive. Dentsu Aegis Network Hong Kong created this indispensable guide to provide insights and guidance for you to successfully navigate COVID-19. We hope you find it helpful. Regards, Dentsu Aegis Network Hong Kong DENTSU AEGIS NETWORK 2 CONTENTS • The Economy vs. The Epidemic 04 Transform your brand experience today and be prepared for the future. • Industry and Business Insights 16 Define your strategy based on your industry and business position. • Brand and Marketing Insights 27 Consumer-driven strategies and actions that help your business and brand thrive and survive. DENTSU AEGIS NETWORK 3 THE ECONOMY VS. THE EPIDEMIC The two will forever change the consumer landscape of Hong Kong. Transform your brand experience today and be prepared for the future. DENTSU AEGIS NETWORK 4 COVID-19 – AN EPIDEMIC ON THE RISE Jan 31, 2020 Feb 6, 2020 Feb 8, 2020 Feb 11, 2020 WHO announce PHEIC Dec 31, 2019 Jiangxi Province lockdown while Number of deaths exceeded WHO renamed 2019-nCoV to COVID-19 Tianjin City restricted entry SARS Shenzhen 72 countries implemented travel bans to WHO received alert notification semi-lockdown China GLOBAL Jan 7, 2020 Jan 29, 2020 2019-nCoV named by WHO First US citizens evacuated Feb 9, 2020 Corporations shutdown for 1 more week Feb 5, 2020 Feb 7, 2020 CHINA Dec 30, 2019 Liaoning Province lockdown, Death of Dr. Li Dr Li and 7 others received the warning affected 50Million people. Hubei Province and Anhui Casinos in Macau shut down for Province lockdown Feb 10, 2020 2 weeks Chongqing restricts entry Beijing and Shanghai restricted entry, Jan 29, 2020 4 municipality cities impacted. CNN: Postponed working day until Feb 10 over 80 cities lockdown, 400 Million people under quarantine Dec 1, 2019 Jan 9, 2020 Jan 23, 2020 First confirmed case First death case Wuhan City lockdown Jan 26, 2020 Jan 22, 2020 Except for HK residents, Feb 4, 2020 Feb 8, 2020 Feb 9, 2020 Feb 15, 2020 First confirmed case all visitors that have been First death in the city World Dream cruise ship Protests against quarantine camp Protests against the listing in Hong Kong to Hubei Province are now Completes quarantine period site location in multiple districts of designated flu clinics in denied entry into the city multiple districts Jan 25, 2020 Feb 9, 2020 Feb 12, 2020 HK Government declares highest warning 9 new recorded cases linked Nurses general union takes industrial tier for outbreak in Wuhan to the “Hot Pot Family” cluster action to demand better protective equipment for nurses Jan 30, 2020 Feb 5, 2020 HK Government suspends 4 land border crossings to mainland All visitors from the Mainland are subject Mainland flights reduced by 50% to 14 days of mandatory self-quarantine Feb 12, 2020 City’s first recovered patient discharged from hospital Feb 3, 2020 Feb 5, 2020 Feb 11, 2020 HK hospital workers go on strike to demand full closure of Mainland border. Panic-buying sees thousands queue Residents evacuated from Tsing Yi HK HK Government suspends all but 3 ports for inbound travel from Mainland for surgical masks public housing estate block with 2 consecutively diagnosed cases DENTSU AEGIS NETWORK UpdatedUpdated Time: Time: 2020.03.04 2020.02.17 11:00am14:00 55 IN LATE FEBRUARY, SOCIAL UNREST BEGAN TO RESURRECT HK Feb 24, 2020 HK Government issues Red Feb 17, 2020 Feb 20, 2020 Feb 22, 2020 Outbound Travel Alert on Korea Number of confirmed cases CDC issues travel guidelines HK Government confirms 68 cases of infected HK Feb 27, 2020 reaches 60 For Hong Kong residents Aboard the Diamond Princess cruise ship Manufacturer Gilead to introduce Remdesivir, Feb 29, 2020 medicine for Covid-19, to Hong Kong by First anti-government protest mid-March the earliest. turned violent in Prince Edward Feb 25, 2020 since the Covid-19 outbreak began Education Bureau announces class resumption on April 20 the earliest Feb 21, 2020 LegCo passes bill of 30 Billion Feb 23, 2020 dollars for anti-epidemic fund Centre for Health Protection Feb 19, 2020 announces multiple confirmed cases linked to a Buddhist hall in North Point District Second death in the city Feb 26, 2020 Feb 28, 2020 Department of Health publishes online list HK Government announces arrangements Feb 19, 2020 of buildings where mandatorily self-quarantined for chartered flights to return HK residents Unemployment rate rises to 3,4%, highest since 2017 residents are staying stranded in Wuhan DENTSU AEGIS NETWORK Updated Time: 2020.03.04 14:00 6 THE NEW NORM IS HERE. KEEP UP OR CATCH UP. The perpetual good times of Hong Kong’s past decades is over. Recommendations: The new norm is a rapidly changing environment that brands must tackle headfirst with agility or risk having to re-win the Transform. Be consumer-centric and focus on hearts and minds of an ever-shifting consumer base. experience by reimagining and redesigning how your brand remains connected with reluctant consumers. THE NEW NORM BEGAN 6 MONTHS AGO The trickle of social unrest that began in the latter part of 2019 eventually turned into a flood of disruption that hit both the Q3 2019 Q1 2020 Q2 2020 Q3 2020 retail and tourism-related industries hard. TIMELINE ENTER COVID-19 An already weakened economy is further impacted, turning SOCIAL UNREST toward negative territory for the first time in decades. Its recovery is expected to be a tough process. COVID-19 POST RECOVERY OUTBREAK 2.9% ↓25% SOCIETAL RECOVERY Q4 GDP CONTRACTION RETAIL SALES DROPPED EPIDEMIC SUPRESS (BY QUARTER) (BY QUARTER) DENTSU AEGIS NETWORK Source: Census and Statistic Department, Hong Kong 2020 7 THE REAL WORLD IS REAL SCARY COVID-19 DRIVES DIGITAL EXPERIENCES COVID-19 is a highly infectious virus with a list of DISEASE FATALITY RATE RO* INCUBATION PERIOD possible symptoms. When everyone around you is a potential carrier and everything you touch could be COVID-19 2% 2.2-3.77 2-14 days contaminated, the physical world becomes a dangerous place. SARS 9.50% 1.85 2-7 days MERS 36% 3.5-6 Many found solace online, meaning customers no FLU 0.50% 0.9-2.1 longer come to your physical stores. *R0: The expected transmission rate directly generated by 1 individual. 1 COVID-19 carrier can spread the infection to 2 additional people. Recommendations: COVID-19 COVID-19 COVID-19 Post Outbreak Sustaining Recovery Recovery Digital experiences are no longer just a convenience. You must refine the Contactless Experience so After staying at home homebound consumers can interact with your brand Home confinement Epidemic slows down. TAs The epidemic is over. for months, TAs begin return to work/school, but online. gives TV, social, TA recovers but is still attending events. news, video activities are limited to cautious and will not go However, social unrest entertainment and necessities such as offices, out unless necessary. may continue to Plan for the unexpected. Integrate design experience games a boost. homes, supermarkets and impact the TA’s with COVID-19 scenario planning to ensure your transportation. mobility. brand can respond, remediate and recover fast. DENTSU AEGIS NETWORK Sources: University of Minnesota, Centre For Infectious Disease Research and Policy New England Journal of Medicine – COVID 19 Navigating the Unchartered, Feb 2020 8 THE PHYSICAL IMPACT SO FAR As of February 27, 2020, the number of confirmed cases: GLOBALLY MAINLAND CHINA HONG KONG 109,270 80,735 114 The number of new infections in China remains 74% of total global confirmed cases. 112 people hospitalized with 2 fatalities. steady. However, new areas such as Iran, Italy, The number of new confirmed cases is South Korea and Japan's increase in outbreaks expected to increase. Experts estimate become a topic of concern. peak outbreak to occur in March. DENTSU AEGIS NETWORK Source: Worldometers.com, Hong Kong Centre of Health and Protection 2020 Time as of 9th March 2020 9 HONG KONGERS ARE FEARFUL. FEEL THEIR PAIN, THEN BE THE CURE. Recommendations: Now is the time for brands to fill a void. By providing tools, services, information and convenience to ease the public's pain points and needs, your brand will provide them much needed confidence. Something they won't soon forget. FEAR OF CONTRACTING THE VIRUS up to 72% VS 61% 11% Female Male Of HK adult population were Affected by depression in 2019 67% 82% VS 44% have expressed fears Aged 18-24 Aged 55+ 53% over contracting COVID-19 drop 74% VS 63% Public Sentiment compared to 2019 With kids <18 Without kids DENTSU AEGIS NETWORK DENTSU AEGIS NETWORK Source: YouGovHK (Feb 12, 2020) - Results based on 2,081 Hong Kongers surveyed by YouGov OmnibusSources: Hong Kong Public Opinion Research Institute 10 NEW HEALTH MEASURES, NEW MARKETING CHALLENGES Estimated WFH Percentage SCHOOL SUSPENSION AND WORK FROM HOME BEGAN AND IS EXPECTED TO CONTINUE TILL THE 60% END OF MARCH.
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