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Ahead of the Curve a Unique Insiders Perspective on Brands, Opportunities and Online Transformation in China

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Ahead of the Curve a Unique Insiders Perspective on Brands, Opportunities and Online Transformation in China ahead of the curve a unique insiders perspective on brands, opportunities and online transformation in China webinar 09/04/2020 WHITE CAVIAR the strategic side of insight Ahead of the curve On April 9 Beautiful Lives together with White Caviar, our partner in China, organised a webinar to share the main socio-cultural changes caused by COVID-19 and its impact on brands. In the seminar we covered: China’s lockdown and its consequences for daily life The use of progressive smart technology and ai solutions Disruptive online transformation in all thinkable sectors Response of Western versus Chinese brands New market opportunities in the post-corona world This handout provides the slides of the webinar, answers to questions from participants and more! Enjoy the read! 2 About Beautiful Lives We always work closely together with our clients to be ‘Ahead of the Curve’ but even more so these days. How to adapt as a brand to the socio-cultural changes due to the COVID-19 situation? How to deal with changes in behaviour and mentality now that the storm is passing over? In an upcoming study we use our artificial intelligence solution BL*ai to uncover the territory of resilience and how people, brands and categories can bounce back in the new normal. We’ll keep you posted. Our online explorative tools such as BL*Campfire (understanding post corona target audiences) and online BL*Ideation (co-developing insight led propositions that work in the changed reality) can help you stay ahead of the curve. Beautiful Lives is an insight & innovation agency taking a human based approach to innovation and brand strategy challenges of (international) clients, working together towards new opportunities. 3 INSIGHT DRIVEN BRAND AND INNOVATION CONSULTANCY we help brands and businesses propel themselves forward in the market with clear and insight driven strategies we help you understand the needs, tell you where to focus and how to market your brand WHITE and services CAVIAR the strategic side of insight “DISEASES ARE A GREAT TOOL TO MAGNIFY SOCIAL TRENDS AND TENSIONS.” João Rangel de Almeida Member of the epidemic response group at the London based medical charity Welcome Trust content 1 | TANGIBLE SOCIO-POLITICAL IMPACT 2 | SOCIAL DISRUPTIONS 3 | HOW THE WORLD RESPONDED 4 | THE WESTERN CHALLENGE 5 | A RESILIENT NATION 6 | RESPONSES AND OPPORTUNITIES 7 | FAST FORWARD IN TIME tangible socio political impact STRONG CENTRALIZED LEADERSHIP - A FINE BALANCING TO KEEP CALM AND STAY IN HARMONY WHITE CAVIAR the strategic side of insight WHITE CAVIAR CENTRALIZED NATIONAL CRISIS MANAGEMENT Policies are continuously issued and updated in accordance to the evolving situation, impacting all aspects of health, society and economy. • people movement and travel • hygiene standards and sanitization • allocation and distribution of supplies • compliance with set policies • local efforts and support • resume of work and education programs • quarantine regulations for returnees WHITE CAVIAR 8 THE CHINA RESPONSE WEEK 0 WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK 10 WEEK 11 Jan. 20-26 Jan. 27 - Feb. 2 Feb. 3-10 Feb. 10-16 Feb. 17-23 Feb. 24 - Mar. 1 Mar. 2-8 Mar. 9-15 Mar. 16-22 Mar. 23-29 Mar. 30 – Apr. 5 Apr. 6 - 12 23: Wuhan 30: WHO 8: President 9: Death Epidemic stabilizes in China 09: Wall street halts trading; DJI plummets 26: China restricts 04: Qing Ming lock- declares Xi Jinping toll COVID-19 continues to spreads globally 10: President Xi visits Wuhan inbound travel National day of down PHEIC visits surpass 11: WHO declares COVID-19 a pandemic for foreign commemoration Beijing SARS 12: Italy lockdown; US travel ban from EU nationals of and honor of hospitals 13: Top 13: US declares state of emergency, average those who risked and party operating rate in CN enterprises reaches their lives at the treatment officials 95% (excl. Wuhan) frontline centers in Hubei 14: Parks and museums gradually reopen in 07: Wuhan reopens fired CN; Many EU countries declare travel bans and quarantine FIRST CASES OUTSIDE CHINA EMERGE 15 - 07 25 9 . Jan Apr Mar Chinese New Year Extended Work limitations Limited work resumptions Gradual reopening of parks and cultural spots Jan. 24-30 Jan. 31 – Feb. 2 Local Government Policy (reservation only) 76 DAYS Other economic policies introduced at national and local-level WHITE CAVIAR 9 NATIONAL RESPONSE DRIVERS FIT WITH CHINA’S OVERALL PHILOSOPHY OF HARMONIOUS DEVELOPMENT CONTAINMENT & COLLABORATION RESPONSIBILITY & PRIORITIZATION Order of War Policy setting to counter abuse in distribution of medical necessities Emergency measures that impact mobility patterns, supply and distribution chains Revisiting existing regulations for the betterment of society (e.g. wet markets) Adjusted in accordance with the situation Harsh but necessary to reduce spreading and safeguarding containment COVID-19 EMPATHY AND RECOVERY ACCOUNTABILITY (AND DENUNCIATION) Support measures and policies Repercussions against malmanagement of the epidemic Public accountability TRANSPARENCY AND PUBLIC AWARENESS Information sharing related policies and publication of scientific facts Scientific sharing and collaboration to create a win-win globally New subsite sharing China’s virus control experience with the world (2020.03.19) Global MediXchange for fighting COVID-19 (Alibaba Foundation) WHITE CAVIAR 10 social interruptions HOW DAILY LIVES CHANGED AND EVOLVED WHITE CAVIAR the strategic side of insight WHITE CAVIAR ON THE SOCIAL SIDE feelings of despair, sadness, anger, panic, fear strength, encouragement, understanding patriotism, pride, optimism, resilience creativity, openness, cooperation uncertainty, impatience, reasoning compliance, adjustment, support goodwill, solidarity, boredom, hope WHITE CAVIAR 12 MAJOR DISRUPTIONS AFFECTING EVERYONE, WHETHER IT IS SOCIALLY, CULTURALLY, ECONOMICALLY OR POLITICALLY SOCIAL CULTURAL ECONOMICAL POLITICAL Family reunions CNY festival Domestic trade 2 Annual congresses Daily activities Lantern fest Global trade … Work Music concerts Sport event cancellations Valentine’s day Performances Travel Education Sport event cancellations International expo BCL College exams Museum closures Shopping mall closures Holliday arrangements Theatre closures … Travel Temple fairs Shopping mall closures … Wedding registrations … WHITE CAVIAR 13 OBVIOUS IMPACT ON BUSINESSES HUMAN MOBILITY ECONOMIC SUPPLY CHAIN RESOURCES TRAVEL OUTLOOK LOGISTICS Mandatory or self-imposed Domestic travel concerns Difficulties in meeting Global vulnerability to company closures Cross-border travel restrictions contractual obligations outbreaks Staff adjustment and reduction Reduction of orderbooks Sourcing Flexible and remote working Reduced sales and production Capacity arrangements Adjustment of quarterly and Pricing yearly forecasts Cost adaptation Stimulus plans WHITE CAVIAR 14 WHO TAKES THE HEAT AND WHO TAKES A CHANCE Long term LENGTH OF IMPACT DEPENDING ON SPEED OF OUTBREAK CONTROL AUTOMOTIVE INSURANCE INTL. TRAVEL CRUISE & AIRLINES Timeline NEVs IT- SOLUTIONS FOR DOMESTIC REMOTE WORK TRAVEL ONLINE EDUCATION (LIVE) REAL ESTATE AI-TECHNOLOGY FREIGHT & ENTERTAINMENT ONLINE SMART TECH LOGISTICS ENTERTAINMENT FOOD & BEVERAGE RETAIL PHARMACEUTICALS ONLINE / CONTACTLESS (BRICK & MORTAR) PROXIMITY RETAIL Short term DELIVERY SERVICES Impact Negative Positive WHITE CAVIAR 15 how the world responds CONFIRMATION AND CONDEMNATION REVEALING A RISE IN GEOPOLITICAL TENSIONS WHITE CAVIAR the strategic side of insight CONFIRMATION AND CONDEMNATION STIGMAS AROUND THE PROGRESS AND APPLICABILITY OF CHINA’S RESPONSE IN FUTURE OUTBREAKS CONDEMNATION CONFIRMATION of falsehoods and counterproductive of China’s openness and intense efforts to information or measures, put out in media combat the epidemic form WHO, and the Internet (e.g. US stance on China’s International organizations and the wave of openness of scientific cooperation at the unsolicited National solidarity and Munich Conference, publications in voluntary resource re-allocation of many prominent international press or local social firms, communities, brands or individuals media, the rise of ethnic racism in countries to support Wuhan like France, the US …) WHITE CAVIAR 17 COUNTERPRODUCTIVE ACTIONS & DECLARATIONS WHITE CAVIAR 18 OBSERVATIONS MUST BE PLACED IN CONTEXT TO AVOID MISCONCEPTIONS OUT OF CONTEXT IN CONTEXT A WESTERN VIEW A CHINA PERSPECTIVE fear of infection FACEMASK normal, prevention and responsibility panic, emergency, containment LOCKDOWN & CURFEW limiting the risk of spreading secrecy and misinformation INFORMATION ACCESS daily support, informed action planning inhumane, limiting individual freedom (STRICT) POLICIES to the cause and well-being of people no escape, inhumane, evacuations TRAVEL RESTRICTIONS containment, patience WHITE CAVIAR 19 COVID-19 REVEALS GEOPOLITICAL TENSIONS THAT MAY IMPACT (HINDER) THE REBOUND OF SOME INTL. COMPANIES racism OUTBREAK togetherness spying , limitation of freedom BIG DATA harmony, safeguarding envy, private proprietary AI / TECH pride, public interest forced, propaganda NATIONWIDE SUPPORT solidarity, unsolicited strength blame, interfearance CRISIS MANAGEMENT collaboration, fight with love isolation, conditional INTL. SUPPORT engagement, unconditional WHITE CAVIAR 20 COVID-19 TACTICS - HOW THE WORLD’S LEADING ECONOMIES RESPOND TO THE OUTBREAK inaction, ignorance of CDC advise IMPULSE containment, scientific guidance unprepared, scaled down, budget cuts MEDICAL STAFF thousands mobilized, nationwide volunteers political lead, disregard of pandemic warning
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