Spiralling petrol and diesel prices, higher interest rates, increased mortgage payments and stress, together with widespread retail price hikes, all suggest Australia and Australians are in a black hole. It’s getting deeper and looks as though it could extend some time.
There is little evidence of blue sky in the immediate future. The Reserve Bank does not look inclined to offer relief in the immediate term and the Federal Budget, due in May, will be limited in its capacity to ease the pain, be it with fiscal constraint or additional expenditures and subsidies.
Tariffs on petrol will almost certainly be retained, and further debt will simply fuel the inflation, expanding debt and financial stress being experienced.
Australia’s existing and emerging entrepreneurs do not represent a universal answer.
Understandably, they are being driven by self-interest. Reductions in staff-members, inventories, infrastructure, product ranges and proposed new projects are being planned. Ouch!
And yet we have been through this all before, repeatedly, in 1987, 1992, 2000, 2008 and 2020.
Clearly, the good times are over. Even the lucky country does, will and must endure tough times. Casualties are inevitable and already apparent. There will doubtlessly be more to come.
Participants and beneficiaries of high-tech are already discovering the virtues of what was once a complementary dimension, high-touch. Mass retrenchment notices received by emails and other electronic media platforms can be very lonely and impersonal. Employment prospects within the sector during pending months will be thin on the ground. Working and applying for positions from home are not assured means to successful re-employment.
As the nation emerges from the black hole the business landscape and profile will be very different.
Networks will be smaller, narrower, premise sizes will be trimmed, and product mixes are sure to be reined in. Past and long-established relationships will count for little. Recognised and trusted brand names will disappear from some outlets; house brands will come to the fore. Staff numbers will be restructured and contracted.
Vacant premises will be evident in retail complexes and precincts, big-box centres and warehouse units. Casual leasing will be negotiated to fill the available spaces. In short, temporary, fluid and changing.
Better, astute, experienced and disciplined business owners and managers will enjoy incremental turnovers, just rewards for their teams working harder, more diligently and creatively. It will be noticeable that complaints will be few. Addressing reality requires recognition, acceptance, conviction and self-belief.
Don’t expect any green fields “unicorn” companies in the near future. Indeed, some of the recent members of that select cabal are and will continue to experience contraction rather than exponential, seemingly, endless growth.
MARKETPLACE CHARACTERISTICS
Among the populace will be those who are anxious, apprehensive, lacking confidence, tentative and pensive. A limited number will be bold, exhibiting some bravado and risk tolerant.
In general, communications should focus on articulating some key qualifying factors and ingredients. These will include confirmation of trading hours, the ready onsite or accessibility of available stock, retention of recognised and preferred names, adequate numbers of qualified, experienced and gracious service providers, maintenance facilities and the possible provision of finance, delivery and installation.
These will, at the very least address and redress hesitancy among possible and probable clients, customers and consumers.
It is, indeed, a complex web we weave.
Barry Urquhart
Managing Director
Marketing Focus
M: 041 983 5555
E: urquhart@marketingfocus.net.au
L: (08) 9525 3355