There is a lot of debate in the media & from economists as to whether New Zealand is currently experiencing a recession or about to experience a recession. Our view is this not overly relevant, what is far more relevant is the squeeze on discretionary spend caused by rising interest rates & inflation.
Based on the forecast impact to New Zealand’s GDP, the recessionary impacts are likely to be felt for some time to come. The latest economic data from ASB Bank anticipates GDP to fall by around 2 per cent by early 2024, with a recession now expected to stretch into the new year. This is likely to have far-reaching consequences for businesses across the country.
This year is crucial for businesses as it will likely determine the success and failure of many businesses, not just for the next year, but for almost the next decade.
Usually, the threat of recession causes businesses to take a cautious approach, first of which is to reduce or eliminate their marketing budget. However, history shows it is quite the opposite – increasing marketing investment, and especially the effectiveness of that investment, during a recessionary period will often see smart businesses increase their market share against their main competitors. This is because competition decreases in the marketing space, driving down cost & increasing effectiveness, as most competitors start to pull back.
Marketing plays a critical role in driving sales and building brand awareness, both of which are essential for businesses to survive and thrive during a recession. By maintaining a strong marketing presence, businesses can keep their products and services top of mind with customers and differentiate themselves from competitors. Grow NZ Business can help you build a successful marketing strategy for your business to succeed during these challenging times.
This is generally because after recession, there will an expansionary period, and those businesses that have been present for the consumers are more likely to succeed. The businesses that decide to pull back will often find that the market has changed drastically in their absence, and that consumers have now moved on to other brands. Ultimately, the key to successful marketing during a recession is to remain focused on the needs and preferences of customers. By listening to customers and adapting marketing strategies accordingly, businesses can continue to drive sales and build brand loyalty, even in challenging economic times.Grow NZ Business can help you to optimise the marketing for your business at a low-cost using our Marketing Intern Programme.
We also have a bonus eBook for our Grow NZ Business Members this month! Our Digital Marketing Strategy Guide is the perfect guide to help your business out this recession. It is the ultimate tutorial on how to massively increase traffic and sales to any website with digital marketing. Click here to log into your Member’s Portal to access this eBook for free.
Another great investment for your eCommerce businesses is to sign up to Buy Kiwi. Buy Kiwi can give your business a platform to showcase your products and/or services to gain awareness, and drive more sales.Buy Kiwi is a low risk, low effort & low cost eCommerce Market Place built for, and only for, kiwi-owned businesses. So, why wait? Join Buy Kiwi now to to start growing your business profitably!
The lesson here is that businesses need to do the opposite to others, and make more strategic investments, marketing being a big one! This will place your brand in the front and centre of the customer’s minds when they are ready to make a purchase.These are challenging times for most businesses, but it is important to remember that you are not alone! Taking the right steps this year will ensure that your business is set for success in the coming years.