Adversity: A Time for Transformation
The global economy is losing steam. As Germany and Hong Kong edge closer to recession and China’s slowdown deepens, many of our clients have added “downturn readiness” to their 2020 agendas.
There’s no consensus over whether, when, or how hard the storm will hit – especially in China. Its GDP, industrial output, and retail spending are indeed cooling, but this seems less alarming when taken in context: its economy is more than twice the size it was when it last recorded double digit growth, the quality of industrial expansion has improved, and – by global standards – retail here is still booming (see infographics below).
We asked China-based business leaders how concerned they are. Our executive survey, which gathered an overwhelming number of responses (100) from MDs, GMs and C-levels of international mid-sized companies, revealed that less than half of them are actively preparing for a downturn.
But as a trusted advisor we see it as our responsibility to help businesses prepare for the worst – even when they’re planning for the best. Which is why we came up with a transformation-focused approach towards downturn readiness. Regardless of what happens, we see adversity as an opportunity to “get the house in order”, create lasting transformation, and rethink your Greater China growth strategy. Rather than focusing squarely on costs, our approach addresses three main goals:
- Gearing up: protecting your business against risks and disruptions.
- Getting fit: optimising costs by transforming your setup and processes.
- Growing selectively: refocusing your strategy on future growth engines.
In our four decades of advising businesses in Greater China, we have helped clients sail through adversity before. We have learnt that tough times spark new ideas and accelerate overdue changes within companies. We’re excited to see how organisations like yours will evolve this time around and hope to be part of that change.
Infographic: Downturn Facts