News • 25.08.2021

Long-term changes in consumer demand

Consequences of the Covid-19 pandemic on SMEs

Woman wearing a mask sits in front of stacked coins and holds a downwards...
Source: PantherMedia/Anna Grigorjeva

As a result of changing consumer behaviour, around one-third of small and medium-sized enterprises (SMEs) in Germany expect demand for their most important products and services to continue to be affected after the crisis. 

According to an analysis carried out by KfW Research, 17% of SMEs (around 650,000 enterprises) are expecting a permanent decrease in demand. This is primarily made up of companies in the retail sector (20%) and in the manufacturing sector (19%). The construction industry is considerably more optimistic, with only around 9% of firms expecting demand to weaken.

The analysis shows that enterprises that are at present particularly affected by the restrictions are more likely to have a pessimistic outlook. More than half of them expect a long-term drop in demand. At companies that are affected only slightly or not at all by the restrictions, the share is only 4%.

However, SME expectations about post-coronavirus demand are not all negative. Around 14% of SMEs expect stronger demand for their products and services after the crisis. Even among those companies that see an existential threat in the coronavirus restrictions, around 8% assume that demand will increase after the coronavirus pandemic. Roughly four out of ten SMEs expect demand for their products to stabilise around pre-crisis levels; almost a third expect no change.

Dr Fritzi Köhler-Geib, KfW’s Chief Economist, comments on the results of the survey: “The coronavirus crisis could go down in history as a catalyst for change in the medium-sized enterprise sector. For some SMEs, the changes in consumer behaviour due to the pandemic will lead to a long-term fall in demand. For the companies affected, adjustments are likely to be unavoidable. The task is to support this sometimes difficult transformation process with appropriate promotional measures and training for employees. If this succeeds, SMEs as a whole could well emerge stronger from the crisis. Even more so since many of them will also benefit from the changes in consumer behaviour and in future enjoy higher levels of demand for their products and services.”

Soruce: KFW Bank

related articles:

popular articles:

Thumbnail-Photo: Tips: Optimal shopping experience for  Christmas...
22.11.2023   #online trading #artificial intelligence

Tips: Optimal shopping experience for Christmas

How to prepare for the shopping days as an Amazon retailer

The promotional days at the start of the Christmas...

Thumbnail-Photo: Christmas decorations: set the scene for your store!...
09.11.2023   #customer experience #shop decoration

Christmas decorations: set the scene for your store!

From the floor to the shelves and lights to the shop window - here's how to get your store ready for Christmas!

The weeks leading up to Christmas Eve are considered to be the busiest of the year....

Thumbnail-Photo: The quiet hour – A contribution to inclusion in retail?...
31.10.2023   #customer satisfaction #customer experience

The "quiet hour" – A contribution to inclusion in retail?

Finding calm in a busy world: supermarkets make their mark

The world of commerce is constantly looking for new ways to attract and retain customers...

Thumbnail-Photo: Social Commerce: Community sells?
04.10.2023   #online trading #sustainability

Social Commerce: Community sells?

Why the community approach is replacing fast delivery among customer demands and what that means for you.

For a long time it was said that fast or even "same day delivery is the key". For Fabian Mischler, this is no longer the only key to satisfied customers. In an interview, the CEO of the social commerce platform ooblee told us why community ...

Thumbnail-Photo: Black Friday and Cyber Monday: Minimize mistakes, maximize success...
11.10.2023   #e-commerce #customer satisfaction

Black Friday and Cyber Monday: Minimize mistakes, maximize success

Mistakes you can avoid on promotion days like Black Friday and Cyber Monday

The promotion days on November 24 and 27 raise the sales hopes of many retailers. Despite the huge potential, these events can also be a challenge. Competition is fierce, customers are critical and expect exceptional deals. Mistakes in preparation ...

Thumbnail-Photo: Turning customers into friends - heres how it works...
24.01.2024   #marketing #online marketing

Turning customers into friends - here's how it works

WhatsApp channels as a secret weapon in the marketing mix

In fall 2023, Meta launched WhatsApp channels, a completely new feature in 150 countries ...

Thumbnail-Photo: ISE 2024 - the future of retail
23.10.2023   #online trading #Tech in Retail

ISE 2024 - the future of retail

ISE will take place in Barcelona from 30 January to 2 February 2024

Since it began in 2004, Integrated Systems Europe (ISE) - the world's premier exhibition for professional audio visual (pro AV) and systems integration - has grown in size, strength and influence to become an industry-defining event. Every year, ...

Thumbnail-Photo: Veganuary 2024: Best sales strategies to reach the ‘no meat’...
11.01.2024   #brick and mortar retail #food retail

Veganuary 2024: Best sales strategies to reach the ‘no meat’

Why retailers should take advantage of the trend

Veganuary has begun its fourth year in Germany. Over 850 German companies are taking part in this global movement for a plant-based ...

Thumbnail-Photo: For you: Retail marketing calendar 2024
08.01.2024   #marketing #sales promotion

For you: Retail marketing calendar 2024

You can use these phases and days for yourself and your business in the upcoming year

Birthdays, holidays, holidays ... We record all these days in calendars every year to plan our personal daily lives. But the financial year can also be planned. This can be particularly important for retailers. You can plan ...

Thumbnail-Photo: Valentines Day marketing: creative campaigns to make your heart sing...
18.01.2024   #brick and mortar retail #sustainability

Valentine's Day marketing: creative campaigns to make your heart sing

Examples of how you can score points on Valentine's Day

Zalando killed two birds with one stone in 2021: with the invitation to "campaign exchange the clothes after your ex", customers were shown ...