A new coronavirus is emerging and there are many variables in its further development. Many views have been expressed by various parties on the macroeconomic impact of the outbreak. This paper considers the impact and changing trends in the industry from the perspective of manufacturing business management, discusses short-, medium- and long-term countermeasures and recommendations, and shares them with business managers.

Industry Level

The manufacturing sector has grown rapidly in recent years, with the daily chemical, pharmaceutical, color cosmetics and food markets all maintaining rapid double-digit growth. Leading consumer-facing brands and industries radiating upstream of the industry chain are showing booming growth. Looking at the impact of the epidemic on the manufacturing industry, excluding the negative factors of short-term consumer demand, the upgrading of demand in all aspects of public life is closely related to these products, applications and services. With the joint promotion of the whole society's consumer civilization process, the industry will improve as a whole and usher in a new round of growth in the long run!

Market Segmentation

The epidemic has significantly changed the public perception of lifestyle habits. The reasons behind this are the impact of the quarantine measures themselves and people's risk-averse instincts. Home, online and remote is being accepted and adopted to a greater extent by the public and public administration, and it has the potential to drive new social functions and life patterns in the future. In segmentation, changes are also brewing new opportunities for the industry: public awareness of disease prevention and control and healthcare is increasing like never before, and products related to disease prevention and control and healthcare will emerge in the near future, as will pharmaceuticals and masks.

Consumer demand for home scenarios will increase, and related consumer products and services will see growth opportunities. Consumer service models in this space (e.g., remote service delivery integrated with IoT devices) will also see innovation. The ease and reliability of remote collaboration and smart work is expected to increase significantly.

Back to the perspective of business managers, there is a need to resume normal operations as soon as possible after the New Year holiday. How can companies fully understand the impact of the outbreak on them and take preventive measures when it happens? We believe that this can be done in two ways: "risk prevention" and "positive change":

"Risk Prevention"

Business managers need to anticipate extreme negative scenarios in advance and assess their tolerance levels. If the outbreak persists, the business can still operate in a healthy manner. Specific measures may include

Believe in data and form independent judgments on market demand trends through real market data as soon as possible. Also, increase the frequency of market data collection to obtain dynamic information in a more timely manner. Conduct feasibility analysis of annual business targets for 2022, and establish a simulated business analysis model according to different scenarios such as best, same, and decline. And make targeted planning for compensatory consumption in the post-epidemic recovery phase. On the financial side, a comprehensive assessment of cash flow was conducted in terms of receivables, payables, and capital turnover. On the supply chain side, conduct a comprehensive investigation of upstream supply and logistics and warehousing links. Develop countermeasures, such as new financing options, incorporating alternative suppliers, etc. Also, seize opportunities to promote refined management and control costs. Prioritize employee health, emphasize the principle of differentiation, and customize specific work programs and preventive measures based on the company's reliance on the concentration of personnel in different functions. Strengthen team cohesion in difficult times through communication and empowerment based on web-based platforms.

"Proactive change"

Business managers should remain sober and rational in their thinking. While fully preparing for the negative impact of the current epidemic, they should see the opportunities in the recovery period after the epidemic, seize them and change with the times. In addition, we should pay full attention to the impact of the epidemic on the industry and upstream and downstream partners, and form a joint effort to tide over the difficulties together. This is reflected in the following aspects:

The life cycle of consumer products is relatively short. Combine the changes in market demand brought about by the impact of the epidemic, decisively adjust the progress and pace, and in the case of bottlenecks on the supply side, the number of new products can be appropriately reduced to ensure effectiveness and avoid losses. If health-related products are already planned to be launched, they should be prioritized in advance to seize the time-sensitive opportunities of the current market. After the epidemic is over, product iteration should be accelerated to promote the transformation of old products and drive product iteration through renewal. In the long run, companies should promote the transition to integrated product development to better respond to market changes and meet customer needs.
 Companies can update their products as soon as possible to meet user needs based on the unique scenarios and demand extensions caused by the epidemic. It is worth noting that the remote service provision scenarios that emerged from the current epidemic may continue to exist after the epidemic, which will facilitate the close integration of Internet services with IoT devices. We should boldly explore and try to segment new service scenarios in the industry to achieve more cross-border penetration. In addition, we should seize the opportunity of increased public Internet access time to enhance user stickiness by improving the experience, and also take the opportunity to improve the company's own product management capabilities and customer experience.
 To counter the impact of plummeting customer base in offline retail channels, companies should invest more in digital platforms for online marketing and services. At the same time, they should ensure their operational capabilities in order acquisition and delivery, logistics replenishment, and scenario innovation. In terms of service, online customer service traffic increased sharply during the outbreak. TO C enterprises can actively introduce intelligent and automated online service means, combined with manual customer service, to improve online service efficiency and experience.
 For TO B enterprises in the upstream of the industry, they should also establish a market change model through data and reach a consensus with terminal brand manufacturers to reduce the impact of downstream demand change fluctuations on the industry chain. At the same time, online and remote communication and collaboration capabilities with customer functional teams need to be quickly established in business opportunity acquisition and conversion, supply chain planning to execution, delivery and service. This process is made seamless through real-time and transparent information transfer. This connectivity ensures that business efficiency is not compromised and sets the stage for the future of digital marketing.
 Expanding into overseas markets could become an effective strategy for companies seeking relatively certain growth opportunities. By refocusing their business, companies can concentrate their resources on overseas markets. At the same time, they should closely monitor the impact of the outbreak on international shipping and transportation and plan ahead in the supply chain area. In global operations, synergies between different business units promote shared services, controls and compliance management at the corporate level.
 The application of smart technologies improves process efficiency and decision-making, enhances the agility of business operations, and provides flexibility to respond to external changes. Manufacturing companies should further accelerate the building of capabilities such as smart manufacturing, from pilot to full-scale application. This will enable companies to further enhance their competitiveness by improving efficiency, while providing better protection in many aspects such as product quality and environmental protection.
 Seek coexistence in the crisis and negotiate countermeasures with upstream suppliers, downstream customers or channel operators as soon as possible in the short term to reduce additional costs caused by information asymmetry and inconsistent behavior and to ease the pressure on the entire industrial chain. In the long run, in the future development, people-oriented will become an inevitable trend.

The sun always shines after the storm! It is believed that the decision-making level of the enterprise will review the situation, promote digital business innovation, and accelerate the transformation to a smart enterprise through digital means. While overcoming the current difficulties, we will lay a solid foundation for future development and continue to play a leading role in promoting the transformation of enterprises to digital economy. BAICE Intelligent Technology has been deeply involved in China's packaging equipment industry for many years and has complete solutions and practical cases in the field of enterprise business innovation and intelligent transformation. In the face of the epidemic, BAICE Smart Technology has more responsibilities. Let's act together and get ready, the world of 2023 will have a good start that should belong to us!