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Sunday April 14th, 2024

Agility, being customer-centric key to post-pandemic success, Sri Lanka marketers say

ECONOMYNEXT – Agility, adaptability and customer centric decisions will be the key to success in post-pandemic marketing as brands shift from a health emergency environment to aggressive and creative practices, industry representatives said.

Customers are expected to shift from an environment where safety and guaranteed delivery are prioritied over price points to placing more emphasis on values and sustainability.

The coronavirus (COVID-19) global pandemic has resulted in changes to advertising, marketing, promotional and media spending.

This has forced businesses and brands to re-evaluate their thinking about current and future advertising and marketing campaigns to maintain a steady stream of income.

While brands currently seek to strike the right tone during the global health emergency, the future portends market alteration, increased competition and a demand for creative and aggressive marketing practices.

“We now live in a world in w hich consumer state is changing rapidly,” Shalin Balasuriya, co-founder of Spa Ceylon told a forum on ‘Marketing in Post pandemic world’ organised by EconomyNext and the Friedrich Naumann Foundation for Freedom.

“Brands need to be on alert on how to do their brands with things changing. The big approach here is a deep understanding of what you have in terms of resources and a deep understanding of what your consumers’ state is.”

Balasuriya’s spas say they offer extensive menus consisting of more than 25 signature treatments inspired by Sri Lanka’s rich Ayurveda heritage and centuries-old Sri Lankan royal health and wellbeing rituals practiced in the grand palaces of ancient Ceylon.

He said markets, the narrative to brand a product, and the way companies connected with customers have changed during the pandemic along with changes in consumption patterns, lifestyle, the way people travel, and how they enjoy their leisure.

“But the connection was still maintained,” Balasuriya said. “If you stay connected with the customers and stay relevant, no matter whatever changes. Having an agile mindset is what is going to get there.”

During the pandemic, Spa Ceylon was able to expand with new outlets in five countries and changed to online selling to face the changes, Balasuriya said.

Customers change

The time since the pandemic started has revealed that consumer perspectives have changed globally, surprising businesses. Security and stability were prioritized over price points, disrupting previously-held notions.

Concerns over safety, guaranteed delivery, and business sustainability ethics have also surfaced.

Another way that post-pandemic marketing will be different is in the need for companies to ‘hyperfocus’ on who exactly is their target audience is and what they want.

Customers now expect an enormous amount from the brands they love and rely on. They have high expectations and know exactly what they want and when they want it.

This need has created an environment where customer loyalty towards brands has been tested.

“I think the number one priority is to optimise the customer experience,” Jayomi Lokuliyana, Co-founder and Chief Executive, zMessenger said.

“When you optimise your customer experience, you can grow faster than your competitors, you can be on top of the customers’ record, and you can predict their behavior before even they start their consumer journey.”

She says companies have to capture customers’ digital footprints with their brand and also outside the company to have an insight about consumers.

“That is going to be a huge challenge in predicting their behavior,” Lokuliyana says.

More challenges

Companies now have to cater to the needs of customers who are gradually shifting to live within their budget, focusing less on brands and more on product functionality.

Concerns over health amid the pandemic with choosing products they trust to be safe and minimising risks in the way that they shop are among marketing challenges that will have to be considered.

The pandemic has also forced people to think about sustainability; hence buying brands that minimise their impact on the environment and buying from organisations they find to be honest and transparent.

Loyalty, technology, talent pool, and risk taking ability will be other strategies the companies will have carefully consider in post-pandemic marketing, if they want to succeed.

“COVID has taught us quite a bit on how to layer our marketing, in a way that we can talk to multiple people like talking to them individually, but do it at the same time, and continue to test and adjust,” Balasuriya said.

Values could also be one of the keys in the post-pandemic environment for companies to be unique from their competitors.

Nike’s controversial commercial which said “Believe in something. Even if it means sacrificing everything” was criticised by many. But the same commercial recognised the US-based company’s value.

Experts suggest that values and stances of companies will also matter in the future marketing.

“I don’t think we have businesses you can go around being sentimental about everything,” Rohan Jayaweera, Co-founder, Antyra Solutions told the forum.

“I think there has to be a point where you have to take a stance.”

Balasuriya says brands should connect their stance on championing a cause to create a value successfully. (Colombo/Sep04/2021)

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Sri Lanka undershoots inflation target in first quarter despite VAT hike

Sri Lanka undershoots inflation target in first quarter despite VAT hike

ECONOMYNEXT – Sri Lanka’s inflation is expected to lower than initially projected in 2024, despite a value added tax hike, Central Bank Governor Nandalal Weerasinghe has said

“When we looked at the last two monetary policy reviews… we had an inflation path a little elevated to what was realized, ” he told reporters following a March 50 basis point rate cut.

“Mainly because our projection factored in the VAT increase in January and some of the short-term food price increases, we have seen in December and January.

But what we have seen the actual inflation realization, is that the impact of VAT has not been that much and also the reduction in electricity prices also has helped, as well as the supply conditions, especially food supplies has been better.

“As a result, inflation outcome has been much lower than we expected.”

Sri Lanka’s central bank has been conducting broadly deflationary policy, except perhaps in December 2024, when a private credit spike appears to have been accommodated by standing facilities on top a seasonal real demand for cash.

The central bank has also allowed the currency to re-appreciate departing inflationist policy generally seen since 1978, analysts say.

“In our projections, we see in the next 12 to 18 months, inflation will remain well below our target range between 4-6. In our expectation it will remain around 4-5 percent in the next 12 to 18 months.

“That is one of the reasons we saw we had some pace to reduce our policy rate.”

The central bank cut its policy corridor 50 basis points to 8.50 and 9.50 percent, and has allowed excess liquidity to build up in money markets from a balance of payments deficit (net dollar purchases) at the current market interest rate structure.

Though money is being injected through various tools allowing some banks to trade without deposits, overall, there is a sell down of its domestic securities holdings.

Sri Lanka has a reserve collecting central bank currently subject to IMF forex reserve targets and domestic asset sell down target (which are essentially complementary), an inflation target of up to 7 percent and an implicit potential output (printing money for growth) target.

The central bank currently providing exceptionally monetary stability not for many years, and cautiously lowering rates, as well as reversing some of the inflation it has created in the past in food prices and energy.

Since September 2022, when deflationary policy started to show up in the balance of payments, the central bank has only created 3.9 percent inflation according to the widely watched Colombo Consumer Price Index.

However, analysts have warned that in the past, deeply flawed operational frameworks involving multiple and contradictory anchors have tended to trip up when private credit recovered when rates are cut claiming inflation is low.

Sri Lanka also does not have a penalty rate for standing facilities, unlike countries with tighter operational frameworks, which are less prone to crises. (Colombo/Apr14/2024)

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Sri Lanka eyes on speedy debt resolution at IMF/WB Spring Meetings: State Finmin

ECONOMYNEXT – Sri Lanka is looking forward to have discussions for a speedy debt resolution and restore debt sustainability at the Spring Meetings of the International Monetary Fund (IMF) and World Bank (WB) starting on Monday (15) in Washington, State Finance Minister Shehan Semasinghe said.

Minister Semasinghe is leading the Sri Lankas delegation for this year’s IMF/WB Spring Meetings that includes Central Bank Governor Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardana.

The island nation expects to conclude the debt restructuring negotiation with its private creditors and sovereign bond holders and formalize the already agreed deal with bilateral creditors by end of the first half of this year, government sources have told EconomyNext.

Sri Lanka also expects to receive the third tranche of the IMF by mid this year after the completion of the second review of a $3 billion loan program last month.

“We expect fruitful engagements that will pave the way for unlocking the next tranche of essential funding and a speedy debt resolution which will enhance economic stability, confidence, sustainable growth, restore debt sustainability and ultimately, improving the welfare of every Sri Lankan citizen,” the Minister said in his X (Twitter) platform.

“Sri Lanka’s journey to its current state of stability and progress is due to the invaluable support provided by the IMF, World Bank and international partners during the most severe economic crisis we faced since 2022. “

“As we navigate the complexities of global economic challenges, we will engage closely with the IMF and aim to contribute to broader international economic cooperation with our partners.”

“Through dialogue, partnership, and concerted efforts, we are confident that we will achieve brighter economic future for Sri Lanka,” Semasinghe said.

The Monday’s Spring Meetings come as President Ranil Wickremesinghe government is facing a presidential election after long delayed local government and provincial polls.

Some government officials have said there could be likely slippages in the IMF targets during the election period as majority of Sri Lankans feel their struggling has risen due the implementation of IMF conditions including increased taxes.

The government has already started to relax some of the tough conditions it has maintained to boost the state revenue amid an increase in the tax revenue.

However, President Wickremesinghe has vowed to continue the IMF-led reforms as they are citing they are the only solution to come out of the current unprecedented economic crisis. (Colombo/April 14/2024)

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LGBTQIA+ Rights: Europe and South Asia See Similar Discriminatory Practices

ECONOMYNEXT – The rights and protections of the LGBTQIA+ community have been fraught with challenges and continue to be so, despite the many gains achieved in recent years.

Nor are those handful of rights universally applied, a recent discussion which looked at the European and South Asian perspectives on same-sex rights and unions revealed. Most developed nations have introduced protections for those identifying as LGBTQIA+, and a view from a distant lens paints a picture of tolerance. Yet, a closer look at the European arena throws up the many gaps that are evident in the application of the law.

In the so-called conservative South Asian nations, changes to legislation are slow to be implemented. That may come as a surprise, for, contrary to popular belief, same-sex relationships were culturally acceptable in the South Asian region and is not a Western concept points out Ruhaan Joshi, a Public Policy Practitioner from India.

Society’s view on same-sex relationships dimmed with the imposition of Western values and the criminalisation of such relationships with the advent of colonial rule.

While the LGBTQIA+ communities in South Asian countries currently battle to have same-sex relationships decriminalised and their unions legally accepted, the irony is that countries that first made such relationships punishable by law have moved on to be more welcoming, though some discriminatory practices continue.

Joshi was part of a discussion themed ‘On Being Queer and LGBTQIA+ in South Asia and Europe, held in Germany on April 9 this year. The discussion which included the release of two papers which examined the rights and protections of the LGBTQIA+ community in Europe and South Asia, respectively, was organised by the Friedrich Naumann Foundation for Freedom.

Joining Joshi in the discussion were lawyer and parliamentarian Premnath C Dolawatte from Sri Lanka, Milosz Hodun, President, Projekt Polska Foundation, Poland, Michael Kauch, a Member of the European Parliament and RENEW Europe Group and Inaya Zarakhel, a Dutch-Pakistani actress and an activist on Queer Rights, who moderated the discussion. The two papers were presented by Hodun and Joshi, respectively.

In his opening remarks, Kauch pointed out that while the view of the liberals is that the rights recognized in one member nation of the EU must be accepted by all member countries, that is not the ground reality, the issue of Rainbow families being a case in point.

In the context of the European Union, though the Court of Justice has ruled on the freedom of movement of those in same-sex partnerships and their families, the ruling is not universally applied by member nations.

In Italy, and some European nations, surrogacy which helps childless couples to become parents is illegal. In other situations where same-sex parents are of different nationalities a child in that union faces restriction of movement or the possibility of being stateless if one parent hails from a country where such parental rights are not recognised.

Hodun meanwhile stated that in Poland transgender persons must first sue their parents for the gender assigned to them at birth, to have their gender marker changed on documents.

Some countries such as Russia and Azerbaijan resort to State-sponsored homophobia, and in many instances politicians and political parties promote such biases to boost their voter base it was pointed out. Even where laws are in place for the protection of LGBTQIA+ rights, there is no political will to implement them.

In Europe where migrants arrive in droves seeking asylum, and are frowned upon by many of those countries, LGBTQIA+ members face even more discrimination Hodun says, both by other refugees and governments, where most often the state ignores the situation despite the guidelines issued by the UN and the European Court of Justice. Hate speech and hate crimes too are on the rise he adds stating that at least 80 per cent go unreported.

Increasingly the LGBTQIA+ community has experienced a diminishing of their safe spaces as right-wing and populist governments are elected across the globe. Taking a dig at feminism, meanwhile, Kauch states that though feminists uphold a woman’s right to opt for an abortion, they take a different approach on the topic of surrogacy.

Dolawatte who waded into unchartered waters when he presented a Private Member’s Bill to decriminalise same-sex relationships through an amendment to section 365 of the Penal Code and the repealing of section 365A in its totality, is hopeful that the Bill will pass its third reading. It’s been an uphill battle he says, referring to the case filed in the Supreme Court against the Bill. The court ruled in his favour.

He had little or no support from his own party members, but says the President of the country, and younger party members are with him on this issue. Apart from making Sri Lanka a safe space, it would encourage foreign nationals identifying as LGBTQIA+ to visit without fear, and thus boost tourism he opines.

As Joshi states society has come a long way from when LGBTQIA+ were made fun of and were subject to violence to the positive portrayal in movies. Such movies are also well-received by society. Transgender identity has a distinct recognition in South Asian religious beliefs. Hijra, Khwaja Sara or Kinnar are some names given to transgender folk and they have, since ancient times been an accepted group in society. On the one hand, there’s Afghanistan and the Maldives which make no allowances for the LGBTQIA+ community, while Nepal became the first South Asian nation in 2023, to register a same-sex marriage, Joshi states. In most South Asian nations, the courts have ruled in favour of relaxing the rules against this community, and, like in Europe, it is the governments that drag their feet.

For governments to change their stance, society must take the lead in fighting for the unconditional dignity of the individual, freedom of movement, and safeguarding the tenets of democracy, he says adding that it must also run parallel with the LGBTQIA+ community looking beyond themselves at issues that impact democratic values, and the societal restrictions non-LGBTIQIA+ groups face, such as opposition to inter-caste marriage and the right to adopt outside their caste systems and equal access to many other privileges.

While the panellists advocated working together across the global divide as a step towards achieving equal rights for all, Dolawatte also called for caution; too much pressure on such issues from Europe he said may not be welcome, and must be handled with care.

With right-wing and populist governments getting elected across the globe, Kauch claims the forthcoming EU elections will prove crucial in deciding how future and current governments ensure tolerance and diversity amongst their citizenry.

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