COVID-19: B2B Trends
COVID-19 has drastically changed business operations and consumer behavior at a large scale with both public and private entities doing everything they can to delay the spread of the infections. A brief overview of some trends in the B2B market space due to COVID-19 related changes has been provided below:
Disruption of supply chains
- As a result of coronavirus, all aspects of B2B e-commerce, particularly the supply chain and inventory management, are being severely affected.
- Companies are struggling to stock up on inventory and deliver products to their new and existing customers.
- According to a poll by the Institute of Supply Chain Management, 75% of companies that responded reported some level of disruption in their supply chain owing to transportation restrictions imposed due to COVID-19.
- Additionally, 80% of the companies responded to the poll saying that they believe that "their organization will experience some impact" as a result of coranavirus-related disruptions.
- This disruption is primarily caused by limited alternatives in air and ocean freight transportation coupled with an increase in the lead time.
- Full and partial shutdowns of factories and manufacturing plants has impacted companies like Apple, whose shipments are projected to drastically decrease in the near future.
Impact on sales and lead generation
- With in-person events and meetings being a critical process for many B2B companies with regard to conversions, the cancellation of events and gatherings due to the outbreak of coronavirus will have a significant impact on sales and revenues.
- According to a study by Demand Gen Report, 53% of in-person meetings at events and trade shows led to conversions, indicating that these are crucial for businesses to succeed.
- Data from PredictHQ forecasts a loss of more than $500 million as a result of these event cancellations.
- For all the stakeholders involved in these events from organizers to participants, and even sponsors, these cancellations imply losses and missed opportunities.