EDITORIAL: Is the economy really good?
KUALA LUMPUR (Sin Chew Daily/ANN) - Change another angle to view the changes in economy instead of trying to find out whether the economy is doing well.
When visiting corporations or a company’s management team, one can detect such scenario.
The corporations have two extreme views about the economy. One is negative that the economy turn from bad to worse while the other is extremely positive with ambitions and positive outlook for the economy.
The world is changing and the market is moving toward a new direction. The change of the major trend is due to several reasons:
First, the rise of China. As described by the West, China is a sleeping dragon. Once it wakes up, it will be heading toward the sky. Yes, the prediction has turned to be a reality. China spends more than 30 years to be at the forefront in various industries.
China used to be famous for imitated hand phones 10 years ago. China relied on foreign fund to introduce technology into the country some 30 years ago. Now China is oversupplied in both technology and talent. It even exports them.
The rise of China has accelerated the pace of progress in technology. On the whole, we are slow. The fatal point here is not because we are slow but other corporations are fast. Traditional enterprises are hit hard.
The advancement in technology leads enterprises to witness the double gain brought by technology – increase in production volume and reduce in resources. If we do not progress and unable to meet the expectation, how do we compete? How long can we talk about relationship and connection?
Secondly the change in business model. Traditional way of buying and selling is changing. The retail sector is also changing. We used to buy goods from sundry shop, then to supermarket, followed by making online purchase. Now we buy from TV live telecast.
The advertisement in the old days are aired in TV or radio. Otherwise you see the fliers kept in the newspapers. We also saw advertisement magazines. Now you see advertisement in videos or games in hand phone. Restaurants used to be promoted through words of mouth. Those that were featured in magazines are considered great. Now you can hire internet celebrity or use Facebook page to introduce your business.
You used to sell daily supplies. We used to buy whatever we can buy from sundry shop. Now we talk about quality of life even for buying a spoon. Restaurants used to rely on fame but now to offer `promises`.
In the past we take a bus if we do not own a car. Those who can afford will take a taxi. Now Grab is even more convenient than driving your own car. We used to stay in hotel whenever we travel. Then homestay become popular. Now we go for Airbnb.
We would enquire before buying computers, cars or even hand phones. Basically we accept the information that the salesmen feed us. Now the customer who stands in front of you may have conducted research online and more familiar with the product than you.
It is due to this kind of changes that some are inadvertently lagging behind. New players join in to fill the gap and the game continues. Consumers still exist but the industry players are not closing shop. Demand is still there but the target of buyers may have changed.
I personally feel that it is not about whether the economy is good but we have not been riding on the new economy. Imagine you remain in the old village seeing things turning dull and boring but you miss the robust development in another village nearby along the river. Change another angle you may see strong demand that you have been longing to see.