The K-Shaped Recovery For Brands: Here’s What Will Separate Winners From Losers

The ongoing pandemic has set the stage for what many people are calling a “K-shaped recovery” in which there are clear winners and losers — not just at the individual level, but at the corporate level as well. According to Investopedia, “a K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.” From a brand standpoint, the ability to emerge successful during the economic recovery period may have everything to do with strategic positioning and strong marketing. 

Within a K-shaped recovery, some brands will naturally succeed while others inevitably falter. However, other brands — the majority, from what I’ve seen — won’t fall into clear-cut winner and loser buckets. For these companies, success or failure will likely be determined by their agility and innovation in the coming months. 

Positioning For Success Amid The Pandemic

Certain companies were at a fundamental disadvantage going into the pandemic. Brands built around the concept of bringing people physically together, particularly indoors, saw business inevitably grind to a halt. Movie theaters, restaurants, concert halls and similar businesses might find ways to stem the bleeding and outlast competitors in the coming months, but they’ll be hard-pressed to soar into the recovery without a fundamental overhaul of their business concepts, operations and real estate investments. 

At the same time, other companies were predisposed to success going into the pandemic. Brands that filled a need for people who were suddenly spending more, if not all, of their time at home have become the new household names in 2020 — names like Zoom, DoorDash and Disney+. Digital-first business models were already on an upward curve back in February, and Covid-19 catapulted them onto a new accelerated growth trajectory. Their success will likely continue throughout the pandemic and beyond, and their competition will probably grow larger in the coming years.

Read more: www.forbes.com