As we wind down 2022, we anticipate the next year, 2023, to be a year of considerable slowdown, and possibly, even recession in western economies. In this presentation, I share my thoughts on how brands, companies and advertising agencies can better navigate the year ahead. From segments to concentrate on, to taking advantage of current trends and focusing on 2024 and beyond, I examine all the positive developments that brands can focus on. Swim upstream, and move up the value chain!

1. How brands and advertising agencies
How brands and advertising agencies
ought to navigate 2023
ought to navigate 2023
A presentation by Geeta Sundaram

2. Stimulus pumped in by governments to protect families during
Covid pandemic
Surge in pent-up demand causing huge supply shortages
Manufacturing led recovery making way for services growth
Demand-led recovery leading to soaring inflation
Central banks raising rates to tackle it
Economic growth slowing, with recession expected next year in
developed economies
All this affecting consumers, brands and companies
Swirling few years

3. Navigating 2023 – a year of slower growth and recession

4. Brands and companies operating in the premium and luxury end of
the market to focus on brand building
Done well, some premium brands can even take a price increase, or
launch a new premium variant
This could help subsidise the lower end of the market, by either
helping companies absorb higher costs on these, or by enabling
them to offer discounts or smaller packs to boost sales.
Premiumise the upper end of the market

5. Luxury brands will survive
Companies targeting high-spending luxury consumers will have an
easier time navigating 2023
From cars and fashion, to travel and hospitality, luxury consumers
are a safe bet during downturns
Cultivate luxury consumers and strengthen the brand’s relationship
with them.

6. Diversify chips and semiconductor supplies
Supply chains are the biggest bottleneck for most companies, and
semiconductors go into more things than we ever thought was
possible
Minimising risks in sourcing critical inputs ought to be high priority
Makes sense to have more supply hubs across the world – other than
those in China and East Asia
Source chips and critical components from a variety of suppliers
around the world.

7. Use less energy in the production of goods and services by adopting
clean technology
Also produce more energy-saving products
At a time when the world is faced with a huge energy crisis, double
down on energy conservation
Helps us get closer to the climate change targets as well
In the West, especially, consumers would love to have devices and
gadgets that use less energy, so there’s a brand opportunity for you!
Save energy

8. Hybrid working model might stay a while
High energy prices might force many businesses and
employees to work from home a little longer
Or continue with the hybrid working model – a few days a week
in the office – for some more time
Focus on getting people back to office, but go with the flow
Product ideas or services that help people work from home
have a reasonably good opportunity

9. With fuel prices sky-high, and economies in slowdown, businesses
will cut back on business travel through 2023
Small and medium size businesses, especially will travel less on
business
Companies will have to work even harder to make large corporate
clients want to travel
Airlines might have to work on better corporate deals
Luxury hotels will have to make MICE (meetings, incentives,
conferences and exhibitions) an important part of their calendar
in 2023
Budget hotels can take advantage of preference for lower tariffs
and communicate their product offering
Corporate travel only when essential

10. Instead of rushing to digital technology, evaluate if it’s right for
your brand
Capitalising on the digital medium’s sales funnel for quick sales,
including with offers and deals will be a temptation
Look at its longer-term relevance for your brands and company
Carefully plan which aspects of your business would benefit from
digitisation beyond 2023
Invest in proper brand-building assets and in strengthening
relations with customers during 2023, so that it yields results the
year after, when customers are more willing to spend
Advertising agencies ought to work with companies, whether it is
boosting the dealer network, or investing in direct marketing, or
going direct-to-consumer.
Resist the rush to digital

11. Advertising agencies as brand advisors
During the economic slowdown, advertising agencies that advise,
partner and work together with companies will be more appreciated
and better rewarded
Instead of reacting to clients’ requests or demands, agencies ought
to be more proactive in guiding and working alongside their clients
The anticipated cutback in advertising budgets will force agencies to
rethink their costs, resources and investments, depending on their
roster of clients
Many smaller agencies might rush to digital or rely on fresh, young
talent in order to save on costs
However, adverse economic conditions require senior and
experienced minds - count on their wisdom and intelligence.

12. Public
relations
The answer to every brand problem is not always only more
advertising
It might be direct marketing, where audience targeting is more
focused and results more measurable
It could be public relations, where editorial news coverage of the
company’s operations or brand might make a deeper impact at much
lower costs
Sometimes, the answer to the brand problem might even be better
consumer research - direct some of your communication budgets in
2023 towards understanding your consumers or competition better
Advertising agencies ought to partner their client companies
through making sense of all of this and recommending the right
approach.
Think different communication disciplines
Advertising
Direct
marketing

13. Time for learning
Companies and their advertising agencies that use 2023 as a year of
learning would fare better
Discuss problems, find solutions and make the best use of
advertising and marketing money together
Agencies should invest enough time and resources to understanding
their client’s businesses really well
Use the year to gain marketing wisdom and insights - through
client-agency workshops – and find solutions together

14. Look at 2023 as a year of building brands
Use the year of slowdown to sharpen knowledge and
skills, build industry insights and consolidate brands
Work more upstream and more strategically
Focus on creating better intellectual property through
brands and innovations
Agencies have their work cut out – build your relevance
and get remunerated more fairly

15. Swim upstream
like a salmon in 2023,
but make sure you
aren't attacked by
competition or bears!

16. For more on brands, check out my other presentations on SlideShare
and visit the Business and Brands page on my blog, www.peripateticperch.com