Navigating Economic Challenges: How Brands Can Adapt and Thrive in Times of Crisis

The ongoing challenges in Indonesia’s economy require careful attention from businesses. Although the pandemic has officially ended, the nation is still in the process of economic recovery. Rising prices of essential goods, coupled with stagnant purchasing power and a surge in layoffs, have created a tough landscape for businesses. According to the Indonesian Central Statistics Agency (BPS), household consumption growth in Q4 2023 dropped to 4.47% year-on-year, down from 5.06% in the previous quarter and slightly lower than Q4 2022’s 4.5%. This consumption growth lagged behind the national economic growth rate, which reached 5.04% by the end of 2023.

In Repositioning Asia: From Bubble to Sustainable Economy, Philip Kotler and Hermawan Kartajaya highlighted strategies from the 1990s Asian economic crisis that remain relevant today, particularly on enhancing competitiveness—not just for nations but for brands and businesses as well.

Building a Strong and Differentiated Brand

Crises, whether financial (like in 1998 or 2008) or biological (like the COVID-19 pandemic), are often unpredictable. In such times, brands must leverage their unique strengths and maintain consistent messaging across platforms to stand out. Uniqueness helps a brand differentiate itself, while consistent messaging and brand values reinforce trust and loyalty during challenging times.

A prime example of this strategy is Skin Game, a local skincare brand founded in 2019 by Michella Ham. Skin Game positioned itself as a “Basic Skincare Expert,” with its flagship product, Kind Moisturizer. The brand consistently communicated its key message, “Your Skin Listener”, highlighting safe, inclusive products for all genders. This approach proved successful, with nearly 80% of Skin Game’s customers in 2023 being repeat buyers. Returning customers contributed 34.07% of total sales, underscoring the power of strong branding during uncertain times.

Driving Innovation and Productivity

Crises present an opportunity to identify weaknesses and amplify strengths. They also reveal which companies are resilient and capable of thriving. A notable example is Zoom, which saw exponential growth during the pandemic as demand for video conferencing surged. Despite slowing growth post-pandemic due to increased competition and a return to in-person activities, Zoom continued to innovate, introducing its AI Companion feature to summarize meeting discussions. This focus on innovation helped the company maintain revenue growth beyond the pandemic.

Innovation, therefore, must be a cornerstone for survival—not only during crises but also in the recovery phase.

Strengthening Adaptability and Flexibility

In a constantly evolving business environment, adaptability and flexibility are critical—especially during crises when opportunities often deviate from a brand’s usual strategies. The contrasting trajectories of Fujifilm and Kodak serve as a powerful lesson.

Both companies faced declining demand for photo films and analog cameras as digital trends emerged. While both invested in digital technologies, Fujifilm took a more effective approach, diversifying into growing sectors like pharmaceuticals and cosmetics, while also innovating in digital camera technology. Kodak, on the other hand, remained overly focused on its traditional photo printing business, which eventually became a liability as the digital market flourished.

This stark difference highlights how adaptability can define a brand’s survival and growth trajectory during disruptive times.

Building Trust and Strategic Partnerships

Equally important is fostering trust with both customers and business partners. Strengthening networks—across industries and generations—serves as the foundation for long-term growth. Trust and strategic partnerships act as the bridge and anchor that propel brands and businesses to greater heights.