Life after COVID: What businesses need to do to stay in the game
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Special Report: As global leaders attempt to return society to some semblance of normalcy in the wake of the COVID-19 pandemic, companies are contemplating how to get themselves back to business.
Stockhead spoke to PAC Partners’ Paul Jensz about the companies that will succeed in a post-COVID world, and what they need to do to win back customers.
Jensz sees three major changes stemming from the pandemic. The first is that consumers are questioning now more than ever where their products came from, who handled them and other minute details that weren’t often considered.
This trend has been growing for some time now, but Jensz said COVID merely sped up that process.
The next is that corporations will place even more emphasis on responsibility and social awareness now that customers are intensely scrutinising them in an attempt to hold businesses accountable.
Again, this is another trend that was coming anyway but has been accelerated in 2020.
The last change is that customers are even more empowered and socially conscious now that the barriers protecting certain institutions have broken down.
Yes, customers are interested in where their products come from, but they also want to know whether their buying actions are improving the world as a whole.
Of course, corporations with good intentions are fine, but there should always be a healthy degree of cynicism.
Customers want companies not only to talk-the-talk, but to walk-the-walk as well.
While this level of scrutiny has always been there, COVID has meant there are even more consumers that want to know exactly where their money is going. This places the responsibility of providing transparency directly at the feet of corporations.
Those reasons sparked Jensz’ interest in Security Matters (ASX:SMX), an ASX-listed company that’s using innovative technology to protect brands and ensure the integrity of its supply chains.
The broker began working with Security Matters three years ago, and at the time, Jensz said it was difficult to quantify the benefits of its technology.
Security Matters can track and trace any raw material or end-product, be it solid, gas or liquid, and securely store information using blockchain technology.
The technology comprises a chemical-based hidden “barcode” system with a “ready” that identifies codes and records them onto a blockchain record during the manufacturing process.
While blockchain technology can seem complicated, it can be an invaluable tool for holding companies accountable.
Due to the economic landscape we find ourselves in and the heightened scrutiny into company’s social practices, the benefits of a transparent production line should speak for themselves.
When it comes to dollars though, Security Matters recently landed a lucrative testing partnership with chemical giant BASF, providing huge upside for the company, which still has a handful of big-ticket items that will be realised a few years down the track.
With the ability to track material in any form, Security Matters has attracted customers in a multitude of industries including metals, food and plastics, just to name a few.
Security Matters has also been engaged with customers working in metals, food and plastics, just to name a few.
Keep an eye out for this company; before you know it, you could be drinking a bottle of wine connected to the blockchain before you even realise!