How are channel chiefs adjusting their business, technology, finance, marketing and partner strategies amid the coronavirus pandemic? New COVID-19 channel research from The 2112 Group reveals some preliminary answers.
At a high level, The 2112 Group notes, economists say the U.S. economy will contract 14% in Q2 2020 and the Eurozone will see activity decline 26%. It’s far too soon to determine COVID-19’s effect on the channel, the research notes, but the report provides a “snapshot of how tech vendors and channel professionals are reacting to the crisis.”
Among the report’s key takeaways:
In the early stages of the pandemic, one-third of vendors noted a slowdown in product orders and service cancellations, which disrupted revenue and cash flow.
While channel professionals are generally pessimistic about the general economic outlook for the remainder of 2020, they remain relatively confident about the potential of their channels to perform.
35% of vendors are extending payment terms and credit for partners and customers that are struggling financially. And 13% are working to infuse strategic partners with working capital or working with banks to arrange capital for partners.