Today’s dominating topic COVID-19 has created a storm in the business industry just in 90 days. It has been declared a global pandemic by WHO. Because this pandemic is not only taking lives. It’s turning the world economy into a bloodbath. This will have a long-term impact on human lives even after a pandemic. Due to lockdown for a few more months there would be a rapid recession. The growth rate in the financial year 2020-2021 is going to see a drastic downfall which is only expected to get stable in 2021. The essential lockdown causes businesses to shut down for a time being. Other than medical and essential needs all other business has been closed. Here is what is happening and what we think might happen to some of the biggest online industries.
Travel agencies:
Even if the remaining traditional shop-like travel agency goes online travel booking, there will still be no booking. You know that because of safety measures or guidelines by the government and at the same time, people will not take risks. It’s losing its hold for now & making the whole travel industry take a huge hit.
E-Commerce:
- Dropshipping companies are particularly affected by the consequences of the virus
- The risk of being affected by delivery problems and missing orders is much higher if your business is primarily based on dropshipping
- The production chain and the goods routes are threatened
Our projection:
eCommerce business looks very different in different countries & regions. A lot of e-commerce businesses will suffer a lot. Food/grocery ordering online is increasing rapidly. Obviously, the demand for protective gear, like face masks, gloves, and sanitizers is high. There will be a decrease in other products order that’s for sure till the vaccine arrives for the virus to coexist with us.
On-Demand Video Streaming:
This platform is not much affected. Work from home requires video conferences therefore boom in online video or conferencing apps such as zoom, slack or skype but still, security concerns will be there. Online video streaming apps such as Youtube, Netflix, amazon prime video, etc. will flourish.
Software as a Service:
- For B2B software & SaaS companies, it won’t change massively
- B2C companies that make entertainment software like games and mobile apps probably have a lot to look forward to
- B2B companies serving offline industries might see a decline in business
- Software that caters to shops, hotels, and bars might start to see customers leave
- On the other hand, software companies that help restaurants to offer to take out with home delivery, have already started to see a huge increase in business.
Agricultural
- The people who live in the countryside and grow crops for their living are being affected majorly. COVID-19 is disrupting the agriculture and supply chains
- The migrant laborer’s absence leads to an interruption in the harvesting process, lesser number of transportation leads to hinder supply processes
– There is also a depression in milk sales due to the shut down of high milk demand centers like hotels, restaurants, sweet shops, and other small tea and snack stalls
Effect on small businesses and marketers:
- The local vendors are facing major problems as other than essential commodities everything else has been shut down.
- The laborers have moved down to their native places which leads to lesser work.
- The small businesses and markets are completely shut down which is leading to being at a loss.
The risk is real but manageable:–
– An emergency preparedness planning should be done for overcoming the during and after effects of COVID-19.
– Pivoting is an option where new strategies can be made and adapted as soon as possible so that the business does not see any downfall after the pandemic is over. It should cover the new projects and their execution.
-Work from home the safest way now – Reduce meetings and travel. Establish a remote work option
-Everyone is facing this crisis together, so be transparent about what your business is going through. Customers can empathize with brands facing a crisis, as long as you communicate with them properly.
-Plan out your cash flow and take help from federal relief, especially for small businesses that are facing many losses due to this.
– IT sector should focus on delivery-based platforms- More usage of online booking systems/Apps as will reduce the risk of getting infected. There should be shifting sales from offline to online mode by selling the products to the customer through online apps.
– Educate your customers on the steps you’re taking to keep them safe.
– Educate your staff on the best practices that you can collectively take to stay safe and healthy both at home and at work.
The more you prepare less to face!!!
