The World Health Organisation has declared the Covid-19 coronavirus outbreak a pandemic, and lots of firms are taking strict measures against the impact and unfold of the virus.
The corona outbreak is first and foremost a human disaster, affecting thousands of people across the world. It is additionally resulting in a growing impact on the global economy.
With all businesses and industries across the world in huge chaos, there has been the grave economic impact of coronavirus across various sectors from tourism to airline; from entertainment to education; from finance to healthcare; from retail to hospitality; from cruises to cars; from food to fashion; Luxury industry; staffing and recruitment and so on. Marketers across industries are attempting to revamp their business models.
a) Travel and Tourism
The travel & tourism industry is worst affected by the coronavirus outbreak. With COVID-19 being a pandemic, people are avoiding travelling to different countries and cities, which has created a negative impact on the travel business industry and has affected the tourism welfare of the affected countries.
The U.S. airlines proposed for over $50 billion in federal help due to the dramatic decrease in range of airline passengers.
Disney and Universal Studios have planned to close down their theme parks as large gatherings may cause the spread of coronavirus.
The NBA has suspended its season temporarily after a player was tested positive for coronavirus.
The entertainment industry is severely affected and suffering from the coronavirus outbreak. However, as more people stay at home, in self-isolation, and take quarantine measures, there is increased use of alternate entertainment services such as games, videos, etc. According to the Financial Times, the number of app downloads rises in China after the nationwide isolation measures were taken. Video streaming firms like Netflix, Amazon, Disney are expected to have a rise in the number of subscribers in the impact of COVID-19.
c) Retail & E-Commerce
Malls, shopping centers are temporarily shut down in effect to COVID-19. Also, since people distance themselves from social gatherings and crowded spaces, they choose to order their needs or necessities online. Similar is the case with the retail business.
On the contrary, digital commerce businesses are trying to make the most of this situation. Regardless, thriving in such an epidemic continues to be a difficult task for e-commerce businesses.
Recruitment in the time of the COVID-19 outbreak is a very tough and challenging process.
HR managers are scrambling to regulate recruitment strategies within the wake of this outbreak. Fortunately, technology is out there to assist minimize exposure while still producing quality hires. The time is now to shift to a virtual recruitment — one that protects both employees and candidates and erase risk while continuing to drive hiring efforts.
e) Luxury Shopping Malls
People are staying more at their homes and buying products online instead of going physically to crowded locations. In the long term, this may lead to a permanent change in the behaviour of consumers and online luxury buying may become usual.
Therefore, retailers must provide more meaningful online experiences in order to build a good relationship with consumers.
NOTE: Buying luxury things online will become more attractive in the future. This slowdown is the right time for luxury brands to facilitate themselves to digitize the processes and upgrade their systems and technology. This will allow them to develop operational efficiencies and provide personalized experiences to the end consumers.
The various ways to deal with it and how we can overcome:
The Covid-19 crisis has currently reached a critical stage where public health systems got to act decisively to control the growth in new places.
Clearly, the most importance is and should be on suppressing and diminish the disease itself. However the economic impacts are vital and plenty of companies are feeling their way towards understanding, reacting to, and learning lessons from rapidly unfolding events. Unforeseen twists and turns are going to be revealed with each news cycle, and that we will only have a complete picture in retrospect.
Yet, given the very different degrees of preparedness across companies, the further potential for disruption, and the value of being better prepared for future crises, it’s worth trying to pull out what we have learned so far. Being supported on our ongoing analysis and help for our clients around the world, we have refined the subsequent lessons for responding to unfolding events, communicating, extracting and implementing learnings.
- Update intelligence on each day.
- Use specialists and gauge carefully.
- Flexible principles in developing policies.
- Prepare now for the next crisis.
- Reflect on what you’ve learned.
- Prepare for a changing world.
The Covid-19 crisis can take time to be solved by medical science. The economic crisis can try to be solved now.
To fix this, the government could offer every American business, large and small, and every self-employed worker with a no-interest “bridge loan” guaranteed for the duration of the crisis to be paid back over five years. The sole condition of the loan to businesses would be that companies still employ a minimum of 90 percent of their manpower at the same wage that they did before the crisis. And it might be retroactive, so any workers who have been laid off in the past two weeks because of the crisis would be reinstated.
The system keeps virtually everyone employed and keeps firms, across different industries from restaurants to airlines in business without picking winners and losers.
Instantly, it would create a sense of confidence and relief during these turbulent times that once the scourge of the coronavirus was contained, life would come back to some semblance of normal. It would additionally help, encourage people to stay home and practice social distancing without feeling that they would risk losing their job — the only way to slow this disease.
Pragna solutions is taking a balanced approach to handle the situation and our first preference is the well being and safety of our clients and employees across the country. We remain committed and believe that our long term vision of business is strong.