Spread around the world, the novel Coronavirus is a known threat to everyone. As a result, the whole world is on a shutdown. People are told to practice social distancing and lockdown is imposed globally. As a result many businesses have come to a complete halt. But, this pandemic lockdown has impacted various business sectors in a diverse way.
While some have incurred huge losses, some have made multiple profits. Let’s see how every industry is working out amid the Coronavirus pandemic.
Here's what you will learn
Any business that relies on physical consumer interaction has been shut down completely. Some of the worst hit sectors are:
The worst hit of these all is the automobile industry which took a hit of nearly 230%. The COVID-19 pandemic came just before the beginning of the new financial year. Almost every automobile company manufactures new lots in massive amounts to release it in the new financial year at new rates and based on new compliance norms. Due to lockdown, the invested money did not convert into sales. The employees are still getting their paychecks in most of the major brands. This has resulted in reverse revenue draining.
Lifestyle & Luxury Retail
Another sector that is severely impacted by this lockdown is luxury which includes fashion, decor, accessories, clothing, etc. Whether they rely on a physical store or run an online platform, the restriction imposed does not allow brands to even deliver the sold goods. As a result, consumers are not buying, while the expenses to keep the stores, the staff, and the online repository is still being incurred at high stakes.
20-30% of the luxury industry revenue is based on international export. The indefinite restriction of export and import has also impacted this aspect. Many of the major brands kept these expenses attended up till the lockdown which was supposed to get over by 14th April 2020. But, as the lockdown extended, a lot of these brands started to lay off employees in mass or send them on indefinite unpaid leaves.
Hospitality & Tourism
No one is going out of their house. Hence, no one is travelling either. The Himachal Tourism ministry has reported a drastic drop in revenue from INR 450 CR to just INR 35-40 CR. States like Himachal, Uttarakhand, and other tourist destinations base their revenue on tourism and hospitality. Till the lockdown gets over, this industry will keep suffering.
Having connectivity is crucial during these dire times. That’s why the government of India has included telecom in essential services. Even though there has been an increase in telecommunication consumption, the industry still stands unscathed by the pandemic. Instead, the telecom costs have gone down inverse to the number of users increased. Due to this, the telecom sector is also conducting minor layoffs to cope-up with the operational costs only based on necessities.
Grocery & Essentials
While the production of extras have been put on halt, availability of every essential product in the market is being ensured by the government of India itself. The businesses producing grocery, food & ration, basic amenities have seen a sudden surge in need as everyone is indoors and stocking up more than needed. Owing a rising demand in consumption, all the brands in this sector are hiring more employees to meet the needs.
The Digital World
With lockdown imposed, all the businesses from big Corporates to small startups have shifted to a digital work environment. People are spending 65% more time on their phones exploring online applications, surfing social media, and playing games. Online work management tools like Asana, and video conferencing platforms like Zoom have seen a tremendous increase in user base in just the last 30 days. As a result, they stand today as one of the richest digital brands of the world. Most of the digital sector companies are hiring more employees, especially remote employees.
After Lockdown Ends
Things will take time to recover from this pandemic damage. But, what we all know is that if you find the right resources to come back on track, the journey can be much easier and the destination much closer.