The coronavirus (COVID-19) outbreak has brought the world to a standstill. People have been strictly directed by governments to implement social distancing to prevent any further spread of the disease. The pandemic has imprisoned people in their own homes, retail establishments have been locked down, and recession is knocking at the door.
Amidst the global crisis, most of the industries are going through a tough time while there are a few industries that help their customers go through these painful times. Online businesses are making a buck by bridging the gap created by offline businesses. If we go by the opinion of business experts and the change in customer behavior, e-commerce might continue to serve people better after things go back to being normal.
You can tune in and listen to our podcast on industries impacted by COVID-19:
Let us throw some light on the top 5 industries that are most impacted by the COVID-19 outbreak:
The retail sector has nosedived. Malls, independent outlets, and showrooms are temporarily shuttered due to the outburst of COVID-19. The shutting down of factories has disrupted the supply chain extensively. Tracing back to the Great Recession, the manufacturing indices have dipped to their lowest point. The luxury and fashion segments of retail are pulling back hastily. Only groceries and disease-fighting essentials are vanishing from the shelves of Walmart and Target due to panic buying. In the present situation, people are preferring to buy online as it helps them avoid large gatherings and makes them feel safe.
The healthcare industry has been deployed on the front line. The doctors are testing the suspected ones, tirelessly treating the affected, and constantly seeking a permanent vaccination for COVID-19. The hospitals are being flooded by patients so much so that it is being problematic to handle. The e-commerce sale of medicines, medical kits, and masks have skyrocketed. There has been a non-uniform rise and fall in share prices of companies such as Moderna trying to come up with a vaccine for the disease. The impact on the online medical products’ supply chain is a serious concern as the makers of drugs across the world heavily depend on ingredients from China. Also, there aren’t enough ventilators to accommodate the rising number of patients, the best example is Italy.
Apparels and accessories
After the coronavirus outbreak, the e-commerce sales growth for apparels dipped massively and came to a standstill. In the last quarter, the sector saw a growth rate of about 30 percent. It was just ahead of the ides of March when the steepest dip was recorded. According to Edison Trends, e-commerce apparel brands such as Stitch Fix witnessed a 7 percent plunge in weekly sales between March 2 and March 22. Riding on the back of its best sales in December, an online apparel company Ratio Clothing expected its sales to break records in the 2020 summer season. However, due to the pandemic, the company’s online sales dropped sharply in the first week of March. The online accessories industry has reported a decline in sales as well, Nike being a notable example. However, Adidas hasn’t let its ship sink as its online sales shot up in March, leveraging its effective promotional activities.
Groceries and essentials
COVID-19 has pushed consumers into a state of panic buying! The online retailers of groceries and essentials have witnessed a whopping growth of 45 percent. E-commerce giants such as Amazon, Flipkart, Grofers, and others stated that products such as rice, vegetables, instant noodle, handwashes, sanitizers, toiletries, etc. are being bought rampantly. Reporting a 20 percent growth in demand, BigBasket has been delivering grocery to unnumbered homes in many cities, contributing greatly in providing relief and ease to consumers. To deal with the overwhelming demand, the e-commerce giants have begun to stock up on the most-sold products in their online stores. This ensures an unbroken supply chain and makes the online firms prepared to meet the unexpected rise in demand in the near future.
This is one sector that has gained traction. While everyone is locked down in quarantine to mitigate the impact of coronavirus, hyperlocal marketplaces are doing well as they function online. Whether it is food, grocery, medicine, or other essentials, the delivery services, do the job for you without you having to make physical contact with the world outside your home. You just have to make an online purchase and your package is dropped off at your doorstep from where you can easily collect it. It is safe, contactless delivery and is doing wonders in the current scenario.
During these hard times, industries are evolving to catch up with the changing customer requirements. While we covered how some industries are adopting to the current situation, other industries are similarly doing their best too. To know more, read our other blogs or contact us to know how we can help you in this difficult time.