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The year 2020 has brought along global fear and paranoia around the spread of the deadly Coronavirus. Currently, millions of people around the world are infected, and several thousand have even lost their lives to this pandemic. An overwhelming number of new cases arise every day, and no vaccine is in sight. The public healthcare systems in many countries and states do not have the resources to provide adequate care to everyone.
Quite naturally, social distancing and self quarantines have become the norm to flatten the curve. This precaution will help prevent the spread of the pandemic beyond the capacity of our public healthcare systems. This means that many land-based businesses across different countries have been forced to shut down. Either some or all operations and processes are moving online. Apart from essential industries such as medical, groceries, defense and banking, most other land-based businesses have suspended non-essential activities until the pandemic is under control.
This slowdown in business and a drastic fall in production has adversely impacted GDPs and global markets. The Asian economies have been pulled into a recession, and considerable shifts in the market hamper the prospect of economic growth in the coming months and years.
Whether you’re a small or big business, this pandemic is likely to affect you or your clients profoundly. Large brands and companies have enough cash reserves and creative resources to dip into. However, small and medium-sized businesses that rely primarily on dropshipping and supply chain logistics are likely to suffer the most. Issues with supply chain and factories closing down mean that all businesses are likely to suffer from product shortages. On top of that, there is a potential for a drop in demand or shift due to economic fluctuations. During these turbulent times, businesses have taken the online route to grow their business, and many have seen successes in general.
Despite the vast gaps in their supply chain, online retailers reported that e-commerce is growing. The industry is experiencing an average revenue weekly growth rate increase of 52%. This growth rate is an addition of an 8.8% increase in conversion rates compared to a year ago. This spike in online retail activity reflects how consumer demands are shifting towards online shopping. It is a result of users lack access to commodities they need. This isn’t to say that there aren’t issues with delivery, loss of customer confidence due to delays and performance during this time.
More people around the world continue to self-isolate in their own homes and locales because of the Coronavirus. And access to luxuries like casinos, sporting events, festivals, and horse races are a very distant dream. As a result, many users have adapted to virtual gambling and gaming online for entertainment. Online gaming providers report a spike in new registrations as well as increased activity across platforms. Online casinos and esports provide authentic and entertaining services combined with opportunities to win cash during these sparse times.
Nation-wide lockdowns have forced people to work from home. Thus, leaving users with relatively more free time to explore content across various platforms. The booming home economy is what is causing video content streaming sites like Netflix, Amazon, YouTube, Hotstar, and disney+ to pull in more revenue now than ever. More people seek out content for recreation. And these streaming platforms are taking advantage of this opportunity to rake in the bucks at their viewer’s expense.
As more businesses move online, they require a remote software system that consolidates the company’s workflow into a single platform. This reason is why utility applications such as zoom video conferencing apps or Slack software are becoming popular. Especially among businesses and educational institutions as the case may be. Social media applications such as Instagram and TikTok have also seen a spike in daily activity due to the pandemic.
Among the most searched and ordered items online are sanitization brands like Purell and Clorox and Dettol. Some of the fastest moving products on online retailers are sanitation products and antibacterial products. Some examples are sanitizers, masks, disposable gloves, and filters.
It is important now, more than ever, for brands to be tactful as well as transparent with their customer base. While some brands are trying to capitalize on changes in the market and take advantage of customers’ fears, experts urge e-commerce businesses to avoid such tactics. How brands respond to the current challenges presented by the scenario will distinguish the outstanding companies from the weak ones. Businesses must not panic but instead increase flexibility and adapt to change if they wish to sustain their brand until normalcy returns.