Since
the global outbreak of coronavirus (COVID-19), the panic and fear among the
public throughout the globe are spreading faster than the virus. The impact of
COVID-19 is not only limited to the demand side of the market, but the supply
chain is also hampered equally. The sectors impacted the worst are service
providers and entertainers. The coronavirus outbreak across the countries has
hampered the local economy as a result of which major industry leaders have
lowered their forecasted revenue for the last quarter of FY20. All these
factors combined have impacted investor sentiment in a negative way resulting
in a market panic.
According
to many economists, the global economy might now grow at its slowest rate since
2008 crisis.
Many local businesses and new start-ups are
facing problems to sustain in such a market. Due to India lockdown, no one can
carry business but their fixed cost is increasing day by day. Though Government
took a great step and said no interest and EMI would be taken for the 3 months
this gave relief to many businesses but the individuals or workers who used to
get daily wages are in big trouble as their income has been stopped and still
need to run their houses.
Though
in such conditions, few businesses are getting great responses and are
increasing day by day.
Business
involved in online video calling like Google Duo, Skype, House party are
getting traffic on their websites on a daily basis as many people are
organizing their daily meeting on these platforms and also individuals are
using them to keep in touch with their loved ones.
Businesses
involved in indoor to doorstep delivery of groceries are also getting
profitable by the day due to lockdown. Start-ups like Big Basket and Gofers
were already in such business but now local vendors are also changing their way
of business is taking advantage of the current situation.
Food
deliverable startup-like zomato and swiggy are badly affected as restaurants
are closed and now fewer people prefer to eat outside food. Though they try
many things like no-touch delivery to customers they failed to attract more
customers in such a period.
Transport,
tourist and hotel industries are badly affected as trains are shut down and
also international flights have been canceled.
These businesses are badly affected and are incurring a great loss.
Clearly,
prevention appears to be the best cure when it comes to the fast-spreading
novel coronavirus. And start-ups are leading the way.
Thank You,
Regards,
Prerak Shah,
E-Cell,
IBS Mumbai
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