Coronavirus is one of the most horrifying tragedies that have hit the human race in ages. It has already affected millions of people around the globe, leading to hundreds and thousands of deaths every day. Adding to the massacre, the pandemic is also gradually having a growing impact on the global economy. The impact of coronavirus on business’ around the globe has been immense. Let’s have a look on how long will it take for your industry to recover from COVID-19.
We are seeing an increasing rate of companies entering a recession and some going bankrupt. According to a survey by global advisory firm Willis Towers Watson, about 57% of organizations in India expect a moderate to a large negative impact on their businesses in the next six months while 46% expect the effects of COVID-19 pandemic to last over 12 months.
The challenging times and continued uncertainty are forcing CEOs to take some crucial steps. Some are pulling in, making cuts, and focusing on riding out the storm. Others, however, are taking decisive action to make sure that when the crisis ends, they’ll be stronger than they are today.
Nevertheless, business continuity is crucial. If you as a business are not able to work efficiently and do your part, you are worsening both yours as well as the economy’s growth.
What your business should do after the pandemic?
There are no second thoughts about the fact that coronavirus will leave a long and deadly scar on the economy even when it is long long gone.
Companies still have to thrive to come back even stronger because only when you step up, you will be better off to confront the challenges. How should one make a strong comeback to minimize the impact of coronavirus on business?
Take Government Support
Your industry can seek help from the government always. When times are tough and the first and foremost requirement for the government is to look after the country’s present health emergency, Industries should not step back in showing unconditional and extended support to the government machinery.
Very cliché. COVID-19 has already shifted focus to digital for many businesses. Start working on enhancing and expanding your digital platforms. These can help you bounce back quickly as compared to other modes.
For more information, head over to our blog on How Your Business Must Prepare For Post COVID-19.
The pandemic has caused destruction in multiple sectors. Hospitality, transportation, tourism, entertainment, and livestock seem to be the worst hit. According to SMB Story, the livestock sector is experiencing weekly losses to the tune of Rs 7 to 8 billion from the sale of chicken alone. The tourism sector is expected to have forgone revenues of Rs 350 billion from foreign tourists alone during March and April combined.
How long will it take to recover and bring everything back to the normal stage you may ask?
Different sectors have different answers.
According to a survey carried out by the global consultancy ICF, the aviation industry may take six months to two years to recover from the severe blow caused by the pandemic.
The Indian retail industry, on the other hand, may take a maximum of 9 to 12 months to recover from the aftermath of the pandemic. It is important to note that the retail industry also consists of fashion, accessories, electronics, etc. According to Kumar Rajagopalan, CEO of Retail Association Of India (RAI), only 8% of modern retail trade is functioning at the moment. With only less than 10% of the industry running currently, its hard to say that it will bounce back quickly once all of this is over.
Travel and hospitality industry
The Impact of coronavirus on business related to the travel and hospitality industry has been immense. The travel and hospitality industry may face a long recovery. With international travel being impacted by up to 25%, it is a huge dent for sure. So much that even after the pandemic, it will take a long time for tourism and travel to come back in demand.
India’s entertainment industry which has come to a grand halt might take a total of two years to financially recover from coronavirus. This has put a risk on over ten thousand jobs keeping in mind the number of people working behind a project (whether a movie, theatre, or tv show).
The transportation industry which includes Railways, Highways, Public transport, etc allows bulk movement of people and goods over the country. Lockdown has taken a huge toll on this industry. It’s very hard to say what precautions will be taken for the industry to bounce back quickly. Increasing fare tickets might not be the best solution since traveling by public transport is known to be fare sensitive. What will be the best possible move then?
Apart from all this, pharma, medical and health equipment, and digital companies are among those which have seen a jump in their business following the COVID-19 pandemic. So, basically not all sectors are negatively affected by Coronavirus.
As India has entered into the Unlock Phase, it will be interesting to see how the economy will pick-up and try and heal the impact of coronavirus on business’ all around. What path to recovery will it follow? What do you think? Tell us in the comment section below!
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