Can Coronavirus (Covid-19) affect your business?
Coronavirus, which is also known as the SARS-CoV-2, was first started in the Industrial city of Wuhan. Wuhan is a city in China where it all started. Coronavirus was started back in December 2019 in Wuhan, China and now has spread all across the globe. Other than China, it has caused severe damage to countries like Italy, Iran, Afghanistan and the USA. These are the places where millions of people come to travel, day in and out for various purposes such as business, tour, economic reasons, etc. The disease has taken the lives of numerous people already, and there is no medical or scientific cure yet. Coronavirus outbreak has made a significant negative impact on several businesses. It is being predicted that if the world cannot control the virus in the coming few months it will end up taking the lives of a million people, including all of the countries. People have started avoiding social gatherings already in order to eliminate the risk factor of getting affected by this fatal virus. The global economy is going through severe damage, and nobody knows how to figure it out.
According to the report published recently by McKinsey, the growth rate of the Global GDP was estimated to be around 2.5% for 2020, and it is very much expected to go down to 2.0%. With that being said, the probable effects of the Coronavirus are expected to last until the first quarter of the next financial year. The GDP growth rate of China, Middle East, East Asia and other economies are very much likely to go in decline in Q1. According to the report, it is also being said that things would start to get back normal by Q2 in some parts of the world. However, the consumer market will take plenty of time to get normal. As of now, the total number of the coronavirus cases have crossed 188,298 and 7,499 deaths already while 80,848 are finally recovered from the disease. The idea of the social distance is pretty much taking the hold and. Mr. Wellington Chen who is the executive director of Chinatown has said that some of the shops have lost around 40% of the revenue while other shops had to face more than 70% loss in the revenue for a very long period of time. Chinatown is exceedingly dire that some are not able to pay the rent of the existing month due to loss of the massive money all of a sudden.
Impact of COVID-19 so far
World health organisations have declared Coronavirus as a pandemic and Europe to be the epicentre of the virus for now. This virus has extensively affected both of the small scale and large scale businesses. Shopping malls, public events, cinema halls, sporting events are now closed by the governments. In some of the countries, the social gatherings are restricted, which has extensively affected the routine of the people. Some of the industries who had to witness an extensive loss are airlines, travel, tourism, hotels, and other entities of service sectors. All of those businesses who had business relations with China or any kind of dealing with products with China will go through a maximum challenge of facing financial crises. Talking about the consumer industry, there will be a steep drop in the demands of the consumer and majorly in the sector of luxury goods. Businesses who contain the product of daily needs will not have to deal with much loss.
The food industry is also going through loss. People have started avoiding junk food because of the fear of getting affected. Online food ordering apps have received a bounce rate and a decline in their orders. Due to the corona outbreak, most of the businesses had to shut down their businesses, especially businesses who fall in the category of tour and travels. They have gone through a significant loss. Big companies and the retailers like Apple and Nike came up with the headlines during the corona outbreak, as investors anxiously are waiting for the news, if corona has impacted their sales or not. Most of the digital products are made in China and therefore, people have also started avoiding the digital products knowing the fact that China is importing them. Because of the plenty of impacts of coronavirus, the majority of the small business owners are struggling. However, official reports are suggesting that the effects of Coronavirus on small business are yet to be released.
Even those who are not getting impacted or affected by the suppliers of China still feel the impact. The general manager of the Chivy Ngo of Bo Ky has recently declared that the restaurant has lost revenue of around 60% and is dealing with financial losses. It will be pretty much hard for such businesses to recover from the financial crises.
Google- Can Coronavirus affect your business?
The story is a bit different when it comes to the world of the internet. There is no scope of physical contact in this crowded world of the internet. But, in the case of the e-commerce industry, people are avoiding buying stuff online. Most of the e-commerce business owners, such as drop-shippers majorly import their products from China. Most of the businesses who are active online do have to go through severe damage.
Google is also trying to figure out how online business is affected by the corona outbreak. Google is sending emails to the business owners taking short surveys from the owners. The emails are being delivered through Google My business. It is the way of Google to serve the community of online people well. The response of the business owners will help in collecting the exact data about the online business crises. Google is yet to release data about the losses in online business soon.