Marketers are trying to study the impact of COVID 19 on Marketing and its relevant industries since things have started to cool down a bit. We have been dealing with covid-19 for more than one and a half years now, it came into our life and shook our very existence.
Nobody was prepared for such an unpredictable situation. But the “never give up” attitude of people aided them to adapt to such circumstances. Everyone and everything suffered consequences due to this pandemic.
Before understanding the impact on Marketing, Financial & Industrial aspects, we need to ponder over the questions we are facing on a daily basis.
Did you hear news of recession?! And that it is 3 times bigger than the 2008 financial crisis?
Did you speculate that online shopping was going to grow this big?
Are you worried about treatment costs escalating and the logic behind that?
Did you see “Work-from-Home” becoming the new normal and companies becoming multi-millionaire?
Do you still think about when will you be able to dine out?
To get a satisfactory answer to all these questions we must understand the impact of Covid 19 on Marketing, Businesses & Industries on which our lives are dependent, and how they are adapting to the new normal.
How COVID-19 Impacted marketing, Industries & How they overcame.
Industries that faced DOOM
Manufacturing Industry involves:
- Preparation of products from commodities and raw materials.
After the outbreak of coronavirus in the year 2020,
- The global FDI inflows has witnessed a sharp decline.
- Global FDI has shrunk by 5%-15%, especially in energy, automotive, and airlines industries.
The manufacturers of the automobile, chemical, electronics, and aircraft were facing concerns regarding the availability of raw material.
Automobile giants like Daimler and Volkswagen temporarily shut down the production of vehicles and engines at their factories in Europe due to the coronavirus outbreak.
In the electronics sector, smartphones and consumer electronics companies have commenced a reduction in production operations and postponed the introduction of new products.
Here’s The impact of COVID-19 on the manufacturing industry is analyzed based on regions, including North America, Europe, Asia-Pacific, and the Rest of the World:
As you can see,
In Asia-Pacific, China is mostly affected by the condition, due to the fall in industrial production coupled with the shutdown of factories.
In Europe, most automobile companies and electronics manufacturers have temporarily closed their factories or minimized production output, resulting in loss to the global trade.
How can they tackle this?
In 2021,the manufacturing sector has adapted to the new world and now has started functioning under safety protocols.
Looking ahead to 2021, the recovery may take longer to reach pre-pandemic levels, as Deloitte projections based on the Oxford Economic Model (OEM) anticipate a decline in annual manufacturing GDP growth levels for 2020-2021, with a forecast of -6.3% for 2020 and 3.5% for 2021.
To tackle this, the best way to move forward according to a report by iron paper is Start investing in content marketing
According to the industry trends, here are some elements that manufacturing marketers include in their content marketing strategy.
Increasing your digital footprint
You can reduce the impact of Covid 19 on marketing by adding several common “inbound” strategies in your upcoming marketing agenda like SEO, social media, content publishing, and even paid advertising are ways that marketers can attract target audiences.
The restaurant, travel & hospitality industry is one of the hardest hit by coronavirus-induced lockdown in the world so far.
The list below is likely to be the next big hurdle in reviving the industry:
- Massive layoffs.
- Getting people back into restaurants and regaining their confidence once the lockdown is over.
- The fear of COVID-19 among customers.
- Hesitation to spend.
Dining out & traveling is a social experience and with social distancing norms in place, industry insiders are mulling over how to get past this obstacle.
The coronavirus outbreak and the measures taken to contain it have resulted in
- a sudden loss of nearly 100 percent of their business for many restaurant owners in the United States and internationally.
- a steep decline in seated diners over two weeks, before the industry, came to a virtual standstill.
This downfall also prevailed for travel and hospitality as well, have a look
How can they tackle this?
In response to this, owners have adapted to the new norms by converting their businesses into takeaway joints & by starting online ordering by partnering with food delivery giants like UBER Eats, Swiggy, Zomato, etc. in their specific countries in order to retain some income and avoid bankruptcy.
Travel & hospitality
Some countries are offering heavy discounts by creating experience packages at a very low cost. Some countries are also offering free days of stay to increase the traveler footfalls wherever traveling is allowed.
The industries that are booming
The industries that were able to quickly switch to digital/work from home mode of operations were the ones that not only survived the pandemic but even boomed 100 fold.
E Commerce Industry:
After the COVID-19 pandemic, social distancing and staying home was expected to push the consumers towards online shopping.
However, uncertain consumer demand and supply chain issues can affect the e-commerce industry in following ways:
- A drop in casual shopping.
- Supply chain disruption.
- An increase in purchases of essential toiletries, groceries, and other products.
Logistics firms, which are involved in the movement, storage, and flow of goods, have been directly affected by the COVID-19 pandemic.
As the IMF predicted a 3 percent contraction for the global economy in 2020, the expected recession will deliver a second hit to demand and, thus, logistics companies, highlighting logistics’ exposure to trade, manufacturing, and demand for goods.
Operational constraints are expected to lead to delivery delays, congestion, and higher freight rates till date.
Companies that serve e-commerce are seeing increased activity as consumers opt for online shopping of essentials.
Overall, the uncertainty will exert downward pressure on revenues.
- The impact’s severe for small players: Small trucking businesses are being severely hit because they tend not to have any backup, recovery plan, or intermittent operation plan.
- Top players experienced a strong impact: On April 20, both DHL and CEVA Logistics declared Force Majeure—a clause that allows contracts to be declared null and void due to acts of God or other unexpected circumstances—on all their contracts due to COVID-19.
- Other companies’ credit metrics are likely to deteriorate, triggering downgrades, as has already been seen in the sector.
The COVID-19 virus has created not only a healthcare crisis but also an economic one and a COVID-19 recession is now a reality.
FAILURE OF DEVELOPED COUNTRIES: (in the first half of pandemic)
Well-developed economies were not able to contain COVID-19 even after having a robust healthcare infrastructure. Which resulted in a very high impact of the COVID-19 outbreak on the healthcare market.
INCREASED VENTILATOR & OXYGEN DEMAND:
COVID-19 cases that are severe require ventilators for the smoothness in breathing and so the need for oxygen and ventilators has increased drastically. Most of the companies have extended their production capacity to meet the ongoing demand.
- Getinge increased its capacity by 60% compared to its previous production capacity of 10,000
- Philips doubled its ventilator production capacity from ~1000 ventilators a week to ~2000 ventilators capacity a week
- Medtronic announced to upscale its production with 40%
Also, many players such as Mahindra Group, Ford, and Maruti Suzuki are stepping into the healthcare industry.
ENTERING NEW BUSINESSES:
Many companies are repurposing their production lines to join the fight against COVID-19. Along with this, there are many industrialists and luxury hotels that are entering into the hygiene masks and quarantine center services, respectively.
INITIATIVES BY START-UPS:
Many new start-ups are also contributing to the fight against COVID-19 by
- Introducing apps that help to track COVID-19 cases.
- Manufacturing medical instruments using 3D printing technology
- Manufacturing contactless & automated sanitizing machines
- Introducing whatsapp based AI Chatbots recreating ecommerce like experience for hyperlocal markets
Apart from a rise in demand and a shortage of medical supply capacity, the spread of medical protectionism has been one of the biggest problems for supply chains in healthcare so far.
Here’s a bird’s eye view of impact of COVID-19 on various health care sectors:
Encouragingly, there is a determination to ensure that medical supplies and important agricultural products are distributed “where they are needed the most”.
Covid-19 has impacted almost every industry, causing steep inroads into the global economy. The Pharma industry is no exception. Let’s understand the impact on the pharma industry
1. Data & Analytics
Pharma industry has an enormous amount of data, which also brings in various challenges
- Integrating siloed data and derive insights
- Infrastructure to leverage the power of Big Data
- Leveraging unstructured data
- Advance insights from clinical trials
- Data privacy
- Social listening
2. Digital Health
Digital health might be the next big thing as telemedicine/video consultations, health-related videos and apps are gaining popularity.
- Practo: Practo provides online consultation and online medicine ordering. ‘Pract-o’ is short for practice online.
- MyTeleMed: MyTeleMed is a phone-based service you can use to reach doctors for urgent needs. Investment in online portals that help doctor-patient interaction will increase as well as mental healthcare portals.
IT is one of the most flourishing industries in the world. However, with the outbreak of coronavirus; a mixed impact was expected on the IT outsourcing industry.
REDUCED REVENUE GENERATION
As many economies are continuing with the lockdown due to the Covid-19 issue,
- Revenue generation for most companies across sectors has been affected while the rate of unemployment has also inched upwards.
- The revenue expected to be reduced by approximately 2-7% largely impacted by the slowdown in decision making, delay in pipeline conversion and project execution and pricing impact on core business.
WORK FROM HOME CULTURE
Now companies are adopting work from remote locations, thereby requiring more cloud services and IT applications to effectively enhance and strengthen their information related security from cyber attacks.
Zoom App: Zoom provides HD video conferencing, making it the ideal app for meetings.
After going through the impact of Covid-19 on marketing in the above-mentioned industries, the effect seems to be long-lasting. These effects are definitely going to affect our lives, but now, is the time to face it even more.
Many industries around the globe have started to open up given the revoking of lockdown protocols. Many businesses have also started with all the required precautionary measures in place as all these industries and businesses are getting full government support.
Old opportunities have demised but at the same time, new opportunities have sprouted. The aftereffects of this pandemic are to be faced by each and every one of us with unity.
This impact analysis might provide answers to all the doubts and questions or atleast the reasons behind them. It’s just a matter of time and everything will come back to normal and definitely move towards the better.
Our job right now is just to LEARN-ADAPT-IMPROVISE AND OVERCOME!!!
Are you one of the business owners who work in one of these Industries? It’s quite clear that to survive in such a volatile business environment, you must have an out-of-the-box Digital Marketing Strategy.
To support all small & medium-sized businesses I am providing a free consultation session to all, Feel free to call me anytime! I have also crafted a course for all entrepreneurs that I am now providing at a discounted rate called Digital Development Bootcamp for entrepreneurs.
How do you plan to combat the pandemic? what is your strategy? let me know in the comment section below!