The COVID-19 virus is wreaking havoc and gradually putting people into trouble. Some express views that this is mother nature’s revenge. However, it has devastated communities across the globe. There has been a brutal breakdown in global financial markets. The uncertainty and the unpredictability of the virus’s impact have dragged people into a fear psychosis. Consequently, people have a tendency towards panic buying behaviour for instance.
The impact on the marketing arena from COVID-19 is quite massive. In the short term, companies have allowed remote working options for employees around the world. Also, one of the biggest concerns with regard to marketing is that event cancellations have made a negative effect on sponsorships; nevertheless, event marketing can be carried out virtually thanks to the digital space. Even Facebook cancelled a global marketing conference recently.
The COVID-19 cases have begun to grow outside of China and this factor creates more panic among communities at a time the WHO (World Health Organisation) has declared it a pandemic. The impact on the marketing world continues as major agency holding stocks have taken a plunge. Global tourism and retail sectors have been hit hard as Chinese tourists provide a major income for many markets.
Despite everything communities focus more on virtual-digital marketing. Also, this is heartbreaking news at a time where analysts were expecting a hike in media investments from marketers yearning to capitalise on events such as the Tokyo Olympics 2020.
COVID-19 has made a positive influence on e-commerce platforms. In China, major retailers have temporarily shut down their stores. Diminished in-store activity augments e-commerce activity and e-commerce marketing particularly online grocery. Another factor concerning marketing is entertainment. People have moved towards at-home entertainment. Consequently, the demand for video content platforms such as YouTube, Netflix, Amazon Prime. has increased.
It is predicted though it’s unpredictable; that the Coronavirus could cost the global economy $2.7 trillion. It has already brought the global economy to a standstill. If we reflect on what’s happening in China, where automobile sales have plunged 80%, passenger traffic is down 85% from normal levels, and business surveys are touching record lows. The economy, in other words, has practically halted. China is the world’s biggest producer of manufactured components. When Chinese factories shut down, the widgets that go into everything from Apple’s iPhones to construction machinery become harder to find.
Even though South Asia still has relatively few coronavirus cases, the region is already feeling the economic repercussions. India sources 70 percent of its pharmaceutical ingredients and a quarter of its car parts from China, according to the Financial Times. Chinese smartphones—the top sellers in India—are reportedly selling out as stores run out of supplies. And it comes as India was already reeling from its slowest pace of growth in years. Sri Lanka is no exception, given its close links to China in terms of trade, investment, and the movement of people over the past decade.
How should leaders prepare to face economic risks related to the Coronavirus? The leaders should begin to look beyond the crisis; what opportunities or challenges would arise via the pandemic. Consider how you would address the post-crisis world. Can you be a part of faster adoption of new technologies and new processes?
Let us all unite to fight the pandemic and save the world.