In the wake of a new crisis, caused by an invincible entity, we are on the edge of the largest economic crisis known to the world.
There was a meme that said if the Great Depression was so great, why didn’t they come up with a sequel. Clearly, they didn’t enter 2020. The IMF warns us that the foreseeable future may be overshadowed with economic depression, far worse than the 2008 crisis.
Businesses post Corona crisis
McDonnell, Head of WGSN, says,
“This crisis is forcing anything which can digitize, to digitize,”
predicting the transition from a combination of traditional-digital to market to e-commerce dominated market form with social distancing as a new state of normalcy.
An article by the CO states that at the juncture of a global pandemic we may face the following scenarios —
One being the over digitalization of traditional market functions such as the sale of FMCG products. The recent trends show that people have accustomed themselves to ordering everything, including essentials such as groceries and dairy products online would continue this pattern even after the pandemic ends due to the convenience this sort of service provides.
The Indian economy with a current GDP rate of 2.8% (as Of March 2020) will take a real hit when it comes to the show business because people would continue to practice social distance for the next few months to come and would certainly share reservations about large public gatherings due to the displacement caused by the pandemic.
The second change that’s risen due to the COVID19 pandemic in people adapting to the ‘work-from-home’ culture which was not an easy adaptation but has surely become a sure shot way for multinational corporations to ensure their profits don’t come to a standstill and business continues to run without interruption.
If people opt to work from home, there would be a real hit on real estate industries which is accompanied by a sharp decline in the demand for office workspaces.
Alternatively, people could decide to work in odd and even shifts system as most governments recommend in the wake of this global crisis. This system would increase the demand for shared workspaces as seen in the startups recently, where two or more big firms may compromise to share one building for their employees to coexist.
We foresee that new normalcy has surfaced and the way consumer behavior as previously described by economists would be redundant due to the structural changes that will take place in a globally interdependent economy.
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