How Consumer Mindset Will Change And How & Which Industries Affected Due To Corona Pandemic
This article will not only focus on How & which industries have been/ will be affected due to this corona Pandemic but also It will focus on how consumer mind-set has changed due to Corona Pandemic. I would like to clarify that I am not expert on market and Economy, but I hope that I will list out some important changes in Consumer dynamics.
There is Shift in mentality of every consumer. People will delay their less important Expenses. Also they will completely avoid useless spending. Those who used to spend on useless products and showing off their spending will now understand the value of money and the reserves & liquidity.
1. Event Industry –
Marriage, Parties, Events will not happen at least for next 4 5 months.
Even when Corona will be under control, people will minimise these expenses. There will not be huge spending on Show-off. Gone are the days when 1000-2000 invitees are invited and the cost of the plate was 1500-2000. And this change in mind-set is not for time being. This change will affect banquets owner, party plot owners, Decorators, Catering contractor, restaurants, hotels, event management companies and staff working in all such places. Tough time for all of them.
2. Restaurants and Food industry –
Gone are the days when people used to enjoy outside food as much as they earlier used to. Situation is different. Corona Pandemic has affected hotel and food industry like anything. At least till next 4-6 months, people will not be eating outside food. घर की मुर्गी will not be दाल बराबर. The fear is immense. Restaurants will have tough time to survive. They have to cope up with the new safety standards. We are more worried for the staff like waiters and cooks working in such Restaurant. Also, Food aggregators like Zomato swiggy and their staff will have very tough time ahead. With mask and sanitizer, people will not be chilling like they used to do, atleast for next few months. On the other, side India has recorded some highest numbers in the sale of alcohol and Tobacco products after the guidelines of lockdown were Eased Out.
3. Travel Industry –
Not Just Airlines which are affected. Online platforms like MakeMyTrip – Goibibo, Tour operators companies like flamingo , Ajay Modi, Individual travel agents which were making huge profits in booking hotels , restaurants , air tickets , rail tickets or those operators which were providing bus taxi cars to tourists And Mainly Hospitality Industry like Hotels And Resorts. All are facing and will be facing huge crisis in coming year. We can predict that they are badly affected till next one year. Recently TripAdvisor fired Major staff. The reason is simple again; Family will not be going on a trip taking fear in mind. Let us hope that once things get normalised in a year and world will be safe again then, many travel lovers who were earlier to travel internationally, may choose domestic-small trip. Hence, benefit of reduction in international travel will be available to domestic tour operators and consequently to domestic hospitality industry. Although the loss due to Pandemic will be huge.
4. Luxury Products & services sector –
Staying at home is more people will choose than going to gym or club. Gym membership of Rs. 10k-20k, Club membership of Rs 5/10/20 lacs, Beauty- spa treatment, etc etc All those expenses will be minimised. Or I would say that people will avoid. And in longer run, this will change their habits such that People will forget this luxurious clubs & gyms. So their owners and staff have tough time to run their show. Because it is more Non-essential than all of above. There cannot be enjoyment of luxury when Fear is on mind. This is all because of Shift in the mentality. People will think that it is better to save and keep reserve for 5-6 month if any such situations will arise in future. Same way, Gold, Gems and diamond jewellery industry is also predicted to get heat as people might not invest into such luxuries time being. Major blow on gold imports by India. Increasing price of gold and Diamonds is another factor. Although upcoming marriage season will have some sight of relief. Yet, it is very difficult for jewellers to achieve revenue as that of last 2 years. High-end Consumer durables industry also affected. AC is necessity for some. But for many it is not. Same way, 56 inch LED is not necessity for many. Not atleast in current times. Same logic applies; people will Shift their goals or cancel the plan on buying high end consumer electronics. Again, their manufacturers and distributors will be affected.
5. Automobile sector
Already this industry is in stress since many months due to law demand. E-vehicles also big competition coming for them to face-off. So Cars will be only purchased if necessity. And for the rest cases, जब बहार long drive पर जाना नहीं है then why to purchase and break your bank balance in buying high-end cars in current situation. They may Shift this goal to next year. Also, buying power is affected, lesser demand and huge stock piled up for Car manufacturers. All factors suggesting huge crisis for them .
6. Clothing/ Apparel / Beauty products Industry-
Not badly affected but they will definitely having some crisis in this pandemic, since people understand that they won’t be going outside for next few months so they won’t be need of buying new clothes , new accessories. Consumer will think that when there is no reason to go outside. why unnecessary Buying? People won’t visit shopping malls. Shops that are paying huge rents for their mall outlet will have limited foot fall and it will be very difficult for them to even touch break even. Unnecessary weekend shopping will stop be it clothes or anything. People will buy such things only when it’s actually required. Although, Since India is a festival driven country and upcoming festival seasons, Let us hope that textile industry will see sharp recovery in July onwards.
7. Movie industry and OTT
BOLLYWOOD is also another industry which is badly affected. Actors and Crew will be scared to go for the shooting so for next 4 5 months. The problem is sever for many daily wage earners like background artist, background dancer, fighters, and side actors in this industry. What will happen to them because there won’t be any work for next 4 5 months. There won’t be new Shootings. Not only actors, Musicians, Singers, Technical experts will Not have work for few months. There is huge investment done in the movies which are already ready for the release but people will be scared to go to multiplex and theatres for next few months. So the theatre owners and the staff working in such theatres will have very very tough time ahead. Producers will take a call to release movies which were ready on OTT platform like Netflix, Prime; because they cannot wait for another 5 6 months to get things normalised and wait for people to go to theatre in Masses.
8. Real estate
There may be chances of more मंदी in Real estate. People will Shift their goals of buying new house in future. सपनों का घर may remain सपनों का whose businesses have been affected in corona Pandemic. More stock will be piled up for Builders. Even interior designer, Construction contractor, Agencies like Carpenters, electrician, Manufacturers and traders of Lifestyle furniture products, Manufacturers and traders of ceramics tiles etc etc will get heat indirectly for time being.
9. Outdoor Advertising agency
Outdoor advertising agencies will also have tough time. Companies will currently not invest in outdoor hoardings, banners, multiplex advertisings. Every company is into cost saving mode. Marketing expenses will be curtailed.
all the above industry is shut down completely since March. It is month of June. And we can assume that atleast Corona Pandemic will not be going till September. So for next 5-6 months, the whole supply chain, the support industry providing product and services to above industries, the workers and staff working in such in such industries will be struggling. Let’s hope they don’t fire the workforce. India has an official unemployment rate of 27% today, implying nearly 40 crore people are unemployed today. Unofficially, count in 15-20 crore wage workers and the figure comes to a staggering 60 crore people out of a population of 130 crore people. This could create huge socioeconomic changes. Demands for essential will never be impacted though. However, All Non-essential products and services will not see any demand because Purchasing power will not be there until unemployed person gets to work. Otherwise Corona will give worst of Recession to Economy. Overall, Prices are expected to increase in each and every Non-essential products industry to survive. Even for essesitial products, in the name of hygiene and safety extra charges will be recovered from customers by Shop owners.
Of course all consumers Will Not behave same way. Even Corona Pandemic may not have affected many consumers financially and mentally but largely, there is change in mindset. The behaviour shift will be different from one person to another. For one person, buying a product X is necessity and for another consumer, the goal to buy such product may be shifted to next year. And for another, He may just cancel his plan to buy such product. Purchasing power and necessity is not only affecting factor now. Corona Pandemic has made us learnt that ” Nothing is urgently Important”
Also on the other side Pharma – India is considered to a “sanjeevani” for the whole world, as we have seen during this pandemic, this sector will definitely be a shining star for Indian economy. More self-reliance is required on raw material. There is also one industry having Boom. Suddenly everyone understands the importance of sanitizers and mask because the situation demands its necessity and Indian Businessman are Very smart. They come up with Business idea in every situation. Everyone is manufacturing and selling PPE suits, Masks, Sanitizer, Sanitizer with stands, Tunnels. Small bottle which used to be selling at Rs 30 before pandemic, suddenly being sold at Rs 90. BIG profits ha!. check your WhatsApp stories , half of them are selling sanitizer. haha!