Top 10 industries affected by Covid 19
Almost all industries have been affected by the Pandemic of Covid 19 but there are some who have either taken a huge negative brunt of it (most of them) or positive brunt (very few). Will list the ones who have benefited from it in blue and negative ones in red:
1. Pharmaceutical - Obvious choice, it is the industry that is thriving in this environment. All hopes depend on it. Vaccine is not what this industry wants, it wants a medicinal cure. The big pharma will always want medicine to cure but not vaccine because that does not get them recurring income otherwise we would have had a AIDS vaccine by now. The common cold also has no vaccine because cold medicine by far are the biggest seller in the consumer market. India will benefit the most from it since it is the largest supplier of medicines in the world, however it has to increase its raw material production or find other sources besides China for it.
2. Travel - The negative impact on this industry has been immense and this is when it was seeing a steady uptick maybe not spectacular but steady. Air travel will take at least a year to get back to normal, whatever the new normal is going to be. Travel restrictions in hot spots will be the norm going forward and with social distancing norms in place, airlines, trains, buses or even share ride services will not be able to have so many passengers hence revenue will suffer.
3. Hospitality - If travel is restricted then hospitality will suffer, less hotel rooms will be full and the budget segment which was emerging very strongly with OYO, AirBnB etc. will be hurt the most because even luxury hotel's will give deep discount to fill rooms. Also fear factor will play a big role in people not travelling unless necessary. Vacation travel will be non existent for a while, people will prefer going to relatives or friends place for a break.
4. Entertainment - This is a vast space and again will suffer. Movies when they open will have to observe social distancing. Theme park like Disney, Six Flags or the local water park of trampoline park are all going to either remain shut or will have very strict guidelines of hygiene and distancing. Most conventions, congresses, fairs, conferences etc. will either be postponed or cancelled for this year. This is a major loss for the event management industry as well, which in turn is a major loss for catering, tent, decoration, flowers etc. Weddings will be a very low key affair, there will be more small gathering destination weddings than the big fat weddings.
5. Sports and betting - With NBA, Premire League, Champions league, Bundesliga etc. cancelling their games, sports and its stars are suffering more than most. Except for the top tier athletes, the middle and lower level ones survive paycheck to paycheck and with lot of grueling traveling and in case of sport like tennis or Golf, individual athletes with their entourage survive on week to week basis depending on their performance. These athletes will suffer the most with both their punishing schedule and training regiment. Betting is of course a linked industry is also shut down. With the norms relaxing next month, games without fans is a possibility so betting will come back a bit as well.
6. Restaurants, Cafe, Pub and Bars - It will take a bit to bounce back but it will recover. Hygiene, employee training, cleanliness, no negative publicity about the industry will make it come back faster. Immunity boosting, healthy, warm liquid, citrus drinks will sell more. Alcohol sales will go down as people will focus on safety and health. However industry should focus on hygienic delivery or contact less delivery to make up the deficit. Also, drive thru will thrive so more restaurants should opt for that option.
7. Financial Services and Insurance - Stocks although at a low price point will still not do to well cause there is a liquidity crunch, its a great time to buy, most stocks are trading at 40% lower than their value. So if you can invest with a one year horizon, you would make boat loads of profit. Insurance is sector to watch out for, during any medical crisis or anything that makes a person stare at their mortality, insurance sales go up. Life and especially health insurance will see a huge surge. General Insurance will stay flat. New insurance products keeping this disruption in mind will come, in fact there is a race to get them out to the market as soon as possible.
8. Tech - Tech industry will be a mix bag. Work from home collaborators will do well. Zoom is the most downloaded app for the past 2 months. However, supply chain has been affected with manufacturing pretty much halted in China, hence lot of tech companies are not able to fulfill orders. Most of big tech conferences have been cancelled which has had a big impact on future orders.
9. Hyperlocal market and delivery - People have gone back to their trusted neighborhood store in these times. The local market grocer, meat shop, pharmacy, salon, stationary shop, retailer stands to gain a lot if it is able to gain the trust of its customers in these tough times. Hyper local delivery is the key. If they have their own delivery or an efficient delivery service, its a win win for all of them. If the local salon can provide full service with complete PPE, ventilation and cleanliness it will gain a lot of new customers.
10. Social media and internet - The biggest gainer in these times, eyeballs and attention span are two biggest game changers on the internet, well people have time and willingness to try different things now so if your content, graphics, video, thumbnails are eye catching then you will get them for the 8 seconds, to keep them coming back will require good fresh content and marketing. Google, facebook, Pintrest, tik tok, Twitter will gain immensely but have to make sure the content meets governmental guidelines. There is no room for fake news, messages etc. Video is the thing now, that too short ones.
Well this is my take on the total picture, we will dig down into a few things as I keep writing and sharing. Do leave your comments to encourage or critique, Until next time......
1. Pharmaceutical - Obvious choice, it is the industry that is thriving in this environment. All hopes depend on it. Vaccine is not what this industry wants, it wants a medicinal cure. The big pharma will always want medicine to cure but not vaccine because that does not get them recurring income otherwise we would have had a AIDS vaccine by now. The common cold also has no vaccine because cold medicine by far are the biggest seller in the consumer market. India will benefit the most from it since it is the largest supplier of medicines in the world, however it has to increase its raw material production or find other sources besides China for it.
2. Travel - The negative impact on this industry has been immense and this is when it was seeing a steady uptick maybe not spectacular but steady. Air travel will take at least a year to get back to normal, whatever the new normal is going to be. Travel restrictions in hot spots will be the norm going forward and with social distancing norms in place, airlines, trains, buses or even share ride services will not be able to have so many passengers hence revenue will suffer.
3. Hospitality - If travel is restricted then hospitality will suffer, less hotel rooms will be full and the budget segment which was emerging very strongly with OYO, AirBnB etc. will be hurt the most because even luxury hotel's will give deep discount to fill rooms. Also fear factor will play a big role in people not travelling unless necessary. Vacation travel will be non existent for a while, people will prefer going to relatives or friends place for a break.
4. Entertainment - This is a vast space and again will suffer. Movies when they open will have to observe social distancing. Theme park like Disney, Six Flags or the local water park of trampoline park are all going to either remain shut or will have very strict guidelines of hygiene and distancing. Most conventions, congresses, fairs, conferences etc. will either be postponed or cancelled for this year. This is a major loss for the event management industry as well, which in turn is a major loss for catering, tent, decoration, flowers etc. Weddings will be a very low key affair, there will be more small gathering destination weddings than the big fat weddings.
5. Sports and betting - With NBA, Premire League, Champions league, Bundesliga etc. cancelling their games, sports and its stars are suffering more than most. Except for the top tier athletes, the middle and lower level ones survive paycheck to paycheck and with lot of grueling traveling and in case of sport like tennis or Golf, individual athletes with their entourage survive on week to week basis depending on their performance. These athletes will suffer the most with both their punishing schedule and training regiment. Betting is of course a linked industry is also shut down. With the norms relaxing next month, games without fans is a possibility so betting will come back a bit as well.
6. Restaurants, Cafe, Pub and Bars - It will take a bit to bounce back but it will recover. Hygiene, employee training, cleanliness, no negative publicity about the industry will make it come back faster. Immunity boosting, healthy, warm liquid, citrus drinks will sell more. Alcohol sales will go down as people will focus on safety and health. However industry should focus on hygienic delivery or contact less delivery to make up the deficit. Also, drive thru will thrive so more restaurants should opt for that option.
7. Financial Services and Insurance - Stocks although at a low price point will still not do to well cause there is a liquidity crunch, its a great time to buy, most stocks are trading at 40% lower than their value. So if you can invest with a one year horizon, you would make boat loads of profit. Insurance is sector to watch out for, during any medical crisis or anything that makes a person stare at their mortality, insurance sales go up. Life and especially health insurance will see a huge surge. General Insurance will stay flat. New insurance products keeping this disruption in mind will come, in fact there is a race to get them out to the market as soon as possible.
8. Tech - Tech industry will be a mix bag. Work from home collaborators will do well. Zoom is the most downloaded app for the past 2 months. However, supply chain has been affected with manufacturing pretty much halted in China, hence lot of tech companies are not able to fulfill orders. Most of big tech conferences have been cancelled which has had a big impact on future orders.
9. Hyperlocal market and delivery - People have gone back to their trusted neighborhood store in these times. The local market grocer, meat shop, pharmacy, salon, stationary shop, retailer stands to gain a lot if it is able to gain the trust of its customers in these tough times. Hyper local delivery is the key. If they have their own delivery or an efficient delivery service, its a win win for all of them. If the local salon can provide full service with complete PPE, ventilation and cleanliness it will gain a lot of new customers.
10. Social media and internet - The biggest gainer in these times, eyeballs and attention span are two biggest game changers on the internet, well people have time and willingness to try different things now so if your content, graphics, video, thumbnails are eye catching then you will get them for the 8 seconds, to keep them coming back will require good fresh content and marketing. Google, facebook, Pintrest, tik tok, Twitter will gain immensely but have to make sure the content meets governmental guidelines. There is no room for fake news, messages etc. Video is the thing now, that too short ones.
Well this is my take on the total picture, we will dig down into a few things as I keep writing and sharing. Do leave your comments to encourage or critique, Until next time......
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