The lockdown from 23rd March 2020 was a big surprise for the entire nation. Due to recession in the economy, many employees were laid off from their companies and many businesses were shut.
Here’s a list of 7 industries that are believed to register a spike during the unlock.
- Telecom Sector
The telecom sector is one of the few that may escape intact from the pandemic and the resultant lockdown.
According to reports, due to spike in the demand for the services, there was an increased pressure on cellular infrastructure which compelled Cellular Operations Association of India (COAI) to write to the government to request streaming service providers such as Prime Video, Netflix etc to switch to a lower definition streaming and reduce advertisements to reduce the strain on existing networks. The hike in the demand was also due to the increased usage of data for the virtual work by companies.
Similarly, post lockdown as people are expected to continue the social distancing and stay at home for a longer time leading to an increasing demand for their services which will help them offset any fall in their revenues.
As people were quarantined countrywide, people switched from local stores and malls to e-commerce platforms to fulfill their needs. Many e-commerce platforms which provide groceries and fulfill the basic needs of people such as Amazon Fresh, BigBasket, Grofers etc have experienced a spike in their demand. The local stores have transformed themselves into a digital platform. To avoid physical interaction with the products, retailers have created WhatsApp catalogues, temporary websites and are showcasing products through them.
To continue the precautions, people are expected to rely more on such platforms in the future as well. However, though the demand has increased, insufficient manpower to deliver the products on time is still a major issue. To stay competitive, many online platforms have added the needs of people such as sanitizers, soaps etc.
Post lockdown, many e-commerce platforms are expected to follow the deals and discounts to regain the market. For instance, Myntra launched a huge sale on their items from 19th to 22nd June 2020.
Due to the increased risk of COVID-19, people, countrywide, are adopting better hygiene practices. This has led to an increased demand for sanitizers recording the highest sales during this period. As people continue such precautions, it is expected to see a drastic rise in demand for medical supplies during the unlock.
People are focusing more on building their immunity. Also the fitness freaks who were not able to workout regularly in the gyms are expected to intake the supplements to maintain their health which will result in the increased demand for health products.
- Disinfectants and Cleaning Items
The sales of disinfectants triggered a huge growth to fight COVID-19. As the country lifted its restrictions recently, the precautions to maintain personal hygiene remain constant. To keep the area safe, many workplaces and stores are expected to contribute to a larger portion in the demand for disinfectants.
- Advertising and Marketing Sector
Most of the businesses which are planning to expand their operations or few new and fresh startups will contribute to an increased demand for advertising and marketing industries. For example: Reliance, despite its operations in many existing fields, recently launched the JioMart which contributed to an increased demand for advertising. This gives the opportunity of huge profits to the sector.
Recently, the world-wide Covid-19 Pandemic saw a boost in sales of liquor before the lockdown. One might expect the same trends to follow post lockdown but we have rather mixed views on the subject. The sale of liquor has been divided into mainly two distribution channels, firstly, on-premise sales such as bars and restaurants and secondly off-premise “to-go” sales. It is natural to expect the on-premise sales to diminish given the social distancing guidelines and hence the off premise “to-go” sales to in-turn increase. Although the distribution channels have rather changed for the producers, the ever demanding consumption of alcohol is still quite constant and hence the industry is set to see a little boost during the upcoming period. Also, the increase in sales of mid priced as well as smaller sized bottles is expected given the current financial conditions pointing towards a very uneven sales for different producers nation-wide.
The demand for Fast Moving Consumer Goods has seen a huge spike in between this Quarantine. The nation-wide lockdown resulted in panic buying among consumers which in turn resulted in very distinct buying patterns. Almost everyone has been stockpiling on household essentials: sanitizers, masks and essential foods amongst many. Consumer perspective has now undergone a rapid change and the fear of further unseen circumstances has resulted in a shift from purchasing of luxury goods to daily essentials. This spike however has not been very well answered, the breaking of the supply chains and abstinence from visiting the physical stores has led the FMCG industries to find their consumers through different alternatives. Amongst many such alternatives, one option that seems the most feasible currently is the accessibility to the online stores. Many such industries have now successfully put their stores online and have provided a more meaningful and safe path for the consumers to get essential household goods.