The Ups & Downs Post Pandemic

Year 2020 hasn’t brought any good new yet. From global crisis to US China trade war and more, the world has been simultaneously dealing with the pandemic called COVID-19, which already has impacted over 36,46,834 people while killing 2,52,442 already. Not just people, but coronavirus is shrinking the global economy too. UN said that the global economy could shrink by up to one percent in 2020 due to this pandemic. It also warns that it may contract even further if restrictions on the economic activities are extended without adequate fiscal responses.

In yet another survey of CII (Confederation of Indian Industry) CEOs Snap Poll, which saw over 300 CEOs participation, highlights around 54 percent of job losses in various sectors after the lockdown ends. The survey titled ‘Covid-19: Impact on Economy and Industry’ further mentions that 45 percent of the participants expect 15-30 percent cut in jobs.

In its CEOs survey, CII further highlights that 65 percent of the firms expect revenues to fall more than 40 percent in April-June quarter, while 45 percent of the CEOs polled estimate that it will take over a year to achieve economic normalcy once the lockdown ends. Chandrajit Banerjee, Director-General, CII, said, “While the lockdown was necessary to mitigate the impact of coronavirus on the population, it has had dire implications for economic activity. At this hour, the industry awaits a stimulus package for economic revival and livelihood sustenance besides calibrated exit from lockdown”.

But when the country stands back on its foot post pandemic, will the domestic companies experience better growth than the global firms? Will the consumers contribute towards quick GDP uprising by spending on domestic brands? According to the survey, a large proportion of the firms predict that the recovery of domestic demand for their products or services may precede the recovery in foreign demand for the same.

What could be the major reason for this shift is the way brands react during the pandemic and their contribution towards the nation building cause. Though the industry expects revenge buying post the lockdown is over, it is up to the brands to create a fertile ground for themselves in these difficult times to connect emotionally with people and attract them.