To what the world will remember as the most dreadful and one of the fastest spreading viruses called Coronavirus (also known as COVID-19) has till now proved to be one of those global menaces that have shaken the entire world and how.
It is considered to be one of a kind human tragedy that spread to such an extent, increased in almost all nations. It has affected thousands of people to the size of even losing lives fighting against the virus.
This global health emergency, which was first found in the Hubei province of China, Wuhan was recently termed by the World Health Organisation (WHO) as a “pandemic.”
The effects of the virus have been such that it has also gone down to affect various business sectors. Hence, the virus proves to be a global health emergency, which has adversely affected the global economy, plus taking many lives as well. The outbreak is spreading like wildfire.
Spreading to various nations globally putting many lives at risk, and hence as of now, many global leaders from different countries have requested people all around the world to self-quarantine themselves.
Also, get into a lockdown at their own homes so that the virus doesn’t get spread more as right now this only poses as the best immediate measure to be taken globally to stop the spread of the pandemic.
Major Impact on Businesses
Since the spread of the virus has been so swift spreading to multiple nations all around the world, it goes without saying that it has also impacted various businesses globally. It would not be wrong to call the COVID-19 as one of the worst reasons in so many years that have affected the landscape of companies worldwide.
2020 was predicted to be a year that could see more significant investments from various businesses. Still, not many knew that the year would begin with only slowing down transactions and slowing down the world economy.
It was forecasted that the business market would see a slight upward trend through investments coming from media companies to capitalize on huge sports events like the 2020 Tokyo Olympics. But, little did companies all over the world knew that this prediction would be proven wrong with the widespread increase in the virus.
Several businesses have already seen disruptions in their industries due to the disruptions caused by the virus. Starting from the food marketplaces in China, it spread alarmingly all over the world. This caused the stock markets to fall like never before, which led to unpropitious effects on industries like travel, retail, hospitality, & many others.
As explained by Bruce Biegel, Winterberry Group’s senior managing partner, since traveling is reduced, the supply chains have been impacted. If companies can’t produce their products, they will need to stop marketing them also.
Effects of Coronavirus
On the Suppliers Spending
Coronavirus has affected many huge companies since many sellers on online selling platforms like Amazon rely on suppliers from China. The advertising side of Amazon also saw a dip in its business as sellers spent 6% less as compared to their usual spending on advertising.
This was reported according to the statistics noticed in the last few weeks as compared to the same period the previous year in 2019.
A few days ago, Facebook even canceled its F8 conference, and other tech giants like Apple and Microsoft issued warnings regarding their 2020 sales outlook.
Many advertisers have already become cautious in pulling off their advertising campaigns for the upcoming Olympics 2020 at Tokyo since officials have yet not decided whether it will be possible to carry out the sports event looking at the current dangerous health scenarios.
Also, the fact that the media industry, especially the digital medium, has been on a consistent rise for a few years, and it is threatening to know the current GDP slowdown or crisis environment in the e-commerce industry. Ad spends can also be reallocated later in the year.
One of the best options for the digital marketing industry to save itself from the consequences it can have due to the outbreak of the virus is to take steps quickly. Businesses right now can freeze variables like their budgets set for marketing as a kind of a reactive strategy, but this doesn’t mean that the spending will get vanished forever.
An industry professional is also of the view that if opportunities get increased, the ad spend can also get reallocated. Companies may face a sourcing impact since many are dependent on China for that, and occasions can get strengthened for smaller countries like Vietnam & Bangladesh.
A report by WARC initially had echoed about a focus on marketing reallocation, saying that the ad spend will see an increase of 7.1% to $660 billion in 2020 as internet investments will also see a rise of 13.2%.
But, according to James McDonald, WARC Data’s managing editor, looking at the COVID-19 situation, amendments are yet to be made in the forecasts made earlier as they are expecting that if the case comes under control, the displaced spend can be reallocated later in the year.
Focus on the Implementation of Investment Strategies for Businesses
One of the most affected among all is the world equity market, which has seen a massive decline in light of the catalyst. And, when it comes to the share market, it loathes uncertainty. It is evident that whenever events like these occur, the markets suffer the most, which leads to adverse and negative impacts on the economy as a whole and doesn’t provide long-term growth to industries worldwide.
However, sectors and businesses are also in the hope that markets will get repositioned and recover from the losses.
Hence, for this, there must be a strong focus on the implementation of investment strategies for businesses. Businesses are making changes in their policy, and the same could be implemented efficiently for adjusting the portfolio structures.
However, it is also essential to understand that notable changes in the portfolio cannot be made without first knowing and reviewing the company’s financial plan.
Digital platforms have their way of dealing with the outbreak of COVID-19.
Looking at the pandemic reaching more and more nations all over the world.
To stop spreading rumors about the disease, large social media platforms like Facebook, YouTube, Twitter, and TikTok have all taken their ways of dealing with the spread of misinformation regarding the novel Coronavirus.
Recently, it was reported that social media platforms are taking stringent measures to be more vigilant in pulling off misinformation and rumors about the virus and its cures. Talking on the same, Mark Zuckerberg a few days ago, also informed the same on a Facebook post that conspiracy theories were removed by the platform relating to the virus that has also been flagged by global health organizations.
It has labeled the misinformation with “fact check” labels for letting users know that such information is indeed false. Zuckerberg also said that they would also be blocking all those ads that will try to exploit the scenario, like claiming to offer a miraculous cure for the disease.
At the same time, Zuckerberg said that Facebook would also be ahead in providing as many free ads as needed by the World Health Organization (WHO).
Tech companies are trying their best to cut down the misinformation about the virus.
In addition to Zuckerberg saying that they will block ads on the platform in case they try to exploit the situation, and will also provide free advertising to WHO; all other social media companies are putting an end on false information to reduce panic amongst people over the world.
It was also reported that researchers are making use of anonymized and aggregated Facebook data, which includes population density maps and mobility data for understanding the spread of the virus.
Twitter, in a statement, also talked about the same steps as taken by Facebook. For this, it has put a warning label that links to the CDC when users search for “Coronavirus.” TikTok also asks users to look out for trusted sources to find accurate information. YouTube makes users directly land on the WHO page for any information on the virus when a user searches about the same.
However, it is practically not possible for all the social media platforms to remove each and every thread of false information as soon as it surfaces on their platforms still; they are trying their best in doing so.
Impact of the Virus in Other Sectors
The entertainment industry is also said to be one of the sectors that have had harmful effects on the pandemic since it has led to shutting down filming of many TV shows, films, and web series.
This has directly affected all those working on a set right from actors to lighting directors to caterers. Moreover, the industry has undergone a loss of thousands and lakhs of dollars in revenue.
Live events are another sector that has been impacted by the virus with many canceling events and other occasions, looking at the dangerous spread of the disease. Other industries that have to bear the brunt of the virus are Apparels, Electronics, and consumer durables and construction, etc.
The current confirmed cases due to the outbreak of the virus (at the time of writing this article).
All around the world, the present confirmed cases of Coronavirus has reached more than 374,000 and the death toll has reached more than 16,800.
The big question as of now remains whether all the businesses and industries will get on track again with decent growth soon, and will the markets see normalcy soon?
In such scenarios, it is also crucial for investors to turn away the focus from headlines creating panic to putting more light on understanding the basics and working towards the strategical plans undertaken during these times to work out in the future as soon as the market situation comes back to normalcy.