Without even plunging into a deep understanding of the issue, we can observe the changes in the global economy that were caused by the Covid-19 (coronavirus) outbreak.
We are watching the situation when the concentration of production capacities in one area causes the risk of manufacturing and financial losses. On the one hand, the location of capacities in China makes it possible to make production cheaper. But when such crises arise, problems appear immediately and concern companies of almost all industries.
Let’s have a look at the commerce market. Major retailers like Starbucks, Uniqlo, Nike and Apple have temporarily shuttered their stores. Market Watch provides an opportunity to see statistics on the impact of coronavirus on the activities of global companies.
But as always, in the global chaos, there are companies that win. Today these are representatives of the eCommerce industry.
Online-shopping instead Offline
We see a trend when making purchases online becomes more convenient and secure. Housebound consumers in China are increasingly using online stores.
For instance, Chinese online retailer JD.com reports that its online grocery sales grew 215% year over year to 15,000 tons during a 10-day period between late January and early February. According to French retailer Carrefour, vegetable deliveries increased by 600% year over year during the Lunar New Year period.
Raising of Shipping services
The role of delivery services is growing. Companies like McDonald’s and Starbucks are increasing delivery services that limit human-to-human contact, and package orders to keep them free of contamination.
High demand for medical supplies
As soon as the virus was announced, there was a surge in demand for medical supplies. For example, Chinese digital retailer Taobao alone sold 80 million facemasks in a 24-hour period between January 20-21. Another store, Pinduoduo, ran out of popular medical products such as hand sanitizers, medical goggles, and scrubs.
But such growth is present not only in the epicenter of the development of events – China but also in the USA and other countries. We see an increase in demand for medical products on Amazon as well.
Soon the coronavirus will be “yesterday’s trend”. Consumption trends and demand will change again. We have to hold a hand on the pulse and be ready for any market challenges. So follow us on LinkedIn to keep abreast of current trends.