COVID 19 Impact on Global Macroeconomic
Published on : Mar-2022
Globally, COVID-19 has created a downturn growth in the FMCG industry. With a global effect of more than 195 nations, the pandemic has already built an economic context around the globe, hinting at the next global recession. Strong steps are being taken by various governments to control the outbreak. However, social differences have had a significant negative effect on the FMCG industry. Logistic problems, lack of sufficient manpower, limited operations to the production of only critical goods, etc. are some of the few examples most FMCG businesses face worldwide. The impacts of COVID-19 have also not spared the food & beverage industry. For instance, companies involved in the processing of processed and non-perishable food have seen a significant rise in revenue due to the lack of availability of fresh fruits and vegetables. However, restaurants and retail food establishments face problems due to shortages of food supply, workers and extreme government lockdowns. According to research FMCG sector will foresee to witness square-root recovery growth rate in the post COVID-19 era.
Global FMCG Quarterly Analysis (US$ Bn), 2020
COVID-19 Outbreak Impact on Retail Sector
The sudden effect of COVID-19 has triggered shock waves through companies and the economic order. Today, more than ever before, retailers have a vital role to play in protecting the wellbeing of workers and consumers, in creating realistic strategies that will shape the recovery, and in improving the stagnant economy. The post COVID-19 era, there is no denying that the pandemic will leave irreversible changes on the retail industry. A long-term plan to lead the post-COVID-19 world needs to be centred. Efforts around the retail value chain from product planning to re-alignment of the supply chain; transformation of facilities, partner networks and resources involved in value chain orchestration with a view to scalability, efficiency and flexibility; and re-design of stores and consumer proposals.
COVID-19 Outbreak Impact on Media Sector
Covid-19 has a major influence on media production, usage and advertisement across the globe. The market for content-streamed, live, and online is skyrocketing in coronavirus situations. Although the production of new material from live sports to sitcoms to movies has been greatly affected. However, some professional sports & e-sport leagues are seeking ways to engage customers differently. Ad spending has come under tremendous strain, with some markets increasingly ceasing ads, and some of the campaign is now perceived to be insufficient at a time of social distancing. Streaming sites are certainly the big winners of the crisis (along with a few others like gaming players). Netflix saw a 22.8 percent increase in the number of subscriptions in the first quarter. These 17.8 million additional subscribers constitute an unforeseen and unforeseeable windfall. The number of subscribers has been very high. Another big player, Disney+, has surpassed all the wildest projections. Its launch in the USA in 2019 was unquestionably impressive (24 million subscribers in just one month) but now Disney+ has hit 50 million subscribers worldwide 2 years ahead of schedule. The film industry is also one of the most affected by containment. The cinemas are closed and are not going to be reopened in the coming quarters which hampers the media sector growth.