As the COVID-19 pandemic spreads, more and more people are realising the importance of staying at home and following social distancing regulations. However, with people shutting themselves in their homes, many stores and businesses are shutting down their doors too, what with the drop in demand, as well as the social distancing laws. The new virus has the whole world coming to a screeching halt, and as the world stops, so does the economy.
So, what are some of the effects the new coronavirus has on the economy? Today, we'll take a look at how the virus outbreak affects marketing, eCommerce and advertising, and if there are some silver linings in this whole situation. Let's check them out.
Effects on Marketing, Tech and Retail
Marketing is vital for any business when it comes to acquiring new customers. However, with the virus spreading as fast as it does, and with people looking to stay inside more, businesses and brands all over the world are taking their time to assess the situation and make certain changes to their marketing campaigns.
For starters, retail and tech industries are getting hit particularly hard. Due to social distancing and the fear of the virus spreading, most brick-and-mortar stores are looking to close their doors for the time being. Non-essential items, such as clothing, luxury items, appliances and technology are no longer on people’s wish lists. Grocery stores are experiencing an increase in traffic, however, as more and more people are stocking up on essential supplies and food. Luckily, panic buying is kept to a minimum across the globe, so stores are well stocked-up and aren’t suffering a shortage of these essential supplies.
As for the tech industry, particular companies are facing some dire straits. Apple and Microsoft are looking at heavily decreased demand as well as shortages, due to them (Apple especially) relying heavily on Chinese labour.
With the situation such as it is, marketers are starting to focus more on customer retention, rather than acquisition. With little prospect of new customers appearing, businesses are looking to strengthen their bonds with their current customer base. If you own a business, you should definitely look into whether you should revamp your email marketing campaign in a way that your emails feel more personal and speak directly to your customers. Such emails often get marked as spam by the recipients, so rethinking your email marketing strategy can be your lifeline in the months to come.
In addition to revamping their email strategies, businesses are looking to do some heavy market research and promote products that are in high. In addition, brands across the globe are looking to improve their online presence through smart SEO practices and social media, while also reworking their online shopping and delivery tunnels to make their products more accessible to those who aren’t used to such business practices.
Effects on eCommerce
While brick-and-mortar retailers are reeling from the impact of the pandemic, eCommerce is experiencing a slight boom. Businesses that offer their services exclusively online find themselves higher in demand than ever, and this trend is certain to continue as long as the pandemic persists.
With that being said, online stores are looking to increase their customer base substantially. Delivery apps are especially in demand these days, what with social distancing, and such apps are experiencing an unprecedented daily download rate. Stores like Wal-Mart with online shopping options are also experiencing a boom, since, as we said, essential supplies are in great demand, and these stores enable customers to obtain them remotely without having to risk exposure.
It is also important to note that digital content consumerism is on the rise as well. Whether it’s written or video, digital content of all kinds is the main source of entertainment and a way to keep track of the developing situation for most people. Streaming services are also in exceedingly high demand, as companies are looking to utilize live event streaming to keep in contact with their customers, employees and partners.
VR and AR are on the rise as well. Such technology has been used by cosmetic and fashion industries for quite a while now, and, while considered as generally neat and useful technology, it was mostly considered non-essential. However, with social distancing in effect, people are now turning to augmented reality to make up for the lack of real-life experience. Many are using it to play games or take virtual holidays in places they aren’t able to visit due to the outbreak, but some are using it to actually conduct business. HTC, the brand that makes VR sets, actually hosted a conference completely VR, thus showcasing what this new technology can do when put in the hands of experts.
Conclusion
Overall, the economic situation across many sectors is looking grim for the time being. However, one should not panic, as, after every such disaster, there is a recovery period where things go back to the way they were. Indeed, many businesses will experience a drop in their customer acquisition rates, which will negatively impact their growth, but, if we all remain responsible and vigilant, this outbreak will soon end, and we can go about our lives. For now, companies around the world should hunker down and focus on retaining as many customers as they can, as well as reassure them that things are under control and reaffirm the benefits of social distancing.