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IMPACT ON THE INDUSTRIES DURING THIS PANDEMIC
  • September 11, 2020
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Highlighting the COVID-19 industrial issues in financial and other terms and how they managed the consistency of their services.

Insights of COVID-19 on Industries that might have not been so closely observed earlier:

Data Storage

Working remotely has made it difficult for operations to work. It is expected revenue in this industry to grow at an annualized 11.1% over the five years through 2019-20. Including the growth of 12.7% this year. Major players in the industry such as Amazon, eBay are likely to outperform during the COVID-19 pandemic.

However, the Data Storage Services industry may be limited in its ability to invest in new data centres. As the inputs required to develop these new centres are primarily sourced from overseas manufacturers.

Online Food Ordering and Delivery Platforms

Online food ordering industries has provided a lifeline for restaurants and cafes. These have been significantly threatened by the government implementing social distancing measures.

Industry revenue is expected to rise at an annualized 76.0% over the five years and growth of 26.5%.

Online food delivery platforms are likely to benefit from a wider restaurant outlet catalogue and greater economies of scale.

Child Care Services

The Child Care Services industry has received support from the Government. Some operators in this industry may be forced to close if outbreaks occur within their facilities.

Child care is a vital service, useful for working parents.

Industry revenue is expected to increase at an annualized 3.7% over the five years through 2019-20, to $14.2 billion.

Electronics Retailing

In general, retail is expected to perform poorly throughout the COVID-19 pandemic. This is because of a combination of consumer sentiment, lower household discretionary incomes and upstream supply chain disruption. However, some aspects of the retail landscape are likely to be more resilient during this period.

Families with children are particularly likely to purchase entertainment items. In addition, firms in the Domestic Appliance Retailing industry are likely to benefit in freezers, televisions, computer monitors and speakers. The benefit of these trends for retailers is dependent on the supply of these items. From manufacturers, particularly those based in China, Japan and South Korea. Retailers in these industries will become more desperate for a revival of manufacturing activities in Asia.

Hardware and Building Supplies Retailing

Due to the situation, everyone has shifted to working remotely. One expected by-product of this trend is an increase in home improvement activity.

Consumers are expected to have greater time to commit to DIY projects, or even to full-scale renovations. Low-interest rates are also likely to support households that seek to finance renovations. However, hardware retailers are likely to be disrupted by shortages of construction materials typically imported from China. 

In addition, some households are likely to remain hesitant to commit to renovation works, particularly amid a rising unemployment rate. Revenue is expected to rise at an annualized 0.5% over the five years and growth of 2.0% in the current year.

E-Commerce

Working from home has helped everyone save a lot this time. Therefore, people instead of wondering out will put their hands on online platforms.

Individuals get their desired products easily available at their doorsteps. which will actually create an easy-to-go factor for major populations worldwide.

Over The Top Platform (OTT)

The great booming sector where the people still fear the widespread of COVID in the world.

Platforms like Amazon Prime, Sony Liv, etc. publish the best of subscriptions to attract web users.

It is a major brand marketing platform. They are looking at interacting and engaging with various niche segments of their target market through various digital marketing tools such as e-commerce ads, in-game ads, social media ads, OTT ads, and more.

Not only this:

Financial and education sectors are also facing a difficult time.

Financial sectors are largely impacted due to lack of Offshore business and Domestic business. They might require a long term to overcome the situation. Many institutes are now shut because of their non-working.

Feel free to email us at [email protected] or click here to contact us, should you need any assistance in your annual compliance.

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-Nilam Relwani

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