How is Coronavirus affecting E-commerce and Digital Marketing Globally
Pandemic and natural disasters often have a direct impact on redefining the economic and commercial structure of the world.
Social Distancing has become the norm of the day due to the Co Vid 19 virus. Most countries across the globe encourage their citizens to stay indoors and undertake self-isolation measures. The number of people suffering from the disease is consistently on the rise. The virus is causing a severe impact on the health of the individuals and the social construct of society. The economic segment has begun to descend into chaos.
The alarming news is that this is only the beginning of these issues. Experts predict that the situation might worsen before getting better. The trade restrictions and closure of business outlets have aggravated the scenario. The company’s decision to give unpaid leave to its employees has disrupted the monetary flow.
Even without a pay cut, organisations would not be able to afford the full salary during these times. The buying pattern is expected to change owing to the uncertain financial environment. A common misunderstanding is that consumers tend to utilise the eCommerce medium when in isolation. However, the reality might be slightly different, and it might not have a positive impact on segments.
Here are some of the ways that the coronavirus is affecting the Ecommerce and Digital marketing segment at a global level
Revenue surges and drops
Despite consistent reassurances from the authorities, the consumers are in the process of hoarding the bare necessities. This has led to revenue surges in specific essential segments and considerable drops in other products like digital marketing agency in India. The chances of experiencing a growth spurt is high for companies providing healthcare and food products.
Demand and Supply Gap
The stocking culture also has an adverse effort on the demand and supply gap. Countries have reduced the trade to minimise the spread of the virus. This leads to delays and shortages in the manufacture of certain products. The demand for bare necessities causes a surge in prices.
Marketing Budget cuts
Most companies are attempting to sustain and ensure sufficient fund flow for their daily operations. Budget cuts are a standard norm in these scenarios. Brands are more likely to spend less on digital marketing and promotional campaigns.
Though the Government is taking measures to handle the situation, there is a certain level of unpredictability in the disease spread. Ecommerce portals and other companies are sceptical on how to handle the unforeseen circumstances.
Humans attempt to see the positive side of any problem. The current situation would also open up new opportunities for both the company and the consumers. It is essential to analyse the situation before executing a plan thoroughly.
It is an indisputable fact that companies and consumers will face certain turbulences before reverting to the previous state. It is essential to offer leverage and stand by each other during these times. Ecommerce portals should not exploit the high demand in the market. This might help them to increase their profits for a shorter duration. But it would destroy the reputation of the company in the extended period.