Covid-19 has revolutionized the world’s commercial ecosystem
Covid-19 has been prevalent since the start of 2020. To avoid the transmission of disease, people have adopted new rules of social distancing and have refrained from going outside unnecessarily. These new changes had detrimental effects to certain Hong Kong major sectors. On the other hand, corresponding technologies and infant industries have sprung up to cater to people’s needs these days.
How are our lives affected by these changes? What opportunities does it bring to enterprises?
Traditional industries suffered heavy losses
During the pandemic, people stayed at home more and were their amount of consumption declined sharply. The fear of losing jobs in economically uncertain times also meant the general public preferred to save money instead. The local service and retail industries therefore suffered from losing sales and profits. The value of retail sales in July even dropped 23% on a year basis. The catering industry was also affected as people cooked at home and avoided dining out, which set off a wave of restaurant closures.
Emerging industries rise against the market phenomenon
As the old saying goes, every coin has two sides. The novel living style of staying at home has made the mobile economy-related businesses benefit. When people feel hungry at home, they use their mobile phones to order takeaways. Therefore, food delivery platforms, such as Uber eats, Deliveroo and Foodpanda have been very popular during this period, as indicated by their significantly increased order volume during this period. People have also increased their online shopping habits. In Hong Kong, online shopping platforms such as HKTVmall and ZALORA successfully enticed users to purchase daily necessities and even purchase luxury goods online. This has totally altered the original consumption pattern of Hong Kong people and run out against the market.
In addition to giving people more choices, emerging industries can stimulate local consumption to help retail and catering industries to survive the recession. They also create a large number of jobs to help the unemployed – a number which has been on the rise since the pandemic began.
After this pandemic, people’s lives have undergone unprecedented changes. We can foresee that remote work and online shopping will be new economic trends in the future. Where will we be after the epidemic? Will the new normal sustain? While these remain to be seen, Bubu and Friends will help you steer your company in the right direction during these times; contact us here for a free online consultation.