Impact of Coronavirus on Business

Hello! I think the time is now to discuss all the things with Coronavirus impact on business because there are not so many people talking about it and I just want you to know what huge impact it has nowadays. I want you to consider it if you are starting a business or doing business that it may still impact your business, even if you think at the moment that it's not. Since Coronavirus is all over the place now, I think now is the best time to talk about the impact of Coronavirus on business, which is really really huge.

Let's look at a few businesses that actually lose a lot of money and those are kind of big businesses.

First one is airlines and fuel that is actually related because they consume lots of fuel and those industries specifically in Asian regions but also in several few other regions are kind of losing lots and lots of money as a consequence obviously; hospitality business – it's the second part; travel business because most of the regions including Italy at the moment and many other regions are closed down. People are not travelling.

There are notifications that it's better for you to skip travel if you can to specific regions. And of course, the related industries suffer like in Italy, in Milan, all touristic spots are closed, all retail spots are closed. I am not even speaking about the small businesses as related airports, of course, they are losing business and everything that is related to business, cargo terminals that are related to shipping goods, including e-commerce, dropshipping and manufacturing of course because there is no need I doubt all those people that quarantined can even go to spots and manufacture anything.

There are lots of industries and losses are major. Because even if European Governments were expecting to losses to be like lower than 1 % of GGP or impact should be lower, now when it's all over the place in Europe specifically, they are like kind of going crazy and estimates specifically for Italy are huge. Everything that is related to wholesale, to e-commerce, to drop shipping – all those industries are hugely impacted because they either cannot deliver or there are some restrictions on importing goods. You know there are quite a few things going on, which you may not even realize.  If you are ordering some goods and they are delivered like on the same day, or the next day, it depends if the re-seller has still some kind of goods at the warehouse but as soon as it finishes there would be a huge impact on our lives as well.

Luxury Good Makers Snticipate Significant Losses due to the Coronavirus Outbreak

Luxury good makers anticipate significant losses due to the Coronavirus outbreak. While high-street retailers could see new collections delayed by months. There have been profit warnings from Burberry, Ralph Lauren, Coach and Kate Spade owners, Tapestry, Moncler and Capri Holdings the parent company of Versace, Michael Kors, and Jimmy Choo. And of course not only the manufacturing but also the power of the Chinese consumer which has grown over the last decade and now accounts for 38 % of the global fashion industry. So you can imagine how big the impact is and would be.

Event industry, major events happening in the European Union and in other regions. I've talked to many organizers that I attend as a speaker and also you can see the biggest event or real estate event in the European Union and probably even worldwide. The MIPIM, they dropped the price rapidly. The average price usually to attend as a delegate is somewhere between 4 to 5k euro, depended on where you are buying the ticket or delegate pass. Now it’s 2000 euro plus VAT, so basically the prices dropped massively.

Let’s see what would be the outcome of people attending the event. How many people will resign because they are afraid. You know that’s the region that’s actually it happens in the Cannes, Nice, Italy, and Switzerland. There are many places are quarantined, they actually are closed. I am afraid that would have quite a huge impact not only events but you can imagine what is the infrastructure for the events. So, basically all the hotels, airlines again and those tourist spots because people when they travel for business sometimes they, in many cases, they also visit for travel, for leisure. And those are massive impacts on hotels. Here are some stats on how hotels actually suffer from the situation.

Stock Exchange as Well is Heavily Impacted by the Coronavirus

Stock exchange as well is heavily impacted by the Coronavirus outbreak in many regions starting from New York obviously, the Chinese stock exchange and many many other regions where the statistics are kind of not very pleasant. You can see here some stats if you are not an expert you may not really understand but the impact is huge, the percentage is kind of like here in New York how the stats dropped and here is China how certain stats dropped. It’s kind of heavy. Few of not so many companies obviously, manufacturing masks, medical equipment, and staff, those companies obviously are growing but in general, the impact is heavy. 

The overall situation is not really something we can avoid and obviously there are certain economical changes that are coming unfortunately because of that. But I think that in certain ways it’s a little bit overrated, I’m maybe right, maybe not right but seriously I didn’t expect the virus to have such a big impact on the economy overall but we are all suffering like all the businesses because for me as well I travel a lot and I have to think about should I travel or should I not. I had to have an appointment in Italy, in South Italy and I’m still considering should I go or should I not, and probably I will go because business is business, right. You should just stay healthy and follow some medical rules. Anyway, stay healthy!

Article by Olga Fleming