Question

What industry will be affected by demographic change as a result of the COVID pandemic? Bullet points only

Answer 1

COVID-19 Pandemic: The WHO declared COVID-19 a pandemic on March 11, 2020, causing a significant impact on people’s lives, families, and communities

Demographic Change: Any change in the population, for example, in terms of average age, dependency ratios, life expectancy, family structures, birth rates, etc. It is tuff to judge within a short span of 2 months about the demographic change due to COVID-19

Impacts on Different Industry:

Industries that will survive the COVID-19 crisis are those who either do not need to digitalize or can digitalize completely. Any sector in the economy that can digitalize will thrive under these conditions of the COVID-19 Pandemic.

· Pharma Sector: One of the booming industries during COVID-19 Pandemic. Resumption of raw material supplies from China and India business is affected due to lower manufacturing (mobility constraints) and logistics issues. Chances that this sector will rise in the future also.

· Mutual Fund Industry: COVID-19 indeed causes a bloodbath in the stock market, where trillions of wealth evaporated within a short span of a few weeks. However, digitalization and demographic change in average age is a critical factor for the booming of this Industry. It is the first time in history that after any global crisis, the retail individual investor wants to be a part of the Stock Market. It is amazing to see that the increase in the number of accounts with Mutual Fund House, even individual accounts with a stockbroker, also increases.

· Fashion retail: Currently, retailers selling discretionary products from apparel to lifestyle are neither allowed to open stores nor sell online. After Lockdown, Increasing the number of units produced per machine at the factories and a selling piled-up inventory , would be crucial to recovery for apparel manufacturers in the post COVID era. Most retailers is going to wait till the festive season for the fresh stock. Subsidiary industries such as zips and tags will also be adversely affected. Fresh production will probably start in the July-August period

· Food & Hospitality Industry: One of the worst suffers Industry on a standstill since Lockdown. India is under complete Lockdown and is not selling or delivering much food online. Social distancing is becoming the new normal and peoples are not allowed to step into bars and pubs as they are typically crowded. The revenue is almost Zero for this Industry

· Cement Industry: It is an industry that is mostly impacted by COVID-19. Due to Lockdown in many countries, construction is at a halt, which leads to a volume decline due to which revenue decreases to the tune of 10% to 15%.

· Media Industry: The broadcasting industry has been witnessing a huge uptick in TV viewership. As shootings for new serials have come to a standstill due to COVID-19, players have brought back ‘Old Classics’ such as Ramayan, Mahabharat, etc

· Metal & Mining: The Coronavirus outbreak, which commenced during the start of CY20, has led to lockdowns in many countries globally. It is likely to hurt global growth rates. As commodities are closely linked to the global growth outlook, the lockdowns of countries and economic activity coming to a standstill have had an adverse impact on metal demand and prices.

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