COVID-19 pandemic has brought dramatic changes to the global economy. Businesses are witnessing unpredictable developments in their respective industries. In this article, we will discuss how COVID-19 has impacted the sales of various product categories.
Health And Safety Products
Because the pandemic has led to a global health crisis, the sales of health and safety products have increased tremendously. They are purchased at rates quite bigger than the rates at which they are produced and restocked.
Due to the limitations in, frequently going out to purchase goods during the lockdown, the demand for shelf-stable goods has increased dramatically. People who are planning for long-term quarantine are purchasing goods with longer shelf life before the onset of their quarantine. According to Nielsen, the sale of products like shelf-stable milk and milk substitutes has increased substantially. Other shelf-stable items that are in high demand include fruit snacks and dried beans.
With the current health scenario forcing people to stay indoors, they have lost access to outdoor entertainment services. More people have started using digital streaming services. Digital streaming services like Netflix, Disney+, Amazon, and Hulu are seeing gains in the number of subscribers.
Foods And Beverage
In addition to shelf-stable items, the sale of groceries is up in general. However, there have been some behavioral changes in the way people buy groceries. In an attempt to avoid crowds, people are choosing to buy groceries online.
While some product categories are being sold at increased rates, some industries are not performing well. Entertainment, travel, and hospitality industry will suffer significant losses. Similarly, the luxury goods industry is going through a struggling period.
Vogue Business predicts a potential loss of up to $10 million for the luxury goods industry in 2020 due to the economic environment created by COVID-19. This is primarily because the luxury goods heavily rely on the purchasing power of Asian markets that have been severely affected by the pandemic since its first report.
Fashion And Apparel
The textile industry is suffering major losses due to the pandemic, as business owners are forced to shut down physical stores. The fear of contracting COVID-19 through social interactions is persuading many people to not shop for clothes from physical stores. Even online apparel stores are not operating successfully as people are spending money on daily essentials more than on fashion wear.
No industry remains unaffected in some way (positively or negatively) due to the developments after the COVID-19 pandemic.