The Coronavirus outbreak has hit the planet like a wrecking ball. Testing all aspects of human existence, the Covid-19 has hit 100+ countries and has been declared a pandemic by WHO. All countries have been taking measures to contain the spread and this has led to shut down of railways, shops, even essential services. Many cities are under complete lockdown until further notice. Consequently, global economies have taken a hit like never before. Stock markets have plunged, businesses have gone down south, startups are finding it hard to stay afloat. A lower business might soon lead to job losses and even a subdued employment environment in the near future. Among all the negatives around Coronavirus, there are few industries that are witnessing a sudden jump in consumption. Of course, even that will be useless if the outbreak is not controlled and will just be a momentarily rise in consumption. Let’s look at companies with increasing consumption in Coronavirus Outbreak.
Companies with Increasing Consumption in Coronavirus Outbreak
Medical Services
The outbreak has pumped up demand for sanitizers, masks, sterile gloves, immunity-boosting medicines etc-. All these have almost turned essentials with the Corona outbreak. Most of the countries have been witnessing a shortfall to fulfill the demand. For a brief period, the prices of these essentials were pushed beyond the MRP in some countries and the govt had to intervene to regulate the same.
Countries, like India, where sanitizers were a luxury (most of the population resorted to washing hands rather than using sanitizers), the product might just become a new norm with increasing acceptability during Covid-19 times.
Insurance
The new ‘optional’ tax regime announced by India’s FM made insurance products less lucrative from a tax saving point of view. However, an event like the Coronavirus outbreak will boost the beliefs of people on health and life insurance products. Though new buyers might not find it immediately useful as the products take some time to come in force but there still will be many opting for these products.
Broadband Services
The Covid-19 outbreak has made a lot of companies enforce ‘Work From Home’. Few MNCs have offered employees a one time fund to enable their home for working. This will lead to customers opting for new broadband connections at home. Existing customers might upgrade their services in terms of speed or amount of data. Both new connections and upgrades will boost ARPUs.
DTH Connections
With people locked down at home, DTH users might choose to opt for more entertainment channels than their regular consumption leading to more revenues for the DTH companies.
OTT Platform Subscription
OTT platform subscriptions will jump amid the lockdown at home. More people spending more time at home will choose their dose of entertainment by opting in for one or more OTT services.
All the above-stated gains might just be momentarily for companies with increasing consumption in Coronavirus Outbreak in case the pandemic doesn’t stop to subside. A stretched stressful period would lead to consumers cutting down on unnecessary expenses and ultimately take overall consumption level much below the original instead of any increase.
