We know that, right now, the Indian economy is bad. Thousands have been wasted and thousands have wasted their work. Estimates on the projected rise in unemployment and decrease in GDP are incredible. The Covid-19 pandemic crisis is a reminder of the importance of investing in the healthcare sector for any country.

Since the corona virus outbreak, the price of every vital commodity has fallen, pricing of oil went below $50 a barrel, We’re impacting the demand for copper, iron ore, even gold is going down and America’s Department of Labor has recorded the highest ever number of new claims unemployment in the past two weeks.

Many governments had modeled the impact of a pandemic on their economies but were in no way prepared for this type of crisis. Over the past two months, the world’s biggest stock markets have turned red. Where investors were just not pricing in the risk of a pandemic and of course, governments have never in the past imposed the kind of lock down on a global economy that they have this time so this was not something people had in their models, In an effort to stop the deadly virus, businesses have been forced to close and citizens isolated at home on an unprecedented scale worldwide It’s caused a Unique Economic Crisis.

The impact will be greater on some industries which are hit hardest are those which are related to the consumer so that’s retailing, entertainment, hospitality, both hotels and restaurants. Many of which have simply been locked down and many of these companies will have high costs which they’ll need to keep meeting so, suddenly you have lots of costs continuing and absolutely no revenues which is the worst possible outcome for these businesses.

In India, Supply chain and logistics companies have become one of the most profitable businesses. There are 5 unicorn’s ruling this sector they are Swiggy, Udaan, Delhivery, Rivigo, and BigBasket. Since all these and some small tier companies were seriously affected by this lockdown. OYO has sent many employees on leaves or furloughs for a period of up to three months. OYO’s Ritesh Agarwal said occupancy rates and revenue have dropped by over 50 to 60%. Indeed, the hospitality sector is one of the hardest impacted industry in the wake of the coronavirus outbreak. Besides, OYO other Indian start-ups in the travel and tourism spaces have been severely impacted including Yatra, MakeMyTrip, ixigo, Treebo among others. These companies are also taking measures such as sending employees on leaves, salary cuts and layoffs, among others to mitigate the impact of corona virus on their businesses.

Psychological responses of consumers to threats from infectious disease like Covid-19 are conforming to norms and exhibiting conformist attitudes like seeking familiar foods and avoiding foreign foods and completely avoiding foreign destinations for at least 12 – 15 months based on current condition.

How should Business respond? Many companies are adopting to Short Term: Crisis Management and Long Term: Focus on the psychology behind the crisis.

In Short Term: Crisis Management,

1. Access the impact and potential blame
2. Acknowledge and outline steps
3. Formulate response
4. Implement response (Advertising & PR)

Examples like American Airlines adjusts food and lounge service in response to Covid-19, Domino’s and other food industries are launching custom contact less delivery during this time of crisis. In manufacturing industries like Ford is working with 3M and GE to make respirators and ventilators. Many Indian fabrics companies are giving free materials to make face masks.

Long Term: Focus on the psychology behind the crisis,

1. Make your brand feel familiar like classic design and products & Use\Emphasize local production, sources, etc.
2. Position as the status quo whenever possible
3. Emphasize leadership position (even if narrow)

Focusing on safety first to minimize risk for consumers. In financial using warranties, in social conforming to norms and in physical to emphasize cleanliness.

Some product based businesses are afraid that if people are not using there product for certain period of time then they adopt to alternatives so the products may see decline after the markets open.

“If the economy starts surging back then some businesses will suddenly face insufficient capacity. Those businesses will have to double-down on hiring, ordering supplies and investment in new equipment, capital, etc.,” – Karl Smith, vice president of federal tax and economic policy at the Tax Foundation

Now, the question of when and how the economy gets better largely hinges on our ability to get the virus itself under control. Many Indians will be worse off than they were before, some people may still be reluctant to restart their lives as they once lived and many businesses may have closed permanently. For some point and we don’t know exactly when the economy is coming back, for least in part. If it does, it’ll be different from the past.

So people how are reading this – Brace for impact.