The outbreak of COVID-19 is a shocking situation in every corner of the
world. Though it happened only in limited areas at first, this virus has
spread quickly in a very short period of time. The death toll is still
rising at a fast pace. Unprepared countries are seeing an uncontrollable
increase in the total infected population, while better-prepared
countries with monitoring scheme and countermeasures can somewhat
control the spread of this disease. However, one of the consequences is
economic recession. People are being cautious, staying at home, avoiding
travelling, and meeting others, wearing masks, washing hands
frequently, and using alcohol gel for disinfection. In fact, their
lifestyle has changed, resulting in reduce overall spending and thus
damaging economy at an unprecedented scale.
institutes, as well as businesses of all sizes cooperate with
precautionary measures by allowing their employees to work from home.
The government has announced temporary closure of certain businesses,
while others have decided to close their businesses including gyms,
boxing venues, cinemas, restaurants, shopping malls, schools,
universities, etc. in order to mitigate the risk of disease spreading.
Public transportation such as airlines, trains, buses, and other
transport have ceased their services.Fallen industry during the COVID-19 Crisis
Nobody knew that a situation like COVID-19 crisis would have
happened. The major effects on corporate sector are a business
stagnation and a decline in consumers’ purchasing power. Definite list
of industries that are directly affected by COVID-19 are as follows.
- Airline Industry The most impacted industry is
airline industry. For example, Thai Airways have filed for bankruptcy
rehabilitation plan. International flights are generally banned. It is
not possible to travel abroad during this challenging time. Those who
wished to return to their home countries had to self-quarantine for 14
days. Many workers in this industry including flight attendants, pilots,
and other airlines employees have either lost their jobs, been paid
less, or been uncertain how their future might turn out.
- Hotel Industry Hotel is another business facing
difficulties during the COVID-19 outbreak because tourism has declined
to zero. Everyone chooses to stay at home. Several hotels adjust their
policy and open rooms for medical personnel. Some hotels allow their
employees to cook and sell food via online channel or offer cleaning and
home maintenance service through online platform, so that they can
generate revenue. This is nothing but to help keeping up their business
and supporting their employees. It is hoped that eventually the COVID-19
situation will ease up and tourism will return to normal, then the
hotel industry would be able to flourish once again.
- Tourism Industry Obviously people do not want to
travel at this time of COVID-19. They must comply social distancing
rules for most of the time and go out only when it is necessary. Hence,
tourism industry is hugely affected by this outbreak.
- Industrial Property Industry COVID-19 crisis has
lowered the total sales, such as land for factory and industrial
property. Foreign entrepreneurs cannot fly in to examine land and
discuss business on site. It is believed that after the crisis has
ended, those entrepreneurs who held off their decision due to economic
recession of COVID-19 outbreak will reconsider establishing their new
factory in Thailand, as well as purchasing industrial property in
Rising industry during the COVID-19 Crisis
this challenging COVID-19 time, we might think that all types of
businesses are deteriorated. However, it is surprising that many
businesses are performing magnificently with higher sales and more
customers. These businesses include:
- Food Delivery Industry It is obvious that
COVID-19 crisis has turned into opportunity for food delivery industry
such as Grab Food, Lineman, Food Panda, as well as many others. Almost
everyone orders food delivery. Many restaurants have switched to sell
their foods online through food delivery service. It is believed that
the consumer behaviour of ordering food online will be the new normal,
despite the end of a COVID-19 outbreak.
- Courier Service Industry During the
self-quarantine, besides ordering food online, people also shop online
more than before. We cannot go to shopping malls like we used to, but we
still need to access basic amenities. That is why we shop online and
use courier service like Kerry Express, Flash Express, or Lalamove. At
the beginning of COVID-19 outbreak, we have heard on the news about
employee shortage in this industry, thus affecting and delaying their
management and operation. Then the situation got better since they hired
more employees. Like ordering food online, people tend to get used to
access amenities online. Although online shopping did exist before the
COVID-19 emerged, but this crisis has accelerating a change in consumer
behaviour. This is likely to be a new normal as well.
- Life Insurance Industry Almost every life
insurance company have been launching a new product which is COVID-19
insurance that is perfectly suitable during this time. People are afraid
of not only getting sick, but also of taking long time to recover.
Medical expenses can be high, while they earn less income in this time.
This disease also spreads fast and we all have possibility to be
infected. Buying COVID-19 insurance allows us peace of mind and the
insurance premium is not high—roughly hundreds of Baht. Some companies
even offer to pay hundreds thousand of Baht if the assured is tested
COVID-19 positive. That is why many people bought insurance online and
their websites even went down due to overwhelming use.
- Industrial Property Industry According to
statistics, there is a sign that foreign entrepreneurs have moved their
manufacturing base to Southeast Asia. It is not only because of the
US-China trade war, but COVID-19 outbreak also caused China to be placed
on lockdown. Many entrepreneurs mitigated the risk by moving their
manufacturing base and property out of China. This is a gold opportunity
for industrial property provider in Thailand where entrepreneurs can
choose whether to buy land and invest in constructing their own
factories, or to rent ready-to-use factories and property.
It is undeniable to say that luck does not on the side of all
business that now undergoing through the crisis of COVID-19. Every
business must adjust themselves and cope with this situation by
searching for the strengths of their businesses. Sit-in restaurants have
shifted to online delivery. Buffet restaurants have to figure their
way. For example, Sushi Bars have turned to sell their frozen
ingredients online. Courier service providers facing operational
shutdown from labour shortage and need to hired taxi drivers to be their
temporary couriers. Even tourism industry also shifts their strategy
and offers rooms for medical personnel.
Adaptive businesses will continue to rise, while merely adaptive or non-adaptive business will fall, unfortunately.