People are stocking up but staying at home more, and the coronavirus is gearing up to be bad for business.
Reports about the consumerist boom brought on by the novel coronavirus are everywhere. Yes, people are stocking up on things like hand sanitizers, face masks, and household disinfectants, in addition to washing their hands more often (which could lead them to buy more soap), but Covid-19 — which has infected more than 100,000 people worldwide and poses a threat to human lives, especially in cities where outbreaks are rampant — could, despite appearances, be really bad for business.
Empty store shelves and TikToks of frantic stockpiling aside, most businesses and brands are primed to lose revenue. On top of that, this will undoubtedly affect workers, especially those in the service industry who are less likely to have paid time off if they’re sick.
As Vox’s Matthew Yglesias wrote of the stock market’s recent meltdown, “Markets [were] down because events abroad imply bad business conditions are coming in the near future.” Covid-19 doesn’t have to get significantly worse in the US to impede the economy (although health officials say it’s likely that more cases will emerge). If people start going out less or if the government encourages “social distancing” to reduce the likelihood of an outbreak, that’s going to hurt companies across many sectors — from mom-and-pop restaurants and film distributors to major airlines and the alcohol industry. (Corona beer might have a marketing dilemma on its hands, but the spirits business is more worried about how coronavirus will stall imports and alcohol production.)
Then there’s the issue of the global supply chain. Financial analysts have predicted a “ripple effect” from supply chain disruption, which would slow down the production of familiar American goods, from Diet Coke to iPhones to Baby Yoda toys. The scope of a supply chain disruption has yet to be determined because, as Elisabeth Braw pointed out in Foreign Policy, “no CEO actually knows his or her companies’ complete supply chain,” adding that “the suppliers have suppliers of their own, who may, in turn, even have a third layer of suppliers.” To put it simply, if a business relies on a coronavirus-impacted country for production or has a significant overseas customer base, the outbreak could have a substantial negative impact on its sales and manufacturing.
more recommended stories
Two Canadian tourists dead after shooting inside Xcaret theme park in the Riviera Maya
A man shot three guests of.
The tourism sector is a key engine of economic recovery for Yucatan
Through these projects and actions in.
Mexico’s Pemex takes ownership of Deer Park refinery
Mexican state-owned oil company Pemex took.
Tourist dies after falling from a sixth floor in a residential complex in Cancun
Tragedy in an exclusive residential area.
European Union condemns murders of journalists in Mexico
The delegation of the European Union in.
What are the penalties for spreading intimate photographic material online in Yucatan?
So far, the Prosecutor’s Office has.
Ever heard of “Dry January”?
Nearly two years into a pandemic,.
Imminent ecocide on Holbox Island… What are the authorities doing about it?
The revelation of the expert opinion.
Red grouper at risk due to overexploitation on the Yucatecan coasts
The lack of adequate inspection and.
76% of Mérida businesses register cases of COVID-19 among employees
CCE Yucatan President Fernando Ponce Díaz.