The impact of Coronavirus all over the world


Days we are living with Coronavirus reaching many countries everywhere create innumerable questions for all sectors. Of course, technical consumer goods are also in this situation for more than a reason. This industry, in fact, has also a large part of production in Chin, which means that not only people close at home and afraid do not go to buy, but products risk to miss in the future. GfK experts has analysed this possibility and are observing the market trends week after week.
“Most major manufacturers rely on parts or production capacities from China – they explain – but China’s workforce and manufacturing capability have been hit hard. The coronavirus impact on the tech market is putting a huge pressure not only on the global supply chain but also on the retail and service industries. While some manufacturers and retailers are able to live off their stocks for a certain time, the scarcity of available products will become an issue very soon. This is especially so for the tech industries even with manufacturing capacities in China starting to produce again. The question is whether consumers will be willing to postpone purchases of out-of-stock items or whether they will consider an alternative product that is available right away.”
So, what would happened if products were not been available on the shops?
Naturally, price becomes a greater factor at times of short supply and is something consumers are very sensitive to. Globally, 44% of shoppers say they have increased how often they compare prices across different stores compared to a year ago, with older age groups being extra prone to this. At the same time, 61% of the consumers point to the price as the most important driver when choosing the final product.
“The effects of elevated pricing due to reduced supply and product availability – Norbert Herzog, GfK expert says – can range from consumers delaying a purchase to choosing an alternative product on stock, or even not purchasing a product at all. If it’s a case of postponed demand, this can be satisfied in the following quarters, if there is enough capacity on the manufacturer side. The more negative scenario might be that these postponed purchases will not materialize at all, which will lead to a significant market decline and lost sales opportunities.”
Globally, 31% specifically say they are “willing to settle for an inferior product or service if it’s available when I need it”. Added to this, 22% in Western Europe say they really need the shops and services they use to be available at all times. All of this can negatively impact retailers’ and manufacturers’ turnover.