THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Private, online and hi-tech: the coronavirus economy

Private, online and hi-tech: the coronavirus economy

WORLD: The coronavirus pandemic has sent stock markets into freefall and industries to the wall, however many firms enabling more private, online and tech-based living are emerging as potential winners.

CoronavirusCOVID-19healthtechnology
By AFP

Monday 23 March 2020, 07:00PM


Online retailers are experiencing a surge in orders from self-isolating consumers. Photo: AFP

Online retailers are experiencing a surge in orders from self-isolating consumers. Photo: AFP

As hundreds of millions of people worldwide are forced to stay in their homes and not travel abroad, the businesses that are helping them to adapt could lead to long-term changes in the economy.

“I think certain aspects of work and organising will change for good through the current situation,” said Sally Maitlis, a professor of organisational behaviour at Oxford University’s Said Business School.

“People will discover that they can work and communicate in ways they previously didn’t think possible, and will be forced to become more nimble with tech through having no choice to do otherwise.”

Here are comparisons of several sectors that are thriving and failing in the pandemic:

E-commerce giants vs independent stores

Large online retailers have seen a surge in orders as self-isolating or home-working consumers turn to their massive distribution and delivery networks to provide daily essentials.

Shares in US retail giants Walmart and Amazon both tumbled as markets crashed around the world last Monday (Mar 16).

During the remainder of the week, however, Walmart rose as much as 25% from its nine-month low. Amazon also recovered.

“We are seeing increased online shopping and as a result some products such as household staples and medical supplies are out of stock,” Amazon said.

Yet small, independent stores are suffering, said UK Federation of Small Businesses chair Mike Cherry.

“These are already very difficult times for all small businesses right across the country. There are huge concerns over supply chains while on top of this footfall continues to drop. The prospect for these businesses over the coming weeks is increasingly bleak.”

Streaming vs cinemas

Demand for movies to watch at home has soared so much that Netflix and YouTube are reducing the quality of their streaming in Europe - which has become the epicentre of the virus - to ease pressure on the internet.

Worldwide streaming activity jumped by 20% last weekend, according to Bloomberg News.

Traditional cinema chains, however, are facing an unprecedented drop in demand.

Some have temporarily closed their doors to help contain the virus’s spread.

US-listed shares in Cinemark and AMC Entertainment were both down around 60% on Friday (Mar 20) from their respective highs in January and February.

Private jets vs commercial planes

The airline sector has been hit hard by quarantine rules and border closures, with UK airline Flybe crashing into bankruptcy and experts predicting others will follow.

The International Air Transport Association said Thursday that up to US$200 billion is needed to rescue the global industry.

US airlines have sought more than $50 billion in government assistance in recent days, with one top US official saying the outbreak poses a bigger threat to the commercial industry than the September 11 attacks.

In contrast, private jet charter companies are seeing demand soar.

Wealthy customers are seeking to distance themselves from the “unknown” travel histories of fellow passengers, said Daniel Tang, from Hong Kong-based charter company MayJets.

US-based Paramount Business Jets has seen inquiries go “through the roof”, its chief executive Richard Zaher said.

Queries have risen 400% and bookings are up 20-25%.

Home workouts vs gyms

As many gyms close their doors, fitness-lovers are turning to online classes and home workouts.

Shares in US home gym equipment company Peloton surged as investors bet on increasing demand for its stationary exercise bikes and memberships to streaming online workout sessions.

At one stage Peloton’s share price was up more than 50% from last Monday’s intra-day low.

Teleconferences vs real world meetings

With more and more people working from home to limit the virus’s spread, demand for technology that enables online group meetings, chats and collaborations has spiked.

“There is such excitement around remote work that brands like Zoom have seen their stock value climb up,” Creative Strategies analyst Carolina Milanesi said, referring to the teleconferencing app.

At the same time, real world gatherings from sporting events to business conferences, have been postponed or cancelled, with a large question mark still lingering over the fate of this summer’s Olympic Games in Japan.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
French tourists arrested for hookah party in Kamala

Ok Peace, let's not be racist, but we must admit that it is always the same people who are wreak...(Read More)


Immigration issues automatic visa extensions for all visa types

Well now I'm glad I went to immigration and did my 90 day report on April 1st, now that it turns...(Read More)


Chinese tourists questioned for illegal spearfishing in protected area

And now full force of the law on them! Double for the thai guide! Set a impressive example of '...(Read More)


Immigration issues automatic visa extensions for all visa types

How many hundreds needlessly exposed? Should have been done 2 weeks ago. ...(Read More)


Phuket Governor order warns of B20k fine for not wearing mask in public

@goldwing... these are emergency decrees by order of the government in order to prevent the widespre...(Read More)


Mains water supply outage in Rawai and Karon

r...how do arrive at your conclusion that the work is not urgent? As Pascale rightly points out, &qu...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

Bloomberg reporting Phuket infection rate at 36 per 100, 000 while Bangkok is at 21. This easing of...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

the shut down both the island and kathu is nt true. Please do what you annouced. My girl's relat...(Read More)


TAT issues full summary of COVID-19 restrictions in Phuket

my GF's grandma is still feel free to travel to Hatyai 2 days ago. And come to Wichit from Kathu...(Read More)


French tourists arrested for hookah party in Kamala

They are only French on their ID cards and whenever they want help from our government. They're...(Read More)