In the wake of the COVID-19 pandemic, businesses are experiencing unparalleled challenges. The pervasiveness of this pandemic has halted production and sales of everything in the market. The worst part is the economic downfall, which is so severe that it can take years for us to be back on track. Lockdown due to COVID-19 pandemic is already showing ramifications on the banking sector, automobile industry, travel & tourism sector, education sector, e-commerce business, etc.
Let us understand how several industries are being impacted as a consequence of COVID-19.
1. Automotive Industry
The automotive industry has witnessed a steep decline in sales and manufacturing in the month of April. Over FY13–19, automobile production in India surged with a CAGR of around 6.96%. In FY19, India solely manufactured 30.92 million vehicles, which could have brought superlative results to the automotive industry. But this unprecedented trouble of the COVID-19 outbreak has planted obstacles now.
Several automobile companies, such as Maruti Suzuki, Ashok Leyland, Hyundai, Volkswagen, Mahindra, and many others, are witnessing the repercussions of the COVID-19 outbreak. Maruti Suzuki, Mahindra & Mahindra, and Ashok Leyland have reportedly announced zero sales in the month of April. Such situations have resulted in a pay cut and unemployment in the automotive industry in order to sustain itself in the market.
2. Travel & Tourism
In India, travel & tourism is deemed as one of the major growth drivers in the service sector. But it is the first sector, which was disastrously impacted by the outbreak of the novel coronavirus and will be the last to experience resumption in activities. People are refraining from traveling to various cities or countries, resulting in a high sales drop in travel & tourism sector.
International Air Transport Association (IATA) estimates that global airlines may suffer from the loss of around $113 billion in sales if COVID-19 goes on spreading at the same pace. This is a huge loss, which can take many years and a lot of patience to compensate. The Indian tourism industry is expected to exhibit a revenue loss of almost Rs 1.25 trillion in the year 2020 in the wake of COVID-19. The travel & tourism industry is still expecting to grow at a better rate from domestic tourism in the coming time, but it all depends upon the pervasiveness of COVID-19.
3. Real Estate
Like other industries, the real estate industry is also not substantially immune to the ramifications of the COVID-19 outbreak. Even after lifting lockdown, real estate may face issues due to the limited availability of raw material for construction. This is likely to impact both residential and commercial real estate sectors significantly.
According to the India Brand Equity Foundation (IBEF), India’s real estate industry was expected to reach Rs 65,000 crore by 2040. But current estimates show that the housing sector will witness a yearly drop of 25%-35% in 2020. Now, after lifting lockdown, only patience and hard work can reset the future of the real estate industry in India.
In light of the pervasiveness of COVID-19 and proclaimed government orders, banks in India are operating with reduced capacities. Banks are only providing essential services to their customers. They have also introduced moratoriums to help their customers. The economic fallout is likely to crash over the lenders. NBFCs are most likely to witness ramifications as they usually provide loans to small and medium enterprises, which are severely being hit by the lockdown.
The largest lender in the country, State Bank of India (SBI), suggests that it is too early to assess the long-term impact of lockdown due to COVID-19. The bank has planned to navigate very carefully in the coming 1–2 years. This can be deemed as a sign of how the banking sector is being affected due to the lockdown.
The normal functioning of the education system has already been disrupted by the COVID-19 outbreak. Many industries may soon start operating, but nothing can be predicted about the education sector as public gatherings are prohibited. India has almost 500 million people aging between 5–24 years, and this large population cannot be left uneducated under any circumstances.
The relationship between technology and education is becoming tighter due to the lockdown. E-learning is picking up the pace, and even the admission process is being effectuated completely online. But still, there is no reliable prediction about the reopening of schools and colleges owing to the pervasiveness of lockdown.
How can Industries Deal With the Burden of COVID-19 Outbreak?
Despite all the losses, this lockdown due to COVID-19 has made industry leaders learn many lessons. They have learned to set themselves always ready for any situation; else, they will have to suffer every time like this. Companies will be planning new strategies and discover better opportunities after the lockdown. One of the well-built strategies is the deployment of digital tools, such as Customer Relationship (CRM) software, to work from anywhere with an accelerated speed.
Like e-learning is evolving, e-admissions will also evolve, which will require CRM software for keeping digital records. Likewise, many industries will focus on operating digitally and deploy CRM software suitable for their needs. Different industries have different operations and different requirements for CRM.
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We don’t know when the COVID-19 pandemic situation will resolve, and we will be able to resume offices. We also don’t know when such situations, like the COVID-19 outbreak, can come up. So it is better to stay prepared for everything coming by using tools, which can allow us to work from home. We understand your tight budget due to economic downfall and hence, making FinCRM available without burning your pockets. Whatever is your industry or employee size, FinCRM can cater to your needs efficiently. And the best part is you can try it for 15 days without paying anything.
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CRM software is befriending all the industries to avoid physical contact and obey lockdown rules. Even following the control over the COVID-19 outbreak, industries will have to confront uncertain financial, legal, and regulatory aftermath. It is better to be prepared from now onwards for everything coming and deploy CRM software in operations to accelerate sales & ROI and compensate for losses after lockdown.