Corona Happened - Now What?

Corona Happened, Now What?

In this article we are going to discuss about the impact of Coronavirus epidemic on Indian economy, various sectors it tanked, which sectors are not effected but reported growth and then we are going to discuss about “How we are going to overcome from this crisis and what options have we left?”.

Corona Outbreak

The Coronavirus outbreak, which originated in Wuhan (China), has already infected approx 5 Million people worldwide and counting. Its spread is leaving businesses in all sectors counting costs around the globe.

Every country took a hit by this menace. Most of the countries are in Lock-down because of this rampant. Because of Lock-down, the economy of almost all countries is already decreasing. The impact of this epidemic will affect almost all sectors worldwide. Let’s talk about the impact of Coronavirus rampant on Indian economy and the sectors it hit.

Impact on Indian Economy

According to the Barclays bank report, Indian Economy will have a loss of ₹ 17-18 Lac Crore because of three weeks Lock-down. On the word of Barclays, Indian GDP growth rate could decrease by 2.5% because of this Coronavirus epidemic. Though Govt of India announces the Relief Fund of ₹ 20 Lac Crore, but recovery is very challenging.

Source: Times of India

First Hit

Corona epidemic is going to hurt sectors such as Tourism, Aviation, Hospitality, Trade (Import/Export) and then the sectors related to these industries are going to follow the burn. The supply side contagion effect will impact on manufacturing, agriculture, automobiles, chemical, metal, engineering and communication equipments, consumer durables and electronics, apparels and the list go on. 

Sectors Hit

Tourism and Travel

This was the first sector which get disrupted by Covid-19. The Travel and Tourism industry has been badly damaged as all flights and trips are forced to cancel by Corona crisis. No one would dare to fly abroad and go to another country for business or on vacation. Most of the countries have banned travelers to their countries and they suspended visa facility till the time unknown.

Aviation

As the news spread about the Coronavirus disease, Aviation sector has reported 47% decrease in daily bookings within a week. This sector is to lose approx. ₹85000 Cr. in India only. People fly to other countries are the main source to carry Coronavirus and spread it unknowingly. This was the stage 1. This crisis comes at the time when airlines are also being hit by a falling Rupee.

Hospitality

This is another vast industry related to Tourism and Aviation. When they are gravely spoiled then how come hospitality sector gets untouched. This industry is to lose approx. ₹30,000 Cr. revenue. There is already a 35% downfall reported in restaurant business and 75-80% downfall in hotel industry. Multiplexes and Cinema Halls are also contended with fall in demand.

Trade (Import/Export)

There is no import or export of any goods via any transportation method. No one knows when the suspension will lift.

Apparel

This is a fact that 35% of apparel orders come from European countries. Now, there is a fear psychosis because of Coronavirus. Apparel manufacturers are saying that if this epidemic continues for few more weeks, this could be really bad for this industry.

Consumer Durables and Electronics

There is a steep decline seen in the shipment during January – March. As stated by CRISIL, India imports around 45% of its consumer durables from China.

Auto Sector

Sales in auto sector is down to 70%. This sector is already seeing a downfall in past few months and now this epidemic hit it with grave danger.

Gems and Jewellery

Retail sales of Gems and Jewellery has tanked 80% in the last 5 days.

(Source: BBC India, Business Today, The Economic Times, Dainik Bhaskar)

Source: CIO India

Not Effected Sectors

Medical/Pharmaceutical/Wellness

Unlike most sectors, this sector is an unlikely gainer from the outbreak. People are trying to take medicines without even consulting a doctor. Although, there is a huge risk of taking medicines without consulting and allopathy medicines have side effects too, but it is still growing. Awareness about Wellness has also increased as people are taking precautions to not to get sick and improve their IMMUNITY. Surgical items such as masks, sanitizers, etc are also reason to note the growth in this sector.

FMCG

FMCG is another sector which is seeking growth amid this huge rampant. People are panic buying which has increased the consumption across the country.

These two industries can never face downfall in any condition. The fact is that every other sector can collapse, as we discussed earlier, but not these two. There is a very good reason behind this that People will never stop eating, bathing, taking personal care and of course, they will never stop visiting doctors and taking medicines whenever needed. Now, this concludes the limitless opportunity in both the sectors.

Now the biggest question

CORONA HAPPENED, NOW WHAT?

(Under this question we will discuss the outcome of Coronavirus crisis and how are we going to handle our economic situation.)

Coronavirus epidemic has smashed most of the sectors in the world. India is also badly affected by this rampant. The Lock-down of the country is necessary but it sealed the huge downfall in the economy. Around 100 million jobs are in danger. Most of them are already gone. Unemployment will increase and small businesses (self-employment and professionals) will struggle to accomplish the daily requirements of their family. So, how are we going to survive this? What other options we have?

Options
1.       You have some money in your savings which seems enough that you can survive any epidemic. 
2.      You are billionaire or millionaire that you can invest huge money in your business and you can take risk that if it won’t work, you don’t mind. 
3.      You have big businesses like Bill Gates, Mukesh Ambani that you don’t need to think about any other source. 
4.      If you don’t fall under any category given above, then this is the right time to think about your career choice and take some hard decisions that if this situation arises again, in which category YOU would want to be.

If you fall under first three categories, then you do not have to worry about anything. You can survive any epidemic. But, if you do not fall under those three categories, then you should be concerned about your living and this solution is for you.

Solution

I believe that before reading this solution, you have read the whole article already. If not, please read it to understand why and what I am talking about.

As I told earlier, FMCG and Pharmaceutical (Wellness) both are the only sectors which can never collapse. You can work in these sectors and you will never face any downfall in any kind of crisis. Now, if you are not in these sectors already, you may think about to start to work in these sectors. Traditionally, you need a big investment to start your self-employment in these sectors with a big risk of failure because there are other players in the market.

If you are smart enough to think about to work in these sectors but smartly, then there is one more industry which can never be affected by any crisis or you can say that which can never let any crisis affect you. Yes, I am talking about Direct Selling Industry. Direct Selling Industry is continuously growing in India and worldwide because of its structure and a reliable source of Passive Income. According to MoneyControl.com, Indian Direct Selling Industry increases 13% to ₹13,000 Cr. in FY19.

Source: The Economic Times.
 

There are a few direct selling industries which are working in the sector of Wellness, Home care and Personal Care. In their revenue, Wellness products contributed over half of the total volume. As I said earlier, despite of any crisis, people won’t stop eating, bathing, taking personal care, clean their home and kitchen and take medicines whenever needed. Now, as the awareness spread about the diseases because of our unbalanced lifestyle, people are choosing Wellness over Sickness. I have described Wellness Industry vs Sickness Industry in my other article. As our old and gold saying goes, Precaution is better than Cure. The future is very healthy for Direct Selling Industry.

How to choose which Direct Selling Company is better for you?

First of all, check that the company is registered with the Govt. of India. Now, here is a 4-P test for you to choose the best direct selling company for you. 

1.       Products 
2.      Passion 
3.      Profit 
4.      People

Products

Products matter a lot. Once, you join a direct selling company, the topic you talk about the most will be the products. Every company claims their products to be the best but how would you know that? One, you can use the products yourself and then decide or you can check the authentic certifications that company provides. This will lead you to be confidant about the products you will promote.

Passion

As we discussed earlier, if you truly want to take your life to another level where you can be assured that whether you live or not, your family will never face any financial complications under any circumstances. See, accidents happen. It can be happened to anyone. Check, if you really want to build your business in direct selling which can lead your life to another level. If you are not getting what you seek from your job or self-employment, then you should move towards direct selling instantly.

Profit

To check the profit plan of any company, understand the following points: 
1.       Self-Purchasing and Re-Purchasing

2.      Retail Profit 
3.      Income through Team Building 
4.      Training and Education System 
5.      Products Quality and Certifications 
6.      Opportunity to become a leader 
7.      Developing leaders in your team 
8.     Helping other leaders to develop leaders 
9.      Minimum meetings and activity requirements 
10.  Rank Achievements 
11.   Rank Maintenance 
12.  Staying active and engaged in business

People

Check the person who bring the opportunity to you. Check whether you can trust that person or not. People in this industry matter as much as the products.

Which Direct Selling Company is best according to 4-P’s?

According to topdirectsellingbusiness.com, medium.com, quora.com and many other websites, MI Lifestyle Marketing Global Pvt. Ltd is one of the top 10 Direct Selling Companies in India. MI Lifestyle is an Indian Direct Selling company which has started its business in year 2013 from Chennai. Its head office is in Chennai and corporate offices are in Delhi, Mumbai and Kolkata. MI Lifestyle is corporate member of FICCI and FDSA and it is registered on MCA with all the required legal documents. Its income plan is approved by the Govt. of India. Its products are of international quality and standards. It gets the best retail reward in 2017. Most importantly, the Wellness Products are completely Ayurvedic and AYUSH Premium Certified by the Ministry of AYUSH, Government of India.

Conclusion

Direct Selling industry is growing day by day and the future of the right company is secured. If you join the company this time, you can do it by choice. But, if you don’t, it will become a compulsion for you to join it in near future because there is no other option available in the market.

About the Author

Arun Khandelwal, the Author of this article has 15 years of experience in Direct Selling industry. He is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing teams. For more detailed information about Direct Selling industry please subscribe this blog. You can also contact us by leaving comments and ask your query via e-mail.