The Covid 19 virus has dramatically changed social life in a very short time. To contain the consequences of the global pandemic as far as possible, the heads of state of most countries have agreed on measures, some of them drastic. Not only the life of each individual, but also social life and especially consumption are facing drastic changes.

Measures hit sectors with varying degrees of severity

Although a significant economic slump is taking place during the current “shutdown period,” some industries are less affected by these developments. Others can even report increases. One thing is certain: the consumer climate is being permanently influenced by the current situation. The first phase of panic has clearly expressed itself in hoarding purchases of the population, still some shelves in supermarkets are empty. Long-life food, hygiene products, toilet paper, cleaning agents and disinfectants are currently in short supply in many parts of Germany. By contrast, most consumers are currently putting off more expensive purchases, such as cars or real estate.

High sales losses

Closed stores, exit restrictions and general uncertainty. No one would have expected at the beginning of the year that public life would be turned almost upside down in just a few weeks. The impact of the measures adopted will affect individual sectors differently, with retailers and service providers in particular being affected by the situation. Cinemas, restaurants, pubs, swimming pools and the like must remain closed due to the regulations and thus forgo revenue. Experts fear that the economic extent of the crisis cannot even be estimated at this point in time. But while many companies are currently struggling for bare survival, there are also industries that are benefiting from the current situation. In particular, streaming providers, social media companies, the gaming industry and large retail platforms can benefit from the change in consumer behavior.

Internet traffic increases worldwide

Consumption in general does not stop, rather it changes. For example, online shopping, the purchase of digital products and streaming are currently booming, benefiting retailers that are well positioned in the e-commerce sector in particular. Especially due to the fact that many people currently work from home, Internet traffic is increasing worldwide. This can be seen, for example, in the figures for the largest Internet node, DE-CIX. For example, the data volume more than doubled due to the increased number of video conferences, and the traffic from streaming services also grew by more than 50 percent. Swen from Kodi 360 believes that streaming services in particular will experience a decent boost as a result of the Corona crisis. The gaming industry is also likely to benefit from the crisis in the long term; even the WHO has described gambling together over the Internet as “particularly important for maintaining social contacts.”

Consequences are not foreseeable

With the closure of physical retail (excluding groceries), the online space will see gigantic growth. If the restrictions are relaxed or even lifted altogether in the coming weeks or months, this development will continue. Experts are certain that there will be no normalization, i.e. a return to the time before Corona, and that the effects on consumer behavior will be long-term.

Ali Oukassi

Mohamed Ali Oukassi ist Gründer und Inhaber von eBakery. Er hat mehr als zwölf Jahre Erfahrung in der E-Commerce Welt. Mit seinem Team aus Experten kann er jeden Bereich abdecken und lebt den Full-Service-Gedanken, egal ob es um die Erstellung / Umstellung eines Shops, die Berartung hinsichtlich des richtigen Shopsystems, Marketingfragen, SEO oder auch das Thema Social Media Integration geht. Gut vernetzt und mit einem leistungsstarken Personal im Rücken, nimmt er sich jeder Herausforderung im E-Commerce an.