The coronavirus epidemic has affected all of humanity. How is business in Russia undergoing it, which spheres have faltered, and which, on the contrary, have gained an increasingly strong foothold? Our PR agency will tell you about this today.
Self-isolation, social distancing, a ban on holidays abroad and mass events, and most importantly, the uncertainty of the future - all of this, of course, affected the Russian consumer, demand and, therefore, business overall.
Jumping into online
The first thing that happened to the Russian market during the lockdown was that consumers began fulfilling their needs (for shopping, education, communication, entertainment) online on a massive scale nationwide. And the winners here are companies that have already provided their services on the Internet and those who have managed to quickly switch over to the digital services. For example, Russian retailers have swiftly mastered contactless delivery. Old and new educational platforms have advanced to the forefront, the demand for their services has grown significantly. And large fitness clubs have switched to the online training format.
The obvious "scapegoats" in the current situation are travel companies, hotels, air carriers. For obvious reasons, the travel services market fell by 100% at the beginning of the pandemic!
The companies that provide retail and office space for rent (far from every tenant scurry to offline up till now) have also shrunk strongly.
Restaurants, cafes, cinemas also had a tough time. In a number of regions, the authorities did not give permission to visit them until the end of the summer. Only catering companies with open terraces kept afloat.
It is logical to assume that companies centred around supplies of components from abroad have been hit by the pandemic. The one who was able to launch its own production can survive in this situation. Demand for the purchase of passenger cars has also dropped significantly. For example, in April it fell by 72%.
With a silver spoon in the mouth
There is also a downside to the coin - the companies which services are still in demand or even in high demand in the current situation. Among them are IT and telecommunication service providers, as well as transport and courier organizations. According to projections, the express delivery market in Russia will grow dozens of times by the end of 2020.
The warehouse rental market has also won due to immersion in online shopping. The demand for storage space in Russia has reached a record level in the last ten years.
There is the consensus of opinions among the experts that the current situation is a challenge for all sectors of the economy not only in Russia, but throughout the world. Companies that have shown flexibility and high mobilization potential during the crisis, as well as those areas that will be most "useful" and in demand among consumers stand a chance to survive.
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Promotion for foreign brands in Russia