The COVID-19 pandemic has hit hard on almost every place on earth. Although very few people recover and get discharged from hospitals, the virus resurfaces within them again and brings on the second wave. This has had a tough and sudden impact on individual governments and their economy, with China being the first to suffer.
The consumer issue in China:
The people of China are almost near the finish line on their path to recovery, and seeing this, their leaders have decided to reopen factories and shops to salvage their near-crippled economy. But the people of China, still facing the repercussions of the deadly virus, have been following self-quarantine and practicing social distancing to keep the virus at bay, the result of which is, empty malls and a stagnant flow of products at the auto dealership industries.
The people at Beijing, China’s capital city which is one of the busiest ports in the world with people always hustling for work and bustling on its streets, still practice safety measures regarding the deadly virus which results in untenanted malls and a no show at the local shops and a bigger let down in the auto industry meaning no one still plans on buying any transport. People are still afraid to hit the roads for work.
The government’s decision to open the consumer-end market was maybe, a decision made in haste, and the people are not in any state to support this decision. However, the deadly outbreak of the Covid-19 virus has been showing signs towards the better side, slowly retreating.
Similar cases have been reported all around China with the shopkeepers reporting that the people have cut down “trivial” shopping, and the crowd that generally used to persist in their shops has reduced to lesser than half. The situation has pitted the shop owners of China to weigh the scales of having a considerable sales benefit against the fact of having their shops open at all, the results of which could mean a loss.
Honor Strachan, a principal analyst at GlobalData, had given out a statement on the same saying that “Understandably, the retailers will be keen on reopening their store to recover lost revenue and to clear seasonal stock, but the impact to be opening these stores too early be severe profitably”. With all this, it will take China a couple more months, maybe even years if the conditions prevail, to revert to their former economy