With the increasing number of confirmed diagnoses of Coronavirus spreading globally, it has become clear that it isn’t just impacting human health, but also the global economy and business community.
This week, both the London and New York Stock Exchanges saw a significant drop in their indexes as a knock-on effect from the world’s second largest economy China and many other parts of Asia being the worst affected areas by the outbreak.
It is now being forecasted by analysts that some of the worst affected industries in the UK will include hospitality chains and retailers. This will be largely due to a downturn in factory outputs in China, tighter controls on imports coming into the UK and quarantine efforts put in place to contain further spread of the virus.
As a result, retailers will find that their supply chain will be negatively affected and struggle to meet demands, especially as additional areas outside Asia, including Europe and South America, are affected. The total number of countries with confirmed cases now stands at 30.
Although the UK has only had a total of 15 confirmed cases so far, there are growing concerns in urban areas about hygiene, as well as the reduced levels of tourism due to existing and further potential travel restrictions which may reduce the number of consumers choosing to dine out or eat in public areas.
However, as always in the era of 21st century business, organisations must continue to adapt to socioeconomic factors, and it will present positive opportunities for new suppliers and fluid businesses to continue trading with success.