Will the arrival of festivals & IPL improve the Indian Economy?

IPL & Indian Economy: A hit or a miss?

The COVID-19 or Novel CoronaVirus has twisted the entire economy upside down and the most affected sector remains the small town merchants, retailers, and daily wage workers/migrants. Even though the lockdown is slowly unfolding now many businesses remain closed or have been shut down permanently. From hospitality to small scale industries no one was spared from the wrath of the pandemic and recovering from the same won't be a piece of cake. Businesses depend on the regular consumption of customers but this lockdown has caused tremendous loss to almost all sectors of the industry. This deadly virus which has been officially declared by the WHO (World Health Organisation) as the pandemic has collected over roughly 190+ countries in its hold. Along with that, the saddening mindset amongst people is increasing rapidly, hence, many people are thinking twice about spending even 1 rupee extra on any non-essential item.

From salary deductions up to 50% to permanently closing down businesses for not being unable to pay rent, every owner or tenant has been penniless during this time. The then congested tourist spots now witness an abandoned look. So many newly opened stores at the beginning of 2020 lost all hope by the end of April as lockdown progressed further. Apart from tearing down the economy, a few other factors also affected the merchants on a massive scale like-

CONTACTLESS DELIVERY

A known yet the lesser-explored concept that has helped many e-commerce, food industry, and other small companies to deliver their products on every doorstep. Following this route, smaller shops, local Kirana stores, and many other local merchants can smoothly start enjoying a stable income. The delivery charges are generally levied generously and since people anyway prefer the no-touching policy wouldn't mind paying a decent shipping or transportation amount. While majorly online payments are trending from sabziwala to the local juice centre, even non-essential commodities like small pan shops for cigarettes and alcohol stores have also preinstalled QR codes or arrange the same facility for home delivery. Even though the pandemic might continue for an indefinite time Contactless delivery is something that will be followed for years to come.

SOCIAL DISTANCING

The primary and yet extremely important step to be followed when visiting anywhere. The entire festive industry in India demands massive participation from individuals. May it be the Ganpati festival of Maharashtra, Navratri of Gujarat, Durga Pujo of Bengal, or the global celebration of Diwali. All these festivals are peak buyers’ market and the country sees many new seasonal business people be a part of it. Since the dawn of the Pandemic, any social celebration or religious gathering has been banned throughout countries. Even though people can celebrate on a small scale amongst close friends, the fun of purchasing new clothing, or enjoying street food from their local vendors will not be permitted.

NO AUDIENCE FOR IPL 2020

A majorly loved sporting event across the globe is a fusion of love and glamour. International cricketers coming together to compete via states over 20 nail-biting overs is something every Indian has been looking forward to for over a decade now. Even though the BCCI has announced the IPL schedule 2020, it won't be the same this time. People invest a lot of time, energy, and money into this event starting from the IPL Auction to people dolling out in the 1000's at their local stadium for their favourite match. From stadium popcorn, team jerseys, celebrities for brand ambassadors, and immense marketing sponsorships by renowned brands won't be possible with an empty stadium rule. Apart from no cheerleaders or spectators, small merchants who used to rule markets with team-based merchandise like caps, whistles, sports equipment will face a major loss this season. The only industry that can mildly benefit is the FMCG sector as people can easily host parties at home with their loved ones.

LIMITED/RESTRICTED DOMESTIC TRAVELING

This is a prime yet lesser guessed notion amongst people right now. With barely available railway services in addition to limited airline facilities, it is logically impossible for most people to travel cross country in private vehicles. The fact that staying home during this time is strictly crucial, the quarantine rules along with the pandemic becoming air-borne are nothing less than a ticking time bomb waiting to explode.

NEW NORMAL

Even though we are proud of the cultural diversity in India, it will take some time to get used to the fact that our celebrations won't be amidst a crowded arena anymore. The rolling of currency has kind of stopped in certain industries and the GDP of India has reached a tremendous low point that hasn't been seen for years now. During such tough survival times and cases increasing in millions, the sports and festival industry's merchants will either have to find alternative marketing options or produce for lesser people to stay in the market till it stabilises a little.

Although with new unlock rules, some businesses are starting to function forward we can see very minor changes in the current economy of India. The major things apart from festivities that can be seen as the time comes along with revolutionary impressions are:

• E-commerce websites, apps, and cashless trading.
• Work From Home culture amongst many companies for an efficient and result-oriented experience.
• Home delivery systems and account maintenance via online portals like OkCredit.
• E-learning portals and online certifications via international universities, institutions, and education-based startups.
• Vocal for Local will help in promoting local and Indian brands.
• The online fitness industry, where exercising at the comfort of your home is not only encouraged but made high income amongst gym trainers, aerobics instructors, and yoga teachers across the globe.
• Online entertainment portals, streaming applications, that can smoothly replace overpriced theatres.
• Legal work regarding court can be easily operated via online documentation and mutual agreements so no additional public has to step out of their homes for a small issue court date. Online business or home-based businesses will be preferred in terms of safety and security amongst users.

Although the above changes will see some positive impacts on some businesses, adaptation and innovation is the major trend in the Indian market.

Also read:
How to manage the staff & maintain sales?
How to be festive ready this Quarantine?