The Covid-19 (Wuhan Corona Virus) economic damage trends and the long lasting changes it creates.

The Biggest Crisis 

The Wuhan Corona Virus is the most severe economic crisis the world has faced since The Great Depression.  Which means that for almost all of us this is the worst crisis of our lifetimes.

The trends are visible 

1. The most vulnerable have borne the brunt of the economic impacts.
2. Many small business are on the brink of failure. 
3. Investment in research is slowing down as funding reduces. 
4. Digital divide has been exposed.  Those not part of the digital economy are suffering more. 
5. The future of megacities is in question. The bigger city the stricter the lockdown world over.  Work from home changes the proposition of high cost living in megacities. 
6. Embracing productivity (saving costs) as business change to become more efficient.
7. Building and "health proofing"business in changing times.  Contactless - is the new paradigm.
8. Skill and talent revolution - as more and more business aim to go digital.
9. Countries and societies invest in digital infrastructure.
10. Investments in innovation ecosystems - to build digital ecosystems - as the world changes. 

Some Examples of Indian Companies using technology

Dr. Lal Pathlabs, a pathlab chain which functions like a retailer, uses its tech based understanding of customer footfalls to decide the optimal location, size and merchandize of their collection centres and laboratories. This helps improve the profitability of these labs and collection centres, making the whole network more efficient and sustainable. For instance, if a franchisee proposes to open a collection centre at a location which Dr. Lal’s tech platform considers to be sub-optimal, the firm will readily decline such a proposal. 

Amongst NBFCs, one of Bajaj Finance’s competitive advantages is to use its proprietary consumer data to selectively target borrowers with higher credit quality, who might not have already got a substantially high rating on the commonly available credit rating agencies’ databases.

Similarly, Page Industries has recently invested in an Auto-Replenishment System (ARS) at the distributor and EBO (exclusive brand outlets) level, which moves the judgement call of merchandising, away from these intermediaries, towards Page’s centralized supply chain systems. Such tech investments have helped reduce cash conversion cycle of Page by more than 15% over the past 2 years and Page’s working capital cycle days are now less than half compared to other listed inner-wear firms in India.

(Disclaimer : This blog is for information purposes only.  It is not to solicit any kind of business or provide any type of investment advise)