What Will the Economy Look Like After the Coronavirus?

The Covid-19 pandemic, affecting both public health and the economy, will reshape the world when its impact subsides. While quarantine and the outbreak dominate current discussion, a new era is beginning in retail. According to REM People, a next-generation research and retail technology company, production, employment, import and retail sales strategies and practices will necessarily change in the post-coronavirus future… The Covid-19 pandemic sweeping the world has reshaped nearly everything scheduled to happen this year. Quarantine decisions, China closing its doors, the halt of global transportation and social distancing are also transforming the economy. According to REM People, a next-generation research and retail technology company, nothing will be the same in Turkey and the world with this pandemic. Bülent PEKER, CEO of REM People, which provides retail analytics services to international brands in 43 countries, described the likely developments in production, employment, imports and retail following the coronavirus scenario as follows:

China's decline?

China has become the leading supplier of almost everything in the world over the past 20 years. However, after coronavirus, many manufacturers closed due to quarantine. The world's growth engine went into a two-month sleep. This situation showed many institutions how unpredictable the Chinese market can be. After coronavirus, even if China retains its leadership in many production areas, it is widely expected to lose ground against some local alternatives (competitors).

Inventory policy will change

The most important trend that modern companies boasted about was the 'just-in-time' product policy. That is, maintaining the lowest possible inventory to meet needs. However, possible disruptions in the supply chain, such as quarantine, are collapsing this system. Institutions will now readjust their inventories against uncertainties and will tend to hold more stock.

Local products will increase

International shipping and travel restrictions prevent products, like people, from reaching from one point to another. This situation can create major difficulties in a connected global economy. After coronavirus, emphasis is expected on producing products in the country where they will be sold.

Meetings will go digital

It is a fact that large meetings in almost every place in the world will be postponed until the second half of the year. However, company sales visits, small meetings, seminars and presentations will continue to shift to digital communication channels. Even if the coronavirus outbreak ends, remote work and meetings held on digital platforms will become a larger part of life.

Working from home era

Discussions on the impact of working from home systems on productivity have been ongoing for a long time. This period is to demonstrate to all companies whether working from home is truly possible or its productivity. After the pandemic, many companies will continue to question how meaningful their investments in office space are. We can safely say that we are at the beginning of a brand new era, especially regarding working from home or remotely.

Being open to change

The coronavirus pandemic has already earned its place among the most significant events of the past 100 years. In the process ahead, many public and private institutions, especially states, will need to have emergency action and alternative resource management plans against similar events.