The trends of the epidemic on various industries and developments in future

This article focuses on 10 major industries including Banks, Capital market, Insurance, Retail, Smart manufacturing, Automotive, medical and life sciences, Technology, Real estate, and Energy, analyzes the opportunities and challenges brought by the epidemic to various industries, and looks forward to the future development of the industry.

1 Banks: The epidemic has impacted the income and cash flow turnover of some companies and households, and will have a certain short-term impact on banking business, but in the long run, it will not have a fundamental impact on the development of the banking industry. At the same time, online financial business is more recognized, and matters such as branch transformation, application of financial technology, and comprehensive financial services have become the focus of banks in the future. Moreover, credit to industries and small, medium and micro enterprises affected by the epidemic has increased. The epidemic has caused a short-term decline in the income of many enterprises and individuals, and it will also have a certain impact on the bank's deposit and loan business, and the expansion of the bank's intermediary business has been hindered. On the whole, the epidemic will have a certain negative impact on the short-term revenue of the banking industry. But in the long run, the post-pandemic recovery and rebound of the economy will also improve the capital situation of affected companies, with limited long-term impact on the banking industry.

2 Capital market: Generally speaking, the liquidity risk of some investment debts greatly affected by the epidemic will increase in the short term, the scale of non-performing assets may expand, and non-standard investments will face greater pressure. Wealth management and asset management focus on offline service models The company's operating pressure will also be more severe. At the same time, the epidemic will also bring growth opportunities to leading companies and new online formats. In the long run, after the epidemic, highly liquid assets, high-growth industries and diversified asset allocation will still be welcomed by the market. Digital operation, online and offline integration and transformation. The financial industry will take some time to adapt and adjust. Customers will be more inclined to high-liquidity assets and high-growth industries, the reasonable combination of domestic and overseas assets will be more important, and the asset allocation structure will undergo certain changes. High net worth clients need to avoid a single portfolio of assets. A balanced portfolio of assets and a long-term investment philosophy can reduce the impact of short-term market volatility.

3 Insurance: Insurance business revenue and profits will be under pressure in the short term. The epidemic has also increased the public's attention to insurance services, and the epidemic has also triggered a new wave of insurance purchases. The public's emphasis on the uncertainty of future risks has made life insurance and critical illness insurance for individual customers popular. During the epidemic, insurance agents increased online insurance promotion and online Q&A, which partially offset the negative impact of not being able to acquire customers offline.

4 Retail: The epidemic has directly affected the revenue of retail brick-and-mortar stores. Catering, shopping malls, department stores, supermarkets, professional brand stores, cinemas, and travel travel have been closed, resulting in setbacks in luxury fashion, wine and other scene experience consumption categories; traditional supermarkets , Convenience stores and street stores have remained open to meet the needs of people’s livelihood, but the traffic has also suffered a serious decline. On the other hand, although the order volume of online shopping platforms and O2O home services has risen sharply, price increases are limited and service standards are high. Factors suppress profits, and there will be an upside-down situation in which volume increases and profits fall. The epidemic has caused retail enterprises to further shift to online, and at the same time strategically shrink their offline layout to improve overall performance and efficiency. Companies with fragile operations will be greatly impacted, while high-margin categories and companies that have deployed online businesses in advance will respond calmly. Strong brands and large platforms will take the opportunity to expand market share and snatch customers, talents, stores, suppliers and other resources of small, medium and micro enterprises; At the same time, accelerate the acquisition and integration of small chains and independent brand stores in a platform model; upstream and downstream jointly build a collaborative and symbiotic digital ecosystem, and build alliances between shopping malls and merchants, consumer goods suppliers and channels to jointly fight the epidemic. While the development of each sub-category industry shows a strong Matthew effect and the strong are constantly strong, the competition pattern in the sub-industry will intensify and differentiate. While building a symbiotic relationship within the system, a legion-style and systematic competition is formed between ecosystems. Community commerce is expected to explode.

5 Smart Manufacturing: Smart factories and smart manufacturing will be further developed. Promote automation and flexible production, employ more high-tech talents and high-skilled, multi-skilled and compound workers, reduce dependence on labor, and better cope with labor fluctuations. At the same time, more and more attention will be paid to the standardization of parts and components, intelligent logistics, and strengthening the anti-risk capability of the supply chain. Digital transformation and remote intelligent services will be actively used. The in-depth application of digital technology can help improve the efficiency of employee collaboration, grasp the key elements of business growth, more efficiently respond to fluctuations in market demand, and achieve product innovation; and The remote intelligent service based on the industrial Internet provides remote guidance through AR, AI and other technologies, and provides fault warning for the monitoring of the operating status of the equipment. It can be seen that the practical application of technologies such as BI, big data analysis and AI will receive more attention, and there will be an urgent need for data analysts.

6.Automobiles: Automobile manufacturing and supply chains have been impacted, and short-term automobile sales are under pressure, but they are expected to recover after the epidemic. Residents’ income and employment have been affected by the epidemic, and maintaining the liquidity of assets has become more and more important. In this context, auto finance will be more widely accepted and used because of its flexible payment methods, smaller cash flow burden, and lower interest rates under loose monetary policy.

7.Healthcare and life sciences: R&D of innovative drugs and medical devices. Increased awareness of health management and health care. Rapid development of Internet medical care. AI empowers medical research and development. Primary medical service capabilities need to be strengthened.

8.Technology: During the epidemic, online education, online medical care, online life services and other projects ushered in unprecedented market demand. High-tech industries such as unmanned retail and unmanned distribution are on the rise; various distribution platforms and door-to-door service platforms that provide intra-city logistics, customized catering distribution, and errands are increasingly recognized. At the same time, "online" office work such as home office and remote office that is not limited by geographical space, especially office software that can realize individual collaboration, will be the future development trend. In addition, the public is gradually paying more attention to health management and health care awareness, including private doctors, private psychologists and various "online" consulting services, and the role of technology in empowering the medical and health industry has become more and more obvious. Traditional industries are also accelerating their transformation and upgrading. With the rise of new technologies and industries such as artificial intelligence, big data, 5G, and blockchain, the operational efficiency of enterprises and the entire society will be greatly improved.

9.Real estate: The demand for high-quality public resources in core cities is rising, and sales are still good. The demand for commercial real estate has changed, and the new office model has promoted the transformation of the business mode of enterprises. The demand for more flexible shared office leasing may increase, and the office market structure has been adjusted. At the same time, due to the sharp decline in offline retail and tourism, retail real estate and tourism real estate (such as hotels and characteristic towns) have suffered a relatively short-term impact. These markets are expected to improve as the consumption and tourism markets gradually recover after the epidemic is over.

Energy: Demand for oil and coal are gradually decreasing.

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