RSi COVID-19 Insights From Around the Globe – India
Ajay Pande, Director of Engineering, India Retail Update – May 5
The View @ Past 2 Months- India
- Lockdown 1.0 -> Lockdown 2.0 -> Lockdown 3.0: Sensing the impending threat of COVID-19, and in an attempt to be proactive, a declaration of lockdown was implemented by the government. As of now, the lockdown is in place until May 18. India’s measures for this decree include:
- Social distancing and raising awareness around the virus and how to protect against it
- Transformation of work from home as the “New Normal” and the acceptance and rapid switch to online for groceries, education, fitness classes, and more.
- Support for those who are on daily wages.
- Focus on the essentials only, no luxury items!!
- Categorization of cities as Red, Orange and Green depending on the severity of the virus in the area, with corresponding restricted activities .
The Retail/ Economy Perspective @ Month-3 in India
- Revenue of Indian IT services companies could be hit harder than other sectors.
- The IT services sector’s growth has been revised downward to 3-8% for the next financial year, according to Kotak Institutional Equities.
- Top retailers are urging the government to open non-essential retail to encourage growth in the Indian economy.
- Food and fashion retail will take a year to revive, as predicted by top industry associations, Retailers Association of India (RAI) and National Restaurant Association of India (NRAI).
- VC investors are evaluating deals differently
- There’s increased scrutiny on the systemic stability & flexibility of target companies’ supply chains,
- use of advanced technology applications,
- Facebook buys 9.99% stake in Reliance Jio for Rs 43,574 crore
- Employment : The forecast for 2020 from a hiring perspective will further see a drop, with a lower percentage of organizations indicating the need to expand workforce across industries.
Overall, the impact of COVID-19 is expected to bring the India software market growth down to 4.1%.
Rapid AI/ML-Based Innovation and Platforms – Data is KEY!
- Rapid innovations based on Artificial Intelligence (AI) and Machine Learning (ML) are key where data is concerned.
- Many apps, tools and platforms are available for social care and tracking/monitoring.
- There’s continual investment happening here and the focus on this will continue into the future!
India has seen an overall acceptance of lockdown with very little panic. The general sentiment of the country as a whole is that:
- Social Distancing and lockdown has enabled the control of the spread of CV-19
- We should be thanking our essential service providers – Medical staff, COPs, ITES professionals
- We should prioritize helping those who are in need – Critical Sector of India (Farmers, Poor etc.)
- Generous donations are being gifted to help those in the country who need it.
Looking into the Future: Wait and Watch!
Some key insights into the future, post COVID-19, India:
- Being online is going to be key for retailers to see success long term!
- All of these changes to how the community operates may open doors for new companies in India.
- The new definition of the“ New Normal” will exist for a while as we’re seeing in other countries.