A detailed analysis by Deloitte on the effects of the outbreak in 42 categories; Which has become a worldwide epidemic Covid-19 virus outbreaks in Turkey will provide a research on what impact the businesses.

The Covid-19, which changed our social and economic life to a standstill, changed our lifestyle. Also the ways of doing business and habits. This change brought a positive interaction to some categories, while it had a negative effect for some categories.

Deloitte Consulting team has prepared the “Global Report on Covid-19 Effects of Different Categories epidemic in Turkey”. Revealed the ratio of the sector affected by the epidemic in 42 sub-categories and the estimated recovery rates.

Distance education and work 15 times, national markets 2 times more interaction

After the measures taken to stop the spread of the virus, education and working life shifted to home. Video conferencing and distance education systems such as Skype, Zoom and EBA were separated from other categories; with a 15-fold growth. The fastest development in this category was EBA, the distance education system of MEB during Covid-19 period.

After online shopping, another requirement of living at home, remote food shopping has increased rapidly. In this category, national markets have increased nearly 2 times more interactions with their digitalization investments. Strong logistics and home distribution infrastructures and e-commerce experiences compared to discount markets.

In this period, healthy nutrition and keeping immunity stronger. The category of healthy products was also on the rise as consumers turned to vitamin, honey and herbal products.

Hobby sites such as knitting and handicraft attracted high attention from consumers who spend more time at home.

Internet TV ascending fast, clothing-shoes category grew with aggressive discount campaigns

The fastest rising categories following the epidemic are followed by internet-TV, media, pets, games, and clothing and footwear. Although the clothing-shoes category, which experienced a decrease in the second week when the epidemic started; to be on the agenda, showed an increasing trend in the last two weeks with aggressive discount campaigns. There is also the risk that this increase will be temporary in this period when social interaction is limited. Companies that have adapted to e-commerce early are less affected by the process.

While it is a category of baby products, consumption products such as cloths and baby wipes are attracted in large sizes; There is a decrease in the preference of durable products such as strollers.

Discount markets caught off guard

In the last section showing positive growth, personal care, underwear, cosmetics, books, fuel and discount markets were included. In the recent years, discount markets, which have entered into a rapid growth process; with an aggressive retailing attack against national chains. They were caught unprepared for the demand to shift to digital channel during the epidemic period.

The interactions of fuel companies increased rapidly in the first weeks of March; with the effect of the global drop in oil prices. But then their downtrend entered in the second half of the month is expected to continue with the overall slowdown.

Penetration of social media was limited

Social media, which has more than 3 times the interaction of traditional media channels. Also it has limited performance in the epidemic period. The young population with already high penetration of social media in Turkey, during the epidemic. While there was a large increase in interaction, Twitter has emerged as the most positive decomposed platforms. A limited positive reflection was observed in the categories of home appliances, building materials and electronics.

A faster recovery is expected in betting and sports media with the start of the leagues.

In parallel with the spread of the outbreak, there was a steady decrease in public appointment requests and hospital interactions. The negative losses in the private sector are observed to be less than the public. This negative trend is expected to continue with a slowdown.

The interactions of the platforms that provide services such as house cleaning, car rental, transportation and repairs decreased sharply. Due to the consumers’ shifting their needs in order to reduce the risk of disease transmission and save money. The negative trend is expected to continue during the epidemic period.

Many categories that feel the negative impact of the epidemic most. (i.e. Sports media, jewellery, betting, transportation channels, cultural art activities, hotel and accommodation) Betting and sports media are expected to recover faster than other sectors with the start of leagues.

Automobile and real estate investments are delayed, imports are decreasing

The negative trend that started with the beginning of March. In the sites where houses, workplaces, land rentals and sales are continued, accelerating in the second half of the month. With the increasing perception of risk of consumers, the interaction is expected to decrease further. In the category of real estate, which is a long-term investment, while the same situation is observed in automobile sales. The interactions of car sales sites also decreased more than the real estate category in the same weeks.

The negative curve, which started in March in the airline category, is increasing steadily with travel restrictions.

We observe that the import demand of international marketplaces from foreign sites decreased sharply in the last weeks of March. This decline, which we saw regardless of the imported country. We expect the leading indicator in imports of consumer goods, and imports in the coming months.

Negative trend in food ordering sites is expected to recover faster

In line with the slowdown in business life; a decrease in career sites, corporate services and food ordering sites draws attention. After decreasing orders to home, traffic of recipe sites increased 3-4 times. Parallel to the trend of cooking at home, the demand in durable consumer goods shifted to small household appliances. (i.e. kettle, mixer, mini-oven, etc.) Also the demand for products such as pasta, yeast, baking powder increased rapidly. It is predicted that saturation in these products is approaching and the trend will slow down.

One of the sectors most affected by the decrease in social interaction was sexual health products. The downward trend in demand for products such as condoms is expected to continue.

Ministries of Health and National Education positively separated in public services

While the interaction of public service platforms, especially e-government, is decreasing while the social and commercial life slows down. Certain public services are reduced, the Ministries of Health and Education differentiate positively from other institutions.

While furniture, market and sports exchanges have a limited negative effect, the fastest recovery is expected in the marketplaces.

Negative impact limited in banking and cargo transportation

The slowdown in business life during pandemic created a negative decomposition in the banking category. (e.g., interactions of insurance, tax systems and tender portals decreased by 30-40%) Although individual digital banking interactions did not decrease much. The slowdown in trade and the slowdown in commercial banking activities had a negative effect. In addition, the fact that consumers make bulk purchases at home increases the number of transactions.

The performances of the marketplaces differ. For example, although interaction increases in consumer goods sellers; But the sharp decline in real estate / car sales generally causes the industry to perform negatively. The decrease in the interaction of the marketplaces resulted the shipping companies to a lesser extent.

When the interactions of private and public educational institutions at different levels were analyzed; The decrease in the interactions in the first weeks of March 2020 was interrupted. Then in the last weeks with the interruption of schools. The proliferation of distance education at all levels in educational institutions are expected to strongly turn the trend into positive.

The most agreed result of a such a pandemic period is simple; Companies and people trying to their businesses remotely, by using comprehensive cloud applications for management and meeting with other people.

Reference: https://digitalage.com.tr/covid-19-salgini-sektorleri-nasil-etkiledi-arastirma/