Knowledge & Learning

Envisioning the New Normal

By April 21, 2020 May 1st, 2020 No Comments

On Apr 28th, ET-ILC held a webinar addressed by author and futurist Ray Hammond on how the world is likely to change post the pandemic and where the new opportunities lie.

Key Highlights & Takeaways

  • True normalcy will only return close to 18 months from now, when a cheap and effective vaccine is available
  • Essential ingredients, mission-critical manufacturing, medicines, vaccines – there will be a move to produce everything domestically. A degree of protectionism will seep in
  • The developed world has already rolled out $10.6 trillion in stimulus packages and will take on $66 trillion in debt, which is 122% of the world economy. It will take us decades to repay this debt.
  • Businesses across the world need bankruptcy regulations similar to US’ Chapter 11
  • The state will play a bigger role in the economy now, something we haven’t seen the government do in years
  • There will be new opportunities in remote working, digital medicine, distance learning, online retail, robotics and AI.
  • Sectors like real-estate, hospitality, travel and media are severely impacted

Business Impact:

The fundamentals for business will not change post Covid-19. Many businesses will continue to thrive. There will be new opportunities in remote working, digital medicine, distance learning, online retail, robotics and AI.

Sector-wise implications:

Real-estate: Likely to see a slowdown as companies consider work from home as a long-term solution and give up commercial real estate wherever possible.

Fintech: Will see a tremendous update. In Europe fintech apps have seen a 72$ increase in usage during the lockdown.

Education: Will move to a hybrid format balancing physical and online learning. Large universities in the UK and US are bracing for severe impact and lowering fees to lure students.

Hospitality: Airbnb cancelled 90% of bookings during the lockdown. This sector will take some time to bounce back. Hotels and restaurants may not be frequented by people even after the lockdown is lifted. Investors will now consider this a fragile and risky business and move investments away.

Media:  Print and television media will suffer greatly. In Europe, TV and print have already seen a 50% drop in ads. All advertising is currently happening online. Streaming services like Netflix and Amazon will continue to do well.

Events: Sports events unlikely to be allowed till a vaccine is found. Esports will do well.



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