–Anisha (Class of 2022, IBS Hyderabad)
On 30th January 2020, India reported its first case of COVID-19 in Kerala, which then rose to three cases by 3rd February 2020. Apart from all these, there was no significant rise in transmissions of the virus. On 4th March 2020, India reported 22 new cases from Italy.
In March 2020, the transmissions grew up exponentially after several people with travel history to affected countries tested positive for COVID 19. On 12th March 2020, a 76-year-old man, with a travel history to Saudi Arabia, became the first COVID-19 fatality of India. Gradually it has taken the world by storm.
While people were scared of being infected by the virus, Honourable Prime Minister Narendra Modi decided to have nationwide lockdown on 24th March 2020, which led to severe disruptions and widespread confusion among people. There was suddenly a great hustle which came to India. Irrespective of cultures and national borders, each stage of the pandemic’s escalation has quickly resulted in the affected population raiding shops.
Effects on People
People started with the stockpiling of disease prevention like hand sanitizer and face mask in bundles like there is no tomorrow for buying. There was mad rush seen in every commodity sector, despite there being no indication from Honourable Prime Minister that the lockdown will impact shortage of any item.
A flurry of panic buying turned people’s fears of a shortage into self-fulfilling prophecies in some areas. While some experts recommend buying moderate quantities of additional supplies just in casestrict coronavirus quarantines are eventually unbridled hoarding by consumers makes society less safe rather thanmore. It shows irrationality instead of wise caution. Initially lockdown was announced for 21 days but the items in the customer’s basket said it for at least 3 months.
What’s fuelling the panic?
Social scientists have pinned it on an instinct that is triggered by fear and spread through social media. However, there is also evidence that this focus on buying practical goods is a behavioural reaction to feelings of stress and uncertainty. Instead of rushing for the latest fashion garment or gadget, consumers purchase utilitarian products which can solve their issues.
Many research even believed that customers give preference to food first when they see a storm coming in, this case corona. People in the highly dense cities-were in fears of pandemic situation or may be stressed by the potential threat of spread of virus seek them to buy practical and utilitarian product.
Effects on Commodities
The tiny virus has destroyed the global economy
- Retails
Covid-19 became a big game changer in the retail sector. There is large impact on garment and Lifestyle, including malls. The supply chain and inventories are also being impacted-affected in inventory pile up. The multi-online channels were also equally affected. The food delivery segment was being affected with the ongoing lockdown. The one sector which was in boom was the Groceries-kirana, mass merchandise stores. Indian retailers do a daily business of Rs 15,000 crore and ever since there has been lockdown there has been a huge loss leading to Rs 5.50 lakh crore. - Pharmaceutical Industry
Indian Pharmaceutical sector is world’s third largest drug producing sector. Buyer’s on hearing the norms of Covid-19 consumers started piling stocks of mask and sanitizer. In some time, every pharma store became complete bald in respect to mask and sanitizer. The demand for the N-95 mask increased and the supply was disrupted. Due to increased demand no layoffs of employees are seen even. - Oil and Gas Industry
All public transport through rail, road and air has been suspended due to lockdown. Demand for fossil fuels except LPG and natural gas were o free fall. Consequently, the refiners were forced to cut down their output to 25-30 percent immediately. The Oil industry has collapsed to 70 percent. - Gold
Gold is considered as and a safe investment during political and economic turmoil. The price of gold has been seen a sharp surge in during lockdown. It has been rallied over 16percent so far. But the lockdown has affected the mining activities which fell to 3 percent. - Aviation industry
One of the worst affected sectors which went to complete shutdown. An estimated of 33 percent decline took place.
Supplier story
After witnessing the night of pandemic buying, grocery stores and supermarket were busy restocking stocks in empty shelves and tried enforcing social distancing among customer. People standing in queues at several markets were also asked to maintain social distance. Even the producers say they dodged police lathis in bringing the produce to customers. Refilling of stock in large quantity as customers prefer to stock them with larger quantity was one the great issue which producers saw. Another issue which came forward according to the manager-”people are trying to buy 30 kg of Atta and more than half-a-dozen packets of packed milk. We are requesting such customer not to do this, so that others who may be running out of the same items can buy them.”
CONCLUSION
On 3rd May 2020, with the unlock1.0, government allowed opening of non-essential goods segment. After that the supply and customers had somewhat come to normalcy, were people are panic buying and following the rules and regulations. However. Until the vaccines are found, world coming to normal would be difficult. There is some section of society which are still in panic buying as there is fear in everyone that lockdown can happen any time with the increasing cases.
