Will you have a spending spree after the Wuhan pneumonia epidemic? Which industries are likely to experience a consumption frenzy?

A sudden epidemic has forced most people to stay at home, and some consumer demand has been temporarily suppressed. After the epidemic is over, the suppressed demand will bounce back like a spring, and a consumption frenzy will break out. So, will you have explosive consumption after the epidemic? Which industries are likely to experience a consumption frenzy?

Which industries may see a consumption frenzy?

Accommodation and dining

Accommodation and catering are large industries. In 2019, the industry's operating revenue exceeded 5 trillion yuan, employing more than 26 million people. It is an important area for stabilizing growth, promoting employment, and benefiting people's livelihood. After the outbreak of the epidemic, the operating income of accommodation and catering companies has dropped significantly, and the operating pressure on companies is very great. At the "Press Conference on the Work of the Joint Prevention and Control Mechanism of the State Council on Increasing Efforts to Support Industries Severely Affected by the Epidemic, Such as Accommodation and Catering, Culture, Sports and Tourism" held on February 25, Xian Guoyi, Director of the Service Trade Department of the Ministry of Commerce, said that the catering and accommodation industries are gradually resuming work, and corporate revenues have also rebounded. The resumption rate of the 20 large-scale chain catering companies that are in key contact has reached 57%; the resumption rate of the accommodation industry has also reached more than 50%. The government has introduced a series of strong support policies to help the accommodation and catering industry, which is home to a large number of small and medium-sized enterprises, to emerge from the gloom.

Tourism Industry

The industry has been severely affected by the epidemic and is almost closed. According to Liu Kezhi, director of the Market Management Department of the Ministry of Culture and Tourism, all art troupes under the culture and tourism system have stopped organizing art performances, Internet cafes, amusement and entertainment venues in various places have completely ceased operations, and all performance activities have been completely stopped. Travel agencies and online travel companies have been completely stopped from operating tourism businesses, all domestic and outbound group travel businesses have been stopped, and tourist attractions across the country have also stopped operating to the public. As the epidemic eases, relevant tourist attractions in various places have gradually opened to the public, and people who have been staying at home for a long time are even flocking to them. It is expected that the tourism industry will have a significant rebound after the epidemic.

Which industries may see a consumption frenzy?

Film Industry

The Spring Festival period has always been the peak sales season for movie theaters. The 2020 Spring Festival movie season was originally highly anticipated. Seven films including "Detective Chinatown 3", "Lost in Russia", "Leap Year", "Jiang Ziya", "The Rescue", "The Vanguard" and "Boonie Bears 7" were hailed as "the strongest Spring Festival movie season in history". The total box office of the Spring Festival movie season was expected to be nearly 7 billion yuan, and the pre-sale box office on the first day of the Lunar New Year was nearly 300 million yuan. However, due to the impact of the epidemic, on January 23, seven major Spring Festival films were announced to be withdrawn, and many large cinema chains also chose to suspend operations. The box office on the first day of the Lunar New Year in 2020 was only 1.81 million, while the box office in the same period in 2019 was as high as 1.458 billion. Many movies have taken a different approach. For example, the copyright of "Lost in Russia" was purchased by ByteDance for 630 million yuan, and it was broadcast for free on its apps such as Douyin and Xigua Video; while "Enter the Fat Dragon" was released on iQiyi and Tencent Video platforms using the "guaranteed minimum + profit-sharing" model. But no matter what, it still cannot shake the mainstream theaters. At present, various places have issued guidelines for the resumption of work in the film industry. I believe that after the epidemic, there will be a retaliatory rebound in the film industry.

Automotive Industry

After experiencing a downturn in the automotive industry in 2019, it suffered another heavy blow in early 2020, and global automakers are facing major challenges. The outbreak of the epidemic has disrupted the entire upstream and downstream chain of automobile companies, including car manufacturers, parts companies, and dealer groups. According to media reports, automakers Toyota and Honda have closed their factories in China; South Korean automakers Hyundai and Kia, Renault subsidiary RSM, and Bosch have also announced that they will suspend some production due to interruptions in the supply of parts from China...

However, amid all the pessimism, there are still hot spots to be found. After experiencing SARS, my country's automobile sales reached 4.3908 million units in 2003, a year-on-year increase of 34.21%, of which sedan sales reached 1.9716 million units, a year-on-year increase of 75.28%.

Under the dark cloud, public transportation with close contact between people is excluded, and even most transportation is paralyzed. All of this may become a catalyst to stimulate automobile consumption.

E-commerce industry

It was after the SARS in 2003 that my country's e-commerce industry ushered in a qualitative leap, and Taobao and JD.com rose to prominence. Affected by the epidemic at the time, the isolated Chinese people could only meet their daily needs through online shopping, and this new way of shopping was gradually accepted by everyone.

After 17 years, a major epidemic has occurred again, and e-commerce opportunities have reappeared. In the past ten days of fighting the epidemic, fresh food e-commerce can be said to be the biggest winner. Data shows that JD.com's sales across the platform during the Spring Festival increased by 470% compared with the same period last year; Hema Fresh's daily fresh food orders have reached 100,000, and 250 tons of packaged vegetables and 80 tons of bulk vegetables are needed every day to meet demand; in addition, Dingdong Maicai, Miss Fresh, etc. are also very strong. All of this stems from the fact that fresh food e-commerce has not only met people's basic life needs such as food, oil and salt during home isolation.