New Delhi, February 13: Two e-commerce majors Amazon and Flipkart are likely to face an impact on the overall sales due to the prolonged closure of factories in China, due to the coronavirus outbreak. The death toll due to COVID-19 has leapt manifold in China and according to a recent tally, it has reached 1,310. Health experts have warned that the epidemic could get worse before it is brought under control. The outbreak has affected all over the world, including sectors that are directly dependant on Chinese imports.
According to an ET report, a crunch in the supply of smartphones, television, consumer electronics could lead to slower growth in sales during the recent festive season compared with the previous year. Forrester Research estimates that smartphones, which are the single largest category for these e-comm players, are expected to be worst hit in a $31.5-billion strong online retail market. Coronavirus Scare: Chinese Restaurants Face Heat, Enquiries Regarding Source of Imported Ingredients Shoot Up.
Due to the supply shortage, supply in other categories like furniture, home decor, fitness equipment and toys will also be affected. Experts have further predicted that supply from China will remain hit for atleast 4-5 weeks more, thus dampening the March sales as well. The impact of the virus has led to panic in the country. Other than the myths and forwards floating on social media, several people have started avoiding Chinese food in the fear of getting infected by the virus. Several Chinese restaurants have confirmed that they have also stopped placing fresh orders for Made in China products and have instead started looking for alternative sources.
(The above story first appeared on LatestLY on Feb 13, 2020 10:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).