Name: Naimur Rahaman Hasib

Id: 2120189

Course Title: Managerial Economics

Code: MBA 505

Instructor: Meherun Ahmed, Ph D

Date:20/04/2022
 Impact of Covid-19 on Consumers

The pandemic of COVID-19 is influencing populations all over the world. The effects of the
coronavirus epidemic are still being felt around the world. Many countries imposed temporary
closures of non-essential stores, bars, and venues during the pandemic's peak, as well as a
prohibition on large public gatherings and encouragement to work from home wherever possible.
As vaccination rates rise and the incidence rate falls, this is gradually decreasing. The market for
fast-moving consumer goods witnessed significant shifts, with demand for consumer-packaged
goods (CPG) rising in the worst-affected countries, as well as growth in home goods spending.

Since March 2020, Bangladesh has been dealing with different stages of the COVID-19
pandemic, which has had a negative impact on the health sector due to infections and deaths. The
COVID-19-induced containment measures, including lockdowns, have increased the livelihood
demands of vulnerable people, particularly in the informal sector. Many people have lost their
jobs and income sources, leading in an increase in unemployment and poverty across the
country, in both urban and rural areas. In both urban and rural contexts, those with less/no access
to social safety, lower savings, or limited alternative sources of income are the most affected.

Due to the pandemic and subsequent shutdown, both domestic and foreign demand decreased.
The demand of every product and service were decrease except the daily uses’ products. Supply
chains were also disrupted, and many workers could not attend the work properly due to
lockdown. After that most of the company fired their employees. The buying power of
consumers were decrease also. As a result, companies, particularly in the industrial sector,
responded by reducing output to cover the loss. In initial phrase there were a huge unavailability
of products in the market and the price of regular products were highly increase. As a result,
companies, particularly in the industrial sector, responded by reducing output to cover the loss.
In the beginning, there was a significant lack of products on the market, and the price of standard
things skyrocketed. The cost of food varies a lot. Shoppers are either unable to enter the markets
or are afraid of entering. The number of people visiting public marketplaces has decreased by 80-
90 percent compared to pre-lockdown levels. While affluent buyers have shifted to what they
believe to be safer venues such as online and superstores, the poor have continued to purchase at
public markets but have changed their behavior. Many people choose to wait outside the wet
markets and send slips to known store staff to get products instead of going inside.

Prices had risen with each extension of the lock-down. A 22.5 percent increase in rice alone is
enough to destroy poor families. While the number of vegetable vendors has decreased, most
beef, mutton, and fish markets have closed. Onion prices have increased by 56% since the
shutdown began. Because this is an imported item, no one knows how beneficial part will be for
this important component of every household meal. Lentils (+30%), garlic (+51%), and potatoes
(+51%) have all seen significant price rises. Broiler meat chicken remains a temporary yet
affordable protein source for many as customer demand begins to fade during the lockdown.
Soybean is necessary also. All Bengalis eat it, just like onions. There is concern that unless
importing lines are restored, shortages will emerge for both imported products.

Beside all the negativity there were something, that happened positive on the pandemic. The
ongoing pandemic has isolated the whole world to their houses, but this does not mean that
demand has completely vanished from the market. Simply said, shoppers have adapted to the
condition and are shopping online, resulting in a global e-commerce boom. Bangladesh's
industry is improving as well. As a result, e-commerce is increasing all over the world. Online
shopping is becoming more popular. The number of transactions is also increasing. It is well
known that online sales have grown by 70 to 80 percent since the beginning. Approximately four
lakh women entrepreneurs offer products on Facebook and other online platforms, in addition to
hundreds of entrepreneurial organizations. The government has designated product distribution
as an emergency service in this circumstance. In Bangladesh and abroad, all kinds of things can
now be bought and sold online. At the end we can say that consumer all around the world are
adjusted to the situation as a new normal life.