"Hotel, Travel, and Performance Industries Hit Hard by COVID-19... Telecom and Gaming Impact Decreases"

EY Hanyoung Releases Analysis Report on 6 Major Industry Groups and Detailed Industries

[Asia Economy Reporter Minji Lee] Opinions have emerged that hospitality industries such as hotels, travel, and performances will suffer the greatest damage due to the spread of the novel coronavirus infection (COVID-19).

On the 13th, global accounting consulting firm EY Hanyoung disclosed a report prepared by its affiliated think tank, EY Hanyoung Industrial Research Institute, on the global spread of COVID-19 and its impact and outlook on domestic industries, as well as industry-specific response measures.

In the report, EY Hanyoung Industrial Research Institute comprehensively evaluated the impact of COVID-19 on industries based on four criteria: operational risk, sales decline, supply chain disruption, and liquidity risk.

EY Hanyoung Industrial Research Institute identified fashion & beauty, distribution, and automobile industries as the sectors expected to be hit next hardest after hospitality.

Conversely, semiconductor, media & gaming, and telecommunications were considered relatively less affected industries. In particular, the telecommunications sector was expected to experience the least impact.

The rationale for telecommunications was that it is a necessity of life, and demand does not significantly change depending on external environments. Additionally, it was considered that once the COVID-19 situation subsides, countries worldwide, led by China, will undertake large-scale infrastructure investments such as 5G with economic stimulus in mind.

Through the report, EY Hanyoung Industrial Research Institute also introduced response strategies divided into six industry groups: consumer goods, distribution, automobile, hospitality, electronics, and construction & engineering.

For consumer goods companies, diversifying suppliers and logistics providers by region, establishing channel strategies and infrastructure, and reviewing end-to-end supply chain risks were highlighted as key points.

For the electronics industry group, supply chain management and diversification, claims and compliance management, and responses to financial conditions and tax issues were presented as necessary elements of COVID-19 response strategies.

In addition, EY Hanyoung Industrial Research Institute released a checklist to help companies struggling due to COVID-19 quickly diagnose their current situation. This list consists of five areas: employee retention and management, customer churn prevention and brand value management, short-term liquidity management, supply chain risk management, and legal risk response.

This content was produced with the assistance of AI translation services.