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Food Industry

The food industry is one of the largest industries and is of dynamic nature and evolving day by day. Various types of new foods are being launched by fast food companies such as McDonald's, Burger King. Innovation is food is also required because the companies which innovate new products on regularly basis are more likely to be successful in the food industry and make huge profits.

If a company wants to be successful in the food industry, then it is crucial for it to provide the best quality food in affordable prices. There are many expectations which consumers wants to be fulfilled by the food companies and if food companies are fulfilling the needs of the consumers then the company will be successful in the market. There are many changes in the needs of consumers, some are listed as follows.

Demand for transparency in food: Nowadays, people are increasingly asking about transparency in the products. It means that a consumer who is going to buy the product wants to know full detail about the product which includes that what ingredients are used in making food, what type of food is, what is the quality of the food. Consumer got attracted to that brands which fulfill this need and provide full details of the product. Hence labels have started playing an important role for the industry to be successful, companies which earlier were not providing any detailed information had started now providing information about ingredients on labels. Thus, companies which want to be successful are needed to provide transparency in their products.

Demand for Plant-Based food: According to Forbes internal proprietary research it has been found that there in an increasing demand for plant-based food in people living in US and Canada. Estimated 17% of US population and 23% of Canada’s population consider them as plant-forward. Plant based food does not means that its completely vegan, it means that the ingredients to be used in preparing food are clean and fresh. People like to eat fresh food including vegetables, fruits as it is nutritious and healthy. So, if food companies need to be successful in the food market then they should provide fresh food which includes fresh vegetables and all.

Increasing Health related consciousness: There has been a lot of increase in the knowledge of the consumers. Earlier consumers do not think about the food and they used to eat the food which suits their tongue and found tasty. But now time has been changed, consumers nowadays are willing to buy only that food which benefits their health rather than spoiling it. Thing like zero sugar, zero fat are now becoming so popular that every consumer wants that product which includes zero preservatives.

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How low rates in automobile industry affect the consumer?

Automobile industry faces various types of increases or decreases in its sales due to its price. Price is the major thing determining the sale of the vehicle. Though price plays such an important role in the sale of vehicle, people in America are increasingly buying expensive cars. Price of vehicles is escalating at a very fast pace than the normal inflation rate in America but it’s not reducing the sales of the vehicles such as Ram pickup trucks.

Facilities like debt had enabled people to make their dream come true and buy expensive cars. It’s basically the want of people to buy better cars and satisfy their wants. As there is an increasingly number of sale of vehicles, companies manufacturing cars are facing good amount of profit. Their cars act as a status symbol for people and to maintain that status symbol people do not think twice to buy expensive cars.

Another reason that is helping in booming the sale of the cars is low price of gasoline. It has been observed that due to the low price of fuel people buy cars. According to Energy Information administration it has been declared that average price of fuel had not increased the margin of $3 from past 5 years. As price of fuel is low people do not think whether the fuel efficiency of the vehicle if good or not the just buy the car which they want. On the other hand, if the prices would have increased people may have faced some difficulty in buying expensive cars.

According to Mark Wakefield (managing director at AlixPartners), because of the high rate of interest in the federal bank, their sales went down. He also thought that they are better than they think they would be going into the 2019. Moreover, now people are buying more and more cars despite any condition like rates.

Along with these reasons, another thing which is encouraging people to buy more and more cars is that various types of facilities are now being provided in the expensive cars like touch screens, auto driving mode, inbuild WIFI etc. People feel attracted to these types of advanced technologies being provided in the cars. Hence, they hesitate to spend plenty of amount to buy these types of cars.

These reasons have made it easier for the automobile business to expand and make huge amount of profits. Companies like Ram had seen increase in their sale up to 18% which made it nations second last most selling vehicle after the Ford F-150. Also, Tesla with the help of its innovative ideas and technology advancement made up to 50% of worldwide deliveries.

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How Corona-virus affecting Customers and business..

Business is affected by various types of things including internal and external factors in the environment in which particular type of business is prevailing. Whenever there is increase or decrease in sales, do you think it’s because your product is outstanding? Absolutely not, it’s because many factors are influencing consumers to buy your product. These factors include current affairs prevailing in the market. 

Nowadays, Corona-virus is spreading very vastly around the world. Now, it is becoming the major concern for business and customers. Corona-virus has hit the global economy very hard and made a drastic fall in the economy worldwide.According to Martin Ma, the general manager of Jinli, they lost more than 50% customers because of this epidemic as  compare to other years. Customers are less willing to buy products which come from China. China is one of the best manufacturers which produce goods in large quantity. Because mostly goods produce in China, consumers are hesitating to buy the goods because of this virus. Elizabeth Chin, a travel agent in Fort Lee, N.J., of the Pacific Asia Travel Association, also said that it can be serious financial burden on the economy because of cancellation in flights and tour operators 

Automobile Industry: As we all know that various types production units are being setup in china, corona-virus has led to seize all the production units in china which has incurred a huge loss to the companies like Toyota and Volkswagen. These companies manufacture vehicles and are supplies worldwide to various countries on order. Companies unable to complete the orders face huge losses. Buyers are facing the problem of not getting their product on time. 

Manufacturing output is not only impacted in companies functioning in china. It can be similarly seen in the south Korean companies like Hyundai and Honda. Hyundai has halted its production because of the lack of supplies of the parts required for manufacturing. Likewise, Honda has stopped production because its main production units are being setup in the Wuhan which is the center of epidemic. 

Clothing Industry: Many popular brands like Nike, Adidas, H&M and Hugo Boss has closed their stores in china and also opening hours are being reduced. Nike announced that 17% of its revenue in a year came from china which is now reduced. Various brand outlets halted their production and sales are reduced to minimum which has affected the profits for the company.

Tourism: For any country tourism is one of that industry which always generates revenue and helps the economy to rise but due to corona-virus tourism industry in all countries is facing a major fall as cross-border travel has been halted by the government to minimize the spread of the virus. From the reports it can be known that from the recent years the number of people travelling to china has been skyrocketed that is 10.5 million in 2000 to 150 million in 2018, from this we can come to know that tourism is one of the major industry that has been affected by the corona-virus outbreak worldwide. Specially customers from china facing so many problems such as they can not visit abroad and people from other nations are not willing to travel China. 

References

https://www.dtnpf.com/agriculture/web/ag/news/article/2020/01/29/wuhan-watchlist-markets-affected

https://www.theguardian.com/world/2020/feb/05/coronavirus-global-economy

https://www.reuters.com/article/us-china-health-business-impact/companies-feel-impact-of-coronavirus-outbreak-in-china-idUSKBN1ZZ0B1

https://www.nytimes.com/2020/02/04/nyregion/coronavirus-nyc.html

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