"The revision takes into account the latest HKTDC Export Index survey, which indicated that 82% of the 500 exporters surveyed forecast their total sales will drop 10% or more year-on-year," HKTDC Director of Research
Meanwhile, 97.5% of the respondents - up 3.6 percentage points from last quarter - have experienced adverse shocks to their businesses because of COVID-19. These include buyers purchasing less (57%) or cancelling orders (52.3%), delays in product delivery (55.8%) and logistical disruptions (53.1%). In response to the pandemic, 67.6% of respondents had implemented remote-working arrangements, while more than 41% developed online sales channels to supplement conventional sales operations.
New normal
HKTDC Assistant Principal Economist (
"Some businesses - including e-commerce marketplaces, pharmaceutical and healthcare companies, logistics solution providers, video-conferencing solution providers and entertainment streaming and online gaming platforms - are likely to thrive in this 'new normal',"
He predicted the pandemic will accelerate automation, and artificial intelligence (AI)-driven technology will become more mainstream as the global economy and industry reboots and tilts more towards digitalisation and automation. At the same time, business-model innovations that use big-data analytics, contactless solutions and new digital channels would help traditional commercial operations - such as restaurants, last-mile delivery, health, insurance, human resources, marketing and product development - undergo digital transformation and survive the COVID-19 crisis.
Export Index stabilises
The HKTDC Export Index rose a marginal 2.2 points to 18.2 in the second quarter of 2020. "This may indicate that the negative sentiment is now plateauing, yet the reading is still well below the 50-point watershed, indicating that
"In addition, the Procurement Index fell by 4.3 points to a record-low of 10.5, with all major sectors dropping further - jewellery (2.0), clothing (9.4), electronics (10.4), toys (11.3), machinery (14.8) and timepieces (17.3) - showing buyers will source less in the coming months," she said.
"Having said that, demand for electronics items related to computers, webcams, microphones and medical applications, wearable tech and smartwatches with health-monitoring functions, as well as comfortable, multi-purpose and athleisure wear are on the rise, while stylish fashion jewellery and design pieces and wedding items may also perform better,"
Trade tensions back in focus
"The US is the only market that recorded a drop in the index this quarter, this may be attributed to the fact that
"Smooth implementation of the deal under the current disruptive environment remains highly challenging,"
Reference
-
- Podcast: https://bit.ly/37G92uJ
- 2020 Mid-Year Export Review: Double-digit decline due to pandemic and protectionism https://bit.ly/2XZlbaF
- Hong Kong Export Index 2Q20: Exporters Pessimistic as COVID-19 Outbreak Persists https://bit.ly/3cWfD56
- Navigating COVID-19: The Economic Shakeup https://bit.ly/2Uwhw2b
- Photo Download: https://bit.ly/2UOhKS8
About HKTDC
The
Contact:
Beatrice Lam , Tel: +852 2584 4049, Email: beatrice.hy.lam@hktdc.org
Copyright 2020 ACN Newswire . All rights reserved.
© Japan Corporate News, source