It has now been two months since the coronavirus first surfaced in China and things are finally getting back to normal, according to a report from Azoya. China is reporting no new domestic infections and is turning its efforts to quarantining those returning from abroad, where infections have risen dramatically.
 
Wuhan is shutting down its temporary hospitals and Hubei province is lifting travel restrictions on those going in and out of the region. Across China, retail stores and other businesses are opening up.
 
How Are Retailers Coping?
 
On the e-commerce side, major retailers saw a recovery in sales for Womens Day, the largest e-commerce holiday in the first quarter of every year. Demand for health, FMCG, OTC pharmacy and home & kitchen products has been relatively resilient, given that people are turning more to e-commerce for delivery of everyday essential goods.
 
On the other hand, Azoya predicts that any discretionary spending category that relies heavily on offline sales will continue to see a muted recovery. While people are going back to the office, crowds at shopping malls and on the streets still remain sparse. 
 
Also, there continues to be disruptions in global logistics & shipping as the coronavirus crisis intensifies around the world. While Chinese couriers and postal services have remained open to carry out last-mile delivery, importers are facing issues in shipping goods from overseas to Chinese warehouses due to the severe decline in capacity.
 
Nonetheless, logistics companies and freight forwarders are finding solutions to solve these issues and demand for bonded warehouse capacity has increased to ensure that the end customer in China enjoys a positive customer experience.