Cancellation of events and activation will force the industry to lay-oﬀ employees, reduce salaries besides closing of companies.
From popular award shows such as International Indian Film Academy Awards (IIFA) to sports tourney such as the Indian Premier League even international shows as Mobile World Congress (MWC) – all events have been cancelled this year, due to spread of the novel Coronavirus. According to industry estimates — the events industry is expected to lose approximately Rs 20,000 crore in Q1 of FY21. Weddings which accounts for half of the total earnings, also have been cancelled. “As of right now, the industry expects all the shows to big events to be postponed to the third and fourth quarter of the fiscal. However, if the pandemic stretches into another quarter, then events for the year will be cancelled, resulting in approximately 70%-75% loss,” Atul Todi, co-founder, 10Times, told BrandWagon Online.
The period between January – April and October – December are the busiest. According to data shared by Event and Entertainment Management Association (EEMA), so far the events industry has incurred losses worth Rs 40,000 crore. “Brands are resetting their plans, expectations, markets, delivery systems, marketing focus and logistics. if the situation prolongs, it will have a huge impact on the event economy, global and local enterprises, employment, and business environment triggering a new business and economic order,” Sanjoy Roy, president, EEMA, said. The events and activations industry in India which was expected to cross Rs 10,000 crore mark by 2020-21, as per an EY-EEMA (Event and Entertainment Management Association) report, may not be able to meet its target. At a compound annual growth rate (CAGR) of 16%, the industry was valued at Rs 5,631 crore in FY17. The fear is the cancellation of events and activation will force the industry to lay-oﬀ employees, reduce salaries, delay mandatory payouts besides leading shutdown of companies.
Even as virtual events have become the new norm when compared to the kind of revenues ground events and activations generates – virtual events rake in just one-third of the amount. As per Roshan Abbas, MD and founder, Geometry Encompass,virtual events allow companies to recover just 10%-20% of the overall expenditure. “This is the right market for an innovator to come and create an online event which proves to be as engaging as an on-ground event,” Abbas added. Currently, everyone around the world is hoping for the pandemic to end swiftly to get back to their feet.