IPG Mediabrands APAC CEO Leigh Terry warns market on Coronavirus ‘knock-on’
IPG Mediabrands’ APAC boss Leigh Terry has warned of a “knock-on effect” as concerns around the Coronavirus spread to consumer and business confidence. Major brands including Apple, Qantas, Salesforce, Facebook and Hyundai are just some of the brands feeling the sting.
- Terry says while it’s too early to tell what the full impact will be, brands are already in the throws of the Coronavirus “maelstrom”
- Apple’s stock has been dealt a blow, sales forecasts were downgraded and the electronics giant said “worldwide iPhone supply would be temporarily constrained”
- Qantas has already warned investors to expect a profit hit as it continues to cut flights between China and Hong Kong
- Hyundai has begun shutting down off-shore plants due to troubles in its Asian supply chain
- Locally, conferences including Salesforce’s World Tour has been made a digital only stream, while Facebook’s Global Marketing Summit has been cancelled entirely.
It’s too early to gauge just how great the impact will be on marketing and the broader economy says Terry, but the coronavirus is already starting to bite beyond China, with tourism and travel taking a big hit.
According to data from ANZ, Brisbane, Melbourne, Perth and Sydney airports recorded a drop of 27 per cent from the week ending January 21 to the week ending February 8.
Terry says that if the troubles continue through Q1 and into Q2, “there will be some demonstrable impact on client spend. Particularly those fiscal year clients spends that are currently being debated”.