Economists define recession as negative Gross Domestic Product For consecutive two quarters. Recession brings a slowdown in spending capacity, slump in economic activities, decreasing job opportunities, decreased manufacturing and other industrial activities, and much more. Sales process faces an obvious slump in its productivity during this period. Both small and big business faces a dramatic slump in their overall business process flow. Since the purchasing power reduces and the capital inflow decreases, the hiring process slows down. Thus, all the positive growth ceases and the growth faces negative drift.
Global Recession Impact On Various Industries
Recession can be just in one country or it may affect globally. Whatever it be, sales has to suffer noticeably. There are some areas which get most affected by the economic slump down. In India, this includes textile industry, banking sector, infrastructure, IT, stock market, real estate, hospitality, aviation, etc. Because of severe recession in America few years ago, most of Indian textile workers rendered jobless as the cotton export reduced. Banking sector, being the backbone of the monetary activities, also faces slump. IT industry always faces too much cost cutting whenever recession hits the course.
Since the entire production is directly proportional to sales process, if the buyer’s capacity is reduced to buy the product, selling of commodities will hamper. Thus the entire final product will dump, leading to waste of manufacturing cost.
Sales qualifying time increases manifold. Getting an order gets a hard nut to crack because of consumer’s reduced buying capacity.