Implications of the Corona Crisis for the industry

How will the spread of the coronavirus affect the caravanning industry?

The corona pandemic has plunged the economy into a deep crisis. The caravanning industry is also affected: Supply chains came to a standstill, the production of leisure vehicles had to be temporarily suspended and vehicle sales dropped abruptly. In the meantime, the assembly lines are running again.
Almost all German and European manufacturers had to temporarily stop production for several weeks. One of the reasons was that supply chains came to a standstill because suppliers had also temporarily shut down or stopped production. Even within the EU, the flow of goods was not as fluid as usual. In the meantime, almost all manufacturers and suppliers are running their production lines again. It should be noted, however, that each individual supply chain will continue to be affected very individually.

 

Abrupt slump in sales and turnover

The year 2020 began with record demand, which is why the trade enjoyed an excellent order situation until March. Due to the Corona pandemic and the measures taken to combat it, the important season-opening events at retailers and manufacturers had to be cancelled and the retail outlets subsequently closed down completely. This led to an abrupt slump in vehicle sales and deliveries and correspondingly dramatic losses in sales, which were accompanied by liquidity bottlenecks for many companies.

 

No long-term slump in demand for leisure vehicles

It remains to be seen to what extent the reduced purchasing power and consumer spending as a result of the economic downturn caused by the corona pandemic in Germany and Europe will impact sales figures. In principle, we expect that individual forms of holiday such as caravanning will emerge from the corona crisis better and faster than forms of travel based on the use of mass transport, which are currently experiencing considerable damage to their image. Especially in the current situation, caravanning is one of the safest forms of holiday.

By buying a motor caravan or caravan, many of our customers are also fulfilling a life-long dream that they have been planning and saving for years. There could be a time lag here, but even against the background of a lack of alternative travel options, we do not expect that purchasing considerations will be affected by the Corona crisis in the long term.

Now that the acute corona situation has improved and measures against the spread of the virus are being successively eased, we expect a “catch-up effect”. The valley seems to have been crossed. Overall, we are fundamentally optimistic for the coming months.

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