In GlobalData’s latest poll, 38%* of global respondents reported that they expect the Omicron variant of COVID-19 to have a negative impact on their business. Attitudes towards Omicron were the most prominent in the Asia-Pacific region (APAC), with 44%* reporting they expect the variant to have a negative impact.

The leading data and analytics company notes that even though only 7%* APAC of respondents believe there will be no impact to their business operations, 30%* are uncertain about what impact Omicron will have. Combined with the high expectation of negative impacts, this is suggestive of the region’s relationship with tough COVID measures, particularly in China, which can result in prolonged or indefinite restrictions.

Ryan Whittaker, Consumer Analyst at GlobalData, comments: “Chinese President Xi Jinping’s pursuit of a zero-COVID policy is the likely reason APAC business owners are more concerned than other regions about the impact of Omicron variants. The zero-COVID policy results in more frequent and intense government intervention, meaning that tourism, supply chains and brick-and-mortar retailers have more business disrupted than anywhere else.”

According to GlobalData’s Q2 2022 Consumer Survey, two in five (39%)** shoppers in APAC are still extremely concerned about the pandemic in general, and 35%** state the same with regards to visiting shops or stores. On top of pandemic-related concerns, rising costs and inflation will further dampen consumer sentiment and spending power.

Whittaker continues: “We have already seen warning signs from large businesses in China, such as Starbucks and Yum! China, reporting falling sales due to the government’s policies choking supply chains and sales.

“Combine low-vaccination regions like southern Africa, vaccine-resistant Omicron variants, the reopening of tourism, and the international move to accept that COVID will become consistently present, and Jinping’s policy is starting to look doomed, making it likely the Chinese state will have to moderate its approach at some point in the future.

“In the meantime, pursuing this policy will affect more APAC businesses that rely on Chinese labor, products, tourism and services. Global supply chain issues are also being severely exacerbated by Russia’s invasion of Ukraine, inflation and fuel costs, so we should expect global business in general to remain precarious for the near future.”

* GlobalData’s Poll, “What effect do you think the onset of the Omicron variant of COVID-19 will have on your business?”, Global, Total sample of 202 respondents, 2 January 2022 – 16 May 2022

**GlobalData’s Q2 2022 Consumer Survey, Asia-Pacific, Total sample of 6,000, June 2022