The Electronic Retailing Association

Industry News: The impact of Australia's Bush Fires on the TV Shopping Industry

Anthony Hearsey's visualisation of one month of data of locations where fire was detected, collected by Nasa's Fire Information for Resource Management System. Hearsey said, "The scale is a little exaggerated due to the render's glow, but it is generally true to the info from the Nasa website. Note that not all the areas are still burning, and this is a compilation."

by Budd Margolis

After three consecutive years of severe drought, Australia is alight and the impact on the nation and its economy will have a serious impact on consumption, consumer confidence and our direct to the home industry.

To date, the estimated cost is $4.4b and this emergency is far from over.  Moody’s economist Katrina Ell said the fires would further cripple Australia’s already anaemic consumer confidence, increasing the chances of a rate cut next month, as well as causing damage to the economy through increased air pollution and direct harm to industries such as farming and tourism.

Some estimate that the cost of the country of just 25m people will be in excess of $100 billion Australian dollars (about $70 billion USD).

It is difficult to speak about this disaster and economics when you see the cost of life both human and to nature, the devastation of land and crops as well as destroyed homes and towns.

The last such fires damaged local regional areas, but they were usually contained in the damage. But this fire is different in scale and available fuel after a global climate disruption may not recover.

Governments and charities will need billions to recover.  Disposable income will be contributed to many recovery causes. As of January 5th, the Insurance Council of Australia stated that there were 8,200 claims for $644m ($444.5m USD or €399.8m) which will impact insurance profits and increase the cost of insurance.

Canberra reached hazardous levels of air pollution recently and 30% of the population, are or have been, directly impacted by air quality. The images have crossed the world with scenes which resemble Mars and showing the heroism of the residents and firefighters. 

The movement of consumers to use less plastic and to consider sustainable packaging, as well as lifestyle, is growing. The role of humans may be to some debatable but the devastation of pollution and the increase in disrupted weather is causing severe devastation.

Impact on the TV Shopping Industry

The TV Shopping Industry, its manufacturers, suppliers, distributors, direct marketing professionals, eCommerce, streamers and broadcasters should be engaged in methods to improve their energy and carbon footprint. 

Consumers across the globe will increasingly demand to know that they can buy with confidence that they are not adding to the problems we have.

And to those who are in facing such devastation, in Australia and other regions, we should show our support, sympathy and get involved.