Pandemics have changed many businesses’ landscapes and consumer behavior. Millions of consumers have switched to online ordering for services, food, and various goods during the COVID-19 pandemic. Also, many are unlikely to switch back to their old habits. Many late adopters are lured with the benefits of the online experience for in-store pick-up or home delivery and may not look back. Once the crisis has subsided, a new reality will await companies.
Type of Businesses that Boom in this Pandemic
The eCommerce business
E-commerce is exploding on all fronts right now. In the context of COVID-19, consumers are looking for alternatives to traditional channels and are expanding the categories of products they purchase. Here’s a spectacular example: Statistics show that online sales of home appliances, electronics, building materials, and DIY items have been growing strongly since the outbreak of the coronavirus pandemic.
Businesses with an online presence and a strong e-commerce infrastructure are currently seeing their sales increase (or decrease the least). In contrast, businesses that are unprepared or don’t deliver a good experience will fail to retain their customers.
In case your website does not appear in the first search results or has performance problems, or if your product catalog is poorly managed, your business will not be able to thrive in this competitive space.
Movement and travel restrictions have been bad news for gyms, but the sale of workout equipment to people looking to work out at home has increased. There has been a raid on the purchase of fitness items, ranging from weights to yoga mats.
We have also seen the profit of the so-called “digital fitness” sector gone through the roof. Smartwatch sales grew 22% at the start of 2020 compared to the same period in 2019. Many consumers use smartwatches to monitor their health and fitness during the lockdown.
Trading on financial markets was the choice of many people during the lockdown measure. Many made profits and were in a position to improve their finances. Therefore, Forex brokers also increased their revenues due to the soaring number of ordinary people entering the market. Besides foreign currencies, the crypto market and stock market trading were well-liked. Many assets combined and available for trading have made many brokerage businesses flourish.
Food Delivery Business
The food delivery business had made a huge jump in profits since people started ordering food using contactless delivery systems. Companies such as Uber Eat double their profits in 2020. The profitability of the food delivery business was already on the rise before the health crisis. And it’s projected to remain one of the most lucrative sectors even after the pandemics.
Digital Payment Systems
Many people face financial hardship and may be inclined to spend less money during the lockdown period, a situation that may also encourage them to migrate to digital payment services – a potentially positive signal for this kind of business with the most prominent one such as PayPal. PayPal recorded 10 million new account creations between January and March 2020, and the number of transactions processed reached $ 199 billion, compared to $ 161.5 billion for the same period in 2019.