COVID-19...Who would have imagined something so small could have had such a huge impact on us?
Emerging from Wuhan, the tiny virus lurking in tiny droplets have spread all over the world,
and in the process, took the lives of millions. Its impact has been both broad and far-reaching.
It has caused borders to close, forced people to stay home,
changed the way we live our lives, destroyed businesses, and crippled the world economy. Tens
of millions of people have been laid off, and thousands of businesses have closed,
many of which will never come back. Amidst all the business closures and bankruptcies, there are,
however, some that are booming. You see, economies and businesses thrive when transactions are made
and money is spent. While it is true that Covid-19 resulted in a decrease in overall spending, it has
also drastically changed how and where the money is spent. With money being spent differently,
here are seven businesses and industries that have benefited from the COVID-19 pandemic.
[Grocery Stores] In order to curb the spread of COVID-19,
governments around the world have placed various lockdown restrictions on its citizens.
Many people have responded by rushing to stock up on household essentials such as food items,
cleaning supplies, health supplements, and toilet paper. As the pandemic drags on and
consumers grapple with uncertainty, consumers have reduced spending on all non-essential products.
Instead, they now gravitate toward essential items. They are more strategic with their
spending, placing a greater focus on necessities such as groceries and household supplies.
[E-commerce] In order to reduce coming in contact with others,
many have avoided going to physical stores in favor of online shopping. Online retailers such as
Amazon reported a 40% sales growth during the height of the pandemic. Large retailers such
as Walmart and Target also saw an astronomical increase in their e-commerce sales. E-commerce
sales have increased so much that, according to data from IBM’s U.S. Retail Index, the pandemic
has accelerated the shift away from physical stores to digital shopping by roughly five years.
The ongoing shift away from physical stores has literally jumped ahead in time due to COVID-19.
[Video Streaming Services] Being stuck at home in isolation for weeks
or months on end can be incredibly boring. If the coronavirus pandemic has proved anything, it
is our insatiable appetite for entertainment. The surge in screen viewing throughout the pandemic is
genuinely extraordinary. In April, as stay-at-home orders were in place, Netflix reported the
addition of a record of 16 million paid subscribers globally in just one quarter, double
what they initially expected. Disney+, which was launched in November 2019, also saw incredible
growth due to the pandemic. By August 2020, it had attracted over 60 million paid subscribers in
less than nine months. That’s an average of over 250,000 new paid subscribers every single day.
[Gaming] When it comes to entertainment,
some prefer something more interactive compared to just watching a movie or a TV show. Online
games have seen a dramatic surge as millions found themselves playing games such as Animal Crossing,
Fall Guys, and Among Us while confined to their homes during the coronavirus pandemic.
Released in March 2020, Animal Crossing provided entertainment for millions around the world,
breaking sales records in Japan, the U.S., and the U.K. Four months later, everyone was playing Among
Us, and the surge in the number of downloads was truly astronomical. In August 2020 alone,
Among Us was downloaded 18.4 million times, a 661% rise over July. However, the increase in gaming
sales was not confined to online games. According to the market research firm NPD, demand for board
games and jigsaw puzzles saw a 240% increase during the first official week of coronavirus
lockdown in the U.K. as families turned to traditional pursuits while being stuck at home.
[On-demand Delivery Services] Whether there is a pandemic going on or not,
in order to survive, we need food. Being stuck at home, whether it is mandated by the law or because
we simply choose to, the ways we bring food to the table has been reduced to two options. We either
prepare it ourselves or have it delivered. For many, it is the latter, especially since we can
have food delivered to us on-demand with just a few simple taps. And for those who prefer to
prepare the food themselves, groceries can be ordered online to avoid the human interaction
inherent in going to the supermarket. Either way, companies offering food delivery services win.
[Video Conferencing Software] COVID-19 has also drastically
changed the way people meet. During the height of the pandemic, governments around the world
discouraged or even outright banned public social gatherings, both large and small. This includes
but is not limited to religious meetings, school gatherings, and corporate events.
While the virus has forced us indoors, we, as human beings, are a social species that rely
on cooperation to survive and thrive. Thanks to the current age of technological advancement,
many have turned to video calls to chat with friends, family members, colleagues,
classmates, and customers. Of all of the video conferencing apps and software out there,
Zoom found themselves sitting on top of the leaderboard. By April of 2020,
daily downloads of the Zoom app have increased 30 times compared to the year prior, with 300
million people using their services on a daily basis, up from 10 million just five months ago.
[Home Improvement Retailer] As people use their living spaces as
home offices, gyms, and art studios, many are using their time at home to upgrade and improve
their spaces. Early on, it was projected that the pandemic would negatively impact
the home improvement industry because of mass unemployment and a decrease in consumer spending;
however, as homeowners stayed home, their relationship with their homes changed. It has
inspired many to strap on their tool belts and get to work on home improvement projects. Stores such
as hardware stores, garden centers, and building materials suppliers realized a year-over-year
sales increase of 22.6 percent, leading all retail categories except for online purchases.
COVID-19 has undoubtedly changed the way we spend our hard-earned cash, and thus,
changed the business landscape. For many, the change is detrimental, but for some, the change
is welcoming. One thing’s for sure is that we have all experienced change, both good and not-so-good.
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