ATLANTA, GA / ACCESSWIRE / May 28, 2021 / For businesses and consumers alike, the COVID-19 pandemic was a major disruption to the way we conduct our day-to-day lives. The global health crisis caused an economic slowdown around the world that put many businesses and industries in deep water. Industries like travel, dining, entertainment, and fashion are still struggling to recover from losses that resulted from major shifts in consumer behavior, even as the pandemic begins to subside in some parts of the world.
However, as with all economic recessions, there are some industries that will emerge from the rubble stronger and smarter than before. Entrepreneur, investor, and strategic advisor Dee Agarwal has spent many years analyzing how industries react and respond when crises occur
"What we are seeing with the COVID-19 pandemic is nothing we haven't faced in the past. It took place in 2008, it happened in the Great Depression -- when recessions hit, people begin to see goods and services through the lens of crisis, what is necessary and what is not. Then demand follows accordingly," says Dee Agarwal. "While some businesses perished as a result of this mindset change, others found opportunities to thrive and will likely continue to scale as we enter a new, more optimistic period."
Below are several sectors that have thrived during the pandemic and are likely to continue to see success.
Food Delivery Services
As restaurants shuttered and dine-in services closed to control the spread of the COVID-19 virus, food delivery services became essential, especially for at-risk individuals who were unable to make their usual trips to the grocery store. According to MarketWatch, the top four U.S. food delivery services, Doordash, Uber Eats, GrubHub, and Postmates, saw their collective revenues rise $3 billion in the second and third quarters of 2020.
Despite the recent emergence of restaurants returning to limited capacity dine-in services, online orders still remain up 71% year-over-year, indicating that consumer preferences are taking a prolonged shift towards online ordering, and home delivery options.
"What is notable here is the sustained change in behavior. Though it may be "safe" to visit and eat at your favorite restaurant, it is more "convenient" to have the food delivered right to your door. These behaviors can change of course, but it's likely we'll continue to see this sentiment until we see major ease of COVID restrictions within dining facilities", says Dee Agarwal.
eCommerce
As all industries turned to a primarily digital approach, the retail industry led the charge in the shift to eCommerce. According to Digital Commerce 360, consumer spending with online retailers increased 44% from 2019 to 2020. In a survey conducted by the United Nations Conference on Trade and Development (UNCTAD), online purchases saw the largest increase in sectors such as IT and electronics, gardening, pharmaceuticals, household products, and personal care products.
"This was a trend seen prior to 2020 but was intensified by the pandemic. Consumers were already beginning to embrace the speed, convenience, and lower prices of online shopping. The pandemic gave it an additional boost, and we'll only continue to see an increase even after we emerge from it," says Dee Agarwal.
Amazon Inc. continues to dominate the eCommerce market and saw a significant increase in website traffic each consecutive month since the coronavirus pandemic began. In the last 12 months, U.S. Amazon marketplace sellers sold more than 3.4 billion products, and in the third quarter of 2020, Amazon's total sales increased by 37 percent from the previous year.
Cyber Security
"If we're becoming more and more dependent on digital tools, we should expect to see the cybersecurity industry become a top priority. We're seeing more cyberattacks than ever before, resulting in losses for businesses that have already lost too much from the pandemic itself," explains Dee Agarwal.
Market growth is being driven by investments in protective systems against fraud, hacks, and malicious threats. In a report by Grand View Research, the global cybersecurity market was valued at $167.13 billion USD and is expected to see a compound annual growth rate (CAGR) of 10.9% by 2028.
Despite dominating companies like McAfee, Palo Alto Networks, and LexisNexis Risk Solutions, an estimated 65 cybersecurity startups were founded in 2020, indicating a high prevalence and need for more affordable and more accessible systems for small businesses and personal use.
Pandemic Effects Remain Fluid
The coronavirus pandemic drastically affected all businesses across the globe. Many businesses suffered heavy blows that led to layoffs, financial losses, bankruptcies, closures, and more. For a select few, however, the COVID-19 pandemic increased demand and changed consumer behavior to positively impact specific industries that could meet certain needs. However, the pandemic and its effects still remain.
"There's still a lot that can occur," Dee Argawal says. "Consumer preferences are always changing. Some industries that have struggled may experience an unexpected bounce back. And industries that have done well will have to continue to progress. Change is the only constant -- it's just a matter of who can sustain their business"
For more expert insights from business leader Dee Agarwal, read How Social Media Can Enhance Your Digital Strategy in 2021.
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SOURCE: Dee Agarwal