8 Industries that grew despite Covid-19
Some industries have been hit hard during the lockdown measures as we continue to change the way we purchase goods, travel and spend our time. From the increased demand in logistics that helps the supply chain get essential products to communities to the increase in streaming websites, the world around us has changed. It is time we look at which industries have come out of the situation on top.
1. Digital Serviced Apartments
Serviced apartment providers are predicted to grow rapidly in Europe. Demand for hotels is dropping as lockdown restrictions speed up industry trends toward different business models. Serviced apartments have already disrupted the travel industry with upcoming competitors creating carefully designed spaces that win over a new generation of guests. It’s a stronger asset class for investors as well providing them with downside protection and flexibility to move between short- and mid-stay accommodation which makes them crisis resistant.
Serviced apartments also cater to guests looking for higher quality and interaction with locals for authentic experiences. They are environmentally aware and desire to make a positive impact on the communities they are visiting. With quality design and a cosmopolitan mindset from guests, property values housing serviced apartments and in the neighbourhood increase as these tourists spend money at local businesses.
2. Logistics & Delivery
As e-commerce increases, logistics is predicted to grow by 2.5% in Europe. This might seem like a small number, but increasing large logistic and storage centres where products are held and waiting to be shipped in Europe means improving the supply chain by 2.5% with major storage facilities popping up in more rural locations.
Logistics centres are huge with the Würth Industrial Park Centre at 56,500 square meters with about 650,000 storage spaces. These buildings are notoriously difficult to build, establish and stock so 2.5% is an incredible increase.
Increased logistics and delivery centres mean cost savings for customers when buying products that might be located nearer to them, lower delivery times and less impact during unexpected government regulations. With supply chains facing complications from the pandemic, new facilities are needed to keep products moving in the market even when major changes happen.
More efficiency in the supply chain has a huge impact on economies as goods travel faster to the people who need them the most. It might just mean that there will be enough fresh produce to go around the next time a crisis situation occurs.
3. Online Retailers
Online shopping has been gaining popularity for years as digital sales begin to make up around 10-30% of all retail sales in Europe. With people growing more dependent on e-commerce platforms, these numbers are likely to continue rising.
The main benefits of online retailers are convenience and variety. With added logistics centres and increased storage space, online retailers can store products to be shipped to customers when they order online. This improves the product range an online retailer can offer customers as well as dynamic shifts in production when customers order more of a specific product.
For customers, online shopping is easy to use and flexible enough to fit their needs. We expect this trend to grow as younger generations shift their consumption patterns to digital platforms.
4. Grocery Delivery
Online grocery in Europe has emerged as a market and is growing quickly according to a McKinsey article due to lockdown restrictions. Just as fewer people are leaving their homes to get medicines, many are also staying home as the availability of fresh grocery services rises. From the startup Crisp in Amsterdam to Lola Market in Spain, Hungary and Romania, most countries have a service to get your groceries.
Benefits of grocery delivery include the ability to buy in bulk without having to carry home the bags as well as avoiding busy lines before Sunday and long holidays. Online services allow customers to choose their products and the delivery time to suit their needs. Time is also saved travelling to the grocery store, allowing customers to lighten the number of errands they need to run.
5. Video Conferencing
Video conferencing has seen a 500% increase since Covid-19 and is expected to grow at a steady rate after Covid-19 of 7% as companies allow their employees to work from home. Many unfamiliar with services such as Zoom and Google Meets have readily adapted to communicate with friends and family during lockdown measures.
Almost everyone has enjoyed the benefits of video conferencing from reduced transportation to the ability to work-from-anywhere, long distances no longer pose the same problem as they formerly did. The last main benefit of video conferencing is that most features are free. As people adapt to this new communication technology, it will be interesting to see how it affects social events as well as communities.
6. Remote Learning
The global remote learning is expected to grow from $187.8 Bio. in 2019 to $319.2 Bio. in 2025. Covid-19 is also bringing out the need for improvement as people post about the new skills they have acquired. Learning how to cook, design, paint and write are all popular things we have heard people talking about as their new corona hobbies.
Remote learning brings with it many benefits from new skills that are accessible digitally to the wide variety of courses that also can positively impact one’s career. As many people have extra time from reducing the amount of time they spend in the grocery store or on transportation to meet others, they have started to increase their skill set on these digital platforms. Not only can people learn remotely, but they are also able to meet teachers from other countries in diverse classroom environments.
7. Streaming Platforms
The global video streaming is projected to grow at a compound annual growth rate of 20.4% from 2020 to 2027. Netflix, Amazon Video, Disney+, Hulu and YouTube have also become essential entertainment during our long periods indoors. As we look for ways to wait out the lockdown, entertainment has captured a large amount of our attention.
Streaming platforms are hitting their prime growth as people begin subscribing to the ones with the best content. It’s a revolution in the way we consume media allowing us to connect multiple devices to these platforms, share accounts with friends and family and even download episodes when we don’t have internet access. Online shows have made lockdown measures easier as friends use add-on features like Netflix Party to watch shows remotely with friends.
It’s likely that these services will become a cornerstone of modern digital culture.
E-Pharmacies are predicted to grow by 14% in Europe as a consequence of Covid-19. Regularly filling prescriptions is necessary for high-risk patients during the pandemic who depend on pharmacies while still needing to be safe. Startups like Meds, a Swedish startup, have been trying to change the game over the past few years, and this is the perfect opportunity for them.
Not only do e-pharmacies protect high-risk individuals, but they also provide accessibility to patients who are not able to leave their home without the help of caretakers. Accessibility is important for most patients, as some might forget how often they have refilled prescriptions or the names of the medications that have helped them in the past. This information is recorded in their order history and can help doctors work with patients to make informed decisions in the future.
Logistics for pharmaceuticals are also increasing, and as E-Pharmacies utilise this trend, a higher assortment of medications become available to patients with lesser-known illnesses and diseases. While some growing industries like online grocery stores and steaming services provide more convenience to consumers, e-pharmacies have the potential to better the lives of those who use them.
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