The Crisis as an Opportunity, Companies Benefiting from Covid

It is true that the contingency took almost all industries by surprise, and even if they saw it coming, it was totally overwhelming for management teams. However, here we will talk about those companies that have been lucky enough to be in the right place at the right time, as they have definitely managed to profit in times of crisis.

How do we find out which industries and companies have obtained surplus or unexpected profits during this health crisis? It's simple, by looking at the markets in the United States, trends can be observed.

In general, the market analysis during the contingency has highlighted that the sectors and industries that have benefited the most from covid-19 are:

• Technology
• E-commerce
• Artificial intelligence
• Food
• Telecommunications
• Pharmaceuticals
• Healthcare

The main factors that prevent the growth of SMEs are the lack of good information systems (59%) and making mistakes when setting strategies (46%).

Which brands have stood out?

We discovered that bleach has become an excellent friend to everyone when it comes to disinfecting the home, clean home. The brand and company The Clorox Company, a favorite of many, increased its stock price by 33% in one year as of May 2020, due to the strong demand for basic cleaning products, along with the emerging demand for disinfectant wipes and derivative products that are still difficult to find in many cases.

It is no surprise that technology companies are booming during quarantine. The company Zoom Video has increased its market value by 130%. Of course, it has been doing its job well by connecting and empowering countless schools by providing virtual classrooms for their students during stay-at-home times.

Providers of remote signing systems, the smartphone application DocuSign has increased its stock price by an average of 60%, surprising everyone with how fast and efficient an electronic document signing service can be.

The main streaming service provider is still Netflix, despite growing competition with Disney, Amazon, and Apple. Netflix has managed to keep many glued to the screen with the debut of multiple seasons of multiple shows. It is obvious that the stay-at-home trend has kept its more than 182 million subscribers worldwide very happy.

Apps have been another business that has managed to overcome the contingency, especially food delivery applications, led by Rappi and UberEats, as their sales have been on the rise since the quarantine was imposed.

In March, a 10.98% increase was recorded in Rappi, while in UberEats it was 6.24%, for April 44% and 24% respectively, while during the past month of May consumption rose 38% for Rappi, 14% for UberEats, and 4% for the growing Didi Food.

The surprise winner of the entire contingency is the company and platform Etsy.com, which is a vibrant digital community for individuals and independent sellers who create handmade, unique, and creative products. Etsy's shift towards a free shipping model has benefited its results during the quarantine.

These are just a few of the various companies that have managed to get ahead of the crisis by achieving great results. However, we cannot stop wondering what will happen when we can leave our homes and traditional commerce resumes its course?

 

And in the long term?

Although quarantine will eventually be a measure we will leave behind, many of the habit changes we had to adopt will continue to be part of our post-quarantine life, with the technology sector having the most lasting effect, according to market forecasts.

The health crisis forced many businesses to adopt a remote work system that in most countries was not yet seen as a tangible reality. Despite this, today, digitalization is a necessity. But it not only affected the way we work, confinement changed our consumption habits and the way we do it.

Read our article: Mexico and its leap in e-commerce thanks to COVID-19.

This is why activities like the ones we show below will be the most benefited in the long term:

• Hyperscalers and data center providers due to the demand for cloud space.
• Communication infrastructure, such as advanced 5g technology.
• Technology providers.
• Cybersecurity, of utmost importance as we share and store all kinds of sensitive information in the cloud.
• Video games and streaming entertainment like audiobooks, podcasts, downloadable videos, video games, and online sports.
• Online education, which is no longer exclusive to university students or continuing education for professionals, is now also a necessary tool in basic education.
• E-commerce and home delivery services for food, groceries, and pharmacy.
• Even medical consultations via the web.

In times of uncertainty and change, it is important to stay informed and analyze your market environment to take your business into the new era. 

 

According to data published by the Productive Development Unit (UDP) of the Ministry of Economy, the main factors that prevent the growth of SMEs are the lack of good information systems (59%) and making mistakes when setting strategies (46%). 

 

Don't get left behind, request a consultation with Brand Industry and take your brand to the digital world.

Still not convinced? Check out the Success Story of Aluminio Monarca.

Subscribe to our newsletter and receive useful information for your digital strategy.