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Top 5 Businesses Sectors Thriving During Coronavirus

Posted 6 months ago

Top 5 Businesses Sectors Thriving During Coronavirus
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As coronavirus has radically changed life as we know it, consumers have been forced to adjust to a new way of living. Despite the negative impact of the virus on many businesses across the world, there has been a surprising surge in the number of industries thriving as a result of the pandemic.

We take a look at the so-called ‘winners’ of the business world and how they have witnessed better performance during the coronavirus downturn.

1. E-commerce

Perhaps unsurprisingly, with more and more people now stuck at home, there has been a significant uptake in those buying their groceries and other items online.

Perhaps the best example of the rise of e-commerce is Amazon, which is adding 100,000 new jobs to manage the extra demand of those purchasing goods. Online grocer Ocado was forced to suspend new orders until it could clear its backlog of deliveries.

In China, downloads for Alibaba’s grocery delivery app ‘Fresh Hema’ peaked on February 8th, reaching nearly 100,000 downloads in a single day, compared to an average of approximately 29,000 per day during 2019.

Meanwhile, UK food delivery app Deliveroo launched a “no-contact drop-off service”. This provides restaurants with additional packaging and seals for orders to be left on customers’ doorsteps.

According to research from MentionMe, after peaking at +405% year-on-year, referrals in the online food and drinks sector are now staying steady at +182% year-on-year. 

GoGetters, a food delivery company based in Hertfordshire and Essex have seen 300% growth and have employed 250 drivers. The company is currently looking for investors, if you are interested in investing in this business, contact Sacha Bright (contact form).

2. Pharmaceuticals

Pharmaceutical companies are inevitably playing a large role in the crisis. Gilead, which owns the rights to treatment drug Remdesivir is working on a vaccine. Pfizer has also unexpectedly gained from the coronavirus outbreak. Pfizer’s pneumonia vaccine Prevnar 13 has seen an unexpected jump in sales, most probably due to the course of the coronavirus, which in severe cases causes pneumonia with high mortality rates.

3. Gifts and occasions

With Mother’s Day landing on the first weekend under lockdown, order volumes and referrals in the sector soared by 122% and 229% year-on-year respectively. Once the occasion passed, orders began to decline, dropping to just +26% year-on-year.

In the week running up to 12th April, order volumes and referrals in the gifting sector significantly increased. By Easter Monday, gift brands were acquiring 415% more new customers via referral year-on-year. (It’s worth noting that Easter fell on different dates last year.)

Since Easter, order volumes and referrals in the gift sector have continued to increase and show no signs of slowing. Right now, order volumes are up 245% year-on-year and referrals up 650%.

4. Remote working

Video Conferencing start-up Zoom has benefited massively. The company’s sales and share price are already up over 50% in 2020. Webex from Cisco and Skype and Teams from Microsoft are also seeing major upticks in sales. Most are offering special deals for their conferencing services during the outbreak.

Again, in China, downloads of work apps like Alibaba’s DingTalk, Tencent’s WeChat Work, ByteDance’s Lark, jumped exponentially amid the health crisis. App rankings by Sensor Tower show that all three Chinese apps experienced significant growth in downloads from January 22 through February 20, compared to the same period last year.



5. Home Health and fitness

In the week following the government’s lockdown announcement, order volumes for health and fitness brands increased by 163% year-on-year. People weren’t just working out in new ways – they were telling others about it too. Referrals increased by 361%.

Fast forward to now, and orders for health and fitness brands have dropped, though remain significantly higher than this time last year. According to research from Mention Me, volumes for clients in this sector are up 85% year-on-year. Referrals are more than double that at +185% year-on-year.

If you are an investor and are wondering whether to invest in a start-up during the pandemic, visit our guide on investing in start-ups during coronavirus.

Author: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: Covid-19 e-commerce GoGetters



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