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Unless you’ve been living under a rock for the past 3 months, the coronavirus pandemic has turned the entire world upside down. To many people living under strict quarantine guidelines, quarantine has felt like living under a rock. During this pandemic, a lot has changed about how people buy and sell both products and services. Many of the changes brought on by quarantine are not going back to normal after the coronavirus has passed. Here are five industries that have been drastically impacted by Covid-19.
Negatively Impacted Industries.
Retail
Retail is one business that is going to be completely turned upside down now and well into the future. Many aspects of the retail business will never be the same again. In the early stages of reopening, retail establishments are going to have to deal with slower demand until customers are completely comfortable coming back into a retail establishment to shop. In the meantime, many stores are switching to online sales and curbside pickup. Many customers are developing new behaviors that may become permanent post-pandemic. Customers who began ordering groceries and takeout during the pandemic, may use this service permanently in the future. Many stores make a lot of additional sales via add-ons and impulse buying. If customers are doing more shopping online, retail stores are going to have to adapt to meet the new shopping experience. Long term the industry is going to change the use of dressing rooms to deal with a shopping public who is now more conscious about contamination. Supply chains will be disrupted in the short-term and could be interrupted for a while if trade talks with China do not improve.
Travel and Tourism
The travel and tourism industry is another example of an industry that has been drastically impacted by the coronavirus. During half the month of March and the entire month of April, no one traveled outside of their home town. This coincided with the beginning of the tourist season for many areas. For an industry that is already operating on tight margins and a limited busy season, the coronavirus has impacted almost all travel and tourism businesses in a way that many will not survive.
Positively Impacted Industries
Digital Marketing
Ten years ago, most customers did not feel comfortable making a purchase online. In 2020, the percentage of people who do not feel comfortable is shrinking. When people were forced to deal with quarantine, many people used online shopping services for the first time. Even more, customers began shopping online more often. Many of these customers are going to continue shopping online when the pandemic has passed.
With so many businesses facing shutdowns or operating at partial capacity, most businesses are shifting to online sales in order to keep a revenue stream. The online marketplace was growing previous to the pandemic, but most within the digital marketing industry expect the coronavirus pandemic to accelerate what was already taking place.
The way people shop is changing and businesses that fail to adapt are going to be left behind by the competition. Businesses who find out who their customers are, how they want to shop, and provide the platform for those customers to do so are the businesses that are going to succeed moving forward. Successful Digital Marketing businesses are able to help businesses of all types and sizes find their niche, and serve their customers in ways never imagined even 5 years ago.
Courier Pick-Up and Delivery Services
With the expansion of online shopping, the demand for delivery services has expanded. This will only expand moving forward. Not only are Fed Ex and UPS busier because of the shift to online sales, but companies like Amazon are also developing their own delivery services to compete with commercial shipping companies. Depending upon the fate of the United States Postal Service, competition for delivery services will continue to grow for the foreseeable future.
Industries impacted both Positively and Negatively
Insurance
Insurance is one industry that has been impacted in both directions because of the coronavirus pandemic. In most states, insurance is deemed a necessary service. For this reason, most businesses did not have to close. Most did have to adjust to a remote workforce. Another aspect of the insurance industry that is positive during a pandemic is that almost everyone needs some form of insurance. Whether it is health insurance to go to the doctor, car insurance to drive, worker’s compensation to operate a business, or life insurance to protect your family after you are gone; everyone needs some form of insurance.
Service requests spiked dramatically as businesses were forced to close and some employees became sick because of coronavirus. Many businesses within the insurance industry are pivoting to servicing new industries like home health care worker’s compensation or businesses that have pivoted to servicing the needs of the new normal.
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This content is brought to you by Mitchell Sharp.
Photo: Shutterstock
