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2 Businesses That Are Growing During COVID-19 and 2 Businesses That Are Suffering
The Covid-19 crisis has caused turbulence in many mainstream and rising industries. Demand for goods has taken a dip, cargo shipping, and movement has been restricted, and some businesses have been deemed non-essential, hence temporarily non-operational. That said, not all industries have found themselves on the receiving end of the pandemic's claws. Some are thriving. Read on for two industries worst-hit by the coronavirus and two that have benefited the most.
Businesses that are growing
The tussle between online casinos and brick and mortar stores has been on for a while now. Both are fighting for the gambler's affection, and, currently, web-based platforms are winning thanks to the ongoing pandemic.
Land-based casinos in most countries are no-go-zones, just as sports arenas are not open to spectators. Many gambling aficionados have switched to online casinos to continue playing their favorite games amidst the lockdown.
According to the 'Online Gambling Global Market Report 2020-30: COVID-19 Growth and Change' report issued in May, the global online gambling industry will experience a 13.2 percent growth in 2020. And while the pandemic has led to a boost for most online gambling platforms, the effect is greater amongst the best online casinos, which have previously developed a positive reputation amongst gamblers.
There are millions of legal online casinos in Canada, such as Quatro Casino. The pandemic is likely to see entrepreneurs capitalize on the new surge in demand and set up more online casinos. In turn, the increase in competition will spark a marketing revolution as each operator and marketer will try to outstrip their rivals. This will enhance the online gambling experience and attract more customers, all at the expense of conventional land-based casinos.
Even before the coronavirus disrupted everything, online education was on an unstoppable upward trajectory. The global edtech investments had surpassed the US$18 billion mark in 2019, and the market was projected to be worth a whopping $350 billion by 2025. Now that school closures have affected 70 percent of the global student population, the growth curve seems to have assumed a new gradient.
According to ZoomInfo, the web conferencing adoption rates increased by 84.82 percent between January and April. Zoom alone saw a growth rate of more than 400 percent in two months, effectively making it the world's most popular video conferencing platform. Former market leaders Cisco and GoToWebinar are now trailing the California based giant, even though both have experienced tremendous growth too.
While internet access remains a big challenge and inhibitor to the adoption of eLearning tools, governments, and international organizations are intervening to ensure children from disadvantaged backgrounds continue their education. This means one thing: online learning is more likely than not to outlive the coronavirus pandemic.
Businesses that are suffering
Research by the United Nations World Tourism Organisation (UNWTO) shows all countries have imposed some form of travel restrictions, while 72 percent, including New Zealand, remain closed to international tourists. The restrictions have affected hotels and other forms of accommodation, museums, restaurants, and camping sites. According to Eurostat, the number of nights spent in European tourist accommodation in March 2020 was almost half the average of previous years. That is nothing to sniff at, given tourism makes up more than 5 percent of GDP for countries such as Croatia, Spain, Iceland, France, Sweden, and Austria.
According to the World Tourism Barometer in May 2020, the global tourism sector had seen a 57 percent decline by March. Whether this will get better or worse depends on how long the travel restrictions last and the general course of the pandemic.
Like most industries, the catering industry has been impacted significantly by the Covid-19 pandemic. Americans spend the bulk of their food budget in restaurants, most of which have remained closed during the pandemic.
The course of the pandemic cannot be projected, and neither can the foreseeable future of the food industry. However, according to the CMS company Womply, New York restaurants had already seen a 25 percent revenue decline by the time Governor Andrew Cuomo reduced NYC restaurants' capacity. This decline resulted from restaurants closing down branches and reducing their service catalogs either due to state restrictions or a reduction in business. Yum Brands, for example, closed 7,000 KFC, Taco Bell, and Pizza Hut restaurants worldwide. At the same time, Subway, Starbucks, Chipotle, Chick-fil-A, Arby's, and Wendy's all shut down their dining rooms and focused on offering delivery, drive-thru, and carry out services.
While the relaxation of restrictions by some jurisdictions has allowed restaurants to reopen in specific places, the amount of time the catering industry will take to recover fully remains anyone's guess.
If you have any entrepreneurial or investment plans, it is good to know how the industry you are eyeing is fairing amidst the coronavirus crisis. The above industries have felt the most impact. Make sure to follow the Covid-19 and specific industry stats before making any investment decisions.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes