In most of the United States, schools have closed for the rest of the year. Restaurants have some form of ‘Take-outs only’ sign outside their windows. Air traffic is down to less than 5% of its daily normal. You read that right, air traffic is not down by 5%, it is down ‘to’ 5%. This has brought all major and minor airlines to their knees. Amidst all this, there are some companies and industries which are thriving as the masses have been forced to stay indoors. Let’s take a look at 4 industries thriving in the coronavirus pandemic.
Entertainment
Juggling all the tasks that we do in our hectic lifestyles is not an easy feat. All of us have been left wanting for some quality family time at one point or another. Having days to ourselves with an option to take it easy and watch Netflix was a common dream. Coronavirus made it happen.
But, “Hey, I have to work long days, even though remotely! That is still work.”
Very true! But it is still from that ever so comfy couch in your living room. And let’s be honest, the thought of watching the new episodes of Tiger King, in the middle of the workday, has crossed all our minds and quite a few of us were weak enough to give into it. Am I right, or am I right?
The point is: humanity is getting bored and entertainment is essential to prevent the populous from going stir crazy. So, streaming services and
broadcast TV are playing that noble role and happily so.
A research by Hub Entertainment Research done in late March revealed that broadcast TV had seen a spike of 32% in viewership compared to previous month. Out of the major streaming services, Disney+ seems to be the biggest winner with 68% jump in viewership vs the previous month. All kids are at home and I believe that must be helping Disney at least a bit. Others like Netflix and Hulu are not far behind with these stats in high 60s. Moreover, engagement statistics for gaming consoles like Xbox One, PlayStation and Nintendo devices saw a 65% spike.
Entertainment services are having the time of their lives.
E-Commerce
Social distancing does not mean our needs and wants have suddenly vanished. In fact, as we are afraid to go out, a natural tendency is to try and do everything from within the confines of our homes. We are purchasing more and more stuff online. Take the example of Amazon Fresh. The grocery delivery service had failed to attract enough order volume to be deemed successful. But in early March, customers could not place orders because there were no available delivery windows. A sudden increase in volume broke the service. Consequently, Amazon put up this message to manage the traffic asking everyone to sign up in order to shop.
Even Prime deliveries are no longer a 2-day affair. My friend and I are looking to start making videos for our social media account (Check it out here). So, I tried ordering a Tripod Stand on April 19. Amazon amazed me with a Prime delivery date which was 3-weeks out. To be fair, not all of this is because of the surge in demand. In part, these delays are due to the effect of the Covid-19 pandemic on the supply chain networks. But 3-weeks is still insane.
Forbes reported that Amazon is pumping $350 million into fulfillment and delivery positions to meet the surge in demand. CNN reported that Walmart is looking to hire 150,000 temporary workers to cope with orders coming through Walmart.com.
E-commerce industry was already booming. This crisis has revved it so far up that the supply chain network is left playing catching up.
Home Exercise
Fitness centers and gyms are places where people stay in proximity for about 45 minutes on average. So, the coronavirus pandemic has forced all facilities across the US to close their doors in order to avoid further spread of coronavirus. United States has one of the largest populations of ‘gym-goers’ in the world with an estimate of 60+ million. Now, it is naïve to assume that all these people will take to exercising at home. But even a small fraction of 60 million is a huge boost to companies like Peloton, 8Fit, Noom and the numerous others in this space.
Thousands more are buying exercise equipment (boosting e-commerce) than before. Working out alongside streamed classes is a simple way to adapt one’s fitness routine to these times. Take my own example here. I’ve always hated working out alongside a YouTube video. But, being stuck at home forced me to try a 30-day yoga challenge. To tell the truth, it’ll be hard leaving it out of my fitness routine once this quarantine is over.
Daily Burn, a service that offers virtual workout classes reported a 268% y-o-y increase in signups in late March. At the same time, prominent fitness chains are facing financial trouble. 24hr Fitness is reportedly considering bankruptcy options.
Skeptics could argue that this surge will be short-lived. Once life starts to normalize, things will settle back. But I strongly believe that is not the case. In fact, this will likely cause a fundamental shift in how people perceive home-workout options. Coronavirus quarantine is forcing people to genuinely try these options out. It is safe to assume that many people will realize good value from these simply because there is a ton of high-quality content out on the internet.
By the time our lives go back to normal, physical fitness centers will not go obsolete. But home exercising options will have made a place in many of our minds.
Online Learning
Students across the world have been forced to close as governments scramble to contain coronavirus spread. This has produced a huge opportunity for online learning platforms. ClassIn, a service providing virtual classroom capabilities reported 40x increase in daily active users (DAUs) in China as a result of a nationwide lockdown back in February. New clients are surging, and current ones have upped their usage. Covid-19 pandemic has forced schools and universities across the US to close and send students home. This has resulted in a boon for platforms like Canvas and Blackboard. As parents try to make sure that their kids keep learning, these platforms are playing their part. Covid-19 Pandemic is giving this industry its long-awaited moment in the sun.
Which other industries do you think are benefitting from this unfortunate pandemic? Please share your thoughts and opinions via comments.
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