What businesses will profit from the pandemic?

While most entrepreneurs suffer from the considerable losses due to the pandemic, there are businesses that have time to rise and even increase the profits. As it often happens, the new reality and changes in the consumer behavior, caused by medical restrictions and self-isolation, open the new opportunities for those businesses that are most adapted to the new situation.

In order to understand, what kind of business it is worth doing in the current situation, the experts urge to look at China, which is already reaping the economic consequences of the pandemic, associated with changing behavioral standards.  It turned out that people staying at home can also be active consumers, if you correctly determine what they need.  The data indicate that the most needed kinds of services include those that are closely related to the field of communications in the digital space.  First of all, these are delivery services, for which the pandemic has become a kind of gold mine.

It turned out that, along with the primary food needs, which were successfully met by food stores, the shops, selling construction supplies and creative goods turned out to be not less significant for the citizens of China.

Some people started redecorating the houses in order not to waste the time in vain. The others, being in social isolation, completely surrendered to their hobbies and creativity they often did not have enough time for. 

Another important market segment, which felt the influx of customers and money during the quarantine period, according to the example of China, turned out to be online educational services and tools that provide remote work opportunities.  According to the Chinese experts, the online studying market has grown by 42%.  Services for remote work like WeChat, DingTalk or Microsoft Teams, have experienced a new birth, they say.  

The Chinese experience shows, how a change in the strategy of companies, reoriented to electronic or social commerce, allows them to develop successfully in rather difficult circumstances.  An example of this is recycling, when new the products are created from the old ones that actually need to be recycled.

The experts point out that “conscious consumption”, widely propagated before the crisis, but not very popular among the majority of Russians, may become a trend for those entrepreneurs and brands who want to stay afloat in the current situation.

On the one hand, this will reduce marketing costs.  On the other hand, it will make a business more attractive from the perspective of an ordinary consumer.

The experts say that in the nearest future, pharmacological companies, manufacturers of medical devices and materials (masks, antiseptics) will be “reaping the rewards”.  However, in the future, those segments of the market, the success of which is not too obvious during the pandemic period, may become leaders on the market. These can be HR agencies, given the increasing unemployment rate as a result of the pandemic or manufacturers of computer games and educational materials, to which many consumers may “stick” during the period of self-isolation.

The representatives of the International Legal Company told “Rusbankrot” that it would be possible to understand who has actually won, a little later, most likely, by the end of autumn. It will be a surviving business.

The experts also noted that society remembered and began to appreciate the volunteers again, however this is not a business, but rather a human responsiveness.

“Who didn’t die, didn’t fail in the financial crisis and was able to earn money at the moment of the crisis?  The manufacturers of antiseptics, medical masks, sterile gloves, and retail companies selling pasta,” emphasized the representative of ILC.

Unfortunately, a large number of scammers working on a prepaid basis have also been detected on the market - after receiving money, nothing is provided in return.

Technically, those enterprises that substantially replenished the list of the strategic and city-forming companies have won, but the most of them are not Russian. At the beginning of April, the list included 200 enterprises, and after the introduction of protective state measures, there were more than 600 companies.

“Probably, some microfinance companies and credit companies that now offer loans at fabulous interest will be able to rank among the winners,” said the expert of ILC. - If at the moment they are not very popular, then after 2-3 weeks or a month, when people run out of supplies, a huge number of individuals will be forced to use such services and take a loan or credit in order to just feed their families. But is it a win? ”