Coronavirus impact is not just physical, it's temperamental, psychological, ergonomic and it is here to stay for some time!
While containing any further spread is the primary concern, the consequential calamities would haunt us long after eradicating it. There won't be anything normal or restated to former glory again, it will be a new normal for us. We are staring at behavioral changes in the corporate as well as the startup sector. Large scale discontinuities in several industries and a high level of unemployment across the globe.
To state the loss of human lives is just the tip of the iceberg, what remains are the hazardous ashes of the present-day scenario. Most devastating aftershocks would be felt within the startup and MSME ecosystems. These rely upon a constant flow of capital and investments, which due to the pandemic have come to a complete standstill.
As most of the startup leaders and entrepreneurs are looking for exit strategies to contain losses, some of us have given up to the menace already. Aspiring employees, projects and ideas which were to bloom into reality may take ages to substantiate any further. Times are rough and only the tougher ones would survive.
Looking from a vantage point at all this, a number of industries seem to be benefiting from all this as well. For this isn't an economy driven meltdown, it’s a calamity that did not devastate the infrastructure at hand, it has just brought it all to a standstill. Amid all this, few sectors seem to be making the most of these recent turn of events. While for some of us it is a battle for survival, there are a few that seized this opportunity to make fortunes of this state.
Courtesies to the new norms directed by the governmental bodies across the globe, there's a huge behavioral change perceivable among the consumers. From shopping online to social distancing and less-likely a will to travel to congested-high density places, the new normal might not be as bad as we presume it will be.
For some of these sectors, the new normal would bring in newfound opportunities. A whole new market that was untouched before is now up for grabs. As we are talking of all this, some startups are already working upon the aforesaid scenario.
Let's take a look at the sectors which would be at an advantage for the business model they posses:
- ED-TECH
Online education, tutoring, web courses, etc. have come up to be the need of the hour when schools and educational institutions are not allowed to function. Irreplaceable, the online education sector is observing a sudden surge and people from all walks of life, from every of the COVID-19 affected nations, are looking up to alternatives of conventional teaching and learning.
People are afraid to send their kids and children to places where social distancing cannot be practiced and hence the Ed-tech sector is tapping on every possible entity they can. Also, which is convenient, holistic and more sustainable for the time until we have a permanent cure for COVID-19 pandemic.
- HEALTH & WELLNESS
With a worldwide health emergency in play, it's a huge opportunity for the health and wellness sector to place itself as a necessity among the users. Branding themselves as pivotal and much needed support mechanism, this industry is already on a rise to becoming the one with most growth perspectives in the future.
People facing the imminent threat of immunity deficiency paranoia, are looking forward to anything that helps them stay healthy and fit. Adding to which, the various advisories by the authorities across the world are promoting such things, and which is an uncalled for publicity if nothing else. Also, the demand for such things has risen so drastically that the existing entities already have more than their appetite on the plate.
- FINANCIAL SERVICES & NBFCs
One thing that's inevitable in the upcoming days is an all-time economic low. Masses would be stranded with less or no cash reserves. Aggravating to the issues at hand, unemployment and health issues would make matters worse. In such times, the regulated financial service providers and the NBFCs have a pivotal role to play.
Undeniably, unsecured lending would be something that people would run after. They would need funds against least of collaterals and the stringent conventional banking systems would certainly fall short of policies in such scenarios. For the medium and small scale enterprises to unemployed individuals and those who require funds on short notices, these financial entities would be the only ray of hope.
- SAAS & REMOTE-WORKING TOOLS
Saas & Remote Working Tools fall right in the path of success in such times. With the temperamental changes that we are likely to witness, SaaS applications & Remote Working Tools would facilitate the ongoing projects and pave the road map for future endeavors to greater extents.
These applications would serve the founding stones for the majority of business operations in the future and a haven for existing ones. Supporting the need of the hour, while accentuating the current work culture to better productivity, these would help position or in the transition to a better stance for numerous brands across the globe.
- E-COMMERCE & DELIVERY BASED SERVICES
With national lockdown imposed in various countries, social distancing being practiced as the new normal for upcoming months if not years, and people refraining from gathering up at markets, grocery stores and public places, the E-commerce & Delivery based sectors are booming at large. These offer a safe and distanced way to procure essential and non-essential commodities, which is advised as precautionary measures for COVID-19, the industry is to see a spike in customer-retail operations.
Given the advent of the technological revolution and interface management systems, this industry was already on a growth trajectory. But the recent turn of events just catalyzed the entire game to unprecedented levels. People who refrained from using online ordered utilities; services and commodities are now adapting to procure for their daily needs.
- OTT PLATFORMS & ONLINE GAMING
Over the top media and online gaming has surfaced above the conventional ways of entertainment. With bans and restrictions on movie theatres, gaming hubs and other recreational-amusement installations, these OTT platforms and the online gaming world had to fill in the gaps.
Soon enough, those who were not accustomed to these would be habitual and the need for heading out to garner some entertainment would be replaced by these. These have proven to be time & cost-efficient, provide a more personalized version of the same experience and one can experience these at the comfort of home.
- PHARMA, LIFE SCIENCES & LABS/PATHOLOGY
Another major sector that came out to be a winner is the Pharma, life sciences and pathology sector. May it be children, adults or the elderly, in the wake of COVID-19 spread, the majority of the human population would wish to have enough health medication and facilities handy.
Once a vaccine is successfully developed, the shape of our current Pharma industry would change for good. Every single human being would require a dose and to provide for the demand at hand will be on the shoulders of our Pharma industry. These people would be providing for a noble cause, but to make a fortune for them is more than certain.
- MANAGED OFFICE SPACES
Another sector that would rise above the rest is the managed office spaces for corporates, startups and commercial real estates. With the prevailing wave of remote working culture combined with businesses cutting costs aggressively, the need for cost-efficient, comfortable managed office spaces is observed.
With people unlikely to travel for work, these managed office spaces would provide a suitable alternative to the need at hand. Startups, SMEs, and even corporate bodies are looking forward to cost-cuts in order to balance things out and these spaces provide the perfect solution to the same. These are safer than conventional office hubs and come for a fraction of operational costs for the same.
Conclusively, the future is bleak for the most of us. Economies are uncertain for growth, widespread unemployment looms over us for the upcoming quarters, but not for the sectors and industries stated above. These would continue to shine even in the cloudiest of weather. After when the storm passes by, these would emerge as the knowledge and industry leaders to behold.
About the Author
Vinayak Agarwal is the co-founder of myHQ, a startup with a mission to revolutionize the way millennials work. They are creating a network of beautiful & inspiring coworking spaces and work cafes for people to work, network and co-create from. myHQ is also a vibrant community of 10,000+ entrepreneurs, freelancers and working professionals.
An entrepreneur at heart, Vinayak is an IIT Delhi alum and he worked with Goldman Sachs for 2 years before starting myHQ.
