IN LIGHT OF COVID-19, 6 NEW VERTICALS & TRENDS FOR TECH BUSINESSES

There’s hardly a corner of society not impacted by the COVID-19 pandemic, and the global economy is no exception. Is it possible to find any reason for optimism in the face of such chaos? Well, there might be. When the smoke clears, tech businesses will need to address new needs and concerns -- not least of which, their own. Consumerism will (and is already) taking on different dimensions. The good news is that while some niches will shrink, others will grow more fruitful. Here are 6 possible outcomes of the current epidemic that can help tech expand in the coming year (and a special offer for growing businesses).

• Expansion of the Caring Economy.

Across the globe, we are seeing businesses rise admirably to the challenges posed by COVID-19. Many are choosing generosity over corporate gain and they are being rewarded with greater brand recognition and customer loyalty. At the same time, consumers are becoming more aware of the impact of their purchasing decisions on the survival of small businesses. 

This is a window of opportunity; firstly, for small businesses and secondly, for large businesses to improve their brand perception by showing support communities and healthcare workers on the front lines of the epidemic.

• Digitalization on hyper-speed.

The penetration of digitalization has grown this month more than in the last 5 years. From education to personal services, from healthcare to agro, organizations are frantically digitalizing their operations. There has never been a better moment for SaaS companies to put their brand forward.

• The virtual office market, not the real estate market.

We’re witnessing the end of the business center era. Once the smoke clears and organizations can resume life as normal, remote offices are likely to remain. Businesses will need to cut costs to stay afloat, and offices will be the first to get diced. 

In place of real estate, organizations will hunt digital solutions that allow them to maintain efficiency and connectivity in their teams at a lower price point than maintaining physical premises. Tools and devices that aid productivity and connectivity will be in demand like never before. HRM and other software providers are among those who will benefit; AI and VR also promise to make their way into new company cultures.

• Disruption in healthcare & insurance markets.

The COVID-19 crisis is likely to put an end to many traditional obstacles to e-healthcare. Social distancing, which has forced many healthcare services to shift to email or video conferencing, is making us re-evaluate how we do healthcare.  And startups are uniquely positioned to lead the way in the new norm of telehealth. 

Speed and agility, which entrepreneurs are already experts in, will be the most important qualities for businesses hoping to get a foothold in the growing telehealth market. People are focused on health now more than ever and they’re ready to shift to a different mode of consumption of these services. They just need the right products to arrive.

• The New Consumer and brand-building in the post-COVID world.

If the first decades of the 21st century were the “age of the consumer”, the next decades are likely to be the age of the anti-consumer. Coming out of the COVID-19 epidemic, the financial resources of individual consumers will be significantly limited by the global recession. 

Companies that have relied on shoppers’ eagerness to replace and upgrade merchandise every year will no longer have this convenient business model. Instead, they will have to adapt to new patterns of consumption that emphasize value over time. When upselling opportunities are limited, expanding customer bases and customer loyalty will be essential for businesses’ survival. 

• Shared experience and shared cultural code.

The COVID-19 pandemic is perhaps the first moment in history that citizens of nearly every country are experiencing the same crisis together. Across the globe, we suddenly have a shared vocabulary to discuss our everyday lives, which begin to look remarkably similar across countries, and a shared aesthetic, visible in grocery stores and Instagram accounts where masks don every other face. 

Cultures and people are now seeing commonality instead of difference. If it’s possible to find a silver lining in such a tragedy, this is it. For brands, this is a moment to establish themselves as members and advocates of this emerging global community.

Those are our top implications and it would be great to hear yours. Please share your thoughts on what will be the next big thing after the lockdown and maybe together we will inspire the entrepreneurs to unlock the hidden opportunities.

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