Which Industries Have Won or Lost During the Covid Quarantine?

Consumer behaviours have changed since Corona-virus lockdown, and the ways in which we live, work and play have changed - perhaps permanently - as a result. So how have these changes affected different industries?

There is no doubt that some will win, some will suffer and others have the chance to go one way or another depending on their response.

Corona-virus Winners

These sectors have been lucky enough to operate in spaces which have thrived during lockdown. E-commerce businesses are reaping the benefits of increased traffic. Logistics and delivery firms are benefiting from increased demand for everything from PPE through to groceries, medical supplies and entertainment. Food delivery services such as Deliveroo and ingredient delivery boxes such as Hello Fresh have seen a surge in orders.

Another clear winner is the video-conferencing industry. Zoom is the obvious winner, followed by entertainment, gaming and other software platforms that allow people to work and play at home.

Corona-virus Losers

But what about the losers? The travel industry is an obvious one, with everything from airlines to holiday operators announcing big job cuts. Airports also look set to announce layoffs after having been virtually closed for months. Other heavily hit industries include cruise ships and trains. IAG, which owns big brands such as British Airways, Aer Lingus and Iberia, has already massively cut capacity by up to 75%. Millions of people who work in tourism across the world are likely to be experiencing uncertainty as a result.

Oil and Gas

Renewable energy has overtaken fossil fuels as the energy of choice, with crude oil sales falling by over 50% since the start of the year. The stock market value of big oil giants such as BP has been similarly affected.

Finance

Traditional banking and investment banking are also seeing a downturn in transactions and fee-paying services such as investments and mortgages.

The 'Wait and See' Industries

If there is a recession, then banks will struggle as loan repayments halt - think about the credit crunch in 2008. Those that offer good services to hard-hit customers may thrive, however. TSB offered ￡1,000 support grants to their business customers as a gesture of goodwill, for example. Manufacturers may struggle unless they can adjust their operations to make things that people want - and adopt digital technologies. For example, LVMH moved away from luxury designer handbags and couture to making hand sanitizer!

Education providers also have a great opportunity to continue their growth from tutoring and remote learning over lockdown. Those same tutors and software programmers can continue to promote their offers to customers who are keen to continue with learning programmes during the summer period or before schools completely return to normal. Similarly, personal trainers and other virtual service providers who can train, coach or lead via video-conferencing still have an opportunity to engage with customers keen to stay at home and build more flexibility into their agendas.

In the brave new world, one thing is for certain: the business environment looks set to change forever.