Which industries and businesses will do well, struggle or suffer during the Corona CoVid19 Crisis?
- Looking for more customers during the Corona CoVid19 crisis?
- Want to find a new job or career during the downturn in Australia?
- Thinking about picking some winning companies for the near future?
This article can help you as it discusses the virus crisis impact on different industries and where to start looking.
Find out what can you do to Survive now in order to Thrive & Prosper later. There will be many personal wealth & business opportunities to grow now and in future.
Hottest Products during the Corona Crisis
There has been a surprising upswing in demand for certain products during the Corona Lockdown & Isolation period – especially related to working from home, schooling at home, exercising at home and doing hobbies at home like cooking and baking.
These products have been especially popular and in demand:
- Sanitiser, Masks, Protective Gowns and Gloves – PPE & Ventilators
- Perspex Screens & Shields (For Retail and Hospitality businesses)
- Online Meeting Software like Zoom.us
- Webcams & Video lights – Home Office – Livestreaming Home Studio Equipment
- Desks and Standing Desks
- Laptop Accessories – mouse and keyboards
- Dumbells & Resistance Bands (Home Gym online lessons)
- Bicycles and Bike Repairs
- Paint Brushes and Kits
- Bulk Flour & Yeast
- Alcohol, Wine, UHT milk
- Fresh Fruit & Vegetables (price increases)
- Brita Pitcher
- Bidets (Toilet Paper Shortages)
- Bulk Ammo (in USA)
- Webinars for Financial and Business Advice
What is likely to happen during the crisis and Economic Downturn?
Many things will be dependent on rapid containment of the virus and the financial stimulus & aid available from Government and Banks. Expect things like overwhelmed Hospitals & Medical Services, rapidly rising Unemployment, many Businesses closing & company Insolvencies. Expect to see rapid increases in vacancy rates , a decline in Rents & reductions in property valuations.
There will probably be a period of fear and “survival” thinking in the immediate decline, then a period of reflection during the lockdown/closure then a reopening & recovery period when some businesses will thrive and some consumers with money left will do “revenge Spending” and “revenge Travel”
Which Industries have been heavily impacted by the Co-Vid19 Crisis?
- Travel & Tourism – Airlines, Bookings, Entertainment, Hotels, Chinese Travellers, Luxury Goods, Transport
- Group Events & Activities – Conferences, Expos, Sports, Arts, Weddings, Venues, Gyms
- Hospitality & Small Group Activities – Pubs, Clubs, Casinos, Cafes, Bars, Restaurants
- Education – Universities, Schools, Childcare
- Personal Services Providers – Allied Medical, Dental, Nails, Hair, Beauty, Cosmetic Surgery, Tattoos
- Most Retailers and many traditional “face to face” Businesses
- All businesses and services directed to CLOSE DOWN by the Government
Which Businesses & Organisations will probably continue operating during Corona Crisis? (least affected industries)
- OUTDOOR Industries like Farming, Infrastructure Construction, Building Services & Garden Maintenance,
- INDOOR Services Businesses that can Work from Home like Software Tech Businesses, Professional Services, Allied medical and other Office Workers
- ESSENTIAL Services needed for survival (see below)
- GOVERNMENT Services
These Industries will be LEAST Affected by the Corona Crisis downturn and their employees who continue to earn a salary make good potential target markets during the downturn
What are the Crisis-Proof & Essential Industries?
- Government Funded Services – health, police, defence, welfare, aged care, disability, transport, environmental
- Utilities – Telco, Power (elec/gas/solar) , Water, Waste & Recycling
- Construction & Building Projects (beware a property downturn)
- Infrastructure Major Projects – Road, Rail, Ports, Airport, Aerospace? projects probably continuing or sped up
- Technology Software Businesses (now working from Home) – software development
- “Essentials” – Grocery, Bottleshops (Alcohol), Pharmacy, Dry Cleaners, Logistics
- Local manufacturers switching to essential goods manufacture – PPE, Sanitisers, Toilet paper etc
- Selected Mining and Resources businesses
Here is some more info on Government Services http://theconversation.com/government-spending-explained-in-10-charts-from-howard-to-turnbull-77158
Which Businesses will prosper, survive, struggle or die?
The Specific Business impacts of Corona Virus Crisis – The particular impact on business and the economy will depend on the duration of the crisis or closure – 3 months, 6 month, 9 months or 12 months and the number of “waves” of virus pandemic.
Businesses PIVOTTING or POSITIONING themselves to grow in a different area.
- Restaurants offering takeaway meals and home prep meal kits
- Expo Companies making Folding Desk kits and Pop Up medical testing clinics
- Distillers and Breweries making Hand Sanitiser
- Clothing Companies making masks and protective equipment
- Cleaning Companies offering “Sterilisation and Steam Disinfecting cleans” after CoVid Contamination
LIST of Businesses & Industries that will probably GROW during Co-Vid Crisis & economic downturn
- Online Stores & Online Commerce should do well
- Virtual Meetings and Conferencing – Online Virtual Training like zoom.us
- Working from Home (WFH) Services – Home Setup, Technology, Wellness, Management
- DIY Home Maintenance
- Tech tools & software to WFH – a hot category at OfficeWorks & JB Hifi
- Virtual Consulting – Doctors / medical services –
- Healthcare & Pharmaceutical Businesses
- Home Teaching & Schooling – kids exercise programs (Kahn Academy)
- Cleaning & Sanitising Suppliers
- Advisors – Accountants, Wealth & Financial Advisers (via Virtual meetings)
- Grocery Stores and suppliers (more eating at home)
- Home Delivery services – groceries, Food, tech and Parcels
- Mortgage Brokers & Credit providers – new loans to administer and refinancing
- Big 4 Banks – Managing Government Loans (depends if property prices crash)
- Stock Brokers
- Pawn Shops / Online Marketplaces
- Telcos and some Tech/App Services
- Home Streaming Movies – like Foxtel, Netflix, Stan etc (might be dropped to Low Res like Europe)
- Alcohol Sales (for Home Consumption)
- Crematoriums (for body disposal) – Funerals may be delayed like in Italy
- Virtual Real Estate and Property Sales
- Grocery / Food – Meat & Seafood?
- Mobile Phone Resellers and Repairers
- Personal Trainers online & home fitness equipment
- Online Real Estate Agents – Virtual Tours & Sales
- Property Management and Body Corporate Services will be busy
- Online Art & Craft Hobby Business – learning a new artistic hobby and home school supplies
- Book Sellers & Book Publishers (Many people writing books)
- Logistics – Transport, Warehousing
- Employment Services – Career Coaching and Welfare
- Bike Shops – Bikes for exercise and alternative to cars.
- Online Payments
- Bargain and Discount Stores – budget conscious buyers
- Pet Stores (online)
LIST of Business that will GROW later in the Post-Crisis Downturn & eventual Recovery
- Removalists & Relocations (moving closed Shops and residences)
- Repair & Maintenance Services – fixing things don’t buy it
- Robotics and Drones
- Auto Car repairing (no new ones)
- Funeral Events
- Lipstick and Beauty Supplies
- Flowers and Chocolates
- Insolvency / liquidation
- Debt Collection
- Delivery services
- Pay Day lending?
LIST of Businesses that will probably SLOW during the CRISIS – Especially during the Shutdown
- Allied Health – Physio / Chiropractic (Virtual consults only)
- Hairdressers & Barbers
- Nails Shops & Beauty Salons
- Surgeons & Private Specialists – Elective Surgery on hold
- Childcare Centres (attendance drop)
- Education – Unis and Schools
- Transport – Cars and Petrol Stations
- Utilities – less Power & Water being used?
- Less Waste & Recycling needed from commercial premises and manufacturing
- Mining & Resources dependent on commodity prices
- Premium Meat and Seafood for Export (to Asia?)
LIST of Businesses that will DECLINE During and After the Co-Vid Crisis
- MOST Aspirational and Discretionary Products and Services
- Hospitality Industry – Cafes & Bars
- Cosmetic Surgery and procedures like Fillers and Anti Wrinkle injections
- Automotive – Sales of New Cars & Luxury Cars – Motor Vehicle Dealers
- Boating and Nautical Sales
- Education of Chinese students
- Solar Panel Installers
- Home Improvements – Pools and Spas
- Home Furnishing
- Restaurants – especially high end restaurants
- Live Conferences, Events and Speakers (moving to Virtual and Hybrid Events)
LIST of Businesses & Industries that face a MAJOR DECLINE During the Crisis
BEACH Industries Hardest Hit
- Booking & Travel Agents
- Entertainment & Live Events – Sports, Conferences, Conventions, Caterers, Expos, Arts
- Airlines – Airline Travel
- Cruise Ships & Casinos
- Hotels, Resorts & Accomodation
As well as
- Tourism Attractions and Tours – especially International Tourism & Cruise Ships
- Big Conferences – Conference Speakers, Conference organisers (PCOs), Bureaus, Expo Hire and construction
- Venues – Weddings & Corporate Events
- Live Events like Music, Art & Comedy
- Retail Fashion Stores
- Hire cars and equipment
- Newsagents & Gift Shops
- Contact Sports and Stadiums
- Cinemas and Markets
- Massage Parlours, Escorts and Adult Clubs
- Private School Fees
- Taxis and Tour Transport
- ALL Aspirational Fun Stuff like Jetski, Harleys, Spas, Luxury Cars
Adopt a “Survive Now To Thrive Later” Crisis Plan
Here are some useful elements of a next 12 weeks or 90 day plan.
Secure All Your Income & Manage your Cashflow
- “Cash is King” – Collect your outstanding money – bills and invoices
- Make sure you get paid first and go easy on extending credit
- Focus on your BEST Clients and offer potential ideas to grow
- Secure your supply chain – suppliers, supplies and logistics
- Communicate offers that help make money or reduce expenses
- Brainstorm with your team Ideas to do things that make money
Manage Your Payroll – “Rightsizing” Your Labour To Meet Demand
- Can Staff Work from Home during CV (reduce office costs)
- Cut any Casuals ASAP
- Retrench any excess staff or make them redundant
- Reduce Staff Days/Hours Cut
- Ask staff to take a Pay cut
- Stand Down Staff until the market improves
- Save and use up Annual Leave til CV lock down is on
- Reduce any Outsourcing or use the Phillipines instead of local labour
This blog is provided as a service for Business Owners & Professionals looking for new opportunities. If you have any thoughts or ideas on the these different industries please contact me for a chat.
ABOUT David Staughton CSP & Big Hat
David “Big Dave” Staughton is an Award-winning Certified Speaking Professional (CSP) with over 15 years of professional speaking & consulting experience. He is a past board member of Professional Speakers Australia and an advisor to a large Australian speakers bureau.
Big Hat Professional Services provides Live & Online Workshops, Webinars and Training on Sales, Service & Growth Strategies using Certified Speakers and Trainers.
Dave’s most popular SPEAKING TOPICS cover Strategy, Service & Sales and Leadership & Teamwork for small business.
He is also a successful serial entrepreneur and an expert on Growing Small Businesses in Turbulent Times
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