COVID has created new business trends. Here's what you can earn on now
Vladyslav Savchenko, owner of "Powercode LLC", "Foodex24".
It's time to start coworking spaces, online schools, delivery services, and video production.
Tough quarantine hit business hard in the first half of the year. It would seem that we survived and exhaled, but the future is vague, and the virus is clearly with us for a long time. The government has not yet closed everything back, despite the daily covid "records". But I think we will not get away from this closer to winter. We have already sent pupils to a remote studying. In France and Brussels, restaurants were closed in the second round, and in Germany it was forbidden to invite more than 10 people to private parties.
It's time to launch businesses that are now on the wave in order not to grab your head later. It's simply stupid now opening something new offline, but online is afloat and will continue to grow. Here are 8 lines of business that could take off right now.
1. Studio for the development of sites and mobile applications
The coronavirus showed that if you don't have a website, you are not in business. E-commerce, Saas systems, video communication, online medicine - all this will be in trend for a long time, and demand is still higher than supply.
And - most importantly - all this needs to be developed by someone. I felt for my company that the demand for online service development is growing. In March, we dropped several orders when everyone was just starting to panic and cut spending. But then sales went up sharply. Those who have been offline going online.
Speed is the trend. Everyone wants to roll out their online business faster to adapt to the coronavirus realities. For example, ATB (the large chain of offline supermarkets in Ukraine) created its online store in just two months. Therefore, the faster your studio can fulfill orders, the more you will have.
2. Drug delivery service
Online pharmacies and drug delivery have been officially launched in Ukraine since October 14. You will be surprised, but until March it was prohibited: pharmacies had no right to arrange delivery. Some businesses found a loophole and signed an agreement with the client on the delegation of authority to purchase drugs - for example, the startup Liki24 worked.
In the spring, the Cabinet of Ministers temporarily allowed the sale of medicines online - but only for the duration of the quarantine. And recently, the government legalized online pharmacies for good. This law came into force in October. Soon there will be serious competition in this niche, but the one who is able to quickly navigate and open such a business before anyone else will get the jackpot.
3. Food delivery service (and everything else)
Services like zakaz.ua were launched back in March. Everyone began to order food delivery online: for themselves and their elderly parents to minimize contact with people, in quarantine. We launched the online supermarket Foodex24 in a matter of weeks and realized that the demand is really high.
Demand subsided a bit after the first phase of general confusion. But this story will continue to be relevant given that the coronavirus is with us for a long time. In addition, many have understood: it is much more convenient to order home 30 kilograms of vegetables and milk through a website or app than to carry it on your own.
So it makes sense to enter this market. Or in related: start services for the delivery of clothes, children's goods or cosmetics. And no, I'm not afraid of competition: we'll compete with quality, and clients will make a choice.
Interestingly, ready-to-eat food delivery services are on the contrary not afloat. Restaurants and cafes no longer want to pay 30-40% of the order from a third-party delivery service, and they hire couriers themselves. At the same time, the demand for the delivery of food from restaurants fell slightly - due to financial uncertainty and sitting at home, people began to cook themselves. Even those who previously hated this activity.
4. Online store
Online retail in America made an unprecedented leap in the second quarter of 2020. Online sales grew by 44% at once. The world was already moving towards online shopping, but the coronavirus gave this trend a strong kick.
If we talk about Ukraine, the volume of the Ukrainian e-commerce market was about $ 1.5 billion last year, according to Netpeak, . For comparison, in Germany - $ 35 billion, in the USA - $ 184 billion. It does not mean that we have everything so bad. It means that we have a huge field for development.
So even if it seems to you that anything is already being sold in Ukrainian online, and there is no point in entering here, it is not true. Demand is also growing in parallel with the emergence of online stores, . And here again, the well-known rule works: the faster you jump on this train, the more bonuses you collect.
As of the summer, about 36% of Ukrainians were shopping online. Most often, they don't buy equipment, but clothes. Appliances and electronics are in second place, cosmetics and perfumery are in third. This means that another 64% of Ukrainians will sooner or later start buying on the Internet - this is inevitable. This means that the prospects for this market are huge.
5. Application for online training
Not only food, clothing, and medicine are moving online, but also sports. Firstly, because the situation with gyms is vague - they are closed and opened. Does it make sense to buy leggings for the new season - you can't tell.
Secondly, modern people have less and less time. Walking to the gym and back is a whole half hour or an hour, which is more and more difficult to find in your busy schedule. Of course, not everyone is ready to buy a mountain of “pancakes” and barbells home. Mobile apps are an excellent choice for yoga and fitness lovers.
Moreover, many IT specialists have switched to remote work. And these are people who are accustomed to the gym right in the office, and at the same time who know-how and love to work with digital tools. Give them a handy smartphone app to work out with at home - and they'll be willing to pay for it.
Everything is clear here: because of the virus, many companies are switching to remote work, and some are not planning to return. Just a few days ago, Microsoft allowed its employees to work from home - partially or completely, even regardless of quarantine.
Among Ukrainian companies, for example, Evo has switched to remote work forever, which is more than 900 people. Needless to say about small companies that are not profitable to pay for an office while almost no one goes to it. It is more profitable for them to pay for coworking for those employees who are prevented from working at home by children, dogs, and the proximity of the refrigerator.
In general, the trend for coworking spaces developed all over the world before the quarantine. Rent a room, make minimal repairs, buy delicious coffee - and start business.
7. Video production
The world is gradually getting tired of texts and photos. Generation Z already communicates with gadgets in full voice, sends voice messages to friends, and searching on Youtube. TikTok is now almost the most popular social network in the world - the application has been installed about 2 billion times (despite the fact that there are only about 7 billion people in the world). Even I started a YouTube channel - by the way, it has over a million views.
In general, the video format is trending. But if teenagers can record a vlog with trembling hands on the phone, then businesses, serious vloggers, interviewers, and owners of copyright YouTube channels need to work on the quality of the video. People are no longer ready to look at a low-quality picture.
That is, a video production studio is a business that will only gain popularity. Start now and you will catch this wave.
8. Online school for learning languages (and not only)
The world is becoming global, and not knowing English is a shame for modern people. Therefore, for example, the Ukrainian startup Grammarly is already a “unicorn” (it costs more than $ 1 billion). People are actively getting used to learning English digitally - in smartphone apps, Skype, online lessons, and even on TikTok.
And the rest of the training is also growing online. The EdTech (educational technologies) market is one of the fastest-growing in the world. So, Ukraine is an uncultivated field of opportunities. You need more investment to launch such a business than in the case of a standard school (development of competent and convenient software is not renting a room). But the potential is many times higher. Let's get started!