We’ve discussed how coronavirus impacts both the airlines and film industry. Tons of businesses are affected by the existence of this virus. Nonetheless, have you ever thought about how this virus brings lots of profits to some specific sectors? I guess you may refer them as the winners. Therefore, without further ado, here are some of the winners in the business world during this catastrophe:
Months ago, the majority of the people refused to buy their groceries online. Of course, we prefer to physically see the items that we would get. But that changed quickly. Ever since the World Health Organization (WHO) declared coronavirus as a pandemic, a bunch of people are worried and afraid to step outside. They could either be affected or worse, they could be the carrier. Hence, people are now moving on to online shops, putting e-commerce seems to be in a pretty bright spot.
Sales of e-commerce markets have increased by more than 30% in the last 15 days. The graph above shows how much of a huge demand for each product sold via online.
Graph by Common Thread Collective
In Indonesia itself, from the moment that social distancing was enforced, Bank Indonesia (BI) spotted a quite significant growth in the number of e-commerce purchase transactions in March 2020. According to the Head of Payment System Policy Department, Filianingsih Hendarta, e-commerce purchase transactions increased 18.1% to 98.3 million transactions, with the total transaction value increased by 9.9% to IDR 20.7 trillion.
During an interview with Konta.co.id on Thursday, April 30, Fili explained – via video conference – that the most significant increase in transactions was the primary need, in this case, is food and beverages which increased 50%, school supplies increased by 34%, and personal care/health products, such as hand sanitizers and masks increased about 29%.
According to her, the government has succeeded in utilizing the digital ecosystem through integration between conventional market networks and e-commerce markets, which as a result, many traders have started trading through e-commerce. Besides, the increase in purchase transactions via e-commerce also occurred due to the discourse of social distancing by the government, regarding the massive spread of Covid-19.
Lockdowns, social-distancing, and self-quarantine are three different things. However, they do have one thing in common. That is, they have made society to do everything at home. Truthfully speaking, it is much more convenient to do everything in person. But still, now is not the right time to do it that way. Due to the prevailing situation, videoconferencing apps have received an enormous request for both business and personal use. It was reported that by March 2020, videoconferencing apps have been experiencing record growth and was informed that they topped 62 million downloads during the third week of March across iOS and Google Play. Much of the growth in the category is due to the increased adoption apps, such as Google’s Hangouts Meet, Microsoft Teams, Zoom Cloud Meetings, and Houseparty (which is commonly used in Europe).
By April 29, Google’s CEO, Sundar Pichai said that the company’s Meet videoconferencing service is adding about three million users per day and currently has about 100 million active participants per day, which represents nearly a 300% growth in usage since January. Not to mention, Eric Yuan – the founder of Zoom – earns around $4,3 billion in only three months due to a large number of users, thanks to the app that he invented.
Entertainment Streaming Services
Due to the unfortunate circumstances, it was reported that one of the biggest streaming services, Netflix, had stock surges to record high as investors bet on streaming during this outbreak. According to Monness, Crespi, Hardt & Co.’s Brian White, the pandemic presents an opportunity for Netflix to introduce new users to its service and broaden the appeal of streaming over the long run. Netflix 0.00% shares rose 3.2% in Wednesday’s (April 15, 2020) session to end the day at $426.75, topping the July 9, 2018 record high of $418.97. Not merely, Netflix’s previous record for subscriber additions occurred in the same quarter last year, when it added 9.6 million members. The company’s stock soared on April 22, 2020’s record-breaking news, jumping 8% in after-hours trading and adding to what was already a strong quarter. Doesn’t stop there, it was also said that Netflix was one of only 30 S&P 500 – Standard and Poor’s 500 – components to gain in the first quarter as the coronavirus spread across the globe. The stock has added 33% so far throughout this year as the S&P has dropped 14%.
Graph by Quartz
On the other hand, Disney+ also seems to be doing a fine job. Although Disney’s net income plummeted 91% to $475 million in three months to March 28, as the pandemic tore through the entertainment titan’s operations, it was noted that Disney+ grew its subscriber count by 26% to 33.5 million subscribers last February, driving revenues up 260% in Disney’s direct-to-consumer and international division. This is not the end because the growth has not stopped. The latest report informed that apparently, by April 8, they have more than 50 million global subscribers. This is an impressive achievement for Disney, considering it’s only been a few months after launching and also. Once again, Disney has proved everyone else’s wrong, especially analyst forecasts because they once believed the service wouldn’t hit 50 million subscribers until 2022.
Words by: Nat Padma
Header cred: Google
Sources: The Intercept, New York Times, Tech Crunch, Business Insider, Market Watch, Quartz, CNBC