Here are the new businesses to start during the coronavirus recession
Traders work during the opening bell on the New York Stock Exchange (NYSE) on March 19, 2020, on Wall Street in New York.
JOHANNES EISELE | AFP via Getty Images
Watching the bull’s horns while the bear is dragging us should be the priority of all businesses in the wake of Covid-19. Volatile stocks, record unemployment rateand our forecast worst recession to date Naturally encourage companies of all sizes to defend themselves in reducing costs, which is natural – the natural behavior of most people in times of crisis is to look inside to find solutions or protection.
Recessions, while still difficult to manage, have favored some of the most impressive businesses in history. The Great Depression brought us GE, Disney and HP, all of whom took advantage of marketing while their rivals dwindled. The Great Recession brought us companies that brought us into the digital age and opened up the concert economy – Airbnb, Credit Karma, Uber, Slack, Venmo and Square.
These companies have succeeded because they outside to seize opportunities as times changed and deliver products and services that the world needed. There were many signals that illustrated their possible rise – but their success was fueled by a world looking for alternative work during difficult times.
During the recession, just before Airbnb was created in 2008, searching for the keyword “mortgage“Beginning to decline and the number of real estate, rental and leasing contractors increased by almost half a million. The share of American staff in the concert economy as a whole increased from 10.1% to 15.8% in 2015. People were looking for ways to cut costs and earn more when they could.
Airbnb, and many other examples that fueled the desire for alternative income in 2008 and 2009, were born from the loss – we lost 533,000 jobs in 2008, the largest decline since 1974.
The desire for alternative work arrangements remained. As we emerged from the Great Recession, the number of people doing alternative work increased by more than 3%.
Back in 2020. After the coronavirus fades from the public mindset, what could be the next “gig economy” born from this recession, what will be the next AirBnb, or Uber?
Examination of a variety of data sources shows that the categories will be ripe for startup innovation.
Home improvement: 140% increase in consumer interest
The combination of empty grocery aisles and springtime has led many people to garden and raise livestock, self-sufficiency.
The entire home and garden category saw a 140% increase in page views in the past month. Consumers are particularly interested in gardening and plumbing, which increased by 245%.
Plumbing is an entirely new topic that we saw emerging last month. As the shortage of toilet paper has forced some to use alternatives, plumbers have been busy cleaning toilets, but many consumers are just learning how to do it. by them selves.
Perhaps a new market for local service providers, a “seamless” plumber will emerge, and consumers will be a “click” from bringing in someone to fix their plumbing. Markets like TaskRabbit, Handy and Thumbtack will thrive and new players will appear.
Pet products: 50% growth in consumer interest
The foreclosure has been an opportunity for animal shelters, which have urged people to adopt at home – and it works. New Yorkers have adopted 10 times more animals than usual and Los Angeles has seen a 70% increase in adoptions in shelters. In fact, shares of Chewy, a popular pet market, were up 7%.
In the past month, we’ve seen a 50% increase in page views related to pets.
We’re going to start seeing a whole new host of businesses related to pets, from the basics of food, toys and grooming to mainstream dog TV channels like dogtv.com, original Netflix shows more dedicated to animals to entertain them, a proliferation of homemade meal services for cats and dogs like NomNom, virtual dog training courses and tools to communicate with your animal like Hunger For Words.
Home beauty products: 36% increase in consumer interest
Consumers are becoming more and more comfortable performing their own hair and skin care routines.
At home, beauty and wellness alternatives are currently experiencing double-digit growth, a trend that we will see having a permanent impact on the beauty industry. It is not an entirely female phenomenon. Sales of hair clippers have climbed 200% and more and more men are more likely to shave their heads in quarantine.
The number of page views related to hair care and skin care products increased: increases of 36% and 1.7% respectively.
Businesses that not only provide the beauty products themselves, but also those that provide personalized training services, communities and more, will thrive. Maybe beauty companies will offer VR filters that people can browse at home, like the ones offered by Pinterest and others. Once consumers like what they see, companies then supply products to make them look like the filter.
Games: 145% growth in consumer interest
This may be obvious – video games and board games offer all types of people a welcome escape from locking. The Nintendo Switch is fly off the shelves, and the company currently cannot manufacture enough game consoles to meet demand. This is due in part to one of their new versions, Animal Crossing, which has caught the attention of the masses around the world.
In fact, while many people are turning to safe home entertainment, the United States has spent $ 1.597 billion on gaming equipment …a successful amount—Since the Great Recession, when we spent more than $ 1.8 billion on computer equipment.
Our enthusiasm for the game was reflected on the open web. We saw a 145% increase in game page views on publisher sites.
There is a huge opportunity for people to connect via video games – this could be the next frontier in the world of sports, as electronic sports are currently outperforming their goals. Games that include world-building scenarios, the ability to socialize and integrate exercise will thrive after the pandemic.
Fitness and health: 2,000,000% growth in consumer interest
Most of the health-related news cycle revolves around obesity in relation to coronavirus deaths, but also educational content on how not to lose weight during the lockout. Searches for ‘weightloss“Have grown steadily, the more time we spend in quarantine and the more we download fitness and health apps.” According to Statista, we uploaded to 2.6 million home exercises, no equipment application in March of this year.
Staying healthy in a sustainable and sedentary way is a challenge. But some companies are starting to understand it. Blue apron recently makes a comeback as more and more people seek to learn how to cook healthily, and the stock of Peloton has increased by 4% in the last month.
We have seen a huge spike in research related to weight loss since the start of the global pandemic.
Now stuck at home, we are now more aware of our physical form, which can create habits that persist. With so many healthy food, fitness and exercise options available, there is an opportunity for market aggregation.
Just like we’ve seen aggregated streaming services in places like Roku and Apple TV, fitness and food aggregation will be next. Physical gymnasiums may also flourish later to meet new demand.
I am optimistic. Entrepreneurs, it’s your time
The news cycle directly reflects what gets consumers’ attention in real time. Successful businesses will heed their advice and use it to “look outside” in times of crisis, but also how to “look inside” effectively to determine where to cut costs and make responsible business choices.
There is not enough content that explains why the opportunity in all of this for existing businesses and new businesses that will be born now and will be with us forever. For the next Airbnb in healthcare, fitness, home improvement, look outside.
Data analysis comes from aggregated readership data from over 1,000 Taboola partner publisher websites in the United States and in our Taboola Newsroom product, which analyzes more than 8 billion page views per month. The data in this play was analyzed from the readership associated with more than 16 million page views in total related to the subjects described in each section, from March 2020 to April 2020.
Adam Singolda is the founder and CEO of Taboola.