Report On Covid-19 Business Opportunities & Trends
Report On Covid-19 Business Opportunities & Trends
Report On Covid-19 Business Opportunities & Trends
NOW TO
SECURE THE
NEXT
BUSINESSES COPING WITH
POST-PANDEMIC UNCERTAINTY
Content
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
.........................................
How FATbit's Product Are Future-ready And Can Help You 61
Come Out As A Winner After The Crisis
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Executive Summary
COVID - 19 is a pandemic that has affected millions of people globally; it has also become a
global health and economic crisis due to its unprecedented speed and duration. It is the
most significant worldwide event that has changed human attitude, behavior and forced
businesses to respond.
Most people cannot imagine a life after COVID-19, where people could meet, hug each
other, travel to their dream destinations, and buy toilet paper without fighting other
people. The reality is things have changed, and so has consumer behavior, even after the
virus will recede, consumer behavior will take a long time to come back to normal.
Traveling with apprehensions, maintaining social distances with your loved ones, and
disrupted supply chain is the new normal.
While people all around the globe are coping up with the monotonous and changed
lifestyle, businesses throughout the world are understanding the volatility of the market
and changing consumer behaviors.
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EXECUTIVE SUMMARY #FATBITTECH
HEALTH AWARENESS - People have become more and more aware of their
health, especially their immunity system. This pandemic will intensify the focus
on mental and physical health. People will not prefer to visit the hospitals; they
will shift their strategies to healing at home.
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Lessons Business
Leaders Can Learn
From The Past Epidemic
LESSONS TO BE LEARNT BY PAST PANDEMIC #FATBITTECH
How Coronavirus has impacted or will impact the business world can Let's first understand how Chinese e-commerce pioneer, Alibaba, and
only be understood by studying history. How previously business JD.com, faced the 2003 epidemic and overcame the difficulties in the
evolved through pandemic or epidemics. Let us look back at nascent stage of ecommerce.
2002-2003 when the SARS epidemic hit, and the retail industry
When the SARS hit China, JD.com owned 12 offline stores in Beijing,
adapted to the worsening market conditions.
mostly selling electronics like C.D.s and camcorders. Richard Liu, the
SARS was a contagious disease that first appeared in 2002 in China. owner of JD.com, had planned to expand the business to 500 stores
It infected more than 8000 people and spread swiftly from across China and give massive competition to electronic stores. But as
continent to continent. With a mortality rate of 10%, it had a the epidemic hit and business plummeted, to conserve resources, the
devastating effect on the local and regional economy. founder had to close all stores but one. He resorted to selling his
products on Instant messaging service (QQ) and College bulletin
While the mortality rate of the current Coronavirus, COVID-19, is board forums.
much less than SARS but the total number of cases of COVID -19
Ecommerce was primitive at this time which means that employees
have surpassed millions of people around the globe. We do not know
had to manually jot down orders, text message customers when
the time-course of this virus as it has been affecting globally from
products were shipped, and also deliver some packages themselves
the past six months and is still not controllable.
of those addresses which were close to their home or office.
During these cloudy months, let us not forget to find the silver lining.
In the time of crisis, there are always hidden opportunities for
businesses.
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LESSONS TO BE LEARNT BY PAST PANDEMIC #FATBITTECH
By the end of the same year, Richard Liu officially launched his
Underway
ecommerce electronics website under the name 360buy with
approximately 100 products. The maximum profits that he received were
put back to building his business's online presence. The company quickly
grew and became one of the largest online retailers of electronics and
other categories in China.
Digital Trends
During 2003, Alibaba was in the market for four years and focused on b2b
ecommerce, bridging the gap between American procurement teams with
Will Take Fast
Chinese manufacturers. One of the employees of Alibaba was the number
4 SARS patient who gave the company a bad name. Back then, 500+ Pace Post
Pandemic.
employees of Alibaba were quarantined and were working from home.
Many countries issued travel warnings for business people traveling to
China; thus, many turned to Alibaba to procure Chinese goods. In March
2003, Alibaba's b2b business added 4000 members and 9000 listings
each day, a 3-5X compared to pre-SARS.
These two industry giants have set an example for businesses facing
problems during this pandemic. Opportunities can be found in the crisis;
Manish Bhalla
let us now understand how businesses in the current pandemic will find a CEO, FATbit technologies
silver lining.
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Preparing Your
Business For The
Post Pandemic World
PREPARING FOR POST PANDEMIC WORLD #FATBITTECH
The curve of increased cases per day is on the rise, but some parts of Asia are easing the
lockdown. We are still witnessing the global economy to be frozen and dramatically
restructuring the economic and social order. In the post-pandemic world, CEOs,
business people, and aspiring entrepreneurs will be debating about the next normal
and how shapely it will diverge from the previous lifestyle.
Many leaders have anticipated a radical shift in the profit and dynamics related to
competition post crisis. Since the changes will not be homogenous across the market,
leaders have to focus on more fast local response. During the pandemic (COVID-19),
they saw value in local experimentation, thus providing tailored solutions to their region,
local teams have to be strategically innovative.
While some business leaders are arguing the crisis has not brought anything new, on
the other hand, it is accelerating the trends which were picking pace in the past. Let us
uncover some of the most common strategies market leaders are adopting for a
post-pandemic world.
The personal journey and Remember how, before a big play or Industry landscape will completely Post pandemic, companies that
relationship of customers with show, we use to rehearse how change after this crisis; many trends race back to their old way of doing
every company will differ; mostly, everything will be done or the big that are emerging now have been a business will stumble and fall back
consumer behavior changes will rehearsal before the wedding. Similarly, part of the market before but have by a decade. Now is the opportunity
have severe consequences for those who want to survive even after accelerated outcomes. Those to transform for a turbulent world
businesses. Those businesses who the pandemic have to rehearse businesses that were still thinking and to think beyond the business
understand this and prepare for it strategies they will adopt about going online would soon be boundaries. The next generation of
now will be in a better position to post-pandemic. Businesses have to out of business. For many, COVID-19 companies will be defined not by
survive. retool to emerge more reliable and is writing the final chapter of their their assets but the partnership
resilient than before. Leaders have to business story. that they are building.
Insights of the sector will emerge in renegotiate their strategies based on
accordance with the market, these parameters: Consolidation will happen among Firms that will win the race will
category, and cohort. To uncover industries. Rebel businesses will adopt the theory of being fast,
these insights, leading businesses Which part of the value chain can emerge for the new world, which significant, and have customer ties.
have to conduct current market help in cost-cutting? could be the best partner or the Making the right, a value-based
research to understand their How to manage the redundancy? worst nightmare. Now is the time to decision will decide the future of
positioning. The need is to talk understand your best capabilities the firm.
directly to the consumers and Identifying scenarios and assigning and how you will derive
the right probability
based on the conversation device opportunities out of them. CEOs
strategy of customer needs. Focus Checkpoints for probability have to plan for a fast-moving future.
now on the learning journey, be changes Before the pandemic, businesses
resilient and adapt accordingly to have operated with a viewpoint to
Decision-making is resilient
customer evolving needs. go global, but globalization is
enough for unanticipated shocks.
contracting now.
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PREPARING FOR POST PANDEMIC WORLD #FATBITTECH
RESOLVE
5 R's
established as the default operating mode.
RESILIENCE
Depicting The economy and the financial system. Issues of cash-flow management
for liquidity and solvency are of paramount importance.
For Business.
Starting up a business after the shutdown of several months is a
difficult task in itself. Most businesses have to re-think the entire
supply chain as the supply chain disruption is on multiple geographies.
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Winning & Losing
Sectors In The
Post-Pandemic
World
WINNING AND LOSING SECTORS #FATBITTECH
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In The
Winning
Team
THE WINNING TEAM #FATBITTECH
PHARMACEUTICALS - Pharma Industry leaders during the PROJECT MANAGEMENT AND COMMUNICATION -
1 pandemic have rallied to provide key medications across 2 Enterprises and governments have adopted video
borders, supply workforce, handling government restriction, conferencing as the ultimate way to connect with remote
and being prepared to develop a vaccine for the virus. During workers, delegates, customers to avoid direct contact with
these unstable times, most pharmaceutical companies have people amidst the pandemic. The video conferencing sector's
put a crisis-response command center in place. popularity has increased since the last decade as businesses
are taking their operations to the global market and managing
Pharmaceuticals Market to Reach USD 1,310.0 Billion in the workforce in various subsidiaries.
2020; Eruption of the COVID-19 Pandemic to Accelerate the
Demand for Effective Treatments and Drugs Worldwide: However, due to this outbreak, the popularity of video
Fortune Business Insights. conferencing has increased tremendously. Also, due to the ban
on international and domestic travel it has contributed to the
Key companies covered in the impact of COVID-19 on the positive growth of the market.
pharmaceuticals market research report are Pfizer, Inc.,
Novartis AG, F. Hoffmann-La Roche Ltd., Johnson & Johnson Some of the market players in this sector are leveraging and
Services Inc., Merck & Co., Sanofi, GlaxoSmithKline, AbbVie, envisaging the current situation as the key to increase their
Takeda Pharmaceuticals Ltd., AstraZeneca, and other key growth and subsequently help the nation during the crisis. For
market players. instance, in March 2020, Zoom Video Communications, Inc. A
California-based remote conferencing services company,
announced free access to video conferencing tools for K-12
schools during the COVID-19 crisis.
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15
THE WINNING TEAM #FATBITTECH
ENTERTAINMENT STREAMING AND GAMING - While people LOGISTICS/DELIVERY - The threat of Coronavirus has created a
3 are under lockdown and work remotely from the comfort of 4 severe risk to the supply chain. Manufacturers and retailers are
their home, entertainment and gaming sector has seen a facing difficulties due to the halt in production, so they won't be
boom. Gaming and entertainment streaming, like Netflix, is able to replenish run-down stockpiles.
providing a fantastic way to distract people from what is
happening in the world. The transportation price and inventory levels are taking a
negative turn, and we can expect the coming months to
Asian gaming giants Nintendo and Tencent both saw sales continue the downward pattern. This is the right time to create a
increases during the first quarter. The former sold almost half of strategy to support an overarching long-term supply chain so
its games digitally, a record that helped increase profits by 41%, that post-pandemic you are ahead of the game.
while Tencent's year-on-year online games revenue increased
by 31%. Consumers' lifestyle has seen an unprecedented transformation
during the COVID-19 and has shifted to purchasing essentials.
The average person is streaming eight hours of content each These times have pushed multiple brands to come together and
day, double the number of hours from before the pandemic build partnerships to create a robust ecosystem of hyperlocal
rapidly spread in the U.S., according to data collected from deliveries. People are becoming accustomed to purchasing
surveys conducted by market research firm OnePoll for products online, and hyper-local businesses are helping break
streaming service Tubi. the stigma by providing last-mile delivery in fewer days.
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16
THE WINNING TEAM #FATBITTECH
A highly broad term ecommerce marketplace experienced the same impact as any other
sector. The pandemic has made people's behavior change towards the ecommerce
marketplace, and this trend is going to stay even post-pandemic. Many ecommerce
businesses that invest ambitiously and timely launch their online business will emerge
as market leaders. Similar to the case study of Alibaba and JD.com, the businesses which
make the right decision now and invest in the right technologies will see tremendous
opportunity post-pandemic.
Throughout the globe, E-commerce players are seeing a surge in volume and are doing
everything to retain their newly acquired customers by offering loyalty programs,
subscription models, promotions, and expansion of the product range. The competition is
intensifying day by day with consumers using price engines and referral sites to find the
best deals online.
"Panic Shopping" term was coined for some commodities sold in high numbers in brick
and mortar stores and online stores. While few niches have picked up momentum, others
have lost sales entirely for a long time.
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17
Sectors That Will Take
Longer To Recover
After The Pandemic
THE LOSING TEAM #FATBITTECH
The transport manufacturing industry, like autos, airlines, and other vehicles,
experienced flat or lower unit sales before during the crisis. Commercial
airlines have announced a massive drop in passenger revenue,
subsequently eliminating domestic and global capacity.
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Reboot
Transportation 2.0
The pandemic has offered industry giants a life-time
opportunity to reimagine the transportation system and
make it more equitable, resilient, and seamless. Now is the
time to integrate more supportive policies and technologies
that will improve the experience of users. Transport
managers have always agreed to work from home as it is
ideal for the urban economy and can minimize congestion.
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THE LOSING TEAM #FATBITTECH
TOURISM - The tourism industry is adversely affected by the lockdown and OIL AND GAS - One industry that might be permanently altered
2 international bans imposed by Governments. Due to the Coronavirus, 3 due to the virus's outbreak is this. The plunging demand for the
businesses have already canceled their international trips, public events, and oil wrought due to the pandemic combined with savage price
employee programs. A Zurich Insurer showed an extreme case when they war has broken the fossil fuel industry. It has seen the worst
canceled trips of 2000+ employees who were coming to or going from challenge in 100-year history.
Spain.
During this period, the oil price experienced a free fall. First
The Tourism industry currently accounts for 10% of global GDP. The dropping below $5 a barrel, it hit $0.01 a barrel before falling to
International Air Transport Association (IATA) estimates that global air as low as negative $40 and eventually settling at negative $37.63,
transport revenues will be reduced by 5% this year, which means 29.3 billion the lowest level recorded since the New York Mercantile
dollars less (about 27,000 million Euros). In comparison, OPEC has lowered Exchange began trading oil futures in 1983.
the global demand for oil to 19%, 100.73 million barrels per day. The Tourism
industry has reported a significant loss due to Coronavirus's panic as the Another major factor contributing to the disadvantage of the
stock market has also collapsed for days, which has adversely affected major industry is the Russia - Saudi oil price war. The unprecedented
airlines, operators, and hotels, especially in America, Europe, and Asia. output deal by OPEC and allied members to curb supply is
proving too little, too late in the face of such a massive collapse
Platforms like booking.com are forced to cancel reservations in Asian in global demand.
countries as the world tourism has been affected by CoronaVirus. The World
Travel and Tourism Council has warned the COVID-19 will cut 50 million
jobs worldwide in the travel industry. Asian countries are the worst affected
by the tourism crisis. It will take around ten months for the sector to recover
after the pandemic is over.
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21
THE LOSING TEAM #FATBITTECH
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THE LOSING TEAM #FATBITTECH
TRADITIONAL RETAIL - Brick and mortar stores have to face CINEMAS - The effect of Coronavirus for the film industry is
4 the harsh reality as the government imposed the lockdown and 5 devastating as the box office throughout the world is facing
quarantine measures. With the contagious virus outbreak, losses of billions, and film production has stopped, which has
people are afraid to gather in public space even if the left thousands in the industry without work.
lockdown is relaxed, directly impacting the traffic of the
traditional retail sector. Some of the big production houses have understood a
different approach to the current situation. Universal Troll's
Most people have been boycotting public transportation, inter- World Tour has launched a digital rental platform this month
national travel, and not visiting any brick and mortar store for a and generated around $100 million in three weeks. Cinemas
very long time. The biggest problem these retailers face is the globally are under shut down as the government enforces
normalcy of the supply chain. The pandemic is beneficial for social distancing norms. The cinemas will face huge losses if
multivendor and multi-brand websites like Amazon. they do not innovate measures for a safer viewing experience.
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THE LOSING TEAM #FATBITTECH
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Inbetweeners
That Will Benefit
Depending Upon
How They Respond
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INBETWEENERS THAT MIGHT BENEFIT #FATBITTECH
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INBETWEENERS THAT MIGHT BENEFIT #FATBITTECH
While in some countries where the spread is less, the private sector will be able to
manage every type of eventuality, others may experience a shortfall due to rising cases
every day. There are twin-challenges that the sector has to deal with:
The businesses that adopt technology and embrace the future will be able to
sustain after the pandemic. They provide consultation virtually and adopt online
health platforms to attend to regular clients and schedule appointments of only those
who need surgery and are critical patients.
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INBETWEENERS THAT MIGHT BENEFIT #FATBITTECH
220
MANUFACTURING - The manufacturing sector is an integral part of
3 the economy as it 16% of the global GDP. The manufacturing in many 200
parts of the world has been organized under a global value chain. For
180
many goods, China is the heart of significant manufacturing. China is
also producing many intermediate inputs and is responsible for 160
40
20
This calls for a re-examination of the current established economic
model. Several countries have asked businesses to re-think their 0
production and outsourcing while keeping in mind future 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
bottlenecks.
Note: Monthly data, in constant 2010 US$, seasonally adjusted. Last value: February 2020.
Source: Work Bank, GEM database.
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INBETWEENERS THAT MIGHT BENEFIT #FATBITTECH
EDUCATION - Most countries around the globe closed down Businesses Have
4
To Outmaneuver
educational institutes to contain the spread of the Coronavirus. This
has brought immense loss to education institutes as well as for the
students. For an undefined time, till the Coronavirus is not eradicated,
the educational institutes will not be able to recover.
Uncertainties To
Win During The
Educational institutes who have understood technology as an active
part of their curriculum will be able to recover from this as a winner.
Teachers are now teaching their students by online learning platform
so that they do not miss on the learning curve.
Crisis
The sectors that are in-betweener will only be able to recover after
the pandemic if they embrace technology entirely to run their
business operations. Now is the time to innovate & think beyond
the business model you have been working for many years.
Rajiv Sharma
CSO, FATbit Technologies
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Adapting To A
New Set Of Consumer
Behavior & Importance
Of Ecommerce Solutions
ADAPTING TO A NEW SET OF CONSUMER BEHAVIOUR #FATBITTECH
The importance of Ecommerce has been felt by businesses when, for offline brick and mortar, it
is becoming hard to survive. Consumer behavior is changing because of the virus, different
norms that the government has made, and also generally for the way consumers prefer to
shop. Businesses have to re-think their strategies that revolve around the consumer
experience. Also, some niche will be entirely off the grid for a long time, or at least until there is
a cure for the virus.
The spending habits of consumers have been altered due to the pandemic. Consumer
spending is one of the most important driving forces for global economic growth. Some of the
factors that have impacted consumer spending are consumer confidence, unemployment
level, and/or the cost of living. The pandemic has also impacted where the consumer is
planning to spend his money and the sector, which is rising during this time.
Consumers are still grappling the uncertainty amidst the pandemic, which has made the
buying experience more erratic. One clear thing is that consumers have reduced their
spending on non-essential items. As mentioned above, people have shifted their spending
from non-essential to essential items like grocery, pharmacy, etc.
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Optimism About Country’s Economic Recovery After Covid-19
% of respondents
60% .
More .
.
.
Optimism . India
.
.
. China Indonesia
.
.
50% .
.
. Nigeria
.
.
.
.
.
.
.
40% .
.
.
United States .
.
.
.
.
.
.
30% .
.
.
South Africa .
Russia .
Germany .
.
. Brazil
Switzerland .
Australia .
20% Canada .
.
Sweden .
.
Spain .
Italy .
.
.
UK .
France .
10% .
.
S.Korea .
.
. Portugal
.
.
Less .
Japan .
.
Optimism 0% .
.
-40 -30 -20 -10 0 10 20 30
More Households Planning to Decrease Spend More Households Planning to Increase Spend
Household Spending Expectations For The Two Weeks Following April 6th
Source: McKinsey
Expected Spending Per Category Over
The Next Two Weeks Compared To Usual
<-50 -50 to -30 -30 to -15 -15 to -0 0 to 15 15 to 30 30 to 50 50+
Less More
Spending Spending
y
an
ca
ce
a
a
ia
n
ri
in
rm
re
an
di
pa
ss
Af
ai
ly
il
Ch
Ko
In
Fr
UK
Ge
az
Ru
Ita
Sp
S.
Ja
S.
Br
U.
HOUSEHOLD APPAREL
Groceries
Snacks
Tobacco Products
Takeout/Delivery
Alcohol
Quick Service Restaurants
Restaurant
South Korean consumers
will spend more on takeout
U.S. Consumers are cutting back France is the only country that over the coming weeks
their spending across most categories shows a decline across every
excluding groceries, household supplies, category, which reflects the
and home entertainment country’s low levels of optimism
<-50 -50 to -30 -30 to -15 -15 to -0 0 to 15 15 to 30 30 to 50 50+
Less More
Spending Spending
ENTERTAINMENT
y
an
ca
ce
a
a
ia
n
ri
in
rm
re
an
di
pa
ss
Af
ai
ly
il
Ch
Ko
In
Fr
UK
Ge
az
Ru
Ita
Sp
S.
Ja
Furnishing & Appliances
S.
Br
U.
SERVICES
Home Entertainment
Pet-Care Services Outside Entertainment
Fitness & Wellness Books & Print
Personal-Care Services Consumer Electronics
Gasoline
Vehicle Purchases
Short-Term Home Rentals
Travel By Car
Cruises
Adventures & Tours
International Flights
Hotel/Resort Stays
Domestic Flights
ADAPTING TO A NEW SET OF CONSUMER BEHAVIOUR #FATBITTECH
As many Asian Countries have started their recovery stage, businesses are still understanding how to function
during such times. Some of the many challenges that have impacted the retailers' supply chain are:
BARRICADED LOGISTICS - Transporting goods on long-distance or internationally has been affected due to border
closures or Shut down of logistics hubs.
SUPPLIER CONSTRAINTS - Supplier, are not able to maintain reliability as factories are closed and unable to get the
workforce needed.
BROKEN SUPPLY CHAIN - Due to ease in lockdown in many countries, a company may plan to re-open their
operations. However they are unable to function properly due to raw material missing and longer procurement time.
DISRUPTION IN DEMAND - Changes in consumer preference will mitigate a spike in some products while other
products will see a lack of demand ultimately.
Embracing these challenges as they are here to stay for a long time and understanding how to rebalance
the entire process is essential.
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ADAPTING TO A NEW SET OF CONSUMER BEHAVIOUR #FATBITTECH
SMBs have to focus on becoming recession-proof by understanding the product categories in-depth.
Creating a low price variant of essential goods that are either popular during the pandemic or
in-betweener category. Businesses also have to broaden their supply base and multi-source all critical
supplies in case the supply chain breaks. Assess your supply chain and logistical footprint to increase
flexibility, resilience, and capabilities in the long run and accelerate the role of automation in the
supply chain and in stores to facilitate resilience.
Use your store resources to make the experience of online shopping better for the customers. Let your
sales representative or any other resource manage your customer queries on social media. Integrate
gamification for the consumers to interact with the brand better and partner with influencers to reach
your audience directly. Use data to influence the newly acquired customers by nurturing them.
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ADAPTING TO A NEW SET OF CONSUMER BEHAVIOUR #FATBITTECH
Consolidate efforts to achieve a leaner organization coming out of the crisis. Assess the location and
profitability of your store network and understand the risk of store closure. This is the time to accelerate
automation and outsourcing. Overhaul the operational model to differentiate the capabilities to
reorganize the growth.
Identify small players as potential merger and acquisition while examining opportunities to verticalize
the business's supply chain. Ensure that you are ready for future disasters and set up a home office and
digitize your business. Also, move towards converting your business to an asset-light firm.
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Opportunities
In The Online
Sector
OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
Even before the pandemic hit the globe, these businesses were picking up
pace. The pandemic has accelerated the growth of these businesses, which
Wearable giant Fitbit
were relevant in the current scenario.
announced in a blog post
that it supports people
HEALTH & FITNESS APPLICATIONS
during the pandemic by
Been popular for the past 3-4 years but have picked up pace as people are not offering 90-day free trials of
able to visit their fitness centers or hospitals.
its Fitbit Premium and Fitbit
Health and fitness businesses have sprung to the opportunity and have started Coach services. The premium
offering their client's different ways to help them come out of
service includes more than
quarantine-looking for healthy ways.
150 workouts, while Fitbit
Wearable devices and health & fitness applications became popular as they Coach allows users to stream
provided a way for people to count their calories taken or calories burnt. Also, as
workout videos on phones or
people became more and more apprehensive about visiting the hospital due
to the virus's contagiousness, hospitals are rising to the occasion and providing computers.
consultation online.
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OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
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Use Cases Of Health And Pain Areas Of Health And
Fitness Application Fitness Application
> Food Calories intake counter > Heartbeat measuring > Security
> Calories burnt counter > Daily step counter > Complexity in integration and implementation
> Monitoring patients remotely > Diet consultant > Patients engagement and difficulty in usage
> Remote inter doctor guidance > Doctor appointment > Health awareness and literacy
> Personal trainer guidance > Doctor consultation > Engaging members to the app
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OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
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OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
ONLINE RETAIL
Amazon will likely remain a
Since people have become more and more cautious about going to a brick
favorite among investors as
and mortar store to buy products, consumers will increasingly prefer to
purchase products via online retail. With more and more niche-based the potential for a second
ecommerce multivendor websites coming up, people are spoilt by choice.
wave of the virus and more
Just some years ago, people were afraid to purchase online due to the risk of
lockdowns, can't be ruled out,
payment. Due to the innovation of advanced security and safety features, according to MarketWatch.
consumers are placing orders without any worry. Aspiring retail entrepreneurs
"And that's not bad news at
have to re-think their niche as consumer preferences, and spending has been
impacted heavily. Launching a niche-marketplace is much more profitable all for Bezos."
and safe compared to brick and mortar.
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Use Case Of The Pain Areas of Online
Online Retail Sector Retail Sector
> Personalized offers > Generating targeted traffic
> Product comparison > Converting traffic into customers
> Abandoned cart > Attracting repeat customers
> UpSell and Cross Sell > Understanding the system
> Loyalty Programs > Uploading products
> Managing and checking analytics
> Managing Payments
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OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
While the online grocery industry is seeing an upward trend from last year as it grew 22% in 2019, propelled by high
demand during the COVID-19, online grocery will surge 40% in 2020. This sector experienced "Panic Shopping" of
essential commodities and stockpiling of groceries and supplies for almost a year.
The predicted growth of 2020 was doubled in the first four months of the pandemic. People have stocked up essential
items, and this trend will not subside after the pandemic. Offline grocery businesses seeing the trend during the
lockdown period captured the opportunity to launch a single or multivendor grocery business.
There is a section of the population who are not accustomed to cooking at home, which is why the food ordering and
delivery website saw a massive surge. Primarily because of the measures these businesses are taking to ensure the
optimum level of safety and cleanliness. Temperature checking of delivery agents, cleanliness and sanitized restaurants,
regulation in dine-in, and contactless delivery have all contributed to the growth of the food ordering and delivery sector.
WHAT TO DO NOW TO SECURE THE NEXT Copyright © 2020 FATBIT. All rights reserved | 45
Yes. There is a surge in demand. You
know, one of the things that we're
trying to do is to be able to let our
people have some time off, to be able
to refresh. And by having more
associates, that allows the existing
ones to have a day off [and] be able to
work some regular hours. Because,
obviously, today it's a high-stress
environment
Rodney McMullen
CEO, Kroger
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Use Case Of Online Grocery Pain Areas Of Grocery
And Food Ordering And Food Ordering
> Perishable item purchase > Delivery and storage cost
> Non-perishable item purchase > Price fluctuation
> Dine-in reservations > Inventory management
> Food Delivery > Behavioral Changes
> Take away Food > Higher operational cost
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OPPURTUNITIES IN THE ONLINE SECTOR #FATBITTECH
E-LEARNING SECTOR
The schools and other educational institutions are closed globally due to the spreading of
COVID-19 infection at a fast pace. Parents being concerned about the half-left curriculum
was the primary reason for the rise of e-learning platforms. Due to the sudden closure and
contagiousness of the virus, the popularity of eLearning will remain intact the
post-pandemic era. The educational institutions have to shift to new trends.
Even before COVID-19, there was already high growth and adoption in education technology,
with global tech investments reaching US$18.66 billion in 2019. The overall market for online
education projected to reach $350 Billion by 2025.
Regarding Coronavirus and the popularity of eLearning, some believe that the rapid growth
towards e-learning will result in low user experience due to no training, insufficient
bandwidth, and less preparation. Leaders believe the new hybrid model of education will
emerge with significant benefits.
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Few sectors have been positively impacted by this,
so our focus has to be on acceleration. Almost 1.5
million students are forced to stay home, and online
learning is the only option for the time being. We
have made our learning material available for free,
and we have also scheduled free online classes to
replicate regularity of school sessions. We saw an
immediate 3x increase in the number of users, and
it continues to rise. Six million new students joined
the platform, and overall we crossed 50 million
students on our platform. Also, the time students
are spending on the platform has massively
increased.
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Use Case of Pain Area of the
Elearning sector eLearning sector
> Academic Learning > Staying up to date with technology
> Customer online training > Engagement of Students
> Employee training > Demonstrating complex information
> Workforce development > Time-zones and time constraints
> Channel Training > Rising competition
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OPPORTUNITIES IN THE ONLINE SECTOR #FATBITTECH
ONLINE RENTAL
Like the online retail industry, online rental has also been picking up in the last
few years. Many innovative business models have emerged in this industry, thus
making it widely accessible among people. This business is trending because
people are becoming more and more aware of the environment and want to
reduce their carbon footprint. They prefer to rent a commodity rather than
spending extra money and buying it.
Technology has contributed a lot in this industry, people use to rent items offline
too, but it has significant challenges that are becoming difficult to curb. The
online rental has reduced those challenges and has made it easy for people to
rent commodities that they do not need for a longer duration.
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We built the product and site to be really modular and also targetable by region because
you're right, the world will open up on different schedules with different restrictions and
permutations, and we want to make sure we can offer to people what is available to them. In
some cases, they might [be hampered by] travel within a certain distance, or air travel might
not be open, so we want to help people to find close things.
We're also building other pieces continuously, some in direct response to the crisis,
including a hub that communicates to our guests and hosts what's happening with travel
and what happens after the storm.
As a global company, we're pretty used to [adapting to change]. Of course, this is a different
scale.
Alex Schleifer
Chief Design Officer, Airbnb
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Use Case of Online Pain Areas Of Online
Rental Business Rental Business
> Product Rental > Managing bookings and payments
> Space sharing > Increasing competition
> Ride Sharing > Maintaining inventory
> Digital product rental > Security Functionality
> Skilled Labour Rental
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We must prevent inaction on climate issues while
fighting the coronavirus pandemic. If one virus
can wipe out the entire economy in a matter of
weeks and shut down societies, then that is proof
that our societies are not very resilient. It also
shows that once we are in an emergency, we can
act and we can change our behavior quickly
Greta Thunberg
Swedish Environmental Activist
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Technologies Accelerating
The Adoption Of Digital
Solutions
THE ADOPTION OF DIGITAL SOLUTIONS #FATBITTECH
Technology is one thing which is saving many enterprises from losing their business. If businesses
invest in the right type of technology, they will be able to retrieve themselves post-pandemic. These
are some of the technologies which are relevant now more than ever.
CONTACTLESS PAYMENTS - The government has been taking measures to increase social distancing
awareness and reduce physical contact as much as possible, resulting in a rise of ecommerce in some
segments like grocery, which has experienced panic shopping in both offline and online worlds. Efforts
are also being made to eliminate human contact, and the touching currency has triggered the rise of
contactless payments.
SOME STATS THAT DEPICT THE RELEVANCE AND POPULARITY OF CONTACTLESS PAYMENTS:
Even before the pandemic hit, the world was going more towards digital technology for payment
methods. Ecommerce has been a contributing factor in people becoming more inclined towards
online payments, thus the rise of new businesses in payment methods.
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THE ADOPTION OF DIGITAL SOLUTIONS #FATBITTECH
Digital payments via card or apps are so popular and widely accepted
that consumers have stopped carrying cash altogether. The range of
digital payment methods is increasing. E-Wallets can be used together
with the mobile payment system, allowing people to pay directly from
their smartphones. In the pre-pandemic world,
people were accustomed to
Example of businesses that have adopted Cashless payments - One
business that comes to the mind for cashless payment or perhaps the Flintstones-era retail, while
most famous modern-day example is Amazon Go. While in the initial days,
businesses are using technology
it was difficult for consumers to comprehend the cashier-less store, it
became popular ever since people have got the hang of it.
to streamline their experience
similar to the jetson-era.
Shoppers enter the Amazon Go Store and scan their application, and since
then, they are known to the store. Though it doesn't wipe out the
possibility of shop-lifting, security cameras and guards also don't prove to
be 100% effective in this scenario.
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THE ADOPTION OF DIGITAL SOLUTIONS #FATBITTECH
CONTACTLESS FULFILLMENT - While many Small and medium-size With logistics businesses closed, businesses found different
businesses had to close down their operations or shut down due to the ways to deliver products to users to ensure their safety and
Coronavirus. Some have tried to find the silver lining even during this crisis. faster delivery.
Those who survived during the pandemic understood the importance of
innovation and speeded up their fulfillment plans.
Example of business that followed contactless fulfillment - One
Retailers online or offline are navigating through the pandemic by sector that comes to mind when we talk about contactless
innovating supply chain and fulfillment issues. Before the pandemic hit the fulfillment is food ordering and delivery. The three stages of
world, delivery agents used to hand over the parcel to the customer and take order-fulfillment in a food ordering and delivery business is Food
a receiving signature. Still, now since social distancing is the new norm, Ordering, Food preparation, and food delivery. These three stages
delivery agents are leaving the parcels on the doorsteps.
are already changing to make the process with less human
contact i.e. contact-less. The delivery has already been
Buy Online Pickup in store and curbside pickup is another trend that has
streamlined to some extent, and people can easily choose the
been picking up before Coronavirus but became more popular during the
COVID-19 pandemic. To avoid delays in delivery due to logistics option of contactless delivery when placing the order. Zomato
management, people prefer to adopt this option to maintain social has already adopted this model and made delivery contact-less
distancing and keep themselves safe. by instructing the delivery boy to leave the order in a place where
the customer has mentioned.
Using Drones to deliver packages have seen the most significant advantage
during the pandemic, as it makes the human contact with the parcel very
less. Grocery stores, food ordering, and retail stores prefer this fulfillment
option as they do not have to depend on logistics for their delivery.
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THE ADOPTION OF DIGITAL SOLUTIONS #FATBITTECH
Now is the time, businesses are moving towards planning long-term and short term
strategies to improve fulfillment and logistics; many of them are considering to
implement automation and robotics in the warehouses. This will help eliminate the
risk of slowdown or shut down if the workforce is wholly or partly unavailable.
Labour and talent acquisition has always been an issue for the businesses who were
struggling to maintain a warehouse, manage inventory, and supply chain. To reduce
the spread of the virus, robots can be trusted for different industries across the globe.
Businesses that are using Drones to deliver during the pandemic - When the entire
state is on lockdown, people are wondering how to make their essential items
delivered from one place to another. Zipline, a California based Drone company, has
begun delivering COVID-19 test samples to two most significant cities that are Accra,
the national capital, and Kumasi - the country's second-largest city. It is also the first
time that drones have been used to deliver Covid-19 test samples. The new delivery
service allows the government to closely monitor and respond to the spread of the
disease in some of the country's most remote areas.
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THE ADOPTION OF DIGITAL SOLUTIONS #FATBITTECH
ARTIFICIAL INTELLIGENCE- This is the time for businesses to make Artificial Intelligence will enable machine learning by solving
a bold move by turning adversity into their advantage. Rather than problems and gaps that were done by Humans in the past. A.I.
heavily concentrating sourcing and production in a particular tools analyze large amounts of data, learning underlying patterns &
geographical location, industries will instead invest in supply chains. enable computer systems to make complex decisions, predict
human behavior, and recognize images and human commands.
Artificial Intelligence will become immensely valuable in helping
companies in changing according to this trend. AI-enabled Example of businesses using A.I. to combat Coronavirus - The use
platforms will give businesses a better stimulus for live working of Artificial intelligence in the drug development sector has been in
environment and create an on-demand labor force. A.I. will help the news for some time. Now that Coronavirus has impacted the
businesses better detect new consumption patterns and strategize world, this is the chance for this technology to prove it's worth. A U.K.
hyper-personalized marketing techniques. based company is known as a giant in the A.I. drug discovery
industry. The company has been using A.I. to repurpose all existing
Due to the uncertain and variable nature of the supply chain, approved drugs against the novel Coronavirus. Within a month, they
businesses have already adopted A.I. power to help during the narrowed candidates down to the six most promising molecules
current crisis. Now is the time to plan to adjust disruption in with baricitinib, a drug rheumatoid arthritis drug, being most
operations and supply chain, accurately allocate resources, and promising for treatment. They published their result in The Lancet,
adapt to a sharp change in consumer preference and priority. after which Eli Lilly got in touch and has now begun clinical trials in
the U.S.
WHAT TO DO NOW TO SECURE THE NEXT Copyright © 2020 FATBIT. All rights reserved | 60
How FATbit's Products
Are Future-ready And
Can Help You Come
Out As A Winner
After The Crisis
Let’s create THE NEXT Now.
To help our clients navigate through the business impact of COVID - 19, we have a platform that will help you quickly take your business to the internet. Every
product is for industries that are going to be popular now and next when the pandemic is over.
edge in the continually a seamless user to capture the current platform to capture the
evolving world. experience. market profits. market trend.
Know More Know More Know More Know More Know More Know More
WHAT TO DO NOW TO SECURE THE NEXT Copyright © 2020 FATBIT. All rights reserved | 62
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https://www.thehindubusinessline.com/news/mckinsey-paper-offers-insights-on-how-businesses-can-navigate-the-new-normal-post-covid-19/article31233666.ece
https://www.globenewswire.com/news-release/2020/04/27/2022157/0/en/Pharmaceuticals-Market-to-Reach-USD-1-310-0-Billion-in-2020-Eruption-of-the-COVID-19-Pa
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https://www.businesswire.com/news/home/20200416005739/en/Impact-COVID-19-Video-Conferencing-Market-2020--
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https://www.bcg.com/publications/2020/business-applications-artificial-intelligence-post-covid.aspx
https://hbr.org/2020/03/delivery-technology-is-keeping-chinese-cities-afloat-through-coronavirus
https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/649341/EPRS_BRI(2020)649341_EN.pdf
https://www.newscientist.com/article/2238831-greta-we-must-fight-the-climate-crisis-and-pandemic-simultaneously/
Contributors
WHAT TO DO NOW TO SECURE THE NEXT Copyright © 2020 FATBIT. All rights reserved | 65
ABOUT FATBIT TECHNOLOGIES
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Disclaimer: This document is pertinent as of the initial date of publication and may be changed by FATbit technologies at any time. This report is
intended for general guidance only. it is not intended to be a substitute for detailed research or the exercise of professional judgment. FATbit shall
not be responsible for any loss whatsoever sustained by any organization or person who relies on this publication. The data used in this report
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