Despite closures elsewhere, opportunities for market expansion exist in technology and hygiene:
- Online Shopping: In addition to the major online retailers – Taobao and JD – local supermarkets are also starting to operate their own website or apps. They can deliver within two hours, faster than the major retailers because these are often closer to the shoppers’ homes.
- Online Education: Most children didn’t previously take online courses, but now it is all online for the time being. However, parents are concerned about eye strain and the difficulty of learning, as children might be less focused when they don’t have face-to-face contact with teachers. Even subjects like sports, piano, dancing, and drawing – which aren’t considered typical avenues for online learning – are being taught remotely because there is no other option. In many cases, different apps are required for each course, which could lead to greater adoption on a permanent basis, particularly for electives and tutoring that takes place outside of school hours.
- Electronic devices (e.g., tablets, laptops, desktop computers) are needed by remote workers and students alike. Families that previously had only one such device to share now find that they need more or versions with larger screens so that the children can study at the same time the parents work.
- Online payment: Consumers are encouraged to avoid using cash for the time being because it might carry the coronavirus. Plus, with contact-free deliveries, payment must be made remotely rather than be given to the delivery person. Even older generations are learning how to use these options. This might be the nail in the coffin for cash among many younger people who were already preferring credit/debit cards and mobile payments.
- Hygiene Products: Hand soaps, face masks, wipes, hand sanitizers with at least 60% alcohol may see just a short-term increase, but the virus may also cause consumers to develop new habits, as is what happened in areas that were hard hit by SARS.
- Medical products, especially forehead/ear thermometers: With increased vigilance, consumers and various businesses and public agencies are checking workers and visitors on a regular basis. These products are more hygienic and faster for testing a lot of people, and are therefore poised to see fast growth.
For more information, see The Freedonia Group’s Industrial & Institutional Cleaning Chemicals, Global Nonwovens, and Global E-Commerce reports, as well as information from our sister published Simba Information (e.g., Electronic Education Report Newsletter). Freedonia Custom Research is also available for questions requiring tailored market intelligence.