We’re officially on Day 14 of intensive quarantine – at least for my household – and the impacts of this pandemic have yet to be fully realized.
Clearly, the global markets, both public and private, are experiencing unprecedented turbulence. The stock market in particular has been dealt blow after blow since COVID-19 first made that fateful jump from animals to humans.
There’s a lot about this story we simply don’t know; all we can do is wait and see, and do everything in our power to keep ourselves and our neighbors safe.
But there are some bright beacons of hope to be found, if you know where to look. For example, there are actually a few types of companies that are benefiting from these unusual times – and plenty to learn from them, too.
Let’s dive right in.
Enterprise productivity software
With hundreds of millions of people working from home, many businesses have had to scramble for solutions to keep things up and running. This has led to a substantial boost in users and revenue for companies like Zoom, Slack, and Microsoft Teams – all services that help groups communicate.
We’ve also seen increased activity in other parts of the “work from home” catalogue, including ecommerce stores for streamlined, modern desks; cloud storage, like Google Drive, Dropbox, and Box; productivity tools like Trello and Evernote; and much more.
D2C (direct-to-consumer) ecommerce
The simple truth is that most Americans have much more free time on their hands right now… and they’re running out of ideas for how to use it.
In other words, they’re bored. And what do people do when they’re bored? They online shop, of course.
D2C, or direct-to-consumer, brands are seeing sharp upticks in sales and engagement in recent months. We’ve seen this effect in all kinds of industries, from apparel (Allbirds, Rothy’s, Bombas) to subscription boxes (StitchFix, Birchbox, FabFitFun) and more.
There are two driving factors at work here: boredom and fear. Not only do people have much more time and space to ruminate on their lineages lately – but living through a global health crisis has caused many people to dig more deeply into their own health.
Genealogical services, like 23andMe, AncestryDNA, and MyHeritage are seeing modest boosts in sales as more and more people stay home – a very welcome change after many months of decline in this sector.
People are also increasingly turning to healthy meal delivery services (HelloFresh, Healthy Harvest, and Blue Apron, to name a few) as their day-to-day nutrition becomes more important. (Not to mention avoiding the grocery store.)
If you broaden this category even further, you’ll notice an upward trend with companies that provide virtual workout classes, like Wellbeats, FitnessOnDemand, and Peloton.
So what can we learn from these companies? The main thing is the critical importance of serving consumers where they are – stuck in their homes. This could be the new normal for weeks… or it could be months. Adaptability and willingness to pivot is perhaps the most important quality to look for right now.
What are some other companies you’ve noticed doing better than usual lately? Let me know in the comments below.
We’ll talk soon.
Until next time,
19 responses to “3 Types of Companies that Are Actually Thriving Right Now”
April 03 2020