The pandemic severely affected many industries, which resulted in massive losses. Although many businesses could adapt to the economic threat and have since changed their business models, others were forced to shut-down due to severe disruption and dislocation.
The unprecedented event caused panic, uncertainty, and a lackluster level of confidence in business buyers worldwide. It seems that the worst of this pandemic has passed. As the pandemic subsides, industries are slowly opening up, and businesses are learning how to operate in a post-pandemic environment. It’s essential to evaluate which companies you are interested in carefully.
Many growth industries will thrive and survive in this post-pandemic period. These are the four growth industries you need to be aware of to meet your business acquisition goals.
E-commerce allowed businesses to survive the pandemic, but it also opened up a world of opportunities for entrepreneurs. Amazon reported they had employed 175,000 associates to help them increase their employee pay and had spent $350 million on this investment. E-commerce made this possible.
This is excellent news for business buyers looking to invest in a growth sector that has been a strong performer during Covid-19. It will not only survive but will also thrive in the post-pandemic era. Customers feel comfortable shopping online and transacting there.
Consumers return to in-person shopping because of their strong desire to interact with others. Harvard Business Review states that e-commerce will continue bringing success to business owners but not their sole revenue stream.
Omnichannel strategies allow for good diversification of revenue. 38% of respondents said they would like to shop online and visit physical stores. Business buyers need to look at and evaluate businesses that offer both e-commerce and brick-and-mortar stores for customers to shop.
Fast Food Franchises
Fast food was one sector that showed resilience and continued growth. After the pandemic, the fast-food industry was forced to look into automated options, digital ordering, and contactless delivery services.
Fast-food franchises will thrive in the post-pandemic era. The U.S. Chamber of Commerce lists 7-11 Domino’s Pizza, Popeye’s, Wingstop and Popeye’s as franchises that have adapted their business models to consumers by focusing on online food delivery, automation, and third-party food delivery.
Online food delivery is changing rapidly at a rate that will change the landscape of the global food industry for the better. Experts predicted that online food delivery could reach $200 billion by 2025, just prior to the pandemic. This sector had grown faster than expected after Covid-19. McKinsey & Company noted that food delivery was worth $150 billion by 2021.
The sector saw an astonishing 8% growth in the United States. Although customers feel more comfortable dining out in person, many people still prefer ordering online. The 2021 report of the National Restaurant Association shows that 37% of adults prefer ordering online takeout or delivery, while 32% are less likely to eat in restaurants because they have to follow continuous health protocols.
The pandemic ultimately allowed people to enjoy the benefits of food delivery. It allows you to order restaurant-quality food from your home. Business buyers need to consider the growing demand for this sector and its potential market growth, from GrubHub through UberEats.
During this pandemic, virtual events proved to be a welcome pivot for event companies. It allowed meetings and conferences to be held remotely, without affecting business operations. Although companies are slowly moving to in-person events after the pandemic, virtual events will likely still exist and thrive by creating a hybrid model.
From Impact XM’s senior vice president of client development, John Capano shared his belief that a hybrid virtual and in-person model would dominate the industry. This is a positive sign for virtual service providers that can co-exist with physical workspaces. It also offers buyers in this sector a model of success.
Industries are gradually moving to a post-pandemic world. It is vital to track which industries are still relevant and which ones are in decline as new business models emerge. The goal is to purchase a business that will survive and thrive in the new global market. These businesses are the most likely to grow and develop.