Online Marketplace Gets Impetus for Growth From the Population Practicing Self-Quarantine During COVID-19 Pandemic, Says PMR
Date : Apr 21, 2020 Author : PMR Editorial Staff Category : Technology
The COVID-19 pandemic is progressing at an unprecedented rate, creating an imperative for the governments and different organizations to take action to stabilize the economy.
The COVID-19 pandemic is progressing at an unprecedented rate, creating an imperative for the governments and different organizations to take action to stabilize the economy. Social distancing and self-quarantine to prevent community spread of corona virus are developing new habits and behaviors in consumers. While B2B commerce is experiencing a downturn in growth and revenue, B2C segment has emerged as a major revenue generator and trendsetter in the market. Though the latter has emerged as a major driver of growth across different sectors, the insufficient supply is inversely influencing the B2C commerce segment for different commodities.
Participation in Online Communities Soars
Online communities are one of the most affected online marketplaces in the COVID-19 pandemic influenced lockdown. With major consumers restricted in their homes, participation in online communities has increased exponentially. The growing culture of remote working is boosting the adoption of social media among enterprises. The involvement of online portals and platforms in real-time business conversations is paving the way for the growth of online communities. Content analytics services are witnessing a major hike in demand owing to the increase in adoption by different organizations and enterprises to monitor social activities related to their services and products. PMR predicts small and medium-sized companies as major market influencers as they are expanding the market with their entry.
New Online Opportunities Arise With Lockdown
Online tutoring is the other market that is gaining popularity owing to its attributes such as autonomous and flexible learning. The large home-based student population is adapting to this technique to complete their course in time. While many schools are waiting for the COVID-19 pandemic to get over, the higher level education segment has progressed in this direction. PMR highlights the educated adult population as the primary consumers since they are enrolling in new courses to productively engage the free time during the COVID-19 home restrictions.
Advertising Sector Expands During COVID-19 Lockdown
The rapid growth in popularity of the online market place is adopted by nearly all the companies in all the domains. Substantial growth in consumer's online presence has compelled the companies to strengthen their online market presence. Its implications are felt by agencies associated with online advertising such as Search Engine Optimization (SEO) and Search Engine Advertising (SEA). The significant surge in internet users during the COVID-19 pandemic is positively influencing the online advertising market place and its associated components. Demand for website developers and advertisers has shot up, creating growth opportunities for established and new market players.
E-Pharmacies Gain Prominence
Online pharmacies also queue up in this line of beneficiaries. Owing to the restricted movement, online orders for medicines have substantially increased. PMR report projects masks and hand sanitizers as the major commodities generating major revenue in the online pharmacies market during the COVID-19 crisis. With the extension in the lockdown period, people are approaching telemedicine and e-pharmacies for their queries and medical needs. The emergence of corona virus has raised the significance of immunity, compelling the consumers to place online orders for immunity building supplements and products. Online pharmacies are anticipated to grow at an exponential growth rate during this period.
Ease Of Delivery Encourages Online Orders
Lockdown is also creating growth prospects for online food outlets. The restricted outdoor activities have shifted the consumers towards online food delivery. Besides people ordering food on special occasions, the remotely working population has emerged as the major consumer segment. With no house helps, the working population lacks time for cooking activities which is driving them towards online food orders. With an increase in online orders, many other restaurants are focusing on their online presence. Increased participation of food outlets in the home delivery model is propelling the growth of the market. This surge is expected to have a direct influence on the food packing industry which is flourishing in the COVID-19 pandemic.
Online Demand Declines For Non-Essential Commodities
However, amid the scaling online marketplace, the online apparel sector is undergoing a stagnant phase. Factors such as social distancing and stringent regulation regarding movement are inversely influencing the business for apparels. Governments of different regions are restricting the delivery of non-essential goods, creating a challenge in the online apparel market. Moreover, a high rate of unemployment and job losses have significantly diminished the purchasing power of consumers, driving them away from spending on non-essentials. PMR forecasts the current situation to recover with the end of the COVID-19 pandemic.
Growing penetration of the internet and increasing adoption of home delivery models have emerged as the major market growth determinants. Changes in consumer preferences and behaviors during COVID-19 crisis is expected to have a long-term impact on the market. With the demographics getting accustomed to home delivery services, the demand for online commodities may eventually increase in the coming years.