2020 has been a year when lots of businesses suffered and had significant drops in demand. All of the restrictions, travel bans, closing shops, cutting off employees made the situation quite a hard one to overcome. Each and every service had to think of revolutionary ways to get back in competition and not lose their investment of time and effort. With nearly a year of practice on fresh business strategies, below are the industries that are likely to dive more into trouble and those that will succeed in 2021.
You will discover throughout the article the key components for failure and success of businesses in 2021, whether it is risky or not to invest money into this or that sphere.
On the positive side there is the business of fashion, gaming industry, streaming services like Twitch / Netflix and housing markets. Restaurant business, however, continues to suffer along with the traditional sports. Click To Tweet
BUSINESSES TO FAIL
Food Industry and Restaurant Business Will Suffer in 2021 Because of COVID-19 Safety Concerns
Food industry is one of those where businesses may not have a dominant position, possessing as low as the 0,05 percentage of the global market of their field. But around the course of a year their revenues can reach millions of dollars, if not billions.
The complete lockdown is something very dangerous for some consumables business. Take for example the coffee producers from Hawaii – Kona coffee and Ka’u coffee.
Their growth in revenues in 2019 was their last chance of success, as since the pandemic started by the end of the harvesting season, millions of pounds of coffee beans had to remain in the warehouses. They could not deliver their products internationally and the local demand significantly decreased too.
They make hundreds of thousand dollars on visitors that decide to come to a tour on these islands annually. When the product remains in warehouses for a long time, it becomes devalued and the further deals are not as high in profit as they would be straight after harvest.
Luckily, Hawaii is now open for visits, but if in the future another lockdown happens in this area it would be much harder to overcome for everyone involved in the coffee business, from farmers to local coffee shops.
WHAT ABOUT THE RESTAURANT BUSINESS
Another branch of the food industry – restaurant business – unfortunately was not ready to face the global pandemic consequences too, and restaurants in most parts of the world were shut down.
The reason is simple – it is not allowed to gather for occasions in order to keep safe and not get infected. This became the reason why many restaurants chose the hard way of keeping their services running in the background and delivering meals to the client’s door. Reports show customers are happy to taste their favorite culinary masterpieces and everyday snacks by order.
You can agree that it saves time, but eating practices are quite different when you are in a restaurant rather than home.
The strategy of converting the restaurant business into a ghost kitchen is also a fragile one. No one can surely say that ghost kitchens are a sustainable choice for meal delivery. While managing a ghost kitchen it is easier to save money, spending less on additional workers that are needed in restaurants.
On the other hand, they need some third party from time to time for the logistics of food deliveries all over the country. In this type of strategy it is better to have one main supply point, where trucks will be loaded for accomplishing the orders.
For this type of service, popularity is an important factor. In 2020 many ghost kitchens popped up in different parts of the globe and now people need more detailed information to see if they will be happy to turn to restaurant dining alternatives in 2021.
To gain the trust of the consumers, the restaurant business needs a costly approach. People trust resources of popular brands, so in the food industry partnering with a popular gastronomy brand is going to be a key factor. The problem is – what will those brands require to provide some service to a ghost kitchen? Certainly – not a small amount of bucks.
Professional Sports and Entertainment
The Pain of Sports and Competition Fans: Traditional Sports Stopped for Safety Issues
The competitions that had lots of spectator guests had to halt for some months the favorite events of the weekend. Football, basketball, boxing and other traditional sports associations lost significant amount of money because they did not sell any tickets. Plus, there was no betting accordingly, which is allowed in most countries.
As we transition towards 2021, many traditional sports still cut the number of fans that are allowed to enter the event halls, stadiums etc. So associations will take longer to get back their proper levels of funds.
BEST BUSINESS IDEAS IN 2021
Boost in Demand for Housing Markets, Gaming Industry and Virtual Shows from Fashion Designers Will Set New Achievements for Business Owners
The farewell to 2020 will be a lucky thing to happen to all of the businesses. Even for those which have been thriving during the COVID-19 breakout, as 2021 is full of promises.
One of these spheres is the gaming industry, which not only was a leisure for millions of people, but also a great chance for investors to further develop digital entertainment, which seems to be on a whole new level now. With a constant growth of the engineering solutions and the high demand of virtual innovations, there is a certain path brands follow to achieve success in 2021.
BUSINESS IN GAMING INDUSTRY
The gaming industry is divided into several sections. In 2020 every type of it has seen major profits – from mobile gaming to extremely powerful computer hardware. The gaming industry also includes online casinos and it is the number of people engaged who keep this business on the grooming list.
In the span of a decade, the gambling sphere has seen a growth in revenues from 8.4 billion GBP to 14.4 billion. Over 80% of the profit came from remote gaming, which indicates the importance of digital forms of entertainment especially in the year of less face-to-face interactions.
A great deal for further increase in usage of online casinos and mobile gaming is the access to the internet. Free wifi in public places is just a heaven for young adults and teens.
What is more, sports fans also tend to turn to eSports, as there was a period in 2020 when no competitions were held worldwide. Up to date, in big games like football, there are still very few attendants to support their home team, as associations decided to keep fans safe from the risk.
In addition to the mentioned reforms, there have been innovative approaches too, where developers emerged blockchain technology with the gaming industry, and both look good in cooperation while hoping for the best in 2021.
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Twitch and Netflix Save so Many People from Boredom that their Demand is Going to Be Super High in 2021 too
Talking about gaming, another related branch comes to mind – “let’s plays” on Twitch. Twitch has been grooming in 2020 and even in 2019. The lockdown put a lot more focus on this streaming service, where fans watch their favorite net people play various genres – shooters, sports games, simulators, horrors etc. Watching livestreams is more intriguing than watching a replay of a pre-recorded video.
That is because live reactions from the Twitch streamer make spectators think they are a part of something unexpected. People who play on Twitch stream get sometimes crazy amount of money from donations. Luckily, generous spectators are numerous nowadays, though these streamers also might have millions of subscribers that spread the fame further.
Those who are movie and series fans could not ignore companies like Netflix, Amazon Prime or HBO during the pandemic. They put on the screen trendy films from the best filmmakers and the most anticipated series of the year. These services are popular among people of many ages – from teenagers to mid-aged and even above. Having a yearly subscription to these streamers has certainly been satisfying for those who were bored in the isolation.
HOUSING MARKET IN 2021
Housing Market has Never Been so Valuable since 2006 and Investors Cannot Wait to Get a Preferred Property
If you are looking for Investments and don’t know where to start from it is better to look into the housing market in 2021. Home prices have gone high in the past several years. During the last decade there has been a significant growth in prices for apartments, penthouses, mansions and other properties.
Real estate seems to have a hard time providing enough to customers who are ready to pay extra cash in order to get their new property as soon as possible. That’s because the constructors need some longer time for better appliances to those bespoke dwellings. According to experts these prices will grow and grow but they will not be going up in the same pace as they do in 2020.
Housing market prices vary from location to location. If you’re looking for a property in the United States for example, the price you have to pay for a couple of rooms might be higher than for a similar property in Europe. What is more-prices vary between the country states too.
Somewhere it can be a growth of 7% while in another place it is up to twelve percent. This level of growth has not been so significant since 2006. It is important to mention about the interest in obtaining a residence in private and hidden locations away from people. Thus there is a higher safety level for properties that are trendy in the housing market.
THE BUSINESS OF FASHION
Business of Fashion will Express Itself and Benefit Highly from Digital Shows and Online Auctions
COVID-19 made fashion representatives put more effort into creativity, as the digital sphere is all about the right settings and angles of capture. The profits in 2020 have been embarrassingly low. But one should not blame the industry workers solely. Chasing the new normal, the business of fashion has proper chances for a boom that will help the industry get back on wheels in 2021.
In means of focus, predictions look promising first in the target area of Asia-Pacific. Here e-commerce services and e-tails have been surging in 2020. It is the problem of every business to maintain the rules of safety in the pandemic period. Business of fashion points out key principles:
- More purchase does not always mean more profit. The demand focus is on maximum level for the best boost.
- Maneuvers are a must and making right decisions in the buy and sell of stocks should be done carefully.
- “Supply chain” is the superword for maintaining deeper partnership
- To improve the ROI, being retail-centric is a great decision, rather than leaning on landlords.
- Mixing the work from home with on-premises approach can be productive enough to dedicate investments to reskilling.
Chained services, as a result, play a great role in keeping the sustainability vivid . However cutting on the open stores permanently has been a pain for many big brands. The latter use artificial intelligence to scrape data from records of what customers prefer. Even though the path is vague for people who have little knowledge about the business of fashion, the professionals see exciting chances of sales growth in 2021.
As a final note, we can state that the spheres like business of fashion, housing markets, streaming and gaming industry are the best opportunities to invest in, while one should be careful when considering traditional sports, food industry and restaurant business.