As the global pandemic Covid-19 spreads, analysts are predicting a contracting global economy. For nations that have witnessed some growth, this could be a long and painful economic period. But recession has always not been a bad thing. The Keynesian economic theory got popular and acceptance during a recession. Hewlett and Packard (HP) makers of computers, printers and other accessories was founded during a recession. Disney brothers started their company during a recession and thereafter, gave us the classic Snow White and the Seven Dwarves.
Recession comes with pains. Pains make people look inward and see underutilized opportunities. Recession takes away jobs. It also takes away earning powers since people are not earning enough or unemployed. The coming recession won’t be different as the US is having its highest job claims ever in about 30yrs. This means companies do not have capacity to make payroll and employees do not have means to meet obligations like rent and basic needs. This ushers in a cycles that sometimes could lead to depression –a persistent cycle of recession quarter after quarter. It is not all doom and gloom after this protracted lockdown.
Regardless, there are products and services expected to experience some growth despite slow global economic growth or outright recession.
Researchers have found what’s known as the Lipstick Effect. Basically, it says women spend more on beauty products and clothings despite being frugal on other items even during economic downtime . This is according to research on the Journal of Personality and Social Psychology. The import of this is, looking good as a need defies economic laws. People need compliments, compliments boost self-esteem and self-esteem is needed for personal success.
For makeup professionals and players in the entire value chain, this is a good time to get creative with value offerings with the right price points for different demographics.
Therapists / Fitness Instructors.
Lack of sunshine has been found to cause illnesses including depression. Startups and businesses that find means to effectively reach people under this current lockdown may be on the path to earn lifetime customers. The reason being humans are animals of habit. A startup that creatively gets its product or services used this period may be on an upward trajectory. Fitness startups like Tonal and Peloton are better positioned to start new customers journey during this lockdown.
The psychological demands of present working conditions have turned partners to strangers. Work and internet devices now seek and have more attention than our partners. Dating is now done online before offline. The notifications from our phones have replaced physical, human contact. But these have changed. The current lockdown is reintroducing people to themselves. It is making us have some conversations we have avoided or replaced with work.
Some of these conversations could have bad outcome after this lockdown. We would witness a reevaluation of some of the relationships we hold dear after this. The family dynamics may witness some readjustment going forward and services of divorce lawyers may be called to the rescue.We could witness a renegotiation of marriage terms after this period.
Labour and Employment Attorneys
Employers were not prepared for the economic impact of this pandemic. Companies have laid off, furloughed and reduced salaries to keep the lights on. We could see a spike in employer/employee litigation as both parties fight off an infringement on their respective rights. Contracts of employment and work handbooks would need a review post-Covid-19. Employees may seek further protection against future cases. Companies on their part may explore other forms of compensation going forward.
Angel and Early Stage Investors.
For this category of investors, the period after the pandemic presents two golden opportunities: startups out in the market to raise fresh funding rounds as the pandemic would have changed business models and shaved off value caps and new companies being founded and looking to raise early seed rounds. With an envisaged poor economic outlook, capital will either become too scarce or expensive.
Mental health has finally received the needed attention it deserves starting early last year but the current pandemic has made it a need. Therapists in different niches in the mental health segment have their opportunities cut out for them. Caregivers, children, the elderly will be in need of some form of mental nurture as we gradually ease into normal life once again.
Short Term Lenders
One of the casualties during this pandemic is economic productivity. Companies at some point have had to either let employees go or cut wages. Some went into furloughs. The working class have had to dig into their savings and 401Ks to sustain expenses and lifestyle .It could be worse for economies with a huge informal base.
After the pandemic is over, we would witness a working population with a battered savings balance. Here’s where the short-term lenders come in. Lending platforms with compelling interest rates and products are definitely going to get some attention. You may wonder how long this lasts. For fast growing economies with an industrial economic base, we may witness this slow growth for 2-3 quarters before significant growth kicks in. However, for the weak economies without some stimulus packages and safety nets coupled with an erased growth chances, it could stretch into a whole year or more.
One thing the pandemic has afforded many is reflection. The bustle of everyday life made many to miss out on the opportunity to reassess their businesses, careers, life, side hustles and relationships. For some companies, the huge dent on their bottonlines during this pandemic would lead to a reassesment of their business strategy . Human resources and line managers are going to make hard choices on the nature of roles at work.
As we leave Covid-19 behind, a lot of us will become germophobes. This inadvertently creates job opportunities for telemedicine practitioners, online fitness instructors and teachers. The internet has once a game taken some steps towards us and this time, we don’t have much of a choice but to embrace it.