Despite periods of economic downturn, several industries continue to prosper and thrive. Learn how your business can uncover the key to success from these growing industries.
How is it that certain industries are able to perform at a high level and even grow regardless of economic conditions? Whether you’re looking to scale your business, enter new markets, or diversify your product offering, take a lesson from these four industries to understand the keys to building long-term success.
1. E-Commerce
The shift to online retail and at-home services has exploded in the past few years, as consumers are finding more companies with digital services at the tips of their fingers. With customer preferences gravitating to the convenience of online services, traditional brick and mortar businesses have had to adapt and explore ways to meet changing customer needs. Companies that have successfully made the transition to online products and services are reaping the rewards moving forward. It’s predicted that U.S. retail e-commerce sales will grow 13.7% in 2021, reaching $908.73 billion.1
Embracing a digital-first business model isn’t just for high tech products and services. For a good example, look no further than the Book of the Month Club. Originally founded in 1926, the company was an innovator in book distribution and marketing as it identified and met a critical need for its target audience: access to the latest “good reads.” With limited access to libraries and bookstores for many readers in 1926, the concept of receiving books through the mail at discounted prices was an instant success. The business model worked for decades.
However, while there are still plenty of book lovers to reach, their expectations have changed since 1926 and competition from online book sellers has grown. In 2015, the Book of the Month Club re-launched as an online book subscription service. In identifying the best way to connect with and serve the needs of a new generation of customers, millennial women, they are poised for growth as they approach 100 years in business.
By examining your target audience, their needs, and the value your business delivers, you may identify opportunities to expand your offerings to online distribution channels or to add digital products and services.
2. Cybersecurity and cloud computing
As more transactions and data sharing activities are taking place online, worldwide spending on public cloud services is forecasted to grow 18.4% in 2021.2
The migration online of many aspects of our day-to-day lives has increased the risk of cybercrime and exposed businesses to a variety of digital threats, from phishing to malware to ransomware and more. And yet our personal and professional reliance on online services will only continue to grow, driving increased demand for trusted cybersecurity partners and reliable cloud-based service providers.
Companies like PerimterX have identified opportunities for growing their business and have expanded their business offerings to meet this growing need. PerimeterX serves the e-commerce industry with products that protect websites and apps from human and bot attackers. In the past year, they’ve launched a range of new services to meet the needs of clients, including a suite of modules to protect websites and APIs, integrations with cloud service vendors, new validation technologies, and protections against some of the more sophisticated attack types emerging online. By identifying how they could better service their growing customer base, PerimeterX has grown its customer base by 60% in 2020.3
By staying on top of (or even ahead of) the needs of your customers, you may be able to attract new ones as you find new ways to deliver value.
3. Telehealth
Telehealth is here to stay, as a record number of healthcare providers began offering remote visits in 2020 in order to reach patients during the COVID-19 pandemic.4 These services were critical to meeting the healthcare needs of many patient populations at risk for COVID-19, including older patients, which accelerated demand for telehealth solutions seemingly overnight. However, telehealth is not merely a short-term trend. It’s an industry on the rise.
Globally, the telehealth market is expected to expand 22.4% from 2021 to 2028.5 The applications of telehealth go far beyond pandemic-related check-ins. One of the most promising is easier access to mental health services, therapy, and counseling, which many people will continue to seek in the aftermath of a very challenging and traumatic year.
Talkspace has become a leader in the telehealth industry, following its launch in 2012 as a comprehensive mental health services company. The platform launched in a market where one in five Americans suffer from mental health challenges and less than half of them receive treatment due to costs and the stigma around mental health diagnoses and treatment.6 Talkspace recognized this sizeable market need and created a solution that provides cost-effective therapy and easy patient access, which has now reached over a million people.
For small businesses looking to disrupt their industry, look for unmet needs and novel ways to serve customers.
4. Logistics and transportation
The logistics and transportation industry certainly earned its “essential” status for keeping society up and running during the pandemic. While much of the industry stayed strong to meet unprecedented demand for home delivery during the pandemic, some challenges emerged for segments focused on struggling industries. Going forward, industry analysts predict the market will recover as a whole in 2021 and expand through to 2024.7
Given the projected growth trajectory of the global supply chain market over the next few years, companies who have identified the need for innovations to keep up with demand are positioned well for long-term success.8 Pre-pandemic, artificial intelligence and machine-learning technology was poised to keep improving the industry by speeding up productivity and using resources in a more cost-efficient way.
Convoy, a digital freight network that uses machine learning, automation, and other software services to efficiently connect shippers and carriers, established its business in 2015. Convoy saw a significant gap in the freight industry, one of the largest industries in the U.S. Convoy has solved for a common issue in supply chain management: connecting shippers with carriers efficiently, to minimize waste of materials/goods.
Similarly, small businesses can look to opportunities to implement their services and solutions to address common pain points in their own industry.
Adapt to find growth and prosperity
Whether your business is experiencing a period of uncertainty or you’re looking to capitalize on a new opportunity, being creative and willing to adapt to changing conditions will help to set your business on the path to long-term success.
Feeling inspired? Contact your Relationship Manager or get in touch with Santander Bank today to discuss your next big business innovation.
1 eMarketer. US Ecommerce by Category 2021. April 27, 2021.
2 Gartner. Gartner Forecasts Worldwide Public Cloud End-User Spending to Grow 18% in 2021. November 17, 2020.
3 Fast Company. The 10 most innovative security companies of 2021. March 9, 2021.
4 HealthcareIT News. CDC: Telehealth visits more than doubled in March 2020. November 2, 2020.
5 Intrado Globe Newswire. Global Cybersecurity Market Size to Grow at a CAGR of 12.5% from 2021 to 2028. March 17, 2021.
6 PR Newswire. Telemedicine Market Size Worth $298.9 Billion By 2028 | CAGR: 22.4%: Grand View Research, Inc. March 9, 2021.
7 Intrado Globe Newswire. Global Total Logistics Market Report 2021: Market is Expected to Grow by 4.7% Through to 2024. April 27, 2021
8 MH&L. Supply Chain Analytics Market to Grow 15.8% Annually Through 2024. October 21, 2019.
This article is intended for informational purposes only. Readers should consult their own financial advisers, attorneys or other tax advisors regarding any financial or tax strategies mentioned in this article.
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