Within the sad situation we have had to overcome because of COVID-19, with numerous human and economic losses, there have been companies that have found a chance to grow. “When there is a crisis, some cry and others sell handkerchiefs”, as that famous phrase says. However, in this aspect there are three key points to keep in mind for why they have managed to grow: the fact that the demand for a product has increased during the crisis, that they have been able to refocus their production towards products with higher demand or that they have been able to redirect their strategies, in such a way that, although they have not sold today, they have obtained potential clients to whom they will sell tomorrow.
Today we review some of the main companies that have found in the COVID-19 crisis an opportunity to increase their sales and strengthen their position in the market. Discover some of the millionaire figures they have achieved:
The food sector has generally grown in the face of this exceptional situation. Mainly for being in charge of supplying basic necessities, within this sector we also include supermarkets, take-away food platforms and some home delivery businesses, which have seen their popularity increase.
- Mercadona: The Juan Roig chain monopolized 39.2% of purchases in supermarkets during the two weeks of confinement, increasing its sales by 14% during the month of March. However, it reduced its benefits by 95% compared to the same period of the previous year, due, on the one hand, to the increase in costs for adopting exceptional measures in the context of the health crisis, and on the other, to various donations for the fight against Covid-19, which have placed the company among the most valued by Spanish consumers.
- Wetaca: As the company has reported, they had a 50% increase in the number of orders during the confinement, going from 3,500 weekly to 4,200 and the average order increasing by nearly 30%. They claim that new customers have repeated orders in these weeks in a higher percentage than usual, by 52%.
- Glovo: the platform has become an important lifeline for local commerce, which in recent weeks would have increased its sales through the app by 90%. On the other hand, daily orders shot up around 48%. All of them without taking into account that many supermarkets, pharmacies and parapharmacies have benefited from this service.
Digital platforms and online tools
Without a doubt, the big winners in this time of confinement. Without being able to leave home, regardless of whether their use was for leisure or work, the technology companies that offered their content or tools online have found an audience willing to spend hours connected to them.
- Netflix: One of the big streaming platforms, it has increased its share price by 15%. Before the coronavirus crisis erupted, the platform expected to add 7 million subscribers, but finally the number has shot up to 15.8 million (more than double).
- Tik Tok: TikTok has become the application of confinement, with an increase in users of 133%, compared to January, currently totaling 5 million and a half of ‘tiktokers’. During the confinement, a total of 32.7 million users, of whom have invested more than double the time than they used to in these applications. As for the economic data, despite the fact that the app is free, you can make purchases within it. So much so that TikTok has registered purchases of more than 399 million euros.
- Zoom: The video conferencing application was unknown in half the world, but it has grown thanks to new communication habits inside and outside of work. Her income increased 169% in the first quarter of her fiscal year (reaching $ 328.16 million) and her net profit reached 27 million. As for the client portfolio, premium users have grown 90%, while the group of paying clients has multiplied by four, to 265,400 users.
- Activision Blizzard: Video game platforms and producers have also seen increased profits. Although the net income of the company responsible for the Call of Duty saga decreased by 2% in the first quarter that ended on March 31, the net reserves of the American company have increased almost 21% compared to the previous year and it is expected that they continue to grow after the pandemic.
Despite the fact that this sector has suffered large losses during confinement, we could not finish this post without talking about two large companies that have managed to emerge victorious from this crisis.
- Amazon: the fortune of its president and founder has increased by almost 30,000 million in the last month. During the week of March 9, its platform had 639,330,722 visits only in the United States (32% more than the previous year). Only sales in the home and kitchen categories have grown 1,181% year-on-year. It is not surprising that with these figures the price of Amazon shares is in the area of historical maximums.
- PcComponentes: The leading ecommerce in technology and information technology has been one of the main players in these two months of health crisis, with an increase in turnover of more than 100% compared to the same period of the previous year. This translates into an average of 7 orders per minute – triple that in 2019 – which now total more than a million products sold. In addition, the company highlights that 50% of sales have been produced by new customers (12% more than usual).
A new economic paradigm awaits us, where companies must analyze and redirect their marketing strategies very well in order to stay on the wave. For this, specialized agencies such as Multiconversion are essential. Contact us if you have questions about how to grow your business and we will be happy to advise you.