Which industries are growing in Poland due to COVID-19 pandemic?
Source：1. Platforma Przemysłu Przyszłośći, online edition
From：Taiwan Trade Center, Warsaw
Update Time：2020/06/03
Although most entrepreneurs severely limit business activities in order to reduce costs, many industries are resistant to coronavirus. Companies that run or can move their business to the online platforms don't have to slow down – which can be seen in increasing popularity of services provided remotely.
COVID-19 resistant industries:
E-commerce
Lack of the traditional trade opportunities along with the social distancing policy phenomenon has led to a visible increase in the visits to clothing, footwear, dietary supplements and electronics sector companies’ websites. This trend is also visible in the food industry: online grocery shopping sites like Frisco.pl or Carrefour online record a never before seen before turnovers. Colliers International experts also predict that when in few months the current crisis will be in control, we will see another increase in online sales, as more people will appreciate the convenience of online shopping and may permanently change their consumer habits.
Verseo marketing agency basing on campaigns’ results prepared a study with the comparison of different e-commerce sectors.
Home and garden industry - the sum of conversions increased by 30%, and its value went up by 15%
Finance / Insurance - this industry has invested 137% more in advertising and recorded a similar increase in conversion.
Gastronomy - 30% less clicks, 60% less conversion value
Beauty - decreases in each indicator by about 30%
Animals - increase in the number of conversions by 50% and their value by 20%.
Courier industry
There is no doubt that the e-commerce industry is one of the main beneficiaries of the coronavirus pandemic, and this is reflected in the activities of courier companies. According to the representative of GLS Poland notes, the number of parcels delivered to individual recipients increased, which is especially visible at the end of March and in April, when the company delivered more of this type of parcels than a year ago. The structure of handled parcels has also changed - the volume has shifted from the B2B sector to B2C. In some areas of e-commerce, including groceries, in March 2020, parcel dispatch increased by more than 100 percent, which resulted from the increase in the popularity of this distribution channel in the whole society, also among the elderly. DHL Parcel notes a particular interest in products in the health and beauty category, books, electronics and accessories for children. - Recently, we have also seen increases in the fashion category - says Magdalena Bugajło, DHL Parcel's communications and PR director.
Warehouse market
Experts point out at least three specific areas of change that may lead to increased demand for warehouse halls: first of all, increasing inventory, secondly, the further growth of e-commerce, and thirdly - diversification of production (COVID-19 may cause relocation of production to new locations). According to Renata Osiecka (AXI IMMO managing partner) in the long term, companies will start rethinking their supply chains and will not rely on one factory located in China or another part of the world – they will diversify regional suppliers and subcontractors to ensure stability and security of supply chains.
Gaming Industry
Recently, the largest digital game distribution platform - Steam, has announced the daily record of online players. There were nearly 20 million players logged in at the same time. This is undoubtedly the impact of home quarantines and social distancing adopted in most countries, therefore it is safe to say that demand for games is growing. Beside the demand for such entertainment itself, gaming industry have an ace up its sleeve: game producers have the capability of completely switching to remote work model without losing their efficiency. Another advantage of said industry is that physical contact with customer is not crucial (unlike for clothing companies in example) – in Poland games are being sold mostly online anyway.
The best proof of the growth of gaming companies is CD Projekt company, which has become the second largest game studio in Europe with total market value of more than 8 billion dollars. That is even more impressive, considering the fact that this January the studio was worth 1.2 billion dollars less. CD Projekt recently became the leader on GPW (Warsaw Stock Exchange), which puts the company ahead of PKO BP and PKN Orlen (PKO BP is one of the largest financial institutions in Poland and PKN Orlen is the biggest Polish company).
On the other hand, industries most affected by the virus are transport, accommodation, gastronomy, sport, culture and recreation. Estimated turnover decrease is as high as 50 up to 100% and great difficulties in rebuilding business after a pandemic are to be expected. It is important to mention that the effects of decreasing turnover will cause repercussions on a much larger scale.
Source：https://przemyslprzyszlosci.gov.pl/