Part 2:
In Part 1 I reviewed some of the consumer businesses that are affected by the Covid -19 In part 2 below I am proposing that there will be both brand new and older but refreshed industries emerging, some of those that were considered ‘traditional’ will now come to the forefront. Innovative venture seekers will inject enthusiasm and excitement to these rising sectors:
Agriculture and food security: Every country has been concerned about food security, and every person recently has been forced to think about it as they are going through lockdowns and restricted movements. The new buzz phrase is ‘farm to table’ and with an abundance of farmland and fertile areas in Oman, we will hopefully see a new generation of younger entrepreneurs considering this sector for the first time and not just interest from large businesses. However, the latest technologies are crucial to improve efficiencies specifically in areas of water usage and irrigation so newer growing techniques including vertical farming/hydroponics and others will have much higher importance than before.
Sustainable logistics services and transport: As more businesses expand online, it is crucial to have all the logistics sorted out efficiently and in a more environment-friendly way. The ‘last-mile delivery’ services will thrive during this time and provide new opportunities for Omani SMEs and individual transport contractors, provided they meet the standards.
Third-party high-tech warehouses that can store a variety of sensitive products will be built or adapted; the difference now will be all types of products that third parties rarely used to handle in the past. As demand grows for delivery services sophisticated warehouses will have to keep up with this fresh demand.
Another third party business opportunity would be ‘cloud’ or virtual kitchens which have already been well established in many markets, these will ignite the idea of delivery only restaurants whose menus, recipes and standards can come from any aspiring local culinary entrepreneur.
Automotive sales in Oman have already been affected substantially in the last few years with the reduction in fuel subsidies , it is likely we will see this continue as consumers keep their older models running longer or exchange for pre-owned ones , if a new purchase is made the smaller more economical model are preferred. We are yet to see a big shift to hybrid or full electric cars for many reasons including initial cost of the vehicle and lack of charging stations but there will be a stronger restart for these vehicles in the coming period.
Education and the Internet: In 2020, we saw this explode as most schools were forced online one way or another. Yes, universities and colleges may have tried this in the past, but now all levels of education will do so. Schools are not about to disappear as children and teachers still need to have that interaction, but now we will define more clearly what teaching and learning should be about. Broadcasting Lessons on TV as we have currently for some of the national curriculum may continue for a while but ultimately only through online classes we can close the gap and help with the student/ teacher dynamics. That mean internet infrastructure must spread quicker and become cheaper for everyone to benefit . Parents will also be more involved with their children’s education than they have in the past, flexible work schedules will increase in popularity if not for this reason alone.
Let us not forget adult education and learning new skills online. Almost every professional must have recently thought about a new skill which they can master from the web, and that new skill can be a bonus to their current employment and maybe even a career saver. Most content is currently in English so there will be great demand for translated material and/or original content specific for this region and maybe just for the country.
Digital Marketing Service: Assuming there is adequate broadband infrastructure, in the online world there is a need for more than just a good website or an app. There is strong demand to utilise online visibility tools such as SEO (Search Engine Optimisation), SEM (Search Engine Marketing), and Social Media all which will all be more crucial than ever. It is worth noting then that all websites have only one important client, and that is Google; If master Google is happy and satisfied, most of the digital marketing efforts will be worthwhile. So, freelance digital marketers and digital agencies who are on top of their game can do very well, and we will all require their services.
Wellbeing and health: The positive aspects beyond the pandemic emergency is that the consumer education about their own self-care and wellbeing is already on a steep learning curve. There will be much more awareness and positive behaviours regarding nutrition and food consumption for example preference for immunity boosting ingredients. Going to gym and other confined exercises venues will not see a quick to return to their old popularity but certainly exercising in open spaces and at home will continue their current boom and related equipment sold for these purposes will keep doing well. In the long term everyone will benefit and there should be less stress on the healthcare system which in turn should see a shift towards more preventative care and spreading more awareness for the individual and the community.
The above are thoughts on emerging trends and ways in which our world is currently changing. I agree that we still do have the underlying Megatrends that have taken root: Artificial Intelligence, the (further) Rise of China, Alternative energy and Climate Change, but interwoven are some of the industries and sectors mentioned above.
The smart entrepreneurs will not only spot these and others then identify the niche they like but look at marketing research experts like SIMPA to help formulate their ideas. In the coming weeks and months, we believe we will be able to gather much more data and information for our clients to validate these trends and others. The data behind what we see or what we think we are seeing will be more important than ever, and when it comes to interpretation, it will be as much art as it is science!
Khalifa Al Mukheini
MD – SIMPA marketing research and consultancy.
