SEVEN FACTORS THAT WILL SHAPE 2021 AND BEYOND:

We all have faced the biggest nightmare of our lives, and this pandemic has taught us how a crisis can lead to remarkable innovations and insights. During this pandemic, we have witnessed that sometimes even in the worst situation, new ideas and developments could be a savior. So, here we will discuss the most common trends that will shape the post-Covid-19 economy. So, here are some of the key factors that will affect the businesses in 2021 and beyond:

1. Innovation: The most common thing that we have noticed during this pandemic is how with every crisis, people come up with innovations. Work from home has been an old age culture, but to give it new heights and meaning, it has been backed by innovations during the pandemic. People were using laptops and computers, the internet, etc. for years but to work from home, they have developed new ideas to make it impactful. The way traditional employment took place has now been modified, and everything is moving towards digitalization. You see, most of the things are available online, be it grocery, home décor, or any other necessity.

2. Consumer behavior: We have seen how e-commerce across the globe has increased by two to five times from levels before the pandemic. This shall have an impact on a lot of sectors. Consumers have shifted drastically to e-grocery, to which the consumer will stick even if things get back to normal. Similarly, an increase in virtual healthcare or investment in homes will not go back. On the other hand, online education doesn’t seem very commonly accepted and will roll back to normal after the pandemic is long gone. Here’s a pattern of the way consumers get around innovations and stick to them. Basically, whatsoever does not disturb the normal for the consumer, they will stick to the changes.

3. Healthcare: This pandemic has changed the way people saw healthcare. It made us all realize the importance of having health insurance, and it is not merely an expenditure but an investment. So, there will be a health revolution. Covid-19 has led to $180 billion being spent on research and development to get the most desired vaccines and tools. There will be sustained investment increases and scientific progress, which is why the bio revolution seems critical.

4. Coping with increased involvement: The government is funding almost all the healthcare, environment, and other services and is getting peculiarly involved in all this. To be precise, if there’s too much political involvement in a particular thing, the chances of it being scrutinized are high. Now the biggest challenge for the businesses should be to cope with this high involvement while following the regulatory process and procedures.

5. Restructuring corporate portfolios: Last year, we witnessed a significant shift in the value of corporate portfolios. The top companies gained over $240 billion, while the bottom companies lost more than $400 billion. This is getting reflected in how the portfolios are shifting and deal volumes are setting new records. People are lugging to better portfolios and advanced trends. Companies in sectors like pharma, automobiles, and technology are gaining investors, while companies in the hospitality, travel and tourism, industries are facing downside. Investors are changing their perspective towards investments. Even loss-making companies are gaining investors if they have the growth potential.

6. Shifting supply chains: The US-China relationship has stretched the entire supply chain. The two sizeable components of the supply chain are becoming the biggest rivals. It will impact other parts of the supply chain. Last year highlighted that how it is salient for things to have flexibility. It is practically unfeasible to shift your entire supply chain overnight, but we can all think of doing that over five years. However, this doesn’t have to be a disruption in the supply chain or any crucial change rather, that should make the entire system smooth.

7. Increase in air travel: I have covered this last because this is merely an expectation. Although this will come true, but not in the same capacity as before. We are aware that the global air traffic has fallen dramatically, and we expect it is not getting back to normal until 2023. The travel and tourism industry is facing its doomsday. It is a high possibility that about 20% of earlier traffic may never come back. So far, people are traveling because they were at home for so long, but this will not continue in the long term. There is unemployment, inflation, backed by increased healthcare expenses, contributing to lower-income and savings in the hands of people.

This year has become a fight for survival, and people are looking forward with great hopes. It is lucid that the pace of changes will never be this slow again. These times have taught us how important flexibility can be, and precautions play a crucial role in saving us from disasters. Some trends reflect how it will be in the coming year. However, the pace of changes this time will be faster and better.