Is staying in the new going out? How the COVID-19 pandemic is fuelling the stay-at-home economy

soap 2020

(Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Zara Ingilizian, Head of Shaping the Future of Consumption; Member of the Executive Committee, World Economic Forum


  • The COVID-19 pandemic is fuelling the growth of the stay-at-home economy.
  • E-commerce and grocery delivery services can test new concepts to better meet consumer needs for convenience and health and well-being.
  • The pandemic is likely to speed up adoption of video streaming and online education, and contribute to more inclusive access.

The coronavirus pandemic is fuelling the growth of the stay-at-home economy. How consumers learn, work, shop and play is poised to change forever.

Consumer preferences have been shifting toward e-commerce and online entertainment and education for over a decade. The COVID-19 pandemic, however, has been a boon to companies that serve the stay-at-home economy, which are displaying agility by simultaneously experimenting with new ideas to build brand affinity.

 

Since mid-March, Amazon has hired 175,0000 workers in the United States to meet surging demand for online shopping. Instacart, an American technology company that provides same-day grocery delivery and pick-up service in the U.S. and Canada, stated that their weekly sales jumped 10-fold, and 20 times higher in California and Washington State, where the virus was widespread early in the pandemic. The company is also leveraging the heightened interest in grocery delivery to test new, innovative concepts to better meet consumer needs for convenience and their health and well-being, such as the option to have groceries left at a customer’s doorstep at a designated time in lieu of hand delivery.

Daily downloads of grocery delivery apps, US
The coronavirus pandemic led to a dramatic increase in the number of people downloading grocery delivery apps.
Image: Apptopia

Concurrently, according to online restaurant reservation service OpenTable, on-site dining dropped 42% compared with a year ago.

Video streaming has been on the rise for over a decade, but last year, the number of streaming subscribers around the world (613 million) surpassed the number of cable subscribers (556 million), according to the Motion Picture Association of America. With city governments asking citizens to shelter in place, new streaming subscription services are seeing growth. Disney+, for example, has had a 75% rise in subscribers since early February and passed 50 million paying subscribers in its first five months.

In the meantime, in China, during a 20-day period commencing on the eve of the Lunar New Year, box office revenues fell to $3.9 million from $1.5 billion in 2019. While it is uncertain when consumers will return to movie theatres, it is quite certain that stay-at-home entertainment will continue to break new ground for growth and market size as consumers around the globe continue to isolate at home.

Amid the coronavirus crisis, Zoom Video is leading the charge towards virtual work-from-home practices and poised to accelerate a seismic shift in how work gets done. In the early days of the pandemic, Zoom’s stock increased 58% through 13 March, whereas the S&P 500 was down 16% in the same time period. While some US states and countries are beginning to open up, large cohorts of employees continue working from home. They are also gaining exposure to new digital engagement capabilities that can be leveraged to host both small and large meetings such as interactive workshops, hence eliminating the need for travel.

Furthermore, we are seeing the rapid transition to online education across all levels – primary school and high school to the university level. Digital technologies are reshaping the world of education in ways previously unimagined for a historically change-resistant institution. Plato once said that “necessity is the mother of invention.” Perhaps now, education will change as fast as technology and contribute to inclusive societies with unprecedented access to knowledge and prosperity.

What is the World Economic Forum doing about the coronavirus outbreak?

A new strain of Coronavirus, COVID 19, is spreading around the world, causing deaths and major disruption to the global economy.

Responding to this crisis requires global cooperation among governments, international organizations and the business community, which is at the centre of the World Economic Forum’s mission as the International Organization for Public-Private Cooperation.

The Forum has created the COVID Action Platform, a global platform to convene the business community for collective action, protect people’s livelihoods and facilitate business continuity, and mobilize support for the COVID-19 response. The platform is created with the support of the World Health Organization and is open to all businesses and industry groups, as well as other stakeholders, aiming to integrate and inform joint action.

As an organization, the Forum has a track record of supporting efforts to contain epidemics. In 2017, at our Annual Meeting, the Coalition for Epidemic Preparedness Innovations (CEPI) was launched – bringing together experts from government, business, health, academia and civil society to accelerate the development of vaccines. CEPI is currently supporting the race to develop a vaccine against this strand of the coronavirus.

While there is uncertainty regarding the long-term impact the coronavirus pandemic, we do know with a high degree of certainty that consumer preferences will continue to evolve rapidly as consumers discover new ways of accessing goods and services, receiving an education and doing their jobs. As a result of the crisis, the stay-at-home economy has received a major boost and will catapult to new heights of value creation. Why go out when you can accomplish so much more by just staying in?

Six months ago, a young millennial woman told me “staying in is the new going out.” Now, I know what she really meant.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Challenges facing the COVID-19 vaccination campaigns

Civilian deaths in Afghanistan hit record high – UN

Visiting North Korea, UN relief chief spotlights funding shortfall to meet humanitarian needs

Meet Alice, the battery-powered plane that could herald the age of electric air travel

Britain in and out of the EU

Statement by the Brexit Steering Group on UK government White paper

Cocaine and opium production worldwide hit ‘absolute record highs’ – major threat to public health says UN study

Ebola: EU releases additional €3.5 million to tackle epidemic

Voices of young climate action activists ‘give me hope’ says UN chief

European Semester 2019 Spring Package: Commission issues recommendations for Member States to advance sustainable and inclusive economic growth

Easing ‘classroom crisis’ in Côte d’Ivoire, brick by (plastic) brick

The United Kingdom’s decision to leave the European Union will impact young people’s future the most

5 ways COVID-19 has changed workforce management

Parliament to ask for the suspension of EU-US deal on bank data

Coronavirus Global Response: European Commission pledges €300 million to Gavi

Trump’s MAGA policy remains unchanged as EU warns to impose additional retaliation tariffs on US products

European Defence Fund on track with €525 million for Eurodrone and other joint research and industrial projects

COVID-19 creates a perfect storm for the extreme weather season

Healthcare for refugees: a necessary symbiosis of medicine and politics

EU climate law: MEPs want to increase emission reductions target to 60% by 2030

A geared turbofan at Pratt & Whitney's production hub in West Palm Beach (copyright: Pratt & Whitney - a UTC Company- 2018; Source: Pratt & Whitney's website, media center)

The EU Commission approves UTC’s acquisition of Rockwell Collins under conditions

Slovakia and its failure to abide by the European law

How to help an ageing population stay wealthy for longer

Soil pollution ‘jeopardizing’ life on Earth, UN agency warns on World Day

“Beyond the beach: tackling plastic pollution upstream”, a Sting Exclusive by Erik Solheim, Head of UN Environment

Google’s bare truth: Europe’s Chief denies EU accusations but admits they “don’t always get it right”

FROM THE FIELD: Persons with disabilities bike towards sustainability

Our health systems are under pressure. Here are 9 ways to remedy that

Hardware is a cybersecurity risk. Here’s what we need to know

Hatred ‘a threat to everyone’, urges Guterres calling for global effort to end xenophobia and ‘loathsome rhetoric’

What talent means in the post-COVID-19 workplace

What will Germany look like after the next election?

New legislation on transparency and sustainability of the EU risk assessment model in the food chain

This woman changed the world of work – and you’ve probably never heard of her

‘Grave consequences’ await if new deadly escalation of violence in Gaza continues – top UN official

The Dead Sea is drying up, and these two countries have a plan to save it

African elephants under continued threat of poaching, warns UN-backed report

AIESEC Vlog

Four million have now fled Venezuela, UN ramps up aid to children who remain

Ercom, cutting-edge Telco solutions from Europe

As ride-hailing firms drive into the future, who is being left behind?

Syrian crisis: €5.3 billion mobilised by donors for 2021 and beyond at 5th Brussels Conference

Carnage must stop in northwest Syria demands Lowcock, as attacks intensify

New round of bargaining for the 2014 EU budget late in autumn

Sudan: European Union provides €30 million in humanitarian assistance

At last Germany to negotiate the costs for a really cohesive Eurozone

UN evaluates progress in improving peacekeeping performance

The US + Britain trivialize mainland Europe, NATO and the EU

Khashoggi case highlights ‘very worrying practice’ of overseas abductions, says UN expert

What does global health translate into?

How Costa Rica’s environment minister talks to his daughter about climate change

Polluted lungs: health in the center of environment discussion

Here are 3 lessons Europe can learn from China’s flourishing start-ups

Geopolitics and investment in emerging markets after COVID-19

Canada needs to increase foreign aid flows in line with its renewed engagement

EU Ombudsman investigates the European Commission

Coronavirus: EU global response to fight the pandemic

SCADA Security Conference 2017 in Prague, Czech Republic

Brexit: Six more months of political paralysis or a May-Corbyn compromise?

COVID-19 vaccination campaigns and their challenges

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s