The world-shaking COVID-19 outbreak has deeply injured many sectors while transforming some industries into a different shape. Despite spreading over vast geography, consumption is expected to improve rapidly with the virus under control. In this period, as virtual store visits increase and online shopping increases, there will be milestones in many industries, and a lot will change from now on. In this article, we will focus on the rising industries after Covid-19 in Turkey.
A contactless period begins, old habits will no longer remain. A digital era begins. Even taxis will have to change the way it works. A new world will now be formed. Our lives will be reshaped. This situation will also cause unemployment, but we must be prepared for it. Nothing will be the same. All mechanisms of economic life will change and evolve which means development will be in this direction. We woke up to a new life, a new world.
Within the scope of the Covid-19 epidemic and the effects of economic policies, we can divide the sectors into two groups: Sectors whose activity is restricted under Covid-19 measures and other sectors. “Restricted sectors” include sectors such as air transportation, accommodation, restaurants, travel, retail trade, whose activity has been halted or largely reduced due to administrative measures.
So, which sectors were the winners in this process in Turkey?
Retail and e-commerce companies
Expecting e-commerce to rise in general, the e-commerce websites (hepsiburada.com, gittigidiyor.com, N11.com, trendyol.com), market applications (Getir, Banabi, Migros Sanal Market, etc.) are making huge profits nowadays.
According to experts, the most crucial measure in combating the coronavirus epidemic is hygiene. Specialists who warn that the hands should be washed frequently and for at least 20 seconds, also warn about the contact with the surfaces, the goods, and the products bought.
Therefore, sales of hand soap, hand disinfectants, other disinfectants, and the number of hygiene products manufacturers increase with the epidemic. According to most news institutions, these were the fastest-running products in supermarkets around the world.
One of the sectors that make the most money due to the Coronavirus is companies that produce liquid soap, cologne, and similar disinfectant products. Companies producing disinfectant products cannot keep up with orders. In some countries, these products are sold on the market illegally.
Especially in the healthcare industry, protective overalls and dresses are very important nowadays. These coveralls and dresses protect health workers who are in direct contact with the Coronavirus. The public is also making efforts to obtain masks and gloves. The shares of the companies producing the mentioned products in the stock market gained excessive value after Covid-19 in Turkey.
Pharmacy and pharmaceutical companies
Pharmaceutical companies are in the race to find the drug that will cure Coronavirus. The company that will discover the remedy will be very successful in this field. In daily life, people flock to pharmacies to protect against the Coronavirus and keep the immune system healthy. While long queues were formed in front of pharmacies, pharmaceutical companies also increased their production capacities.
Panic prevails across the globe due to the Coronavirus. People flock to the markets, thinking that there will be famine due to the coronavirus. Dry foods are generally preferred for stocking at home. Especially pasta and legumes stocks have been exhausted. Companies operating in this field are trying to respond to the demand by increasing their production capacities.
National market chains
Food shopping from afar has increased rapidly as a requirement of home life during the epidemic period. With the digitalization investments they have made, strong logistics and home distribution infrastructures, and e-commerce experiences, national markets have shown an increase of almost 2x interaction. This rate is much higher than the discount markets.
It has been observed that sales of baby food, diapers, and children’s clothing and other products have increased significantly since the 3rd week of March. Also, the sales of products such as clothes, wipes, and wet wipes increased in this category, while sales of durable products such as strollers decreased.
Distance education and working technology companies
Webex, owned by Cisco Systems, headquartered in the USA, and Zoom Video Communications, based in the USA, are the companies that have been on the rise during this period when the epidemic increased as the two video teleconferencing companies. Cybersecurity companies Okta and Zscaler, are also expected to be profitable from this period as well as companies who develop and promote software that have remote access.
It includes video conferencing and distance education systems such as Skype, Zoom, and EBA. This category, which has the highest performance among all categories, is distinguished from other categories with approximately 15-fold growth.
Entertainment & game companies
Netflix, an online movie and TV viewing platform, is one of the emerging companies of this period when people spend more time at home due to the epidemic. Netflix shares have risen over 30 per cent since the beginning of this year. In addition, it has been observed that the watching rates of new generation platforms such as Netflix and BluTV increased by at least 50%.
At the same time, as people turn to sports and exercise at home, the interest in companies operating in this field is growing. According to Yahoo Finance, the shares of Peloton company, which produces tools for exercising at home, are on the rise.
Among other companies that JPMorgan expects to rise, is Spotify, an online music streaming platform. The use of TikTok, a Chinese-based social media application, has also increased worldwide. As people spend more time in their homes, their spending on the game also increases.
As countries move to more 5G technology, working from home will accelerate; Therefore, companies serving in this field are expected to earn more during this period.
How can Turkey locate itself in the international business area after Covid-19?
As it has been stated in many different articles before, Turkey is one of the few countries which will benefit from the Covid-19 in the near future by meeting the needs of many companies who used to work with Chinese manufacturers before and will shift their production to closer and safer locations.
According to industry experts, especially in the textile sector, Turkey is one of the most advantageous countries to be determined as a “production hub” for important brands. With its perfect geopolitical location and reasonable labour force, Turkey is the most appropriate place for many European countries to start supplying their companies.
In recent years, Turkish manufacturers have moved their clothing production to the top end of the market as China’s dominance has spread worldwide. But the epidemic has sent some European companies back to Turkey, according to the authorities. The long-term effects of Covid-19 in Turkey will be more clear after some time.
Thilo Pahl, head of the German-Turkish Chamber of Commerce and Industry, stated that: “In the long term, this viral crisis offers Turkey a great opportunity to reposition itself in the global supply chain.”
In the light of all the information, Turkey has an incredible potential to serve the international companies as their new production hub for less transport expenses, high quality and EU standardized products manufactured with young machine systems, and with the affordable labour force. It is quite obvious that European companies not only from the textile industry but also from many different industries will shift their supply chains to Turkey in this process.
If you would like to read more about the impacts of Covid-19 you can check our previous article.