As the COVID-19 vaccine assuages the spread of the virus and life returns to relative normalcy, markets that survived virus-related challenges will continue to thrive; those that were unable to adapt well will falter. As a result, there will be an emergence of new, productive, and progressive markets. In essence, a fourth industrial revolution. This time, however, we won’t see factories become more mechanized; we will see an exponential boom in tech services. The two most prominent services are cyber security and e-commerce.
After a year of economic struggles, companies worldwide have learned that incorporating technology into their operations are not only efficient, but are conducive to profitability. In fact, consumers are increasingly reliant on technology services to fulfill traditional and routine activities such as clothes shopping, food shopping, and even educational learning. Because of this, companies whose roles are to provide convenient and time-saving alternatives to these activities will see a drastic increase in profits. Consumers are eager to return to their normal lives, including going to malls, restaurants, and grocery stores. Because of this, experts posit that these markets will see their boom gradually and incrementally, rather than immediately (source: NYTimes). As a result of this developing online and technology-centric consumer behavior, companies will rely heavily on cybersecurity and technological protection.
The Near Future of Cybersecurity
There is no doubt that COVID-19 has encouraged hackers and malicious groups in their misconduct. Just between February and March of this past year, phishing scams have increased by 600% (www.accessventures.com). The FBI’s Internet Crime Complaint Center saw over 320,000 hacking-related complaints in the first three months of 2020, compared to 400,000 for all of 2019. Working people of all job levels are fully remote, and some will stay that way. Companies are thus investing extra capital in securing their systems. Cloud-based security solutions managed security providers, and VPN-focused devices are expected to fully protect both small and large companies. One of the defining thematic trends of the cybersecurity sector that is expected to increase by 24% over the next five years is the “software-as-a-service” (SaaS) model. This model supports centralized subscription-based software that are licensed to various companies. As these services exponentially rise, cloud-based protection services will be necessary to defend and uphold the integrity of millions of customers who entrust personal data with these companies. Experts expect cybersecurity stocks (as well as companies with a cybersecurity department), such as CrowdStrike, Microsoft, and FireEye, to drastically rise.
How will the e-commerce industry thrive as vaccine distribution steadies?
There is no secret that e-commerce companies such as Amazon and ebay have thrived during COVID-19. But will this continue once the majority of the population is vaccinated? The answer is simple: yes. According to an early 2021 survey by Deloitte, convenience overtook price as the number one factor in determining how a customer receives his goods. Coronavirus or not, consumers will always prioritize time efficiency. Another reason is that online commerce is now a highly saturated market. Logically, this has forced companies to ramp up marketing activities, cut down prices, and differentiate themselves from competitors. There is no doubt that customers will take advantage of this high competition. Furthermore, consumers are more comfortable buying products online that are traditionally bought in stores, including clothes and food. As an increasing number of customers realize that food delivery services and even clothes can be bought via the internet, e-commerce companies will hone in on this target market. According to www.statista.com, e-commerce clothing sales represented 27% of all fashion sales. In 2020, this figure was 38%. As trust in all e-commerce products rises, so will the industry as a whole. Big players such as Amazon, ebay, and alibaba will continue to thrive post-Covid. The sector as a whole is promising, and continued exponential growth will allow customers’ needs to be more easily met.
Summary
COVID-19 has shown us that companies have adapted to efficiently using technological services. As a result, there will be a drastic increase in technological protection services for all types of companies. As more and more customers shop on e-commerce companies for basic goods, such as clothes and food, they entrust their personal data with online companies. Cybersecurity, thus, is more important and necessary than ever, and there will undoubtedly be exponential growth in the coming years. Be on the lookout for news on e-commerce and cybersecurity data from BetterTrader to make the wisest investment decisions.
