3 sectors that thrived during the pandemic
Thousands of businesses around the world lost billions of dollars in the aftermath of the COVID-19 crisis. But some industries benefitted from their unique strengths and were able to thrive.
Here are 3 promising industries that thrived during the pandemic:
Edtech
With hundreds of millions of students unable to attend school physically, the pandemic represented a huge opportunity for online education companies worldwide.
As technology advances, conventional schooling is transforming to suit the times. Start-ups are focused on providing advanced learning programmes at affordable prices from the comfort of home.
Amongst these start-ups is Little Thinking Minds, an edtech company that creates advanced Arabic-language digital solutions and platforms to help improve learning outcomes for school-aged children. Founded in 2015 by Jordanian entrepreneurs Lamia Tabbaa and Rama Kayyali, the company’s platforms are currently being used by more than 160,000 students and its app has been downloaded more than 150,000 times.
“Our focus during the pandemic was on supporting schools and students in their distance-learning efforts. Usage of our programmes spiked dramatically as we witnessed unprecedented interest from schools that needed to make sure their students achieve their learning outcomes before year-end,” said Kayyali.
“At the same time, the engagement from parents was very high, which is understandable as parents were much more closely involved in the learning process during this period.”
To support teachers, Little Thinking Minds created weekly distance-learning folders with lesson plans to make it easier for teachers to create their virtual lessons. The start-up also offered new schools free content from its platforms.
“What we care about most is for the learning and reading to continue and not stop, so our plan over the summer was to continue with reading competitions, add new content, and enhance the user’s journey,” said Kayyali.
According to Kayyali, the demand for edtech solutions will continue to grow with accelerated investment from governments as well as the private sector.
“Challenges will come from the varied quality of connectivity in different countries, teachers keeping up with the fast-changing technology, availability of devices, and the growing number of solutions on the market,” she said. The winning solutions will be ones that show they can improve learning outcomes, she added.
Although demand will mostly come from schools and governments, Kayyali also saw parents driving growth in this sector as they strived to ensure their children are attaining their educational goals.
Hamdi Tabbaa, co-founder and CEO of Jordanian edtech start-up Abwaab, is also optimistic about the future of the sector. Founded in 2019, the company aims to change the out-of-school learning experience for secondary school students in the region by making education more accessible through technology.
“I believe we are entering a new era for edtech. The COVID-19 crisis has really pushed edtech start-ups into the spotlight and we consider ourselves lucky to have entered the market at such a time,” said Tabbaa.
Schools will likely shift to the blended learning approach, students and parents will become less dependent on offline learning support, such as private tutoring, and move towards online platforms, he said.
Abwaab is now developing technology using artificial intelligence and machine learning to tailor content to an individual student’s pace of learning.
Delivery services
Lockdown restrictions encouraged a noticeable shift to online shopping in Jordan, particularly for groceries and household goods. In response, retailers started introducing home-delivery options and adding new product segments.
E-commerce platform JoDeals, which focused on lifestyle brands, decided to add groceries to its range of products by signing a deal with Sameh Mall. By partnering with the hypermarket chain, which has 27 outlets in Jordan, the mobile app focuses on delivering groceries to customers in Amman.
Similarly, online grocery shop Basket.jo experienced a surge in orders since the global lockdown in 2020, with an eight-fold increase in business and a 25% increase in the average basket size.
“When people had no other option but delivery services, they felt the real value of such a service. If the experience was satisfactory enough, some people would stick to this service and buying online has become a habit. After-sales service also plays a major role in shifting customers’ behavior,” said Maher Hariri, an Amman-based consultant to e-commerce companies.
Different sectors and products were offered online during the COVID-19 lockdown, including clothing, household equipment, office supplies and food. Home-based workshops and kitchens were also encouraged to start operations and deliver to consumers, reaching people through social media channels and using third-party logistics for delivery, according to Hariri.
A survey by IPSOS of 290 SMEs in Jordan found that 39% were planning to start an online shopping platform and 21% saw increased usage of their existing digital channels. The study was carried out in collaboration with Amman-based corporate data-mining company Kinz and the findings were published in 2020.
Moreover, Jordan has the necessary infrastructure for delivery services. An estimated 85% of adults in the country own a smartphone, while internet penetration, at 87%, is widespread, according to the Pew Research Center.
While there is plenty of room to expand into this sector, some factors could delay the shift to online shopping. One of them is the lack of large e-commerce players such as Souq.com, now Amazon, which usually helps to accelerate the behavior shift to online shopping. Additionally, there is a lack of trust in using credit cards online, while access to bank accounts is limited and obtaining credit cards is not easy, according to Hariri.
“It’s time for a comprehensive regulated internet shopping market in Jordan. We need clear and fair policies regulating this service and a strong consumer protection association that gives the necessary assurance to consumers when buying online,” he said.
Healthtech
The healthcare technology industry is poised for growth, with several healthtech and biotech start-ups stepping forward to develop treatments to cure or mitigate COVID-19, and others capitalising on the demand for remote healthcare.
Jordan-born healthcare marketplace Aumet thrived during COVID-19. Launched in 2015, the B2B platform aggregates bulk orders from medical vendors and offers them at discounted prices. It also automates the process of matching distributors with medical equipment manufacturers.
According to Aumet’s co-founder Yehya Aqel, the industry is doing better than ever now. “The demand for our products quadrupled in 2020, with total purchases increasing from USD 8 million to USD 50 million,” he said.
The start-up invoiced USD $30 million in revenue during the second quarter of 2020 and is growing by 20%month-on-month, Aqel said. The team has expanded from 16 to 37 employees.
Having raised USD 1.25 million in seed funding from Right Side Capital, TechStars, and Plug and Play in July 2020, the company plans to automate the ordering process between buyers, build its e-commerce platform, onboard 10,000 medical manufacturers, and reach more buyers from GCC countries.
There has also been a rise in telehealth services, as medical centres shift provision online to offer consultations and treatment through videoconferencing and mobile screening. In Amman, Abdali Hospital’s virtual service includes consultations with general practitioners and specialists in fields ranging from cardiology to internal medicine and plastic surgery. The hospital also provides prescriptions, medical reports, and follow-up instructions electronically.
As consumers adapt to the “new normal”, changes in the way they learn, shop, and access medical services may become permanent. Whether it’s cutting-edge healthtech and edtech or more basic delivery platforms, these industries are likely to continue the growth they witnessed during the lockdown.
Companies like these stepped up during the COVID-19 pandemic and in light of their resilience, we dedicated our 7th annual SME awards to local businesses that have persevered, adapted, and created an opportunity out of every challenge. Applications for the 7th Bank al Etihad SME award are now open until 15/10/2022. Apply here.
