Dec 22, 2020 11:00 PM EST
For many consumer-oriented companies, this year was make-or-break. The COVID-19 pandemic pushed several companies previously weakened by the "retail apocalypse." at the same time, and the U.S.-China trade war affected them into bankruptcy.
Businesses with the mindset to move forward seemed to weather the economic storm and, in some cases, flourish. By catering to consumer trends, they did so. Those businesses developed before the pandemic but were also elevated or possibly exacerbated by the health crisis. Here are five defining consumer trends of 2020, according to NASDAQ:
The pandemic hit most challenging those businesses that rely on travel and social gatherings. Many hotels and airlines experienced double-digit revenue loss as cities faced lockdowns and stay-at-home rules.
Marriott International's revenue declined to about 46% year over year in the first nine months of the year, while Delta Airlines' revenue plunged 63% amid the same period.
More people were ordered to stay at home and work remotely. That's why video communications became useful, and the time spent on mobile applications and video games soared. Zoom and Peloton shares rose nearly 490% and 730% this year. However, investors should know that both high-growths will face tough year-over-year comparisons next year as the pandemic passes.
Movie theater chains are clashing with companies like Netflix even before the pandemic came. The old way of watching movies through theaters versus through the streaming platforms are already battling.
But this year, movie theaters struggled with the shutdowns while streaming services soared.
Netflix surpasses 195 million global subscribers, and Disney's different streaming services reached 120 million paid subscribers. Disney released major films like Hamilton, Artemis Fowl, and Mulan, all initially slated for theaters. At&T recently followed Disney's plan of simultaneous releases for Warner Bros' movies in theaters and Disney's HBO Max next year.
Earlier this month, Money Times reported Disney shares rose over 12% as investors cheered the content flex for its upgrade to global direct-consumer streaming.
The pandemic impacted sales of non-essential products. Big retailers such as Target, Costco, and Walmart benefited from the shift. Simultaneously, bored consumers stapled giants like Clorox and Kimberly Clark that had a sudden acceleration revenue growth in the quarters.
The e-commerce platforms, in-store pickup options, and logistics capabilities have been widely expanded by retailers like Amazon, Walmart, Best Buy, Target, and lululemon Athletica. These companies fared far better than companies that did not develop their strategies. The decentralized online marketplace also flourished as many retailers struggle with the supply chain and logistics barriers throughout the year.
Smaller businesses were also forced to ramp up their spending on Shopify, which gives tools for running online stores, managing marketing campaigns, and processing orders. Year over year, Shopify's revenue skyrocketed to 82% in the first nine months of 2020, and its stock almost tripled.
On the contrary, restaurants flocked to delivery platforms like DoorDash, which Money Times recently reported to have a whopping 200% year-over-year jump in orders in the first nine months of the year, to gain their losses of on-premise diners.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Following the pandemic, natural calamities, and major employment shifts, a startling new study on the online news site News Nation shows that 1 in 4 Americans don't have an emergency fund.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.
Ease of access, freedom to choose in which to invest the money and lines of credit designed according to the needs of consumers, are some of the characteristics that have made consumer credit one of the most important financing products in the world’s market.
While researchers have suggested that individuals who base their self-worth on their financial success often feel lonely in everyday life, a newly published study by the University at Buffalo and Harvard Business School has taken initial steps to better understand why this link exists.
The younger generations are willing to put their money where their mouth is when it comes to sustainable living.
An international research team led by NUST MISIS has developed a new iron-cobalt-nickel nanocomposite with tunable magnetic properties. The nanocomposite could be used to protect money and securities from counterfeiting. The study was published in Nanomaterials.
Bank credit officers are more likely to approve loan applications earlier and later in the day, while 'decision fatigue' around midday is associated with defaulting to the safer option of saying no.
After graduating or leaving college, many students face a difficult choice: Try to pay off their student loans as fast as possible to save on interest, or enroll in an income-based repayment plan, which offers affordable payments based on their income and forgives any balance remaining after 20 or 25 years.