COVID-19 Changes Will Affect Emerging Markets Investment Opportunities Beyond Technology

Key Takeaways

  • COVID-19 has accelerated various trends, such as the migration to online and digital platforms, greatly boosting the growth of e-commerce.
  • The pandemic has created long-term structural changes in consumer behavior beyond e-commerce, including remote working, distance learning and virtual health care. Tech companies whose products and services address the needs created by these trends are likely beneficiaries.
  • These structural shifts in consumer behavior are widespread in China and throughout emerging markets, where e-commerce, internet penetration and digitalization are increasing rapidly. This adoption continues to rise even though governments have relaxed many pandemic-related restrictions.

COVID-19 has profoundly affected how we live. The need to shop, bank, learn, play and even communicate remotely has hastened the use of digital technologies. The pace of digital adoption should quicken as remote working, online learning and e-commerce penetration continue to rise. These trends are prevalent in emerging economies, where approximately 75% to 80% of the world’s consumers will soon reside, according to the Brookings Institute. We expect the pattern of faster digitalization in China, which has continued after the lifting and/or loosening of virus mitigation measures, to develop across emerging markets. This transformation should create investment opportunities in many sectors and industries.

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COVID-19 Changes Will Affect Emerging Markets Investment Opportunities Beyond Technology

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