Consumer service industry is shaken by digitalization and pandemic

Consumer service sector is facing dilemma amidst coronavirus pandemic and gig economy is increasing in the digital era.

Consumer service refers to a direct interaction between a consumer making a purchase and a representative selling the products or services. The direct interaction deems to be a critical factor to customer satisfaction and loyalty. Consumer service industry normally requires specific professional or vocational skills to perform the service for consumers. The Industry is mainly dominated by SMEs or freelancers in their fields. In some sectors of the industry, the gig economy trend is increasing due to digital transformation which opens up new opportunities and business models. The pandemic

Beauty Treatment

The beauty treatment and hairdressing industry has grown over the past years, just before the corona pandemic hit which significantly disrupted operations. Government-imposed closures of non-essential establishments, including hairdressers and beauty salons, has affected the business in the sector. Since the industry business model involves physical interactions between two parties, the corona pandemic has hit hard. Apart from the pandemic, the demand for the industry is mainly influenced by the economic climate. The rise in disposable income has encouraged fashion-conscious consumers to spend more on hair and beauty treatments.

Repair Services

The repair services cover broad fields catering to consumers getting something fixed or restored, such examples are electronic repair, mechanics, plumbing, house renovation, and tailor. The repair service is normally run by SMEs or gig workers to do their services. The jobs require vocational skills and capabilities to perform their service for consumers.

Cleaning Services

Cleaning services includes a wide range of services required by commercial and residential factors. The sector encompasses maid services, window cleaning, floor cleaning, carpet & upholstery cleaning, and commercial cleaning services. Among many sub sectors, commercial cleaning is one of the sub sectors that is dominated by global players on a B2B model. The cleaning industry is filled with opportunities and anticipated to grow by 10 percent by 2026. Cleaning, health, and safety become priority in almost every sector during the pandemic season, causing the innovation of the cleaning service industry to fight against the outbreak to thrive.

Key trends in consumer service industry

Gig Economy
Digital Marketing & Social Media
Ease & Convenience
Maintaining Reputation
Automation vs Labor

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