The consumer services industry is shaken by digitalization and the pandemic

Consumer services sector is facing a dilemma amidst the coronavirus pandemic and the gig economy's growth 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. Direct interaction is traditionally a critical factor in customer satisfaction and loyalty. The consumer service industry normally requires specific professional or vocational skills to perform the service for consumers. The Industry is mainly dominated by SMEs (small and medium-sized enterprises) or freelancers in their fields. In some sectors of the industry, the gig economy is dominating due to digital transformation opening up new opportunities and business models.

Beauty Treatment

The beauty treatment and hairdressing industry has grown over the past years, just before the coronavirus 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 COVID-19 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 and beauty-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 electronics repair, mechanics, plumbing, house renovation, and tailoring. Repair services are normally run by SMEs or gig workers. 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 and upholstery cleaning, and commercial cleaning services. Among many subsectors, commercial cleaning is one of the subsectors that is dominated by global players on a B2B model. The cleaning industry is filled with opportunities and anticipated to grow by 10% by 2026. Cleaning, health, and safety have become a priority in almost every sector during the pandemic causing the innovation of the cleaning service industry to fight against the outbreak and to thrive in the industry.

Key trends in consumer services industry

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

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