Written by Lukas Dauksas, Junior Marketing Consultant at WBC UK
The ongoing pandemic has brought many unchangeable events to our daily lives and certainly changed some of our daily habits including working-out and shopping. From going to the gym every morning and meeting your friend for a coffee afterwards to having an online yoga session and a zoom call in the same space, which is our homes. Thus, the new normal implemented some of the most successful start-ups in just 3 to 5 months to be seen on our Instagram home pages, billboards and even on national news. An often-heard phrase “Right place right time” was not the only key component that made these companies famous, it was also the adjustment process that each of the brands had to do in a specific time, place and manner. We looked at the top 3 companies that are thriving in 2020 and showed what makes them stand out from their competitors.
An American exercise equipment company PELOTON, founded by John Foley in 2012, already had a vision of being used in people’s homes. So consumers would continue their daily lives without the struggle of going to the gym, paying extra money for cleaning services or just simply being in a mass of people that could make you feel uncomfortable. The company did so by creating exercise bikes and treads with a tablet affixed to the machine so a consumer could be immersed in the live streams delivered by instructors around the world focusing just on the customer and its daily fitness goal. As COVID-19 cases started to rise back in March 2020, Peloton had started seeing a demand for their products due to nearly every person being moved to work from home and unable to work out in the gyms, bike classes or other sports activities. With a rising demand for their exercise equipment, the company created a new and more diverse product, the PELOTON Bike+ that offered full cardio and full-body workout with classes including stretching, yoga and many more with the preferred workout routines for each individual. With such a success, the company’s revenue has tripled generating $1.8 billion for the fiscal year 2020.
2. The Ordinary by DECIEM
Canadian skincare company The Ordinary, which is owned by DECIEM has seen incredible success from the beginning of March 2020 until the present. The company received a unique and positive exposure from a popular social media platform TikTok, where users would share their experience using The Ordinary products and give quick reviews. The highest selling point for The Ordinary was their bestseller liquid exfoliant, which has a rather unusual red colour that created so much attention. From teenagers to parents, everyone started to share their stories of how the product has helped them with skin diseases such as Acne, Rosacea and Eczema. According to the Australian news portal, News.com.au the trend of using The Ordinary products exploded by the company’s goal and aim to provide their customers exactly what they want. The company focuses on providing an honest ingredient list, affordable prices and trust with several lab results showing how the product is uniquely made for each skin concern. Today, the Ordinary is successfully receiving a high number of customers online, and are adapting to the digital media by creating posts and videos showing how their products are made and what skin concerns each product is targeting.
3. Vinted (Kleiderkreisel)
A well-known European start-up created in Lithuania and later developed in Germany under additional name Kleiderkreisel, Vinted (Kleiderkreisel) has a very promising future with the impact of COVID-19 restrictions, which changed our natural shopping habits, specifically clothing and accessories. A second-hand platform, Vinted (Kleiderkreisel) uses a similar business concept as Amazon, Depop and Grailed. Customers can sell or buy second-hand clothes or other items in the category of clothing and accessories (including perfume, personal hygiene and makeup). With a rise in sustainability and popularity of buying second-hand clothing as a fashion statement, the company already was among the leaders in Europe. It started entering international markets with a successful user rate of nearly 25 million active users and nearly 15 thousand new daily members worldwide. When COVID-19 restrictions were introduced in many countries, Vinted (Kleiderkreisel) saw positive growth of nearly double the number of daily users. Members started to share their experience using the app and most importantly Vinted (Kleiderkreisel) was exposed through social media apps such as Tiktok and Instagram, where users would share their best apps to shop while the stores remained closed. The success for Vinted (Kleiderkreisel) during COVID-19 was and still is the “right time and right place”. At the beginning of 2020 Vinted was already available in 10 countries, with a new market entered just a month ago in Italy and joining German second-hand clothing platforms for men and children under the Vinted (Kleiderkreisel) name. Another key component that led to such a huge success was their female CEO Milda Mitkute, who is among the Top 10 Female Start-up Founders globally. This has inspired many young girls to join Vinted (Kleiderkreisel) and create a small business through the platform where they could sell their created clothes, accessories or sell second-hand items.
These 3 unusual and very successful start-ups can prove that in today’s world companies need to adapt to human routines and provide the most convenient, time-saving product to see positive growth. With a huge impact received from COVID-19, many businesses faced the challenge of surviving or adapting to the new normal and focus on the digital world. The 3 provided examples show a clear future for new start-ups and how the digital world can have a positive impact on any business.
This article is part of an exchange series of articles started in collaboration between ConQuest Consulting and its British partner WBC UK. It has been written and produced by WBC UK.