More than three months on since the emergence of the coronavirus, talking about the high demand for products of the digital economy is no longer a predictive matter, but rather a reality. Since the first half of February, the Hong Kong Stock Exchange has displayed huge gains.

It’s not only Chinese companies active in the digital economy who have made gains, but also the shares of digital companies situated around the world. All of this is quietly sneaking under the radar of global news outlets who favor darker news. Those unhelpful bulletins initiate a sense of "panic" that limits the ability of startup owners and small businesses to think about the possibility of adapting and exploiting opportunities presented by these temporary conditions.

Nationwide lockdowns have led to the necessity of searching for alternative services that can be provided through smart phone applications and online platforms. Economists have tried to explain away the gains of digital companies, as a result of these new realities. However, since the coronavirus pandemic is not the end of the world, the emergency situation will soon disappear, just as is the case in China. Life in the Chinese province of Hubei (which was the initial epicenter of the spread of the coronavirus pandemic) is returning to normal, so does this mean that the markets will later suffer a correction within a few months, at the least, within a year? As far as equipment and medical clothing companies are concerned, the most likely hypothesis is that demand for their products will decrease with the decline of the virus spread. As for digital companies, it is likely that they will continue to grow. This hypothesis can be adopted for the following three reasons:

First: the growth of unconventional services via Internet

During the last few months, a group of online services that did not exist before and others that were less common in lower-demand markets for digital services appeared. One such service is provided by Peloton for home training bicycles, which has the advantage of communicating with other trainees via the internet. Demand for this service has increased by more than 50% during a record period, as well as the group viewing service launched by Netflix as an alternative to the cinemas that have closed their doors. We’ve also noticed a huge growth in telemedicine services. In this regard, it is expected that coronavirus will push people towards digitization at a rapid pace, which will lead to a shift in the health sector environment to become more digitized. Telehealth in a number of countries, especially Western ones, may not be new. The United States, for example, is already advanced in the process of digital transformation in the field of healthcare. But what’s changed is the speed and comprehensiveness of this transformation. The concept of digital health care is now spreading to new markets, such as across the Arab peninsula where telehealth is still an unconventional service.

Second: Investing in digital transformation

Despite the digital transformation underway at many companies around the world, the vast majority of companies still rely on the traditional work environment which lacks the flexibility to continue working under the current circumstances. This has forced the companies to accelerate their process of digital transformation, such as transferring the work of their employees to homes, the adoption of cloud computing technology, remote meeting technologies, the adoption of electronic stores and digital marketing, and many other digital transformation measures. Of course those services are not free of charge, and it requires companies to bear the brunt of those costs. Universities in Australia provide a perfect example of this. Many universities that receive international students from China have been forced to equip their facilities with distance education programs for international students who have been forced by ongoing circumstances to return to their countries. By making this rapid investment in digital transformation – after the cessation of the coronavirus pandemic – companies cannot simply abandon those investments. They will continue to use them, which is also another reason why digital products will continue to grow in the future.

Third: The experience of changing the work environment and consumption

The experience factor is related to the previous two factors, as companies now discovering the benefits of the digital business environment will continue to develop their digital business model and abandon many traditional business methods. As for consumption, the change is manifested by changing consumer behavior. Millions of consumers did not have any previous experience with the products of digital companies, such as learning, telemedicine, delivery services, and electronic products. The fact that consumers have now experienced consumption through the internet will enable digital companies to enhance their customer base. "The economy of quarantine," (as it is called in China) will develop new consumer habits, as people who have to the opportunity to experience digital services today may become permanent customers in the future.

In spite of the pessimistic news about slowing global growth, the Chinese experience so far shows more positive signs. After the COVID-19 pandemic receded in China, shops are witnessing an increase in their sales volumes above levels recorded in the same period last year. This is an early indicator of the possibility of markets auto-correcting in the period immediately following the end of the health emergency. As the Chinese experience indicates, companies that are now adapting their businesses through digital transformation will achieve future gains, by exploiting the “pent up demand” caused by the period spend under lockdown conditions.