A handful of industries have remained steadfast in growth and sales during the current economic recession, which officially began in December 2007. While the economy has particular industries struggling, some are instead leveraging the climate for opportunity. The economic downfall has spurred growth in bakeries and “sweet treat” businesses, consumer goods such as diapers and cosmetics, video gaming, and neighborhood bars that don’t exude too much of a posh atmosphere. These lucrative sectors are attracting eager entrepreneurs to open small businesses that appeal to these various needs and desires. Our take on why these industries continue to soar and stay sable is provided.
Bakeries and Dessert Shops: Major confectionary companies such as Hershey have reported a mouth-dropping increase in product sales in the last year and a half. One NYC-based baker anonymously observed, “People are eating their feelings like you wouldn’t believe.” With that said, it is no surprise that people have turned to dessert shops and bakeries to bolster their moods and distract them from money troubles and relationship woes. The $25 billion bakery industry has introduced new cupcake varieties and pastries in an attempt to differentiate their products and garner greater attention – it has proven to be widely successful.
Consumer goods: Consumers will always need and purchase the products that get them through the 12-hour day such as diapers, cosmetics, household cleaners, and cooking ware. Businesses that manufacture a variety of products rather than limiting themselves to one type have a better chance of thriving. Conglomerates like Proctor & Gamble have proven to be successful in the economic recession due to their diverse product range. Jim Woods, a money expert, wrote in an investment proposal, “Companies with diverse revenue streams will be best able to come out of the current recession with the least amount of collateral damage.” Proctor & Gamble is the world’s number one maker of household products and has produced billion-dollar names.
Video games: Early 2009 showed a 22% rise in video game sales in the U.S. over the previous year announced market research firm, NPD Group. Major video game hits like Grand Theft Auto IV are helping the industry not only stay afloat, but increase its popularity and size. By 2011, the video gaming industry is expected to be twice the size of the music industry. Huge new video game markets are infiltrating the online sphere, which is opening doors to new gamers and those who may not be able to afford the pricey equipment needed to play them back. Today, video games don’t just spark interest in children, but also in adults – nearly two-thirds of household heads are playing games, and the average gamer is 33 years old. Thus, this industry caters to multiple age segments and income levels with its ostensibly limitless scope.
Dive bars: In times of hardship, the neighborhood bar attracts large crowds with their infamous amiable vibe, friendly staff, cheap eats, and auxiliary features like billiards and video poker. Nightlife publications have observed an influx in down-to-earth bar popularity which tends to attract those who still want to drink and have fun on a budget. The laid back environment is known for relaxing its patrons and advertising appealing drink deals. An excellent word of advice for entrepreneurs who are looking to open up a friendly, divey-style bar is that themed nights and gaming stations augment repeat clientele. Examples include trivia night, happy hours, shuffleboard, and flat screen televisions.
Other industries have shown continued success, but the ones listed above have piqued our interest. Entrepreneurs can choose to hide and wait for signs of change, or instead exploit the opportunity to create a money generating business that profits in any condition.