Recession Proof Businesses selling “Happiness” at Discounted Prices
Posted by David Liu on December 14, 2009 in Business News [ 0 Comments ]
The current economic recession has closed businesses, cut jobs, “outed” unsuccessful CEO’s, and most importantly – slowed unnecessary spending sprees. That is, until this year. With the end of 2009 nearing, more and more products and services have started claiming their recession-proof statuses.
Perhaps the biggest culprit in the increase in spending this year is the world-wide-web – in a battle for business, online stores have lowered their prices and started offering free shipping and handling on most orders. From a business standpoint, the idea was to increase sales and customer interest – but from a social perspective, it has turned into an almost improvised shopping style from consumers.
After an initial year or so of decreased sales, consumers have started looking at affordable guilty pleasures as a way to maintain their old lifestyles and beat the bleak economic outlook. Designer jeans, shoes, and beer are some of the items that seemed to have increased sales after the beginning of the year.
Some explanations have suggested that with all the saving and limiting to lifestyles that have had to be made, personal pleasures have jumped to the top of the list. In relative comparison, larger commodities needed government funding (such as the Cash For Clunkers deal) and reduced prices (such as high priced smart phones, where buy 1 get 1 deals have dominated sales) just to stay alive.
CBS has cancelled their 25 year old soap opera “As the World Turns” because sponsor owned daytime television has not gotten the same results for advertisers as they used to. This can be attributed to the increase in work from stay-at-home parents as well as the relative desire to start buying products outside of norm of essential needs to battle the hard woes of this decade’s money problems.
This in turn has had two effects: first, it has created an environment where brick and mortar stores are losing their consumers to online marketers with decreased taxes and time-saving one-click buys. Second, it has boosted sales for smaller businesses that offer relatively affordable commodities.
Currently, with this winter’s holiday season has reported an increase in sales from 2008, even before the Thanksgiving shopping season had kicked off. This boom in shopping for items of “pleasure” may be due to the growing number of people who have a desire to stay at home for free and shop online instead of indulge in extravagant outings.
In a relatively new economic situation, the lifestyles of those who have enough to splurge in small amounts seems to be promoting cheaper products, more Ecommerce business, and cheaper ways to find happiness.