This recent article is a good reminder to all of us of the opportunities that come in rough economic times. I'll add one more to the list -
Pay-on-Performance PR and Marketing agencies!
Happy Reading!
Recession-Proof Businesses
Plus Ways to Bounce Back Stronger From Tough Times
By Ad Age Staff
Published: December 15, 2008
1. SOUP
Most of the time, it's sex that sells. But in a down economy, soup ain't doing so bad either. It's one of the few things, besides hamburgers, that you can eat when you're broke. And most people will tell you it's healthy. Campbell reported that its soup sales were up 12% in the most recent quarter. Not surprisingly, the key message in the company's stepped-up marketing efforts is value. Campbell touts five of its condensed soups as "the original dollar menu."
2. MOUTHGUARDS
More layoffs and fewer bonuses lead to greater stress. And more stress leads to ... mouthguard sales? Indeed, according to anecdotal reports. Pink-slipped Wall Streeters have been flocking to the dentist to seek reprieve from their nightly stress-induced teeth grinding, which can damage teeth and lead to jaw trouble. Of course, custom-fitted mouthguards are hardly recession-priced -- they run between $300 and $700.
3. BANKRUPTCY LAW
This should start with a good joke about bankruptcy lawyers, but it turns out there aren't any. But, hey, they've got job security, which is more than can be said for the rest of the legal industry for the first time in many years. Bankruptcy practices started staffing up back in 2006, when the wave of foreclosures began to appear inevitable. Meanwhile some major law firms, including Orrick, Herrington & Sutcliffe, have been laying people off.
4. WALMART
It's only natural the name synonymous with low prices would fare well in a recession. Thanks in part to the giant retailer's laser-like focus on its economically downtrodden clientele via its "Save money. Live better" ads, and the downtrodden getting a lift from lower gas prices, "this is Walmart time," as President-CEO Lee Scott said.
5. THRIFT STORES
Even before Sarah Palin emerged as the industry's celebrity endorser, thrift stores were doing quite nicely in the recession. Sales were up 7% through the first eight months of 2008 at U.S. Goodwill stores, beating even Walmart's (especially on the apparel side). Maybe Ms. Palin's favorite Wasilla thrift store will accept all those GOP-financed duds from Nordstrom and Bloomingdales on consignment, adding some more fuel to the fire.
6. LAXATIVES
Apparently nothing clenches the sphincter quite like plunging stocks and soaring unemployment. But consumers are doing their part to restore liquidity. Laxatives traditionally do well in recessions, and this one is no exception. Information Resources Inc. data show laxative liquids and powders up 20.9% for the 52 weeks ended Nov. 2. All that growth came from Miralax, which switched from prescription to over-the-counter in April 2007. But category sales were still up 7% in the third quarter from a year ago.
7. CABLE TV
Finally, cable TV's failure in advertising is starting to pay off -- or at least it will keep the likes of Comcast, Time Warner Cable and Cablevision from getting hurt as badly as their brethren in a killer media recession. Take Comcast: In Q3, ad revenue took a 10% hit, but since advertising accounts for a tiny portion of Comcast's business (less than 7%), overall revenue was up 10%. Sure, some strapped consumers will look to their cable bills when trying to reduce home expenses, but will many do without cable? Doubtful.
8. GUNS
Maybe people do cling to their guns after all. Barack Obama's stance on gun control and the teetering economy have proven to be a potent stimuli for the gun industry. Government and trade-association data reveal a 10% increase in sales of firearms and ammunition in the months leading up to the election. Now, with Mr. Obama on his way to the White House and the nation officially in recession, we can only imagine that rifles will top many a holiday wish list.
9. SPAM
Spam -- the canned meat, not the unwanted e-mail -- was invented during the Great Depression. Sales are up by double digits, and it has been getting support from BBDO, Minneapolis. A Hormel exec told Ad Age he wouldn't peg Spam's success to the economy, but The New York Times noted last month that Hormel's Austin, Minn., plant has two shifts working seven days a week to meet demand.
10. CHEAP BEER
Goodbye, Budweiser; hello, Busch. If you are selling cheap beer, you have nothing to fear in a recession. Bottom-shelf dwellers such as Keystone and Miller High Life have seen sales surge as the economy has bottomed out. Consumers have traded down from pricier brews like Corona and Heineken, which have seen once-hot sales cool dramatically of late.
