No Work Times

10 Winners in the Recession & Why They’re Winning

There was an article released on Yahoo today about the industries and companies that are surviving and thriving despite this year’s economic downturn. It’s an interesting read but they don’t dive into the theories of why these things are staying afloat. Here are my hypotheses to those listed.

1. Home Gardening

“Sales at Burpee are expected to jump 25% in 2009, while veggie seed sales at Park Seed are up 20% this year from 2008. And a National Gardening Association poll shows that the number of households planning to grow their own food in 2009 has increased by 19% from 2008. The trade-off? Fewer flowers. With garden space—and budgets—squeezed, flower seed sales are down.”

Theory: Growing dinner in your garden will surely save you money and help relieve some of that post-pink slip depression. 8.1% of the nation is unemployed and looking for things to do (in addition to new jobs), and many are pursuing hobbies that may have been neglected due to time constraints. Gardening is one that never goes out of style.

2. Hollywood

“The number of subscribers to Netflix climbed 26% in the fourth quarter from the same time last year. That helped put the company’s revenue up 19% from the previous year. And according to industry researcher Media by Numbers, 2009’s box office sales are tracking 16.5% higher than the year before—at this rate, theaters will make $1.9 billion, versus last year’s $1.6 billion—with attendance up nearly 15%.”

Theory: If you’re anything like me, you’ll welcome a new release DVD or take a trip to the theatre for a temporary mental vacation from everyday life. Americans love fairy tales, happy endings, out-of-this-world scenarios and the like. With all the news and cable stations broadcasting daily pessimism about the doom and gloom of our nation’s economy, is it any wonder people want to go (mentally) to a happier place?

3. Bodice Rippers

“Harlequin, the world’s biggest publisher of series romance, saw North American sales rise $3 million in 2008’s fourth quarter from a year earlier. Other escapist literature also has done well: Although most book sales were flat or down in February 2009 from the year before, a spokesperson for the Borders book chain says that science fiction and fantasy were up—as were humor titles.”

Theory: See my theory for “Hollywood”. Books are just as good as movies.

4. Condom Makers

“Whether for at-home entertainment or to try to stave off the cost of a baby in trying times, condom sales rose 6% in January from the year before. “If people don’t have the money to go out to a fancy dinner or are looking to cut back, Trojan gives them some real affordable ways to stay in and make some great memories together,” Jim Daniels, Trojan’s vice president of marketing, told USA Today.”

Theory: Having babies is expensive and historical statistics have shown that families procreate less in times of global financial stress and disruption. You got to love Jim Daniels’ selling point for Trojan, though.

5. Résumé Editing

“Résumé writer Jerry Bills, who has worked on nearly 30,000 résumés since 1986, says his sales numbers are up 46% from last winter. “I’m way too busy to bother to even track it all,” he says. “All I know is I don’t even have a life anymore.” One poll by the National Résumé Writers Association found that 54% of respondents had seen an increase in clients as economic conditions worsened. And at her own business, says Feldberg, December and January orders had jumped 300% over the same time last year. But résumés for certain industries are being submitted more than others. While résumés for the restaurant industry, healthcare, and tourism are up at Peterson’s ResumeEdge, those for financial services are, unsurprisingly, down.”

Theory: This one’s a no-brainer. People are looking for professional help to tweak and showcase their resumes in these competitive times. A lot of people are doubtful and jaded about the stability in financial situations so they turn to other industries that will always be in demand.

6. Public Universities

“The recession may be hurting public colleges’ budgets, but it’s boosting their appeal to students. The Connecticut State University System expects an 11% rise in applications this year, while Oregon State University’s applications have grown by 12%. And in a record-breaking year at the University of Texas, numbers are up 6%.”

Theory: Those who about to graduate have less of an advantage in the workspace: many have little to no experience in their industry as a professional. Those who do have years of experience are going back to obtain a different degree or pursue a higher education. Others are taking advantage of their time off by enrolling in classes of subject matter related to their hobbies.

7. Chocolate

“Hershey’s, the largest North American chocolate manufacturer, increased earnings by 51.4% in the fourth quarter. That’s partly because of cost cutting and ad campaigns, but it helped that sales rose 2.6%. Overall, sinful sweets seem to be faring well in the recession. The British Cadbury Company, which sells both chocolate and goodies like Trident gum, found its annual profits up 30% in 2008. And market research firm Mintel predicts that the chocolate market will keep growing throughout the recession. Analysts say that, like the oft-quoted “lipstick index,” rising chocolate sales show that when Americans are cutting their spending elsewhere, they feel more entitled to small indulgences.”

Theory: People want comfort food when they’re stressed or depressed. Chocolate has been scientifically proven to increase serotonin levels with endorphins upon digestion. As children, we were raised to correlate candy and sweets with goodness and happiness (excluding the dentist factor) and this mentality usually remains the same in adulthood.

8. McDonald’s

“McDonald’s same-store sales in the United States rose 6.8% in February 2009. But not all cheap eats have prospered. Sales at the pricier Arby’s dropped by 8.5% in the fourth quarter, slamming the Wendy’s/Arby’s Group with a $393.2 million loss. Pizza chains also have been hit, with same-store sales falling 3% in the fourth quarter at Domino’s and 1% at Pizza Hut.”

Theory: This is a tough one. You’d think all fast food chains would prosper since people would want to save money on food and take the shortcut to the drive-thru line. The thing that I think explains McDonald’s dominating success is brand loyalty. People all over the world have grown up with McDonald’s as a household name, and the brand has always been associated with convenience and value for your buck.

9. Career Development Websites

“Traffic to job sites increased 20% in January 2009 from the year before, according to Nielsen Online. That was driven not only by the unemployed but also by people who still had jobs. People are seeking out information in more old-fashioned ways, too. Borders says its sales of career guides are up from last year.”

Theory: Another no-brainer. The media and government have people in frenzy over employment and job security.

10. At-Home Coffee Brews

“The economy must be bad when even Starbucks, purveyor of $4 lattes, introduces its first value menu. But while the powerhouse’s profits fell 69% in the fourth quarter of last year, revenue at Vermont’s Green Mountain Coffee Roasters, which ships gourmet blends to the door, climbed 56%. And retailers have been selling Mr. Coffee’s coffee makers faster than the company can ship them, says Matt Ragland, vice president of marketing, with sales of coffee makers and accessories rising almost 5% from last year.”

Theory: Some of the first expenses that usually go when someone suddenly loses their job are the luxurious and extraneous ones. Coffee in a cup that costs more than $2 would fall into these categories. Now that the unemployed are spending more time at home, it only makes sense (and saves money) to make as many cups of Joe you want in the comfort of your kitchen. In regards to the growing trend of unemployed homebodies, it would be interesting to see which other household products have benefited from the economy.