For example, a recession in a region may be more likely to affect its major industries. However, here are some of the industries that tend to be affected first by recessions:
1. Real estate: During a recession, the real estate market usually takes a hit because people can't afford home prices. When the real estate market undergoes a correction, home sales fall, investment decreases in size, home prices fall, and various real estate and construction development projects are abandoned.
2. Finance: during recession, banks and financial institutions may be at risk, due to poor economic conditions, people's demand for borrowing falls and users continue to grow, so that the source of bank profits is greatly affected.
3. Retail: During a recession, the purchasing power of most people decreases and consumer spending is reduced, which can have a major impact on the retail sector. The average consumer has been one of the key drivers of U.S. economic growth for decades. Their reduced purchasing power means retailers will have to reduce inventory and lower prices to attract consumers.
4. MANUFACTURING: Manufacturing and industrial production were hit hard during the recession as people reduced their need to consume groceries and other goods. This led to factory shutdowns and layoffs which had an impact on the livelihood of manufacturing employees.
5. Service sector: During a recession, people usually cut down on unnecessary expenditures such as travel and services such as food and beverage. This will have an impact on the service sector, leading to a decline in business and employee layoffs.
Overall, recession affects all aspects of the economy, hitting various industries, but the relevant program is the relief measures taken during the downturn, as the short-term banking system system is saturated, leading to measures to force liquidity.
During economic downturns, people are more inclined to purchase cost-effective daily necessities around their communities. The experience of the epidemic closure and control has also led many people to develop the awareness and habit of stocking up, increasing their psychological dependence on convenience stores.
1. Convenience grocery stores. From daily necessities to vegetables and fruits, a convenience store and grocery store with a full range of products will become popular.
2. Discount store/second-hand store/second-hand goods trading platform. This is very understandable, the economic downturn, people's consumption concept will become "enough to use", the pursuit of low-cost, practical. The rise of the second-hand business, on the one hand, people will want to fully realize their hands are no longer practical items, rather than as before, arbitrary disposal; on the other hand, people are more willing to buy cost-effective things, no longer compare.
Japan's second-hand stores became the world's leading supplier of second-hand goods during the country's ongoing economic downturn. During this time, the number of second-hand luxury stores in Japan grew from 1,000 to tens of thousands. The rich not only sold their luxury goods, but also their mink coats, and even sold their valuable cars to pay off debts or for cash.
02 Repair and Maintenance
During a recession, people will value cash in hand more, and make fewer big purchases and large expenditures. For these items, they will not be replaced as easily as before.
1. Car repair and maintenance. When the economy is in trouble, people will no longer easily replace or buy a new car, compared to the burden of thousands of loans to sell the car every month, people are more inclined to choose to spend a few hundred per month to repair and maintain their car, so that it is in good condition.
2. Computer and cell phone repair. When the economy is good, the replacement rate of computers and cell phones is high, and young people will even chase after a certain brand model to upgrade. When the economy goes down, people will not replace them easily, and they will choose to repair them if something goes wrong.
3. Clothes and shoes repair. During the economic downturn in Japan, the store that repairs shoes and mends clothes did a brisk business. The reasoning is the same as above.
4. DIY tool and material stores. Economic tension, as well as home quarantine under the epidemic, the forced closure of stores, will make people tend to do their own repair and maintenance of household goods, which will lead to the sale of DIY tools and materials. It will also allow maintenance platforms like Master Wan to develop further.
03 Restaurant Industry
Under the impact of the epidemic, people are isolated at home and go out less, and a large number of restaurants are forced to close. But if the epidemic ends, restaurants will also attract a rebound in traffic.
Ignoring the home quarantine and out-of-home restrictions caused by the epidemic, the following segments of the restaurant industry would perform better today, just in terms of the economic downturn.
1. fast food restaurants. People will be less likely to go to large restaurants to eat and drink, and more likely to favor low-priced and affordable Chinese and Western fast food restaurants. Fast food restaurants and delis such as burgers, fried chicken, rice, noodles, flour, and lo mein are less affected by the recession and may get some of the new traffic. Meanwhile, affordable restaurants that are affordable and allow families to enjoy the party experience and atmosphere will also be popular. The epidemic has made people more aware of the importance of getting together with family and friends.
2. Bistros. During a recession, there is a greater need for people to relieve themselves of all the anxieties they have about their lives and give themselves a place to escape for a while. Alcohol is definitely the go-to choice for self-anesthesia. People may not drink high-priced alcohol at every turn, but cost-effective liquor beer red wine, will become the object of desire. Many affordable taverns will become the choice for people to release dopamine during tough times. Alcohol, cigarettes, gambling, and escort services are called "sin" (sin) industries in foreign countries. When the economy is in the doldrums, these industries thrive, and people indulge and anesthetize themselves in them, seeking temporary happiness.
3. Bakeries. Breads, pastries... These are the food items that people can give themselves a small measure of comfort in difficult times. People will use these foods that don't cost much but can spice up their lives to add a touch of happiness to their lives and the lives of their families.
04 Healthcare
As the economy recedes and the pace of life slows, people will pull their attention from the outside world back to themselves and their families. Add to that the experience of an epidemic, and health becomes a primary concern.
1. New offline gyms. People's attention to health and fitness will naturally benefit offline fitness centers, and those that can break through the traditional offline fitness centers' persistent problems (opaque, heavy sales, light service, low re-purchase, and frequent road running) will be more favored by the new fitness centers, gymnasiums, and yoga studios;
2. On-line fitness platforms and online fitness live broadcasts. Affected by the economic downturn and the epidemic, more and more people began to choose home fitness. It has directly led to the further development of online fitness platforms such as Keep, and the phenomenal model of live fitness broadcasts such as Liu Xiaohong. As the commercial facilities of the Jitterbug platform are already sound, it makes this model possible to form a commercial closed loop through live streaming with goods and so on. Home fitness will drive the sales of home fitness equipment. And together with other fitness methods, it will drive the sales of fitness peripherals, such as fitness supporting equipment and fitness meals and so on.
3. Hospital clinics. Regardless of the recession, health care is one of the least affected areas. However, due to the specificity of this field, there are not many opportunities left for the average entrepreneur. Physical examination centers and private clinics are one of the directions that can be considered.
05 Beauty
One of the consequences of the recession has been a rise in unemployment. This also means that job searching will become more inwardly curled, which in turn will make people pay more attention to their self-image, both men and women. In economics, there is the so-called "lipstick effect", which is the result of the 2008 economic crisis and the rise in sales of lipsticks, face masks and other cosmetics in the U.S. market, as well as the growth of the hairdressing and massage industries. Later, people used the "lipstick effect" to describe that whenever the economy is in the doldrums, people's consumption will shift to buy cheap luxury goods to bring them more psychological comfort.
1. Cosmetics. Affordable cosmetics are favored during economic downturns. L'Oréal bucked the trend with a 5.3% increase in sales in the first half of the year against the backdrop of the worldwide economic crisis in 2008.
2. Hairdressing. In the economic crisis, people are more eager to improve their image to enhance their competitiveness in the workplace.
06 Childcare
The difficult economy will increase the chances of parents going out to work at the same time, which will bring about a rise in the demand for childcare. At the same time, there is no way to downsize supplies for babies and toddlers, so they will be less affected by the economy.
1. Baby supplies. "No matter what to make money out of milk powder" is the mantra of countless workers, but also shows the rigid demand for diapers, diapers, baby mattresses, bottles, milk powder and other maternal and child goods.
2. Child care center. The economic downturn may make the original "one person working, one full-time with children" model become the choice of a few people. Parents will have to go out to work at the same time. Inclusive child care centers that provide effective care will be the choice of more parents living in cities during the recession.
07 Pet-related
The social detachment of modern society has made pets an important companion that people use for companionship and psychological comfort. And the economic downturn can exacerbate this phenomenon. Today, a pet's place in a home is equal to that of a family member.
1. pet stores. Pets, pet owning support facilities, equipment, and food, will continue to grow during the recession.
2. Pet hospitals. The health of pets is just as important as the health of their families, and people don't skimp when it comes to investing in pet healthcare.
08 Entertainment Industry
Entertainment will thrive in a recession. During the Great Depression in the U.S., the movie industry took off, and everyone had nothing to do but go to the movies. There are also video halls, billiard rooms and chess rooms that were everywhere in the 1990s. When the northeast provinces were in recession, unemployed men were playing video games and unemployed women were watching serials.
1. Movie theaters, TV, and video entertainment platforms. These modestly paid entertainment content are less likely to be affected by the recession and, on the contrary, will benefit. People can easily find their happiness through these modest consumption. Therefore, there are still many opportunities for content entrepreneurship on platforms such as Shake Fast and B Station today.
2. Anime and games. Japan's animation industry, is in Japan's so-called lost thirty years, the economic downturn developed. Content + peripheral, became one of the pillar-type industries in Japan. Recurring epidemics became the norm a few times over, and home isolation offices developed a dependence on various online technologies. The gaming industry definitely skyrocketed. Many consoles that had previously been sitting at home unused were brought out and restarted. Nintendo of Japan's game Animal Crossing: New Horizons sold a whopping 5 million copies in March 2020 during the epidemic.
09Education industry
Education was always said to be the best industry to buck the economic cycle until the double-decrease policy was introduced, which uprooted the largest segment of the education industry, K12 subject training, and incidentally affected non-subject training as well. This, coupled with the impact of the epidemic, has led to a significant downsizing of education as an industry. With a severe recession, will education as an industry gradually reopen?
1. Vocational, skills training. When the economy is bad, people tend to learn more skills to improve their competitiveness and increase their career possibilities.
2. Online learning. Because of the epidemic, time and other factors, as well as the maturity of online technology, people tend to learn more courses online to enrich themselves and improve their competitiveness in the workplace.
10Medical Retirement Industry
Ageing and childlessness are almost inevitable. Whether the economy is good or bad, the medical and senior care industry is an industry with great potential in all countries, especially in East Asian countries with low fertility rates.
In the 30 years of Japan's economic downturn, industries related to Japan's aging boomed, and the healthcare industry rose to full prominence.
Because of family culture and consumption habits, our country's healthcare and aging industry is not friendly to entrepreneurs and still has a long way to go.
11Investment and finance
When people's income drops sharply, they will be more cautious about the use of cash deposits in their hands, and there will be more demand for investment advisers, financial advisers and so on.
More debt collection firms, financial companies specializing in the recovery and restructuring of non-performing assets, may also emerge.
12 Intermediary market
The recession has reduced people's purchases of big-ticket items such as real estate and cars. If there is a demand for them, they may turn more to the rental market. At the same time businesses employing workers are more likely to use freelancers or temporary workers to fill vacancies. Thus the demand for intermediaries will arise.
1. housing whole package sales. 2. talent matching platform for freelancers and temporary workers.
3. Rental of houses and cars.
13 Everything that can help companies save money in 2B business
When the economy is going up, 2B business focuses on how to help companies develop the market and make money; when the economy is going down, companies are more concerned about how to better save money. Everything that can help companies save and save money will regain the market.
14Digital, virtual economy
Digitization of businesses, online office learning, virtual reality, gaming (and the so-called meta-universe) and other areas will find themselves in a better place during the recession.
15 Short Video Live Streaming with Goods
Content e-commerce with Shakefast as the main platform has become a new e-commerce ecosystem, and they are different from traditional e-commerce as well as live streaming e-commerce based on traditional e-commerce. They attract users by way of content, influence user decision-making, and then recommend and sell goods through label matching. The existence of super new infrastructures like Shake Shack has lowered the threshold of entrepreneurship overall, providing more possibilities for all types of entrepreneurs in a recession.
16 Courier Freight and Logistics
Jobs for truck drivers, courier boys, and logistics companies are still secure in a recession. The logistics and transportation needed regarding the transfer of means of production and finished goods are still needed during a recession.
With a recession, people will tend to stay at home, and businesses such as food ordering and group buying will be more needed. It's not just restaurant ordering; convenience store and grocery store errands will be brought up, including no-touch delivery.
17PUBLIC*** BUSINESSES
Electricity, water, garbage and waste disposal, funeral parlors, pharmaceutical companies, etc., all of which have continued to grow through the recession. These are related to employment, but most have little to do with individual entrepreneurs.
Note
1. Because the causes and circumstances of each recession are different, many industries cannot be generalized; this recession and the epidemic are closely related, and some industries will be doubly affected.
2. In these recession-resistant areas, it means different levels of entrepreneurial opportunities for entrepreneurs with different resources and capabilities, and there are also some areas that are state monopolies that are difficult to enter or where general entrepreneurial opportunities do not exist.3. In the treatment of the list, there will be an overlap between some of the industries and sectors. And the reason why two industries or fields with overlap are singled out is because the overlap is not enough to cover both industries.