Which businesses generally thrive in a recession or depression?
Trends can be an important part of a company’s demand. Look at firms such as HTC who managed to grow during the recession. They sell smartphones, which could be considered a luxury product. Also, Dominoes Pizza is a good example (In the UK). As an alternative to eating out, people ordered in. Inferior goods (cheap) usually do better during a recession, but this isn’t ALWAYS the case. It has to be analysed on a company by company basis, because if people want a product that badly, then will buy it, regardless of the economy.
My dad owned numerous businesses, and even as a teen, I could see why they failed when the economy got bad: all the businesses were non-necessities. Right now, even though funerals are always a necessity, many people are opting for cremation as opposed to traditional burials. Some cremations cost only $300, but I know two people with traditional burials that cost $16,000 and $14,000 each. But there are certain things people always need: toilet paper, diapers, medicines, cleaning supplies. Increasingly, you see Discount Stores (cheap stores) where you can buy these essential items. More and more people are quitting tobacco, while more people are investing in e-cigarettes. Gasoline is a necessity, but according to a relative that owned a station, they made very little off the gas, and made their money by selling other things people got when they stopped for gas. In the world of Real Estate, vacant land is considered the best investment. Out of all the businesses my dad had, the farm he b
