Industries that are doing well in the Recession

Fortune Magazine came out with a list of industries that are experiencing increased sales despite the economy reeling from the recession. Of course once the economy corrects itself and people’s spending power increases, there is no telling if the performance of most of these industries will still hold true.

A list of businesses that do well also in times of recession can be found here.

The seven Industries that are experiencing increased sales are:

1. Video Games - Video games sales rose 18% in October. Xbox sales went up 25% as with Nintendo. Not everybody though can get into the Video games business because producing a video game costs almost as much as a Hollywood Movie with the amount of talent and tech that will be required. Of course one can always go into the retailing of video games.
2. Cosmetics - Estee Lauder chairman said that whenever lipstick sales goes up you know that the economy is bad. That’s because during a downturn, women seek lipstick as a small indulgence. They even coined a term for it, the “Lipstick Index”. Estee Lauder, Ulta and Avon experienced double digit sales growth last quarter. Just goes to show that women would rather go hungry than ugly.
3. Waste Management - even with a downturn, people still need to dispose of their trash. Of course, if TV fiction is to be believed, majority of the Mafia’s main income stream comes from running waste management companies. They do say that the Mob is a recession proof business.
4. Comfort Food - food to quench a depressed ego go up during hard times. But I think this is because people would rather spend more time at home watching TV rather than going out and spending money in order to be entertained. Spam sales go up also during hard times. Maybe they should make a “spam index” to go along with the “lipstick index” of the cosmetics industry.
5. Discount Stores - stores that offer bargain prices are thriving also since people need to stretch that dollar for all its worth.
6. For-profit Eduction - the unemployed are seen marching towards schools in order to pick up a new skill or two. CNN also reported recently that the Medical and Teaching industry are in need of more workers despite the year end job cuts. Investing in one’s eduction has always been a good option to take because unlike wealth or property, you could never lose it.
7. Fast Food - since people can’t afford anymore to dine in fancy places, people are turning to fast food joints with their cheap menu. Of course all that fatty food isn’t helping the health of the population.

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