If your state is still in a recession, what businesses did well?

Discussion in 'Politics, Religion, Social Issues' started by 63dot, Jul 23, 2010.

  1. 63dot macrumors 603

    63dot

    Joined:
    Jun 12, 2006
    Location:
    norcal
    #1
    While some states didn't feel the sting of this recession that much, California got hit very hard, but not everybody.

    I am not one to play the stock market or invest or start a venture, but I have followed a few organizations which did well. I don't know if it's the product/service, or the reduced competition these days, or a combination of both.

    Hot Topic - At the very worst part of the recession, our small shopping mall with several dozen stores, mostly large companies, were all doing badly except for Hot Topic. Pac Sun, Zumiez, Hollister, The Gap, Victoria's Secret, Macy's, Mervyn's, Anchor Blue, Champs, Foot Locker, and American Eagle were telling the local press about hard times while Hot Topic was cashing in on the others not doing so good. They posted the only balance sheet in the black. The only thing I think, as I have gone to all the other stores a lot, is that Hot Topic is not only cheap but they keep on top of what's hot in youth culture.

    Golden Gate University - I just read a student's magazine on the school, and while they mentioned employee cutbacks and reduced revenue among most private colleges, public colleges, and junior colleges, Golden Gate University not only didn't feel the recession, but they grew in this time. I think it's their large online student populace (about half of the classes enrolled) which has helped this school. They have maintained their tuition where others have hiked theirs in this recession. I don't think the actual dollar amount per unit is the issue, as all schools cater to a certain economic group, but what counts is that a school doesn't change its tuition three times a year as public California universities have had to do some years. Freshman and Sophomores just saw the writing on the wall and returned to junior college, got their first two years out of the way, and then re-enrolled in their four year school.

    Used clothing stores
    - As I seem to see major outlets (Mervyn's and Anchor Blue going out of business in my neck of the woods), used clothing stores are popping up everywhere. The top income maker for the year for the county, for size of business, was a used baby and toddler clothing store. This makes sense since there's little reason to buy new if a child is going to outgrow clothing fast and children's clothing new is very expensive.

    Used music stores - As a musician, I have seen the prices of new instruments go down dramatically while the computer revolution has allowed manufacturing quality to stay high or even improve. But stores which carry new instruments fail everywhere I look or lay off a majority of their employees. During the recession, which our state still has, is a time where I see the used music stores thrive.

    Anyway, who have you seen get through this recession with success and even growth in your state/city?
     
  2. Ttownbeast macrumors 65816

    Joined:
    May 10, 2009
    #2
    Funeral homes rode out this recession very well there's always dead people :D

    Pawn shops do great.

    Adult book stores seem unaffected.

    Drug dealers weren't feeling that hard hit either until all this talk of legalizing things started up again.

    Black market goods and knock offs have been booming as well.
     
  3. aethelbert macrumors 601

    Joined:
    Jun 1, 2007
    Location:
    Chicago, IL, USA
    #3
    One can pretty much reiterate what's in the OP for any region. In a recession, inferior goods will sell in increased quantities and their producers will thrive.

    I haven't checked GDP data yet so I'm not sure if Indiana is still technically in a recession, yet I know that the large-scale commercial construction business around Indianapolis has done very well, though mostly via contracts signed before the overall declines in late 2008.
     
  4. 63dot thread starter macrumors 603

    63dot

    Joined:
    Jun 12, 2006
    Location:
    norcal
    #4
    I think whether a budget brand, let's say mass produced in China, or a "higher-end" brand, it's about how the company listens or doesn't listen to the public.

    I think we all know Hot Topic if we have been to a mall. I think, though inexpensive, it's not really at a lower quality than American Eagle or Pac Sun, I think their edge is listening to the masses. But the price is reasonalble/budget level on their products, and they don't adhere to anything too expensive, so that could be their key to success.

    I have also thought, for their target audience, if you want a inexpensive t-shirt, wouldn't it be more cool to get on with a favorite rock band/cartoon/movie character silkscreened as opposed to something more practical, like a low-key t-shirt that mom or dad "approves" of?

    My guess is that Hot Topic is targeting an under-21 crowd and keeping their lack of funds in mind. Gone are the boutique mom and pop stores who carried youth clothing that may include $200-$300 dollar jeans and original Thakoon teen girly blouses. I think the high priced boutique stuff, while even very good in quality, is just a little too much for this recession.

    Also, as related to this website, Apple goods have come down more quickly in price while offering more. Sure, products offer more at a lower price increasingly in high tech, but Apple has stepped up their quality and PR, and kept their prices lower compared to similar high quality company like Sony, Blackberry, or Alien. Again, I think it's because Apple goes out of their way to listen to what we want, like a Hot Topic, and that's the edge to success. Apple represents a high quality brand and Hot Topic a budget brand (in a sense overall).
     
  5. MyDesktopBroke macrumors 6502

    Joined:
    Jun 2, 2007
    #5
    I don't know if I agree with Apple lowering prices . . . think of the new Mac Mini.
     
  6. 63dot thread starter macrumors 603

    63dot

    Joined:
    Jun 12, 2006
    Location:
    norcal
    #6
    I know, that sucks. You got a great point on that one.

    But look at the Nano and the Shuffle. I think they are a huge step up from the first editions. Shuffle is targeted to ultra budget and I would rather have a Shuffle in their budget price range than anything else.

    Also, the iPhone line has come very far overall, and remember what the original prices were when iPhone came out? Even reduced second gen. prices were high and the product didn't offer anything compared to what they offer now.

    Apple should have brought out Mac Mini at previous $599 price. I think they blew it on that product launch.

    But Macbook is very decent at $999. I was an owner and fan of iBook line and early Macbooks. This latest Macbook is pretty powerful for a sub-$1000 dollar laptop.
     
  7. NT1440 macrumors G4

    NT1440

    Joined:
    May 18, 2008
    #7
    I know the repot industry is doing quite well in CT.
     
  8. citizenzen macrumors 65816

    Joined:
    Mar 22, 2010
    #8
    I was going to say porn... until I read this...


    Even porn industry hit by slumping economy
    Rise of amateur video also cutting into no longer recession-proof industry

    “They are definitely struggling,” said Jack Kyser, an economist with the Los Angeles County Economic Development Corporation. “They are subject to piracy like the mainstream industry is, and that siphons revenue away. Then there are a lot of amateurs in the online industry, which is growing rapidly, and they don’t charge for it."
     
  9. NT1440 macrumors G4

    NT1440

    Joined:
    May 18, 2008
    #9
    I'd say the porn industry is dying because people are finally understanding that you can get it for free online. ;)
     

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