Product Winners and
Losers in a Recession
The great majority of people in a recession fall into the pained-but-patient segment. While they economize in all areas, they’ll
still spring for occasional treats. Here’s how they change their
behavior in a sampling of product markets.
SKIN-CARE
REGIMES
Sales fall as consum-
ers who formerly
applied individual
moisturizers, cleans-
ers, toners, and
the like cut back on
these pricey treats
and trade down to
cheaper multipurpose
products.
HOME SECURITY
SYSTEMS
Sales climb in
response to recession-
related increases in
crime and consumers’
anxiety about safety
as they spend more
time at home.
COMPUTER
REPAIR SERVICES
Demand rises, as it
does for all durables
repair, because consumers postpone replacement purchases.
UPSCALE
MAGAZINES
Ad revenues and
issue sales fall as
consumers purchase
fewer luxury and
discretionary goods,
high-end product and
service advertisers
place fe wer ads, and
consumers buy fewer
copies.
TIRES
Sales to auto
manufacturers drop
in tandem with
new-car sales, but
replacement-tire
sales should rise correspondingly, unless
consumers drive less
or postpone buying
replacements.
TELEVISIONS
Sales typically fall
for big-ticket items,
but as consumers go
out less, a big-screen
TV may seem like a
justifiable entertainment investment.
FROZEN
VEGETABLES
Sales increase as
people eat out less
often and trade
down from fresh and
organic.
HEALTH
CLUBS
Memberships drop
as consumers defect
to less expensive
alternatives such as
walking, jogging, and
home workouts.
ICE CREAM
While shop and
restaurant sales
decline along with all
eating out, purchases
at supermarkets climb
as consumers seek
affordable treats (
perhaps to curl up with
in front of the new
television).
