It is not unusual, when a country’s economy experiences a recession, to see a spike in entertainment-related sales. Bookstores and movie theaters might enjoy higher receipts based on an overall need to escape heavier financial woes. Book and film provide an uplifting diversion for the consumer, and for those involved in the entertainment industry there is the potential for profit, and for revitalizing the economy. Given the current global state of finances, one might be surprised to hear how well products and services in these creative sectors are predicted to perform.
Products and services expected to do well in terms of sales for the year may vary geographically, but one thing that is important to note is that growth in this sector is quite impressive. According to UNCTAD, a trade organization within the United Nations, related global exports totaled nearly $600 billion worldwide in 2008, more than half the total reported in 2002. UNCTAD also noted in their research that while the majority of exports originated from developing economies, with China taking the lead. This brings the rise in creative goods and services to an estimated eleven percent annually.
So what is it specifically that exporters find are popular right now? Here follows a brief breakdown of the most wanted items among global consumers:
Video Games: Despite the recent halt in production of Guitar Hero, video games in general are still popular. According to The Telegraph in the United Kingdom, the British video game industry alone has surpassed music and DVDs in terms of domestic sales.
Movies: Some may find the continuing strength in film popularity confusing, given recent closings of video rental shops in the United States. Bear in mind this does not mean movies as a whole have declined. Digital sales and rentals through resources like Netflix and Amazon.com, in addition to pay-per-view options through cable companies, keep the market alive.
Music: As with film, the rise in digital music downloads has helped create a healthy demand for more music. The popularity of iTunes, for example, has prompted more attention to their sales charts than the more traditional rankings reported through Billboard and other sources.
Fashion: No matter the state of the economy, many of us will find it necessary to update our wardrobes. When it comes to supplemental “treats” like that nice pair of heels or a pair of designer jeans, recessions don’t necessarily hurt sales.
As a business involved in some sector of the creative arts or entertainment industries, you have an advantage in a faltering economy. Products and services that help general morale not only lift spirits but have the potential to bring the economy to a better place.