Despite, businesses complaining that sales are receding, a certain survey in the US shows double digit growth in certain sectors. In fact, there are some products showing double digit sales growth despite the worst economy ever. You might not believe this but it is true. You may be wondering, ‘What are the products that are still selling and command a high demand?’
Women keep the economy going with their vanity! Things that make women feel good are seeing a boost in sales. You know, small ways that women can treat themselves and escape from the grim reality for just a few minutes.
Some women will never be caught without their make up on. So here it is....The number one hot buy is LIPSTICK and FOUNDATION.
It is believed that after the September 11 attacks on the Twin Towers, New York, Estee Lauder found that its sales of lipsticks skyrocketed while sales on other products fell. L'Oreal reported that its foundation sales went up 15%, and lipstick up 3%.
Guess what is at Number 2 on the list? Right! Chocolates. Chocolates help soothe the nerves when things get tough. Hershey's reported a 20% jump in sales as consumers turn to a little chocolate for a pick me up. Makes sense – chocolate is a relatively cheaper way to enjoy a treat without much guilt.
Even in tough times, the Americans would still enjoy a glass or two of wine. Wine sales based on the number of gallons sold are actually up 2% in 2008. However, they are buying the cheaper bottles as the average cost per bottle has dropped.
The next hot items are a continuity of the above top items. It is related to romance and dating.
Next come comfort foods. To feel good and comforted, most turn to comfort foods. Macaroni and cheese are leaders here. Kraft Foods saw a double digit growth in its macaroni and cheese sales.
After comfort foods, certain healthcare products have seen a jump in sales. Laxatives went up 11.5% and gastric tablets have increased 8%. Dentists have also reported that they are treating more people for tooth-grinding injuries (which are often caused by stress).
More people are cooking at home and eating in. Many items that fall into the category of "savings" also saw a jump in sales. Restaurants have been hit hard in this recession as money-conscience consumers stay home and cook their own meals.
This big shift has been a boon for many other items. For starters, ready to cook meals are a hit. The maker of Spam and Dinty Moore Stew, reported that profits were up 6% in the first quarter of this year. Meat sales rose 7.3% as people eat more at home and buy that nice steak at the grocery store rather than in a restaurant. Plus, sales of basic food ingredients like flour, sugar, dough, etc. are up as people make more of their own food and buy less prepared food and mixes.
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Soaring grocery bills and the overall trend to save money has driven many people to get back to basics when it comes to food. Sales of canning and freezing supplies were up 11.5%.
It was also forecasted that 40% more Americans will tend their home gardens this year. Seed giant Burpee reported that the sales of basic vegetable garden seeds were up by 30%.
The economic downturn also saw a rise in sales of Running Shoes. Even in tough times, peoplw want to look and feel their best. They are just figuring out how to do it for less. People might be cancelling gym memberships to save money, but they are still planning to keep in shape on their own. Sales of running shoes are up 2%. As people cancel their holiday trips, to the beach or an island getaway, they may still want that vacation tan. Self-tanning product sales have jumped. Also, instead of getting tanned at a salon they are doing it themselves! Sales for hair colouring kits were up 7% and nail polish sales were up 11.2%.
During these scary and uncertain times, it's not surprising that people are still willing to spend money on things that make them feel safer. The common themes for all of these increased product sales is saving money and finding small ways to enjoy life without breaking the bank during this recession. A big jump in sales of home safes and guns (up 27.5% in four months) is seen.
I could not find a similar consumer survey done in Malaysia yet. But we could learn a thing or two from the American experience.
Looking at the way things are, Malaysians will only get a taste of the recession by the end of this year.
The latest economic statistics reported Malaysia experienced a negative growth of 6.2% in the first 3 months of 2009. Malaysians are either in a state of denial of the impending gloom or they are confident that the government economic stimulus packages will save them.
From what I see, the shops and supermarkets in Kuala Lumpur are still crowded especially during weekends and the restaurants are packed too. I had to wait for more than half an hour when I went to a satay restaurant for a takeaway last Sunday. I observed that takeaways were not only being ordered by walk-in customers, but also by the normal customer who dine in. Luckily, the system was orderly (we were given numbers slips with our order details) and the workers were very efficient. The owner must be laughing all the way to the Bank.
This was just the Satay Kajang restaurant. If you visit the big franchisees like MacDonalds and KFC, you will see a similar thing happening. There was hardly a place to sit.
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