Digital marketing business is a very good venture for people to make money online. It is a lucrative industry and has massive potential for growth. You just need to choose the right niche and you are good to go. But what if you pick the wrong niche? It can cause serious damage to your business and even put an end to it altogether.
Besides, there are signs of trouble on the horizon (like falling stock prices), so it’s smart for marketers to think about how their budgets will be affected by this possible downturn in 2022-2023.
In this article, we’ll talk about why some industries and niches could be struggling in 2022/2023 and what you can do as an entrepreneur or marketer to stay ahead of the game.
1. Luxury Goods
The luxury industry is expected to be affected by a possible recession. When people are struggling financially, they are less likely to buy expensive items like luxury goods. In addition, when people are not spending money on themselves, their ability to spend money on others will decrease—including holidays and gifts for friends and family members.
The same goes for luxury services like personal stylists or customized clothing lines: It will become harder for these companies to bring in revenue when consumer spending declines.
2. Restaurants, Bars, Coffee Shops
The restaurant industry is extremely competitive, to the point where restaurants are going out of business and closing. The recession is one reason for this phenomenon, but it’s not the only one. When you think about it, many people still enjoy going out to eat when they have money in their pockets. However, when money gets tight and consumers start cutting back on spending habits that aren’t absolutely necessary for living (like eating outside), then restaurants will inevitably be impacted by this change in spending behaviors.
The restaurant industry is a very sensitive industry to changes in the economy, and it is likely that they will not invest in content marketing during a recession due to financial reasons. They are already investing heavily on online presence through their website and social media accounts, but this investment can be cut short if there is no budget for it.
3. Medical Equipment Manufacturing
This niche is considered to be in decline because it’s one of the most expensive niches to operate in due to regulations which require high standards for health care providers, as well as continual improvements and innovation on existing equipment. These costs can easily double or even triple when compared with other industries that offer similar services but don’t have such stringent requirements.
4. Jewelry & Watch Manufacturing
The biggest impact of a recession on content marketing efforts by jewelry and watch manufacturing is the decreased spending power of consumers. If you can find ways to create value for your target audience during this time, you still have a chance of making them want to buy from you during the recession.
5. Medical Supply Manufacturers, Distributors, and Wholesalers
Medical supply manufacturers, distributors, and wholesalers are not a good investment during a recession. The demand for medical supplies is highly seasonal and the market is very competitive. During tough economic times, businesses in this field will be focused on cost cutting rather than marketing their brand to consumers. They won’t be willing to spend money on digital marketing campaigns or pay for any kind of marketing service that generates leads for them.
6. Natural Resources and Mining
Given their dependence on commodities prices, natural resources and mining companies are likely to be hard hit by a 2022 and 2023 recession. As a result, these brands will be looking to cut costs in any way they can – which means they’re unlikely to be willing or able to pay for the kind of marketing support needed to drive growth.
If you want a client that is going through tumultuous times right now, look elsewhere.
7. Weddings
The wedding industry has been hit hard by the recession. Couples are getting married later than ever before, and when they do decide to tie the knot, many of them are opting for elopements instead of traditional weddings. Because there’s less demand for weddings right now, companies in this niche will be losing money and may not have enough cash flow to invest in digital marketing services.
8. Antiques
Antiques are a niche market. They’re not recession-proof, either. Since antiques are an industry that doesn’t usually do well during economic declines, we wouldn’t recommend them as a business idea in 2022 or 2023.
So even though this industry is doing well now, don’t count on it for your future business endeavors.
9. Real Estate Developers and Construction Companies (including builders)
We know that real estate is a cyclical industry. That’s part of why we have seen big drops before and will see them again. So, we can’t really avoid this one; all we can do is be aware that it might happen again and be prepared for it.
The most important thing to keep in mind when thinking about investing in real estate or businesses related to it, is that these are risky investments! There are many other industries where you could make more money without taking on such high risk and uncertainty.
Also remember that with lots of debt-fueled construction across many countries and high prices built on a strong economy, expect to see prices fall and people hold out on buying real estate while they see what happens around the world. This could lead to an oversupply of housing in some areas—which would hurt the value of existing homes and land as well as new construction projects. And with falling real estate prices and an uncertain future, construction will slow down—and so will investments in content marketing by companies involved in this sector.
10. Home Improvement Services
Home improvement services are likely to be affected by the recession. People are going to be more cautious about making big changes to their home, but if you’re an expert in this area and have a good reputation you could potentially benefit from the downturn.
If you can offer a low-cost solution that is both fast and effective then this could be an excellent niche for 2020s recession as people look for ways they can save money while still getting the results they want.
When times get tough, people will start looking for cheaper alternatives.
11. Travel & Tourism Industry
As the world economy continues to fall, travel and tourism is predicted to be one of the hardest hit industries.
With people uncertain of their own futures, along with less disposable income all around, this industry will see a decline. Expect major airlines and hotel chains to go into liquidation.
One exception: remote work and travel (RWT) providers are not affected by recession because they don’t rely on local economies for their business model, but instead provide an online solution for individuals looking for remotely located positions or opportunities abroad
12. Recruitment Agencies
There are still opportunities if you can demonstrate value added services such as training or working on-site so that you are seen as more than an agency that just places candidates into jobs.
13. Retail Fashion
With a large number of players and an industry that is highly dependent on consumer spending, the retail fashion industry will be affected by the recession. The first thing to consider is that you probably already know who your competitors are in this market.
Structurally speaking, there are many ways to approach targeting this niche. You can focus on offering a similar product or service at a lower price point (like Zara), or you can offer something different from what’s already out there (like H&M). Either way, it might be harder to get traction in this space because of all the competition.
Additionally, people will cut back on excessive spending during recessions as they try to save more money so they don’t lose their job or home due to financial reasons…they’ll also look for ways they can make their clothes last longer before replacing them with newer items so they don’t have as much debt after buying new items.
14. Weight Loss And Gyms
Fitness is a luxury that people will cut back on when money is tight. Fitness and health is a niche that is over saturated. The industry is growing, but it’s not growing fast enough to keep up with the demand. This means that there are many companies competing for the same customers, making it harder to stand out from your competitors.
Gyms historically have high attrition rates during economic downturns. Many people stop going to the gym when they’re feeling stressed about their finances or job security, or just plain feel too tired after working all day to get their workout in at the end of the day (or go out at all). And many who are casual but not regular gym goers will cut those gym memberships as a way to save money
15. Auto Industry
While smart businesses that measure their metrics or know that their advertising is working will keep spending, large brands especially that advertise for ‘branding purposes’ and are unsure of their results will cut advertising spending to be safe. This means less business for you, which may not matter now but could matter later when those same big brands start ramping up again!
16. Live Entertainment and Events
.As people tighten their spending habits, they are likely to cut back on going out for dinner or drinks with friends and family, watching movies at the theater, going to concerts, etc. This can have a negative impact on companies that provide these services.
It’s not a good idea to market in this niche during a recession as it is generally considered to be discretionary spending.
17. Organic & Expensive Health Food
You might be thinking, “Health food is expensive!” And you would be right. While the food industry is a popular niche for many, this can also be one of the most challenging niches to profit in. If a recession hits, people will spend less on high-end food.
People will spend less on pricey food items when they are strapped for cash.
18. Advertising Industry
While smart businesses that measure their metrics or know that their advertising is working will keep spending, large brands especially that advertise for ‘branding purposes’ and are unsure of their results will cut advertising spending to be safe.
This means there will be a lot more competition in this niche when it comes to attracting new clients and winning contracts.
Do Your Research Before Choosing A Niche
In conclusion, there are many industries and niches that will be impacted by the upcoming recession. With this in mind, it is important to consider which ones are likely to do well during recessionary times and which ones will not. If you can understand these trends, then it may help you make better decisions about where to invest your time and money as a digital marketer or salesperson in an industry other than digital marketing b2b sales.
