Recession can also be good for some!

Taking inspiration from Stephen Lewitt and his book ‘Freakonomics’, I would like to attempt my own take on Freakonomics and here it goes:

People have been saying that recession is bad and it impacts the entire economy and almost no-one can be saved from its impact if it continues for too long. While I completely agree with what everyone has been saying but for some companies there is a positive side to the recession and they tend to actually gain from the so-called recession.

Some clear winners are: electricity providers, DVD sellers/video parlours, chips and salted snack companies and even beverage companies.

People who have been asked to quit their jobs due to the impact of recession would obviously be spending more time at home and what that means is that they would be having lot of free time in their hands besides spending a few hours daily on trying for new jobs. So to pass time, they would either watch TV (lots of it) or go out and buy/rent a DVD for entertainment. This would mean an increase in an electricity bill as well an increase in sale of the DVD seller or the video parlour.

Now when people sitting at home are watching so much of TV/movies, chances are that they would eat something while doing that. They would also eat out of frustration and depression of not having a job. In either cases, the craving for salted food is bound to be higher and so products like chips and other salted snacks would be the options that they would desire. So even in recession, companies like these can be a bit relieved that their household sales may not go down and they may in fact see a reverse trend.

Same is the case with beverages companies and that happens to be the perfect companion to salted food and a movie experience.

So you see recession can also be an opportunity for some…. It all about looking at things from a different perspective rather than following the herd mentality where everyone says that recession is bad for them and so recession is bad for us.