Who is benefitting from a down stock market, millions of lay offs, and a depressing economy? It turns out there are pockets that are doing really well – like entertainment vendors, consumers in the market for discounted luxury goods, and global online auction websites, particularly China.
The reason is that the level of unemployment and the huge losses of personal wealth positively affect some businesses. For example, video games, consoles and accessories grew 29% in 2008 and the online game website Big Fish Games sales grew 70% — but even more than that the number of subscribers has jumped 110% since September (when the layoffs really started) and Big Fish has 30 job openings. Overall visitors to online game sites grew 30% – that’s what happens when people suddenly have a lot of time on their hands. You can read the WSJ’s take on it here.
But it’s not just gaming that’s growing. Sites that help the newly income-challenged sell their luxury goods at bargain basement prices – like Craigslist and eBay – have increased traffic. www.portero.com helps you auction off those gently used luxury goods (that your spouse told you not to buy in the first place) starting at 85% off. Of course if you want a jet, a yacht or even a Rolex you can now go to www.jameslist.com which caters to those of you looking for super high-end luxury goods.
Seriously though, the growth in auction sites is being seen globally — for example Analysys International reports that China’s C2C online retail market grew 140% in 2008 to approx $16.4 billion (U.S.) and is expected to reach $56.7 billion (U.S.) by 2011.
Looks like unemployment and the subsequent bargain hunting has a silver lining for the sites that help consumers amuse themselves and save money at the same time.