Fireside Chat: What Industries Are Seeing Growth In 2021
As we look towards the end of Q2 2021 and begin to start contemplating holiday campaigns (crazy right!?!) we've seen increased market growth across several industries that consumers are currently focusing on, even as many consumers are still in a "savings" mindset - all while disposable income increases.
According to the *US Bureau of Economic Analysis, personal income across the board in January of 2021 increased by $1.954 billion, with disposable personal income increasing by $1,963 billion during the same period.
However, it's important to note that the increase in personal income has been attributed to government benefits as the result of COVID-19 response programs, as well as tax refund checks, so essentially, no increase has been seen without these programs.
But consumers are spending, there is a light at the end of a year-long+ tunnel that has affected, and continues to affect, over **116 million individuals around the world.
Retail Industry Blows Past Dow Jones Expectations
As an example, we see this increase in spending when we take a look at the retail industry. According to ***CNBC, retail sales spiked by 5.3% vs. the 1.2% expectation by Dow Jones. Sales, excluding the auto industry, have also risen by 5.9% vs. the 1% expectation.
So what are the top earners in terms of industries for the start of 2021?
eCommerce saw the biggest gains since January of 2020, up 28.7%
Sporting Goods increased by 22.5%
Building Materials increased by 19%
Electronics and Appliances increased by 14.7%
Furniture and Home Furnishing increased by 12%
Online spending with non-store retailers increased by 11%
Even with vaccinations on the rise and COVID-19 cases on the decline, industries continue to struggle
Even with certain industries gaining traction, there are still those that are struggling as COVID-19 continues to keep the world on it's toes.
Bars & Restaurants decreased by 16.6%; however, with places around the US opening at varying stages we have seen a sharp increase of 6.9% since January of 2021
Clothing and Accessories decreased by 11.1%
Electronics and Appliances decrease by 3.5% (note though that this category has seen tremendous growth in January of 2021)
Consumer spending is the biggest factor behind economic growth for the US, but there's some positive signs.
Brands are on the rebound in 1H 2021
As we close tax season, the IRS has started sending out tax refunds, while the Democrat-led House and Senate passed the $1.9 trillion COVID-19 aid bill, showcasing the continued influx of cash to American consumers.
****We've also seen increased job growth, particularly in the construction, warehousing, and manufacturing industries as demand from consumers continues to skyrocket. With both job growth increasing, as well as additional cash flow, many consumers are predicted to increase spending.
Such spending will continue to drive growth for goods-focused brands as we start to close 1H 2021 and begin focusing on 2H and the upcoming holiday advertising session. These brands are expected to continue to grow during the remaining months of 2021, meaning marketing budgets should be aligned towards this expected growth.
Gaps in the marketing ecosystem must be identified and filled if brands are expected to keep up with the demand of consumers - whether that be organic social media community building, developing a content strategy that defines your brand and drives SEO value, or encapsulating your audience with hybrid experiences that attach themselves to the core of your target market.
Scale your marketing ROI with a team of CMO-level experts. Reach out today for a free consultation.
* – US Bureau of Economic Analysis. https://www.bea.gov/news/2021/personal-income-and-outlays-january-2021 ** – Google Statistics. https://www.google.com/search?q=covid+cases+globally&rlz=1C5CHFA_enUS935US936&oq=COVID+cases+globally&aqs=chrome.0.0i433j0l7j0i390l2.3318j0j7&sourceid=chrome&ie=UTF-8
**** – The Wall Street Journal. https://www.wsj.com/articles/consumer-spending-personal-income-january-2021-11614293378