2009 Hot Markets -- Thawing In a Frigid Economy
No. 9 and uncomfortably fitting is fashion ($577B, +2%; with $8.8B to print, +1%). Clothing and footwear ($5.7B to print, 0%) will be overdressed and undersold. Thousands of retailers, chains and independents will strip by the thousands for a one and only signage and ROP ad show. Intimate accessories ($3.1B to print, +9%) will sparkle and excite because some things still prevail over recession. Sheetfed and web catalog printers and mailers be warned: This sector will be fickle in vogue and feckless in longevity.
A total wreck is No. 10 ranked automotive ($1.8T, +8%; with $8.1B to print, -8%). After a nearly 40% drop in unit sales, and a four- to six-month inventory sitting on the lots, this industry will have to jump start from the dealer back to the auto maker. Up to 5,500 car dealers will rev up for their lives as the “Big 3” abandon them.
But ex-Chevy dealers may well sell Cheri’s from China, and others will introduce brands and models with strange or very familiar generic names: the Wal-Mart 9000SX. Mass customization, an invention of Toyota, will define this industry in the near future. Off-the-road vehicles ($0.8B to print, 0%), as well, will be repositioned as on-the-road energy alternatives. POP, outdoor, high-end sheetfed, pressure-sensitive/decal OEM and personalized direct mail will ramp up finance/insurance ($2.0B to print, 0%). Used vehicles ($0.7B to print, +19%) will up open-web RPMs. Congress, which can hardly manage the country, will surely “mismanage” the auto industry, with a winding and bumpy road ahead.
At No. 12 is travel/hospitality ($795B, +5%; with $7.0B to print, -3%). Hotels and resorts ($3.5B to print, 0%) are at sub-REVPAR (the industry term for revenue per available room), but maintaining rates. The print “REV” is in special offers and events, and in relationship management loyalty programs. Robust, personalized direct mail and bind-ins will check in with close-to-home, mini-vacation deals.
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at firstname.lastname@example.org