Fighting The Recession With Wine & Niche Markets

A recent article that made an impression on me was from the NARI, where they claim that a recession-proof remodel was the wine room ( see the article here).  It's incredible that in a time of recession, where people are supposedly watching their pennies, wine sales rose in 2008 and are predicted to keep rising so that by 2012 America will be the world's largest wine consumer. Just out of curiosity, I googled tobacco sales and it seems that the tobacco industry isn't phased by the economy either despite rising taxes.

So what gives? In a time of recession, shouldn't people do without their vices? It seems that people in general are willing to reduce costs on groceries, restaurants they frequent, and other things other than these vices.  As a cigar smoker myself, I am fortunate enough that I can build my humidors which are regularly expensive but necessary boxes for cigar enthusiasts.  The NARI article suggests that not only will people hold on to their vices, but they will spend the money to be sure that their wine is safe. So maybe what we ought to be doing for our businesses is looking for that niche market. 

The client that is still spending money is the higher-end client that can not only hold on to their vices but can accommodate a remodel project around their vice. It's not all alcohol and tobacco either. Maybe their vice is entertainment. A movie fanatic or music fanatic may be willing to spend the right amount for a entertainment system customized around their needs.  A collector of antique decor items or other rare items might want a display case - or room - built around their precious collection. What you have to ask yourself is what niche' market do you think you can better relate to and then build your next marketing campaign to focus on that demographic.

This post by Israel Retana. Israel is the founder of C.H.I.P.s and 2nd generation craftsman at Retana Cabinet Works , where they've been specializing in custom cabinetry and antique furniture restoration for nearly 30 years. He can be followed on twitter (iretana) or contacted at israel@retanacabinetworks.com