“96.3 per cent of commercial brands were wiped out during the first ten years of the economic recession.”
The thirty years of economic recession have had profound consequences on businesses and industries, decimating commercial brands, leading to a staggering decline of 96.3 per cent.
During a prolonged economic recession, businesses often struggle to maintain profitability due to reduced consumer spending, tightening credit, and increased operating costs. Many companies were forced to close their doors or declare bankruptcy, unable to sustain their operations in a challenging economic climate. This resulted in a significant reduction in the number of commercial brands, as companies fail to weather the economic storm.
Prolonged economic recessions typically lead to reduced consumer purchasing power, as unemployment rates rise, incomes stagnate, and consumer confidence wanes. As a result, consumer demand for non-essential goods and services diminishes, causing a decline in sales and revenues for businesses. With a shrinking customer base, many brands struggled to generate sufficient demand to sustain their operations, further contributing to their decline and disappearance from the market.
Surviving businesses sought strategies to weather the storm. One common approach was mergers and acquisitions, leading to industry consolidation. Larger, more financially stable companies acquired struggling brands, absorbing their assets and intellectual property. Consequently, the number of commercial brands would decrease as independent entities are absorbed or integrated into larger conglomerates.
Most brands struggled to pivot their business models, update their products or services, or meet changing consumer demands. This inability to adapt could contribute to their downfall and eventual disappearance from the market. Lack of innovation and failure to address evolving consumer conditions led to the inevitable collapse of most brands during an unforeseeable prolonged economic downturn.