In the event of an economic crisis, will IT be the first industry to decline?

The IT industry is a very broad category, depending on what it does. I think IT can be broadly divided into the following categories:

1. Sell advertising ——, google, **, all kinds**, etc.

2. Sell value-added services and entertainment - QQ, various online games, stand-alone game companies.

3. Selling value-added services and entertainment platforms - various home game console manufacturers, Apple, Facebook, etc.

4. Serving the real economy - software companies that produce ERP systems, companies that write software for on-board GPS, companies that provide databases, and so on.

5. Paid personal software - Microsoft, etc.

6. Serve the financial industry - brokerage IT platform, exchange IT platform construction, etc. However, it is difficult to classify this into the IT industry. Because this is actually the IT department of the financial industry.

7. Others, relatively less eye-catching (but the market share is not necessarily small, but I just didn't notice).

It's a cheap alternative. Just like potatoes and cabbage relative to fish, the more economic crises the better.

will be hit by the economic crisis. However, as long as the enterprises can hold on, they will not lay off IT, because IT is their core competitiveness.

6 is hard to say, but for 6, it is better to cut it than to cut trader

**, real estate is the first miserable.

The IT industry, on the contrary, is one of the lifesavers!

If the global economy continues to recession in the next few years, which industries will be the first to suffer?

It is probably the following five types of industries.

First, the real estate industry and its related manufacturing industries, Liu building materials, doors and windows, household hardware, whole house customization and other industries, as well as large appliances such as air conditioners, refrigerators, range hoods and other decoration.

Second, the light luxury brand, the main recession of the economic recession is the middle class, the impact on the rich and the poor is not very large, the main customer group of the light luxury brand is the middle class, when the economy is in recession, the middle class loses its ability to consume, begins to downgrade consumption, and is no longer willing to pay a brand premium for these light luxury brands, so the brand of light luxury positioning will decline with the decline of the middle class.

Third, non-essential services such as beauty salons and justice, catering, training and other service industries, these industries are really profitable, not like hairdressing and other industries with low customer unit prices, must serve, but some non-essential services, so these service industries will not be too good in the economic recession, let alone tourism.

Global economic governance and development.

Fourth, all kinds of production equipment, because when the incremental market disappears, the stock game becomes stronger, the elimination rate of participants in various markets will also become higher, and the competitors of equipment manufacturers will also become the second-hand market from other manufacturers.

The last category, a variety of middlemen and dealers, incremental era, the brand hopes to rely on the local potential energy of dealers to help themselves quickly open the market, so it will give dealers enough profit margins, but in the stock era, in order to stabilize their own income, the brand will face consumers directly, and dealers form a competitive pattern, by earning the difference to eat a big fat, the era has passed, there will be no big dealers in the future, direct experience stores, with online orders is the king, You may be a little depressed to see this, is it really during the recession, you can't do anything, in fact, it's not, when the economy is in recession, there are still some businesses that can live well, like the specialized and special new industries that the state vigorously supports, and other industries want to live well, you must grasp the two hooks, linked to consumption downgrade, and linked to anxiety relief!

If the global recession continues in the next few years, which industries will suffer first?

It is not shy to say that it will be difficult for those who work in these types of industries.

1.Retail market.

According to data from the National Bureau of Unified Hands and Leather Planning, the total retail sales of consumer goods in the first half of 2022 fell year-on-year. Among them, the national online retail sales increased year-on-year. Obviously, the development of brick-and-mortar retail is not optimistic.

The astonishing withering speed of physical stores can't help but make people worry about offline retail, and many netizens even say that physical stores have completely lost to e-commerce.

Winter in the retail industry is coming! Don't believe it, in the first half of the year alone, 4,700 physical stores were closed, such as 351 Metersbonwe stores! Semir closes 860 stores!

The most ruthless is the supermarket chain giant Yonghui, which closed 388 stores in 3 years, and its market value evaporated by more than 70 billion.

2.Services.

Beauty salons, housekeeping, childcare, catering, training and other service industries, the real profit of these industries is generally not a mandatory service with a low unit price like haircuts, but a high unit price and non-essential services, so these service industries will not be too good in the economic recession. There is no doubt that tourism is also a typical non-essential service industry, and in the post-epidemic era, the tourism industry is facing huge uncertainties, which has caused a huge impact on both the upstream and downstream of the tourism industry.

As far as the current predicament of the first block is concerned, the non-essential service industry is facing huge challenges in terms of supply and demand, consumption trends, weak financial support, and unbalanced regional development.

3.Automotive industry.

Car sales are often considered to be one of the barometers of the state of economic development, and when the economy is good, people have extra money to buy cars, and the auto industry will be booming. But when the recession comes, the resulting job losses and lower wages will cause people to be unable to buy cars, and the auto industry will be greatly affected. The impact on these industries and the recession has been enormous.

If the global economy continues to recession in the next few years, which industries will suffer first?

It is not shy to say that there are five types of practitioners who practice the industry and will have a hard time:

Real estate and related cavity milling, luxury brands, retail commercial markets, discretionary services, intermediaries and distributors.

Many industries are negatively affected during an economic crisis, but here are some that are often considered to be the first to collapse:

1.Finance. In an economic crisis, investors may lose confidence and withdraw from the market, which can lead to the failure or bankruptcy of banks and other financial institutions.

2.Real estate. The economic crisis can lead to real estate, and for companies that rely on the real estate industry, this can lead to problems such as reduced revenue, lower liquidity, and higher debt-to-asset ratios, which can eventually lead to the collapse of the company.

3.Automotive industry. During a recession, consumers may be less willing to buy high-value goods, so automakers and sellers may face difficulties such as declining sales and reduced production, and may even go bankrupt.

4.Retail and services. The economic crisis may cause consumers to cut back on their daily shopping and entertainment spending, so retailers and service providers may be affected, which could lead to store closures, staff layoffs, and more.

Of course, each economic crisis has its own unique characteristics and impacts, and the impact on different industries may also be different. In economic activity, seek diversification that will help reduce risk, and maintain a good financial position in the event of a recession.

1. The financial industry is a barometer of the economy, especially **:

The quality of economic development will be the first to be reflected in **, ** is the barometer of economic development, and this has been the case in the past several major economic crises. This should be unanimously agreed upon, after all, when the economic crisis comes, people are most likely to cause a stampede.

Second, the real estate industry.

Although the real estate industry will not be the first to be impacted, we look back at the economic crisis in the past 30 years, which is basically more or less related to the real estate industry. In 1990, Japan's economic crisis brought Japan's real estate bubble to burst. In the 98 Asian financial crisis, Hong Kong real estate appeared**.

The subprime mortgage crisis in the United States in 08 was also triggered by two houses in the United States. Therefore, the real estate industry must also bear the brunt of the economic crisis.

Third, Internet companies do not have many fixed assets, and their ability to resist economic crises is very weak

Most of the companies are asset-light companies, there are no fixed assets, intangible assets account for a large proportion, and the valuation of Internet companies is generally high, the bubble is large, such a company has a very poor ability to resist risks, once an economic crisis occurs, it is easy to collapse overnight!

Fourth, the silver and blue wide line industry.

As mentioned above, the outbreak of the economic crisis has led to the bankruptcy and insolvency of a large number of national enterprises, which has led to an increase in the bad debt rate of banks, which has directly affected the crisis of confidence in banks. When it comes to finance, due to the depression of the economic environment, the people will only put their funds in the safe field, let alone investment, as you know, the market is capital-driven, there is no incremental capital, no fresh blood, where does it come from, everyone will only withdraw funds to the security field for safety reasons.