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The Upside of the Downturn: How Irish Businesses are Adapting to the Recession
To claim that everybody is suffering from the economic downturn in Ireland is belied by the statistics, which show that some are doing very well.
The economic downturn is causing societal change because our incomes determine how we spend our time. For the very rich it’s business, or pleasure, as usual, evidenced by the healthy profits posted this year by luxury brands such as LVMH (who own Moet & Chandon and Louis Vuitton). However for those on mid to low incomes who are incurring the costs of the recession, there has been a noticeable change in spending habits.
This change has not affected all industries equally, as we’re not only buying less, we’re buying differently. The economic landscape has changed dramatically in Ireland in the last three years. With disposable income a fraction of what it was during the boom time, many businesses have seen a sharp drop in their sales.
So how have Irish people adapted to the economic downturn? Consumer trends suggest that they are eating and drinking out less, instead spending more time at home with family and friends, cooking for themselves and having house parties. While most expensive purchases have been curtailed, we are still splurging on little luxuries such as high quality chocolate or cosmetics. One big winner from the economic downturn is the planet: preferring to fix shoes and household items before buying new ones, and buying less petrol for our cars, means that Ireland’s carbon footprint has been significantly reduced.