Rob Carter: The one thing that connects the most optimistic businesses in the trade

Are things getting better? There are businesses that have told us this month that they have turned the corner and 2025 is going to be an improvement on 2024. And I think I’ve spotted a connection between them. It’s something you can use to your advantage if you are not yet feeling the same degree of optimism.

During the last weeks of December and into the first week of January, we asked a range of businesses about their prospects for the next 12 months. Very quickly I noticed two things. The first was that more of them than expected had good feelings for the year ahead. Their products have been shifting, new customers are making enquires and sales projections are improving.

But there was something else. A pattern. And it‘s something you should consider in order to improve your own prospects.

Here it is.

The tackle businesses in the best shape for 2025 are those that continued to invest heavily in marketing, advertising and promotions during the toughest months of the past year.

Take the story of Daiwa UK, for example, which protected its market-leading leading positions not simply by making good products but by putting those products in front of its target customers. It sponsored events to stay visible and launched a new ‘Feel the Gear’ roadshow that visited anglers on the bankside. Thanks to these extra efforts, its Marketing Manager says Daiwa knows it has a ‘big audience’ ready to buy in 2025.

PRADCO of the USA put trade shows at the heart of its marketing, including taking a booth at our very own Angling International LIVE in September. It has seen a seven-figure surge in sales. It is a similar story for Livingston Lures from Texas which has penetrated Europe off the back of high profile appearances at shows in Budapest and Berlin. Neither PRADCO nor Livingston waited out the year. They got out there, shouted about their products, set up booths and met their customers face to face.

Apparel specialist Grundéns achieved a 9% increase in global sales partly because it increased visibility. “We believe in a ‘foot on the ground’ approach,“ says its CEO. “Being at trade and consumer shows, holding clinics, listening and learning.”

Most satisfied of all was probably Pallatrax of the UK whose owner Simon Pomeroy has been beating the drum on lead-free weights and fish-friendly hooks for years. He took a booth at Angling International LIVE, promoted it with energy in our pages and then joined me on stage to talk about his passion for more sustainable fishing.

The result? Pallatrax was heard in the hall, and new deals were struck, with one agreement having the potential to completely transform Pomeroy’s business. “I have been in the angling and fisheries trade for over 26 years and I have never been so enthusiastic,” Pomeroy told our Editor as he looked forward to 2025.

It is no coincidence that all these companies are in great shape as we turn away from 2024. And if you are sensible you will follow their leads, sooner rather than later. Because studies show that businesses that invest more in marketing in a downturn end up crushing their competitors when the economy improves.

I did some deep diving into what is called counter-cyclical advertising. The most cited study into its effects is the McGraw-Hill Research study which analysed 600 companies across 16 industries during and after the 1981-1982 recession.

The McGraw-Hill Research study found that companies that continued or increased their advertising during the recession experienced a 256% growth in sales over the next five years. In contrast, companies that reduced or stopped advertising grew only 18% over the same period.

The companies that maintained visibility built customer loyalty and reinforced their brand positioning, which allowed them to capitalise on economic recovery faster than their competitors.

Likewise, the Harvard Business Review has published multiple articles discussing the benefits of advertising during economic slowdowns. A key article, titled How to Market in a Downturn, outlines strategies that businesses can use to thrive.

It suggests that advertising during tough times has a psychological impact on customers. It sends a message of stability and confidence to them, which can enhance feelings of trust and loyalty towards your brand. You also have more visibility and therefore more opportunities to get your messages heard when competitors are silent. Conversely, businesses that hide away in a downturn face an uphill battle to regain customer trust.

The history of business is laced with real-life examples of this phenomenon. Amazon and Coca-Cola are masters of it. Kellogg’s overcame its market-leading rival during the Great Depression by increasing advertising, and it never looked back.

Conversely, another great business went the other way, and lost out big time. During the 1990–1991 recession, McDonald’s cut its advertising budget significantly. Taco Bell and Pizza Hut, on the other hand, increased their advertising spend. Taco Bell’s sales increased by 40%, and Pizza Hut’s sales grew by 61%. Meanwhile, McDonald’s sales declined by 28%.

So, big or small, market leader or not, it pays to learn this lesson while trading conditions remain less than perfect. If you have a great brand and good products, with a service to match, tell people – and tell them now. Otherwise someone else is going to fill the silence and you will find that when you feel ready to market your business… your customers have gone elsewhere.