Understanding the changing business of marriage

Few industries rely on small businesses like the wedding industry. And it may well be that no other SME-dominated industry has experienced more turmoil in the last two years than this. Starting from a foundation-rocking beatdown driven by the Covid-19 and related shutdowns, the wedding industry has emerged only to meet the interests of suddenly and rapidly changing consumers. I have recently taken note of these changes, as well as some of the predictions for those who make a living while others tie the knot.

The U.S. wedding business is expected to total এই 57.9 billion this year, up 2.1 percent from last year, but still more than 70 70 billion, well behind pre-epidemic volume, according to research firm Ibisworld.

Companies involved in the wedding industry are basically small businesses. The three largest business divisions are event and reception hosting, photography and planning. Other business segments of the wedding classification include catering, flower arrangements, music, baking, dress sales and rentals, and town car and limousine rentals. These businesses were hit hard by Covid-19, as government forced shutdowns and personal fears reduced marriage-related businesses by 35 percent between 2019 and 2020 – from just $ 70 billion on the right to just $ 45 billion – because couples have postponed marriages or their marriages altogether. Stop.

This loss of revenue has put extreme pressure on businesses that have very few alternative buyers for their products and services. Many of the weaker players were forced into this process. According to IbisWorld, about 30,227 wedding planning businesses are actively operating in 2019 Earlier this year, the number dropped to 23,296 For those who remain, the volume rebound from the 2019 Trophy is really welcome news. But even as industry sales show signs of recovery, consumer tastes have changed dramatically, already promising to further challenge a group of business leaders.

Talking about 2022, Kim Forrest of Bridal Publications Knot Said, “Marriage is back.” He could be right. According to the arbitrator of all matters of marriage, The Wedding ReportThere will be an estimated 2.5 million marriages in America this year – the highest in 38 years! While this may seem like a welcome positive, marriages have not been spared from being reconsidered by consumers who are suffering from epidemics to reconsider almost every aspect of their lives.

In fact, even marriage is being considered differently from just two years ago. Now, fewer couples feel the need for marriage. According to a recent survey of people by YPulse, only 20 percent of millennials in 2020 have avoided marriage; Today, 36 percent say they don’t want to be interrupted. What’s more, 71 percent of 18- to 39-year-olds agree with the statement, “I don’t need to get married to feel perfect.” So, with a small number of young people prioritizing marriage, those involved in the wedding business can look forward to the days ahead, despite the 2022 demand spike – it could be a blip that represents a little more than the one-time backlog running through the system. More complicated is the fact that those who are getting married tend to have shorter weddings than on high-flying, pre-coupid days.

According to KnotIts “Real Wedding Study,” currently has an average of 105 participants per wedding, compared to 131 before the epidemic. In the YPulse survey, nearly half of those surveyed agreed that both back-to-home weddings (53 percent) and micro-weddings with a small number of family and friends (47 percent) were here to stay. An insignificant 29 percent believe that online streaming weddings will be a fixture to move forward.

Also, today, nearly half a millennium and Zen-Z women who are open to marriage have expressed their openness to shop and buy their wedding dresses online. These figures suggest a significant increase from 2020, and with the figures above, suggest a significant reduction in wedding spending progress and / or relocation. This extrapolation is supported by the fact that more than three-quarters (77 percent) of young people agree that marriages have become too expensive today. However, each rule has an exception, and it is no different, presenting an important opportunity for wedding industry operators.

BIPOC young people still want big and bold marriages – and they are less concerned about the cost. BIPOC Gen-Zs and Millennials are 7 points more likely to tie the knot than their white / non-Hispanic peers. According to YPulse, 41 percent of BIPOC respondents said that having a big wedding is an important life goal, while a full 32 percent said they want a bigger, more expensive marriage than a smaller, cheaper one. Accordingly, they represent an important consumer demo for advancing the wedding industry. And since downward pressure will not be limited to previously identified areas, the industry will need all the good news it can get.

Because many of the main wedding traditions “events” are now being questioned by younger customers. The traits that should have existed at a time when no suitable couple would ever think of surpassing them are now increasingly being kicked out by Gen-Ys and Zs with the intention of acting like themselves. Things like a paid wedding planner, big receptions, big diamond engagement rings and matching bridesmaid dresses have lost 10 or more points of popularity among young people in just the last two years. Both printed invitations and bachelor party are 9 points less popular today than they were in 2020. The decline in the popularity of these items directly translates into a loss of consumer spending. This is why the attitude of such fast-changing consumers is so important. As consumer preferences shift out of categories, the wedding industry has long relied on automobiles for revenue and gross profit, to find a way to adapt – or die.

The Covid-19 industry, which has been in turmoil for the past two years due to shutdown and fears of concerned consumers, is now experiencing a rapid change in consumer sentiment that could lead to a direct fire from the frying pan. The epidemic changed the celebration of marriage and the institution itself for the better. All that remains for the industry, then, is to identify opportunities to use the new reality more profitably, as well as to shape consumer attitudes in ways that are more beneficial to the industry. Even for 51 percent, marriages are less important than before, with 49 percent believing that they are just as important – for better or for worse.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com

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