My Business Predictions For Investors In 2021

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2020 was a year to re-evaluate everything. On the economic side, the impact of the global shutdowns due to Covid-19 has forever changed how industries will approach business.

At the end of 2019, I casually started talking about gold and commodities as my focus for investing as opposed to the stock market. Folks laughed at me - well, guess what? Gold was up 24% in 2020. I envision a similar trajectory for copper this year. As we kick off 2021, here are my predictions on the business moves we should be on the lookout for as investors.

Danetha Doe Money & Mimosas

Products marketed as “home spa” products will be a big thing.

Covid-19 forced all of us to spend more time at home. The shutdown also meant we could not visit our favorite esthetician or our wellness oasis getaways. 2021 will also be a year where many folks are spending time at home and they will be eager to bring the serenity they experienced at their spa into their personal space. Personalized scented candles, essential oil diffusers, luxury skincare products marketed as home spa products is a category I am paying close attention to as an investor.

Companies who commit to a robust, uncompromising, progressive stance will win loyalty.

In 2020, many companies vocalized their commitment to anti-racism. But, how many of them will treat Black Lives Matter as a trend versus a movement that needs to be at the forefront? Only time will tell, and I am taking this year to keep tabs on the list of companies who stated they would do their part in creating healthy spaces for Black women to thrive. The companies that do not, will face the wrath of public court. Those that continue to stand against white terrorism and white privilege will nurture loyalty with their consumer base and see it translated into their bottom line.

Marketing campaigns will shift from influencer strategies to word-of-mouth marketing efforts.

The days of a celebrity having a tangible impact on sales are long gone. The allure of celebrity culture is waning because millennial and Gen Z are savvy consumers. This emerging consumer base cares deeply about social change, economic reform, and environmental healing. Companies that are accustomed to relying on celebrities and social media influencers to sell their products need to think outside of the box and create more compelling campaigns. The core of these campaigns needs to be based around word-of-mouth marketing strategies. Initially, social media influencers were meant to help companies get in front of new audiences in an organic way. But this manufactured approach to word-of-mouth marketing is not working. More than ever, consumers are relying on their inner circle to make recommendations and/or innovative entertainment to engage them to make a purchase. Companies who invest in an education-entertainment (known as edutainment) approach to marketing and double down on a “grassroots” word of mouth marketing strategy through platforms such as Clubhouse will be getting my attention.

Intimate wellness and femtech will climax.

And keep on climaxing. I know, I’m cheesy. Irregardless, since ex-boyfriends are off-limit to friends and we still have this whole Covid-19 thing happening, finding ways to pleasure oneself will be a priority. Self-pleasure will become more of a conversation and companies who create healthy, toxic-free, woman-centered products in this space will reap huge rewards.

The “hypnotherapy” market will steadily rise.

I put hypnotherapy in quotes because it does not fully capture what I am referring to - which is products that help one to excavate their subconscious. Ten years ago, meditation in the United States was viewed as a hippy-dippy thing that only folks living obscure lives practiced. Now we’ve got meditation apps from Calm to Headspace to Balance and companies are now offering meditation sessions (virtual sessions since Covid-19) to their employees. As 2021 moves along, we will see more conversations about the subconscious. Hypnotherapy, Existential Kink, energy healing, African divination, and other subconscious-like modalities will make their way into the forefront of the marketplace. This is an area I discuss heavily on Money & Mimosas as it relates to healing your relationship with money. I will be keeping my eye out for companies that pop up in this area as they will be the future of mental health and overall well-being.

Direct to consumer is a must for retail companies.

The 2020 exodus of major brands selling on Amazon to selling directly to their consumers is a sign that DTC is a must for retailers. The retail and fashion industry will still be shaking itself out in 2021. As the dust settles, those companies that have figured out their DTC strategy will be left standing.

The luxury market will do very very well.

The economic fallout from Covid-19 will experience a K-shaped recovery. A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people. While other industries, like the restaurant industry, will have a tough time bouncing back - the luxury space will see immense growth because high net worth individuals will be eager to experiences the luxuries of life as soon as possible. We are already seeing this with the uptick in luxury real estate sales - Miami saw a 54% increase in luxury real estate purchases of $1 million or more in November 2020 compared to November 2019. Folks are also buying sheds for their homes. These sheds are little getaways built on the main property and can be anywhere from $40,000 to $100,000+. They can be used as an office, or some folks use them as a sauna, a wine cellar, or other amenities.

And those are my two cents. Thanks for reading!

Danetha Doe is a financial psychologist, leading financial well-being expert, and the creator of Money & Mimosas. Money & Mimosas is enjoyed by readers and paid members in over fifty countries.