Welcome to the second of a special two-part series here on Lochhead on Marketing called, “Did the Roaring 2020s Just Start?” In this episode, we talk about the Economy.
We believe there is a chance we could be heading into a time of unprecedented economic growth. For a year now, a Categorynado of newness has been gaining momentum. There has never been a higher receptivity to new “stuff”.
Now of course I’m no economist, but I thought it would be powerful to connect some dots on some critical data points in our economy through the category lens.
This two-part series is based on a recent letter published in Category Pirates, my newsletter with co-pirates Eddie Yoon and Nicolas Cole. Go check it out today!
Before we get to the 2020s, let’s talk about the roaring 1920s, and the parallels to what we are experiencing today. At the time it was the end of a pandemic, there was an explosion of new technology, and there was a rocking and raging stock market as well as an explosion of new categories. There were also political and international tensions on proving who was the best that drove development.
Fast forward to today, and we are experiencing the same thing. Only instead of television and vacuum cleaners, our new categories involve AI, Robotics, and information technology.
“That's what was going on in the 1920s. So for example, electric blenders televisions and vacuum cleaners were categories that took off. Now let's think about what's going on in the 2020s. Same thing with the pandemic. Of course, same thing with technology and new categories. Only this time around the new categories are things like AI, video communications, robots, self-learning, robot vacuums, citizen space travel, the electrification of everything and digital Education, telemedicine.” – Christopher Lochhead
Bannister Breakthroughs are Everywhere
We’ve talked about Bannister Breakthroughs in part one of the Roaring 2020s, and how we see it all around us nowadays. Strangely enough, the 1920s also had a lot of Bannister Breakthrough moments. There was an explosion of new categories and ideas brought about by the limitation of the pandemic.
Electricity became widespread to households, new innovations in the automobile industry drove down prices, which brought about various lifestyle and economic impacts. Mail order became a booming category, and companies like Sears. Roebuck and Co. became category kings in this regard.
If you look at how things are today, it is eerily similar yet slightly different at the same time. E-Commerce is booming, and there has been a drive for more efficient electric devices like e-bikes and robo-vacuums. Of course, there’s also Tesla paving the way for developing electronic hybrid cars.
Experts are predicting that another ‘roaring 20s’ is in the making. The Wall Street Journal reported that analysts have increased their economic growth forecast for 2021 to 5.95%
The last time the U.S. economy hit a growth rate anything like that was in 1984.
Looking at the Tailwinds
Let's take a look at some major tailwinds that we can see on the horizon. First of all, cash. a href="https://www.wsj.