The huge boom in the tech industry has inspired a new wave of entrepreneurs to develop and design new products and apps, hoping to make their mark and become the next Uber or Shazam.

While these innovations have potential to change the way we live our lives, it’s actually ‘Unsexy’ businesses that have a huge part to play in society.

Bakeries, plumbers and florists are still the backbone of the British economy and let’s face it, Siri is not going to unblock your drain!

Constant Demand

Unsexy businesses tend to consist of the traditionally boring industries, but they are also very unlikely to go stale. As long as we have houses and make home improvements, we will always need builders meaning there will always be a constant flow of money and business in this industry.

Gaining mass appeal and attention for a new tech product is a very difficult prospect, especially as new businesses are popping up almost daily offering solutions to problems that we never really knew we had! On the other hand, more traditional unsexy businesses generally cater to a wider audience. This mass appeal means that there will always be a demand for these businesses in these industries.

Evolution over Revolution

Innovation and improvement are important in any industry and ensures that what you are offering to your customers suits both their needs and expectations. Look at your local bakery, for example, chances are they have a sticker outside their window offering the option for Just Eat delivery (they may even offer Deliveroo!).

My company works on that ethos too.  As founder of We Buy Cars Today (the UK’s biggest online car buying website), we offer a service that many people need, and which will always be in demand; second-hand car sales. While this is an industry that has been around almost as long as cars themselves, we have evolved our business model to make our services available online. This means that consumers are now able to get an instant car valuation from the comfort of their homes and at a time convenient to them.

Innovating the services offered by ‘unsexy’ businesses can improve existing industries while retaining and meeting the demands of existing customers. This fresh take on existing industries can be as refreshing as introducing an entirely new product altogether without the risk of the new product not being successful.

Stable Business

One of the biggest issues with ‘sexy’ businesses is stability in the industry, while there is an abundance of new and exciting tech companies out there – one that actually makes a significant impact in the industry is a rarity, and even those are not guaranteed to make a permanent stain on society.

Take the social media app Vine, for example, there was one point where you could not scroll through your timeline without being presented with an abundance of 6-second clips, and now the entire app is but a distant memory. The fall of this social media giant not only lost staff employed by the company but also meant that many of the influencers that found fame on the platform lost their relevancy.

On the other hand traditional, ‘unsexy’ business have a much higher chance of success as generally they are in industries where there will always be a demand.

Tried and Tested

Humans are creatures of habit and, while we may be tempted by exciting new trends, we often stick to what we know. This does not necessarily mean that we do not embrace new products, look at the mobile phone industry for example. It is hard to believe that there was ever a time when no one ever had a smartphone, but now you can hardly turn a corner without seeing someone scrolling and swiping on an iPhone!

That said, it is unlikely that every new product launch will shake the industry as much as the iPhone! Therefore, investors and consumers alike are looking for tried and tested formulas that are low risk and have a high chance of success.

While we do not want innovation, and exciting new products and services to be inhibited, we must not forget the importance of tried, tested and typically “Unsexy” businesses – whether that be a bakery, local car dealership or cab company!

Read more:
Why unsexy businesses are important

Other than a home, a car was one of the biggest investments that a person will make – however the developments in the automotive industry have reshaped the landscape of how the average consumer is now buying their cars.

Newer, but not brand-new cars

Over the past few years there has already been a steady decline in the sales of new cars, in 2018 alone these sales fell by a staggering 20%!

This is, in part due to the public’s changing perceptions of the used car industry, which is not more transparent, trustworthy and can offer you more bang for your buck. The more ready availability of finance options and a lower vehicle price, car buyers are more incentivised than ever to part ways with their cash. Online care dealerships are now offering the service of an instant car valuation, helping consumers come to terms with parting with a current car

The prospect of purchasing a brand-new car is also far less appealing to consumers, as their value depreciated the minute you drive off the forecourt!

Consumers are also more allured by the prospect of buying a car and driving away on the same day. It can take several weeks to actually get your hands on a brand-new car after signing for it, and with Brexit looming on the horizon consumers are increasingly wary of import times and costs.

Slow down on electric car sales

In 2019 we expect to see electric car sales plummeting. Although consumers are more conscious of fuel economy and the impact of emissions on the environment, the prospect of making the jump to buying that Prius or Tesla not as appealing as it once seemed. The main reason for this being the convenience of charging your car. While the ideology of charging your car is as simple as the idea of charging your phone, the infrastructure is just not there for car buyers to charge up on the go. Many shopping centres and rest stops provide electric car bays, however, the reality is that there simply aren’t enough to convince the average driver that it is a viable option.

Flashy, expensive cars will be a thing of the past

While a James Bond-esque muscle car may be the dream car for many, high-end expensive cars, in general, seem to be dying off. Car buyers are looking for more practical and cost-effective cars to help them get from A-B, favouring cars that are smaller and more efficient. It looks as though the sweet spot that people are happy to spend on their car is around £20,000.

With this we can expect to see lower-end car sales shoot up, in this year alone we have seen the worldwide sales of the manufacturer Dacia increase by 13.4%, and the Ford Fiesta being the UK’s top selling car of 2018.

PCP contracts will be on the rise

While 17-21-year olds choose to save up their well-earned cash to purchase a car outright, they are the only generation to favour this option of car ownership. PCP (Personal Contract Purchase) contracts are on the rise, particularly with 30-45-year olds, as they offer more flexibility with payments and provide the option to ‘upgrade’ your car more regularly. Our instant car valuation service has found that the average car buyer keeps their car for around four years before selling and moving on. PCP contracts provide these consumers with the ease of swapping cars with ease when the contract is coming to an end. They also provide easy and more manageable payments for consumers to own a car that they would not be able to pay outright for.

Manual transmission being phased out

Passing your driving test in a manual car is seen as a rite of passage for most people, however, when given the option people we are now seeing that more people are switching to a car with an automatic transmission. Not only are automatic cars seen as the easier option to drive, but cheaper cars with this transmission are now far more reliable and efficient, making them the far more appealing option for the average driver.

The car industry is ever evolving, and we are looking forward to seeing how different manufacturers will adapt to meet the evolving demands of their consumers.

Read more:
The five car buying trends you need to know in 2019