The cost-of-living crisis began in 2021 when essential goods started to increase in price faster than average household incomes, resulting in a fall in real income. A combination of the pandemic, Brexit, the war in Ukraine, rising taxes and inflation were the perfect storm for the crisis to take hold. Other than Brexit, those economic factors are being felt across many other countries. This has obviously affected many industries, with the lowest paid jobs taking the brunt of the hit. But how has it affected the photography industry?
The pandemic resulted in a marked increase in digital marketing, and in turn a decrease in traditional marketing activities. But the cost of living crisis has seen more fundamental changes, drastically altering consumer behaviour with many people unable to buy anything but bare necessities.
As with past economic downturns, some sectors are feeling the sting of the cost of living crisis more than others. The advertising industry has been badly hit as a result of the decrease in spending, while closer to home, social photography – family and pet portraiture has certainly been affected as consumers tighten their belts. Fine art photography has also taken a hit with gallery spaces limited and less people spending on art.
There are however, some areas that have managed to boom post covid regardless of the cost of living crisis with a significant increase in weddings and in-person events after lockdown eased, leading to more job openings. In addition to that, many people unable to keep up with the sharp increase in rent and mortgage repayments in London have opted to move out of the area to find more affordable housing. This has boosted regional property photography and videography, particularly vital in property hotspots, where in-person viewings aren’t always possible and the competitive market means offers need to be made fast.
Do’s and Don’ts:
- Do beware of scams – cost of living crisis is fertile ground for fraudsters (see forbes)
- Do be adaptable and make the most of ‘side hustles’. 1 in 5 adults in the UK have looked to a new role to help ends meet since March 2020, with 63% of them still pursuing that side hustle today. This is nothing new to photographers who often have been adept at this.
- Do make positive lifestyle changes. Make use of free parking options, supermarket deals, hanging out washing instead of using a dryer (ok so maybe this is particularly useful during this heatwave) and using energy monitors which help to identify which of your appliances use most energy.
- Don’t forget about your marketing. In times of economic struggle, marketing is more important than ever so don’t give up on it. We’ll focus on marketing next time.
- Do make sure your insurance cover is serving you well and bespoke to what you really need, and nothing more. We pride ourselves in this area, do get in touch with us to discuss your situation.
We hope this is useful information. Williamson Carson are experts in insurance and passionate about supporting the creative industries. Contact us now if you’d like discuss securing insurance for your business.