All business fields are feeling the pinch of recession although its impact differs from one sector to another. Niche business, or businesses that produce necessary products that consumers cannot go without, even when times are harsh, such as food, or medicines, seem to be the best play when planning to get into the business arena.

Can businesses got off the ground in the midst crisis withstand the storm?

If we refer to online-only businesses, we see a major negative impact induced by the financial crisis as consumers shift focus to entry-level products or value-for-money, said Marius Ghenea (photo), CEO of FiT Distribution, operator of Pcfun.ro, Electrofun.ro, ShopIT.ro and 24PC.ro.

Dragos Stanca, managing director of F5 – the web division of Realitatea Catavencu media group, says the online field, which includes also web-based products apart from publishing services, has moved into a standstill. In the best case scenario, online business can generate up to 25% decline at the most.

“We are affected by the financial crisis, as we have problems in collecting the money, and not necessarily in terms of acquiring objectives. Our partners and clients have the same problem, which inevitably feeds a sharp slowdown. You can feel the liquidity drought taking its toll”, said Stanca.

Therefore, given the current drawbacks and challenges that Romanian online industry is facing, he recommends well-consolidated businesses that could find the specific niche and know how to see financial crisis as a good earning driver.

Assuming that “online is cheaper” , Ghenea says that “starting right from the growth engines of e-commerce when things get stormy, we can apply the same idea to other sectors and marketplaces where the growth is fueled by the fact that those options are in fact the cheapest variants, such as: low-cost flights, discount retail (both