Cocooning: A New Small Business Trend

Cocooning is the idea that we lead busy lives with relentless pressure on us to perform so we pull into our homes and take care of ourselves by surrounding ourselves with things we enjoy.

On the outside, people fight traffic to get to work and then get home; people put up with bosses and coworkers and customers who put great demands on their time. They rush home to make dinner quickly before bringing the kids to soccer practice or piano lessons or dance practice. Our time is not our own and the demands of the day drain our energy.

So people want to spend less time doing those "outside" things and want to spend more time cocooning: staying in, enjoying themselves, and surrounding themselves with things they like. Here are some examples of companies who are supporting the cocooning trend:

• Home entertainment systems have become increasingly complex and are moving towards higher quality with HDTV, satellite, surround sound, and big screens. People don't have to go out anymore to find the theatre experience.
• Companies like Home Depot are earning massive amounts of income from this trend as people no longer consider their house somewhere they sleep when they're not at work but rather seek to find a calm port in the storm of life.
• Shows on specialty channels like TLC that talk about home decorating and home improvement also support the idea of cocooning.
• Opportunities to shop, connect with other people, and be entertained continue to grow online, allowing people to do everything from the comfort of their home.
• Many companies are creating "work at home" alternatives for people who need to stay home (to care for children or sick relatives) but can connect through a computer and a dedicated phone line.
• Home-based businesses offer people the reality of staying cocooned at home while they work, which is one of the reasons that they continue to be so popular.

Does this trend look like it will continue? Yes! People feel a lot of pressure from work: longer hours for less pay...and many feel that they have to work these hours or they'll lose their job to outsourcing. Rising costs and stagnant wages mean that people feel like they need to work longer hours.

How can you cash in on this trend?

Entrepreneurs: Think about what people still have to leave their house to do and see about bringing that to them. For example, online grocery stores have not done so well (because of logistical issues) but in theory should do very well because of cocooning. Is there a way you can make it work?

Existing companies: Make sure that your company offers people the ability to shop for your products online and receive them without having to leave their house. Review your products or services with a critical eye and see if you help to make other people's homes nicer in some way, or keep them connected with the outside world. Do you help people feel safe, secure, and still connected with the outside world? Do you help to ensconce people in luxury and good feelings? Do people like staying in because of your product or service?