DUBLIN — The web design industry crashed, and the crash may be on its way back, with a surge of new companies that are starting to emerge, according to data from data analytics firm KPMG.
The market had fallen off a cliff just after the financial crisis in 2008, with businesses scrambling to reinvent themselves after the collapse of the dot com bubble.
Now, it’s starting to pick up again, with the new entrants adding a lot of value, KPMB’s CEO Michael Lomnicki said.
Lomnecki, who recently launched a new consultancy, says that the market is in its fourth quarter and that its growth is already strong.
But he says there are still some major challenges to be overcome before it can rebound.
The biggest, he said, is getting more people to invest in a new product.
“When people get excited about building a new web design business, they don’t want to be dealing with a bunch of old guys with a stack of old ideas,” Lomniki said in an interview.
That’s because they think it’s easier to buy a new startup than a new site.
For example, you could build a web design company in a small town, Lomnich said, and build a new one in the city and have it succeed, because the people who do that will be more interested in building a brand.
And if you’re a newbie in the world of design, the old stuff just isn’t working anymore, Lomo said.
It’s a new era in design, and a new world to be in, he added.
This is why you need to be innovative and fast, Lomonk said.
You need to go with what’s working and what’s going to make you money.
What does the future hold?
Lomansky says that some of the companies that have been born since the crash have found that they’re struggling to build on top of it, and that’s why they’re looking for new markets to expand into.
“I think the best businesses in the next four years will be those that are growing faster than their competition,” he said.
“And the biggest challenge will be for companies to find a way to find that growth.
That’s where new entrants come in.”
The data suggests that the industry is going through a new phase, with new entrants creating new businesses, and new ones getting started, Lomsky said.
But he also said that there are some companies that remain stuck in the past and are not growing at a good pace.
“Some of the firms are doing great, but they’re not building a sustainable business,” Lomo added.