The Nikkei is reporting a robust revival in Japan of sales of prerecorded analog cassette tapes, a format once thought dead and gone. Now, the report says, the humble cassette tape “is experiencing a renaissance, charming a new generation of music enthusiasts with its nostalgic appearance and distinctly warm and rich sound.”
Consumer Trends
Declining Inflation Propels Consumer Sentiment Higher & Bodes Well for 2024 Economy
**STORY UPDATED 2/2/24**
NOTE: Scroll down for a brief update – The latest economic data showing lower inflation appears to be finally registering with consumers as the latest preliminary reading of the University of Michigan Index of Consumer Sentiment jumped more than a massive 13% in just one month. This took the index to its highest reading in two-and-a-half years (since July 2021).
See more on the U of M Index of Consumer Sentiment
[Read more…] about Declining Inflation Propels Consumer Sentiment Higher & Bodes Well for 2024 EconomyResearch: Consumers Cut Back on Number of Streaming Services; Consumption Increases
A new study recently released by TiVo Platform Technologies (TiVo) – a subsidiary of Xperi, Inc. – called Smart TVs Paving the Way quantifies a marked shift in trends in consumer consumption of streaming entertainment – as well as spending on streaming services. Top findings noted a decline in both the number of services to which consumers subscribe and the amount of money they spend monthly to obtain such services.
Yet, the same study showed an increase in consumers’ average daily consumption of streaming entertainment content.
See more on this latest research on consumer streaming services and consumption
[Read more…] about Research: Consumers Cut Back on Number of Streaming Services; Consumption IncreasesInflation Drops Big in June; But Don’t Pop the Champagne Cork Just Yet
Chalk this up to good economic news! Yesterday, the latest Consumer Price Index (CPI) reading for the year through June shows that inflation continues to moderate, coming in at a reading of just 3% growth. That is well off the reading of 4% through May and much better than economists had anticipated.
But it is not yet time to open the champagne just yet, as we are likely to have another interest rate increase from the Federal Reserve Board (the Fed) later this month, and perhaps yet another one before the end of 2023 as they try to manhandle inflation down to their 2% target rate.
See more on the direction of inflation
[Read more…] about Inflation Drops Big in June; But Don’t Pop the Champagne Cork Just YetConsumer Confidence in March Turns Up ‘Slightly’; Spending Plans Revealed
In the latest data on consumer confidence, The Conference Board reports a positive, if only “slightly” so (their words), uptick in consumer confidence readings in March as compared to the sentiment in February. The organization’s Consumer Confidence Index (CCI), a widely followed read on how consumers are feeling about both existing and upcoming business conditions, is an important indicator of potential economic activity.
See more on this latest reading on consumer confidence
[Read more…] about Consumer Confidence in March Turns Up ‘Slightly’; Spending Plans RevealedVinyl Record Resurgence: Unique to U.S….Or a Global Phenomenon?
By now, data clearly shows that vinyl record sales here in the U.S. have been growing steadily for more than a decade. When initially detected, many thought it was simply a fad… They thought that at first CDs…and then digital downloads…and finally digital streaming would supplant vinyl. Now we know that is just not the case and that vinyl is continuing to grow in importance again to the music industry.
Think this is just a U.S. phenomenon? Think again! A report by the Nikkei in Japan notes the dramatic growth of vinyl sales there, as well.
See more on the growing global influence of vinyl record sales…
[Read more…] about Vinyl Record Resurgence: Unique to U.S….Or a Global Phenomenon?Consumers Say Health & Wellness is a Priority; Market to Hit $1 Trillion by 2025
Even though consumers report rising financial insecurity as inflation rages on, the Fed keeps raising interest rates, and the economy begins to slow, they say they intend to continue to prioritize spending on health and wellness – a new priority since the onslaught of COVID-19 – according to new research from Accenture. This is potentially good news as more in the custom integration industry look to offer various residential health and wellness solutions as part of a whole-home residential or commercial installation.
See why consumers say health & wellness is a priority
[Read more…] about Consumers Say Health & Wellness is a Priority; Market to Hit $1 Trillion by 2025Consumer Sentiment by Income Turns Positive, Especially at Higher Incomes
After 70+ days of declining gas prices and news that inflation has peaked, consumers are feeling a little bit better about things. And that is especially true of wealthier consumers, according to the latest reading from the Morning Consult/Axios Inequality Index – which includes consumer sentiment information broken down by income level.
See this latest reading of consumer sentiment by income
[Read more…] about Consumer Sentiment by Income Turns Positive, Especially at Higher IncomesData Suggests Inflation-Impacted High-Income Consumers are ‘Trading Down’
High-Income Consumers are ‘Trading Down’ to High-Value Products
Walmart surprised analysts in its latest earnings report for its fiscal second quarter. After having issued a warning last month that its profit may drop as shoppers were feeling the effects of high inflation and focusing purchases on necessities like food rather than discretionary (and more profitable) items such as electronics. But on Tuesday, the company reported solid revenue increases and although earnings tightened a little, they still beat analysts’ forecasts.
In a tough economic environment for retailers, how did they do it? The company says they are attracting more middle- and high-income shoppers. These high-income consumers are ‘trading down’ – an effect that has been discovered in past times of economic slowdowns and recessions. And it seems to be happening now…
Read more about high-end customers trading down
[Read more…] about Data Suggests Inflation-Impacted High-Income Consumers are ‘Trading Down’Index of Consumer Sentiment Bumps Up as Inflation Declines
This past Friday, the University of Michigan released a preliminary reading of its Index of Consumer Sentiment for the month of August. This survey, one of the more widely followed readings by economists on how consumers are feeling, showed a small but meaningful jump as consumers are feeling a little better about the future. However, the overall results were a bit mixed.