Have you ever wondered why consumer spending is said to be down and yet $900 iPhones seem to be selling like crazy? Well, a recent symposium in the US was told that consumers are still spending but just spending differently.
Representatives from Mastercard said that categories like restaurants were showing significant growth. The thinking is that time-starved consumers are spending their money on experiences rather than things. Air travel is another growth area. But there is a little twist in new spending patterns with some luxury items showing up strongly. New cars are doing ok and, as we noted above, expensive mobile phones don’t seem to be a problem. The key with these items is quality and value.
Consumers are definitely more considered these days and less likely to go into debt. They will spend big but only if it makes good sense. So, memorable experiences and big ticket items that will last a long time appear to be the secrets to retail success. Hmmm.... maybe it is time I gold plated some of those products in my range.