The term “stagflation” has become increasingly popular in the investment community in recent days Everyone has started to worry about whether the US economy will go into decline, dragging down the performance of US stocks worrying about the economic prospects, and they are downgrading their consumption and preparing to live a tight life. Taking perfume as an example, consumers have started to ditch expensive products and switch to more and more affordable deodorant bottles due to consumer popularity.
Stagflation is driving Americans to save money, and sales of affordable perfumes are skyrocketing. (Getty Images) (zoranm via Getty Images)
Download Yahoo Finance APP
Real-time quotes of US stocks and foreign currencies, multi-country news
Sales of affordable roll-on deodorant are soaring
Usually, everyone gets scared when they hear “inflation” or “deflation”, but in reality, “stagflation” is the scariest thing. Because the economy began to stagnate after a round of rapid development, the unemployment rate began to rise, but inflation remained at the previous high level, and the three major negative factors attacked comprehensively. According to the latest statistics, US GDP growth in the first quarter was only 1.6%, below market expectations of 2.4%; the annual inflation rate was 3.5%, up from 3.2% last month;
In fact, economists have been warning that stagflation will occur in the US for the past two years, but the investment community seems to have turned a deaf ear and is still intoxicated by the excitement of US stocks reaches new highs felt most immediately. Americans have started accumulating stocks as early as last year In order to prevent hunger, “save your living expenses” because everyone is worried about losing their jobs at any time due to high inflation. According to research by e-commerce platform Pattern, sales of affordable roll-on deodorants (similar to deodorant products bought in supermarkets) in the United States increased by 207.24% in 2023 compared to the previous year, occupying third place in the rankings, and outperform many big brands.
Low-priced deodorants are taking over the market, putting traditional perfume brands under threat. (Daniel Reinhardt/photo alliance via Getty Images) (photo alliance via Getty Images)
Consumers are switching to more affordable deodorant products, available in supermarkets. (Jeffrey Greenberg/Universal Images Group via Getty Images) (Jeff Greenberg via Getty Images)
“Lipstick effect” predicts consumer sentiment
In economics, there is what is known as the “Lipstick Effect”. “When you look at the economy, consumer confidence is starting to falter and consumers are tightening their belts,” Dallin Hatch, a data analyst at Pattern, told CNN.
Other statistics conducted by market research firm Circana show that sales of small-bottle perfumes accounted for 38% of total sales last year, up from 35% the year before. Jacquelyn Wenskus, perfume market analyst at Circana, said: “The prices of sub-one ounce perfumes are only a third of the price of large bottles. The low price attracts consumers who are cautious about spending money but still want buy something to buy. make themselves happy to buy.”
In 2023, the United States will add 253 supermarket stores, of which Aldi is the most aggressive, accounting for 109 of them. (AP Photo/Matt Rourke, File) (ASSOCIATED PRESS)
Downgrading use, affordable supermarkets are expanding rapidly
Americans are “downgrading their use” of perfume to fight stagflation half or even lower than other supermarkets at any time. for budget conscious users. According to Jones Lang LaSalle’s “Grocery Report 2024”, there will be 253 more supermarket stores in the United States in 2023. Among them, Aldi is the most aggressive, accounting for 109 of them Aldi also plans to open 109 stores in the United States by the end of 2028. 800 new branches were added.
In addition, Aldi also completed the acquisitions of Winn-Dixie and Harvey’s Supermarket, adding 400 stores to the company in southeastern states including Alabama, Florida, Georgia, Louisiana and Mississippi This shows that the future is uncertain Next, the affordable importance of supermarkets in the minds of consumers.
#Stagflation #hitting #Americans #save #money #causing #sales #affordable #fragrances #increase
