The World’s Largest Consumer Markets in 2030 🌏
Source: Visual Capitalist
The Spend, Spend, Spend Strategy..
Temu is going all in on Marketing (including in this Sunday’s Super Bowl) Marketing spend: • 2023 - $1.7 billion • 2024 - $3 billion (est.) source : wsj
The richsession...
A record-high share of US consumers are planning to go on vacation to a foreign country within the next six months. Via Apollo/Slok
The consumer is borrowing more than they can afford to pay
The consumer default rate on credit card loans from small lenders has seen a sharp spike to 7.51% This level is higher than the: - Dot Com bubble - Financial Crisis - C-19 With credit card interest rates still above 20%. Consumers are going to continue feeling the pressure. Source: Game of Trades
From October onwards, US consumers face a double whammy: student loans + auto loans...
Suspended Student loan payments helped fuel the auto market over the last several years. Auto loans pass Student loans in consumer debt load for the first time in 13yrs, which means consumers face a double-whammy starting in October w/existing auto payments & resumed student loan obligations. Auto loan delinquencies are on the rise and more consumers could fall behind if unemployment increases. Source: Bloomberg, HolgerZ
Are US consumers heading for trouble?
Only $200 billion is left in excess savings, which is keeping households afloat. 2 months ago, this number was at $500 billion. At current rate, savings will be depleted by September 2023 Source: Game of trades
The power of loyalty
Source: Compounding Quality
Interesting charts by Chartr on US consumers cash buffer
When the pandemic hit, many of us instinctively reigned in our spending — partly out of choice, and partly because there weren’t a lot of fun things to splurge on. That set of circumstances coincided with stimulus checks and tax credits in April 2021, leading to many Americans building up healthier-than-usual cash balances in their bank accounts. However, new data from JPMorgan reveals that much of the buffer has now disappeared. Although US households still hold approximately 10% to 15% more cash in their savings accounts than before the pandemic, analysis of 9 million Chase customers reveals that the median account balance has dropped significantly in the last 2 years. That could help explain why the much-feared recession has yet to materialize, as consumers have had strong reserves to combat rampant inflation and rises in borrowing costs. Interestingly, the trend is seen across all income brackets. The nation's top quarter of earners have seen their savings accounts decline from a median high of nearly $12,000 to $9,000, as of March this year — though their 25% decrease is a smaller relative drop than that experienced by lower earners. Indeed, people in the lowest income quartile — who likely have to allocate a larger portion of their income to essentials — have seen a 41% decline since their savings peaked.
