Consumer

WHAT'S NEXT?: Technology will become the new sales assistant, always on, always friendly, always delivering. Consumers will co-create and create products to their exact needs. Brands will have to focus on seizing mobile moments on apps that already have consumer's attention. Instantly explore below how lifestyles, buying behaviors and attitudes are changing and where you fall short in the battle to win consumers hearts and minds.

• [New] Wells Fargo expects consumer spending to moderate but not decline in 2020.
• [New] Low levels of consumer confidence do not bode well for retailers - 60.7% of UK consumers expect to spend less on retail over the next six months as they seek to protect their finances and prioritise essentials.
• [New] The mobility services market is expected to grow from $0.01 million in 2019 to $22.41 billion in 2030, showcasing expansion in the next decade.
• Global Mobility As A Service Market Is Expecting An Excellent 36% CAGR During The Forecast Period And Reach A Valuation Of USD 253.16 Billion In (2017-2023).
• The fall in consumer spending as well as low oil prices and delayed new models will mean a large fall in key markets China and the US.
• More than 750 million edge AI chips will be sold this year, with the enterprise market growing faster than its consumer counterpart at a compound annual growth rate of 50% over the next four years.
• As companies reduce manufacturing in response to the global economic slowdown and changes in consumer spending, the impact on the industrial market will negatively affect industrial semiconductor revenue through 2021.
• The global shelter in place orders and ongoing shift in buying behavior toward essential goods and services will negatively impact consumer and business spending in the second quarter, and second half of the year.
• Economic cycles have limited impact on the markets for Mobility, which anticipates mid-single-digit comparable revenue growth in fiscal 2020 driven by its rolling stock business, which ramped up several large rail projects toward the end of fiscal 2019.
• Low social mobility will cost the UK economy £140 billion a year over the period to 2050, amounting to £1.3 trillion in lost GDP over the next 40 years.
• Supportive fiscal and monetary policy will not be sufficient to offset the drag on growth from a sharp fall in consumer spending and private investment.
• Assessing COVID-19 Impact report finds consumer spending on streaming services such as Netflix and Amazon Prime will rise amid stay-at-home orders, performing better than expected.
• By 2025 Vitesco Technologies expects 40% of all powertrains to be electrified because of a combination of tougher global emissions regulations and rising consumer demand.
• Digital and mobile wallets already account for 22% of global point of sale spend in 2019 and WorldPay projects they will account for nearly a third of consumer payments within five years.
• Consumer fear over shortages has led to hoarding, while governments around the world have reverted to protectionist policies for medical supplies which could disrupt the global supply chain for necessary medical materials.
• Expect to see US demand for consumer flexible packaging increase by high single digits this year, compared to 3% in 2019: In Europe, demand growth fell back to under 1.5% in 2019, but could climb to above 5% this year.
• The IMF expects consumer prices in Latvia to decrease this year, that is, Latvia will record 0.3% deflation, while next year inflation will return and reach 3%.
• Interest rate cuts and quantitative easing announced by the South African Reserve Bank will provide some support to consumer spending and encourage lending and investment.
• A cut in UK VAT could help to kickstart consumer spending, and it expects measures to promote investment in business, which would not recover until 2030 otherwise.
• Poised to reach over US$ 24.5 Billion by the year 2025, Consumer Electronics will bring in healthy gains adding significant momentum to global growth.
• Though there are myriad angles to migration, it is important to think about how disruptions to human mobility and decreased remittance flows could pose serious longer-term challenges to migration and to global economic growth.
• While overall consumer demand will eventually recover in China's developed first tier geographic markets such as Shanghai, Beijing and Guangzhou, growth rates are still expected to be faster in emerging second, third and fourth tier cities.
• The COVID-19 pandemic, along with lower commodity prices and volatile financial markets, will have severe implications for the global economy and Indonesia this year: Domestic demand is expected to weaken, as business and consumer sentiment wanes.

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Last updated: 21 May 2020