As the Inflation and economic recession brought on by the COVID-19 pandemic continue to hit hard several industries, consumers struggle with rising prices.Yet even as people feel the pinch after prices jumped by as much as 8.6%, when compared to last year’s consumer goods prices, certain industries are coming out as recession proof .
The Overpowering Desire to Enjoy Life Again, Despite Inflation
Apparently,most people want to enjoy life again while they still can, after experiencing more than two years of not going out and lying low; and in fear of the deadly disease.Consumer analysts say shoppers are trading up, not down.
While many are spending less on gasoline and lunches, theaters, live music entertainment and travel industries have been holding up. Recent releases like “Dr. Strange,” “Top Gun: Maverick” and “Jurassic World Dominion” have achieved blockbuster status after hitting pulling off box office sales. Some consumers have given up pricier out-of-town vacations so they can still afford to continue their Netflix subscriptions.
Even airline companies like American, Delta and United have been experiencing a surge in demand for international flights. Most air travelers are simply accepting the higher cost of plane fares, helping airline companies meet the rising costs of fuel and other related expenses. Yet, it isn’t clear how far the enthusiasm to travel internationally will go, because domestic bookings have actually dropped in the recent past two months.
Consumers Showing Strong Desires to Spend on Want Over Needs
People are showing strong desires to socialize so they can bring out the products they bought online during the quarantine period. However, as they are losing confidence on how far their newly-raised income will go, most consumers are cutting down on some needs in order to indulge in the things they missed during the two years of COVID-19.
Actually, these industries fear that this dynamic consumer behavior might change and end abruptly. The short term gains are merely losses being recouped from the inventory they invested on in the early months of 2020.
According to consumer research, the NPD Group, their recent survey shows that 8 out of 10 American consumers are already planning to cut down on their spending if things don’t get better within the next 3 to 6 months.