The CQ: Mobile's Jolly Holiday and the Mismatch of the Economy and Consumer Sentiment
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By Forerunner
What We’re Talking About on Slack:
Digital payments are having a jolly holiday. November sales made through BNPL grew 17% year over year to $8.3 billion, with 42.5% more online spending on Cyber Monday alone than last year. A record 79% of Thanksgiving weekend e-commerce purchases were on mobile, which is an increase of 76% from last year. The use of mobile wallets was also up 54% year-over-year.
Inflation is your fault, according to The Atlantic. “People hate inflation, just not enough to spend less: This is one of the central tensions of today’s economy, in which things are going great yet everyone is miserable. And in some ways, Americans have nobody to blame but themselves.” Throughout most of 2023, consumers continued to buy expensive things even though they’re not happy about it and their budgets are tighter. As for why, some studies have shown that Americans are less price-sensitive compared to prior decades: today, consumers use fewer coupons, spend less time deciding what to buy, and are less willing to trade down.
Is the holiday shopping season going to be a success? The answer is murky, says The New York Times. Consumers spent more on Black Friday weekend than they did last year, though, adjusted for inflation, holiday sales are expected to be flat year-over-year. Maybe consumers are heeding the The Atlantic’s warning and a pull back is starting to show in spend numbers?
Ozempic and a protein shake: Food Makers prep weight-loss-drug side dishes. Companies from Nestle to General Mills are developing companion products that could help patients at risk of losing muscle mass, missing key nutrients, or gaining weight after stopping medication. In addition to protein shakes, “companies could offer smaller portion sizes of existing products, reformulate others by adding protein or fortifying them with vitamins and minerals, or develop new ones altogether.” Meanwhile some other food startups have their eye on creating natural alternatives to the weight-loss drugs that utilize the “Ozempic-like qualities of prebiotic fiber.”
That lingering ‘meh’ feeling has a name. About 2% of Americans have had some form of persistent depressive disorder (P.D.D.) in the past year, though experts say it’s under diagnosed, as some people may just think they’re naturally a Debbie Downer type of person. It’s a chronic depression that lasts for at least two years in adults and has varying levels of severity. While those suffering from clinical depression may find themselves unable to get out of bed, those with less severe P.D.D. are likely able to function—albeit while dealing with symptoms ranging from low energy and low self-esteem to insomnia, loss of concentration, and feelings of hopelessness. “You’re just sort of ‘meh.’ And you get used to being that way,” says the director of the American Psychological Association who notes that there may not be a reason behind it.
Women's elite sports revenue will cross billion dollars in 2024, with soccer and basketball expected to bring in 71% of the total global revenue, says Deloitte. The match day earnings, broadcast and commercial revenue is predicted to be $1.28 billion, “at least 300% higher than their previous valuation three years ago.”
Why are we so bummed about the economy? Continuing this week’s theme of consumer sentiment and spend, NPR speaks with economists to try to understand the disconnect between how people feel they are doing financially and a seemingly healthy economy. According to October’s consumer sentiment report, 51% of Americans said they were worse off today than a year ago, with only 30% reporting that they were doing better. One economist theorizes that it’s our nonstop access to smartphones and social media that can amplify bad news over good news. Then there’s the angry voter theory: During this polarized political time, people are responding to economic sentiment questions more politically than they used to. It’s also possible that “on paper, you see a self-employed person earning a good income. But if that person is piecing together gig work, that might not feel stable or sustainable or good.”
More than a quarter of Americans are ‘doom spending.’ “Much like doom scrolling, we’re seeing people mindlessly shop to soothe concerns about the economy and foreign affairs, which could take a toll on their financial wellbeing.” According to a recent survey, 73% of Gen Z’ers say they would rather live in the moment than cut back on expenses.
“Pinterest Predicts” launched this week, highlighting the “trends of tomorrow, today.” The page is fun, interactive, and shines a light on fun corners of the Internet. Click through each trend to see the year-over-year increases in trending search terms on Pinterest.
And to cap off the week of what’s driving the mismatch of consumer sentiment and spend, the Financial Times continues the search for an answer, asking “should we believe Americans when they say the economy is bad?” The media outlet conducted a survey of 2,000 Americans and found that their responses were often rooted in feelings rather than data. “Large majorities of Americans think the median income today pays for a worse lifestyle than 30 years ago (demonstrably false), and that poverty is higher than it was a generation ago (it has plummeted). One particularly revealing statistic is that Americans’ assessment of their own financial situation has barely budged over the past five years, but their rating of the national economy has worsened steeply. It seems they have decided that the vibes are bad, so things must be going badly for most other people, even if not for themselves.”
Portfolio Highlights:
Chime launches the Chime Scholars Foundation, awarding students scholarships for any type of post-secondary education.
Glossier and Starface launch a new collaboration of Hydro-Stars stickers that treat pimples, announced in Business of Fashion, Vogue, New York Post, and Fashionista.
Fast Company reports on the introduction of Hims & Hers’ new holistic weight loss program with quotes from CEO Andrew Dudum and Dr. Craig Primack, senior vice president of weight management.
Farmer’s Dog makes AdAge’s list of the 40 Best Ads of 2023.
Tally Health founder David Sinclair is featured in Business Insider’s story on men who have reversed their biological age.
PYMNTS covers the launch of Sika Health’s marketplace for shopping with HSA or FSA funds.
DUOS launches the Connections for a Cause campaign to support local communities across the country.
Fora travel advisor Caroline Lewis is quoted in Travel & Leisure, speaking about romantic destinations.
Forerunner Highlights:
Founder and partner Kirsten Green makes Forbes’ The World’s Most Powerful Women 2023 list.