American consumption has been significantly downgraded, and many categories have been affected!

The current inflation rate in the United States has reached 9.1%, a record high in 40 years. As a result, most American consumers are drastically cutting back on spending, and demand for many categories has plummeted.

According to the latest data, demand for soaps, perfumes, candles and grills in the US market continues to decline, so major companies are beginning to reassess their revenue expectations and change their original expansion plans.

On July 20, barbecue machine manufacturer Traeger Inc announced that it would suspend its barbecue delivery service and postpone plans to build a new factory in Mexico. At the same time, it would reduce labor to reduce costs.

Bath & Body Works Inc, a retailer of soaps, perfumes and candles, also cut its revenue forecast as its business volumes slumped due to inflation .

Research firm DA Davidson said that rising inflation has led to a decrease in consumers shopping online, with more people choosing to spend money on travel, and the quarterly revenue of all online platforms such as Etsy and Shopify will be affected.

At the same time, American consumers are also reducing subscription services. The streaming platform Netflix has always been a membership subscription system, but in the past three months, the platform has lost 970,000 users.

At the same time, Amazon's Prime membership growth in the U.S. has also stagnated. According to data from market research firm CIRP, as of June 30, the number of Amazon's Prime members in the U.S. was about 172 million, the same as six months ago.

According to CNBC's All-America Economic Survey this month, 65% of consumers will spend less on concerts and other entertainment activities due to inflation, 61% will drive less, more than 40% will spend less on groceries, and one-third will use credit cards more frequently to cope with daily living expenses.

More and more American consumers are starting to buy cheaper alternatives while reducing consumption of non-essential items. Nevertheless, sellers don't have to worry too much. Because high-income groups in the United States are basically not affected by inflation and continue to spend on luxury goods. And surveys show that the number of American consumers who plan to buy cars or large appliances in the next 6 months has increased.

Although inflation has changed the shopping needs of American consumers, sellers can choose cost-effective daily necessities, luxury goods or large appliances to layout on the basis of ensuring product quality, so as to truly meet the needs of American consumers.

US e-commerce market

inflation