Netflix falls short of its projections for new subscribers for the period Q4 2021, leading to a 20% plunge in Netflix’s share price. In 2021, there are 617.4 million Netflix viewers worldwide, making up 7.9% of the population. We believe Netflix has reached the ceiling of this industry unless the global population grows faster or China opens up its market for foreign video streaming companies.

Besides Netflix, Peloton and Docusign also experience a sharp fall post-pandemic. Hence, we did some research to understand the changing consumer behavior of a few major countries.

Singapore

Although green consumerism is still not a big movement in Singapore, there is definitely a rising trend for it.

Singaporeans trading up to premium, luxury, or foreign brands, as well as their desire for healthier lifestyles, improved image (i.e. conspicuous consumption), and new experiences through their consumption habits.

India

The consumer group can literally be divided into three clear groups:

1.       The first group comprises consumers who are extremely brand conscious and depend upon the high-end retail stores to satisfy their needs

2.       The second group is another extreme that satisfies their consumer needs from outlets that do not hold popular brands and are also much cheaper

3.       The third group however follows the middle path- they satisfy their consumer needs either from high-end retail outlets or the less popular retail outlets, as and when necessary.

The growing purchasing power and the rising influence of social media have enabled Indian consumers to splurge on good things.

The import of electronic goods is increasing and India is expected to have 829 million smartphone users by 2022.

China

A growing number of people from China’s middle class — and those who aspire to be middle-class — are spending the Spring Festival not only eating, drinking, and visiting family, but also on leisure activities and other immaterial forms of consumption.

Chinese consumer behavior seems to be a lot closer to American consumerism where desiring the ‘good life’ is widely accepted and higher levels of consumption are deemed beneficial to consumers.

China is the world’s top spender in tourism.

Affluent Chinese product consumers appear to have a no-holds-barred approach to spending exorbitant sums on luxurious goods from reputable brands or investing in items of significant value that they believe can generate exponentially high returns in the future. One example is the vast-expanding Chinese luxury market driven by the entry of conglomerates such as LVMH, Pernod Ricard, and Richemont.

Vietnam

Digital networks and links facilitate exposure to their interests, which create a matrix of consumer options. This demographic of consumers will direct their purchases to cover basic needs – like food, housing, and clothing – based on what they find online.

Education, Healthcare, F&B products, and Personal care are key areas of expenditure.

Indonesia

The products and services, which Indonesian consumers spent their money on, were grouped into five categories: Food, beverage, and tobacco; Consumer foodservice; Travel; Household goods; and Clothing and footwear.

Thailand

Thai consumers particularly upper-income shoppers are spending even more on experiences such as dining out and leisure travel as well as on luxury products such as watches, jewelry, and smartphones.

Thai consumers are comfortable buying most things online, except for jewelry, medicines, and perishable grocery items.

Japan

Retail sales and household spending data showed different pictures of consumer spending, it’s safe to conclude that consumer spending continues to gain strength only slowly, despite a very tight labor market.

Household spending fell as consumers spent less on utilities, cars, domestic travel, and leisure.

Korea

South Korean consumers tend to be concerned with the brand name and health attributes of a product.

Consumers are becoming less concerned with buying products made in South Korea and are increasingly inclined to purchase non-domestic products, often at much lower prices.

South Koreans are now on the brink of materialism and aspire to lifestyles that are being portrayed by the media. They are increasingly viewing money as the representation and sign of success and put greater emphasis on publicly-visible items because of their attached symbolic meanings and values.

Young South Korean consumers purchase apparel and other fashion items which they can use to express their individuality amidst a rather uniform society. They believe that they can express it using foreign brands with scarcity value. Increasingly, South Koreans of all ages and genders view their appearance as something that can be improved through ever developing. Not being fashionable or not knowing the latest fashion trend is considered negligent, ignorant, and tasteless.

UK

UK consumer spending is still declining despite the recent pick-up in wage growth.

The data also confirms the structural shift in the retail sector, from in-store sales to online shopping, and from spending on “stuff” to expenditure on digital items.

Some people might choose to rebuild savings, rather than spending more freely, especially if they felt less confident about the economic outlook or their own circumstances.

Germany

Germans bought things like cars and other durable goods. The growth in the purchase of food and beverage, tobacco, shoes, and clothing was particularly strong. Despite the housing shortage in many German cities, expenses toward apartments also saw an increase.

France

French consumers are particularly keen on services, especially digital, cultural, and travel related. The number of French people interested in sustainable development and responsible consumption is growing rapidly, and today France offers the second biggest organic agriculture in the European Union.

Consumers prefer products carefully packaged, creative and appealing. The consumption of organic and fair trade products is on the rise.

Canada

An increasing number of senior couples report spending on recreation and entertainment services which demonstrates their better finances and health.

Canadian households' average expenditures are concentrated in four main spending categories: personal taxes, shelter, transportation, and food.

The highest rates of growth in household spending have occurred in sectors such as health care and education and on some durable goods (transportation, and household furnishings and equipment).

The wave of immigrants is influencing Canada’s consumer profile and shopping habits. In particular, the trend is affecting food shopping.

US

Certain spending avenues and methods are changing after the pandemic ends. The American spends lesser shopping online and pick up, doing less home improvement projects, and ordering less food for takeout or delivery. 

Source: iSquare Intelligence