POLL: Where are you cutting back the most in your day-to-day spending?

MNSL answered 9 months ago …

Globally when we look at interim results of some companies their sales and profit have come down by more than 35% to70% in some of the following areas:

Gold and diamond jewellery
Clothes
Leather products and shoes
Tyres
Electronics
Costume
Building materials
Ceramics
Computers
Electronics including refrigerators and washing machines
Cars
Furniture
Plastics and packaging
Advertising
Leisure activities

Consumers prefer discounted stores now. Time to come there will be more fall in prices and sales in many luxury items. People spend less on leisure activities, wellness activities. Make ups and hair designs etc. This situation could become worst before it becomes better. We get everywhere discounted sales prices for clothes, shoes, electronics, cars, computers, furniture’s etc.

However always there are demands for some selected food items. After collapse of commodities still some food prices are still expensive. Inflation has not come down much. Fuel prices also not come down much in some countries. As a result of this consumers spend less on fuel and expensive food items. Their purchasing power has come down drastically. Paying mortgage also has become problems for some families now. Sooner than later housing rent market also will collapse gradually.

Specially some discounted stores, home owners and commercials property owners who can rent on discounted rent will be survived in the next 05 to 06 years. With rapid falling unemployment with dwindling income, demand for rented property will come down drastically in the next 05 years.

This is not the temporary cyclical shift in the economic system. We will have permanent structural shift in the world economy. Asian will have to create more consumers’ domestically. They will have to change their export market as well. Some industries will lose their dominance and some will remerge as next most promising sectors. There will be some shortage in some products in some sectors.

Pl see following link as well: