11/06/2023
Purchasing power in consumer market decreases
Despite the long period of the market being quiet due to the impact of the Covid-19 epidemic, the purchasing power has yet to show any positive signs but declined drastically in the first months of 2023.
The Economic difficulties are due to the prolonged impact of the Covid-19 epidemic, causing the disruption of the global supply chain. Many manufacturing enterprises faced struggles when their orders dropped by 20-50%, forcing the downsizing of the production scale, leading to a high unemployment rate. Many workers have neither job nor income or face a sharp drop in income, so they all tighten their spending, causing a sharp decrease in purchasing power.
Many enterprises say their revenue since the beginning of the year has decreased by about 25% compared to last year, responding to the rate decrease of purchasing power. Regarding the electronics market, the purchasing power has dropped to only 40 % when compared to the same period last year, as consumers tighten their spending.
Customers now mainly focus on purchasing food items and essential products. In the electronics industry, there is a sharp decrease in both the number of orders and sales. Most consumers only choose to buy reasonable products at affordable prices, and the purchasing power for high-end products has reduced gravely.