“We buy things we don’t need with the money we don’t have to impress people we don’t like”
We are going through a rapidly evolving retail landscape that has at the center of it so many themes:
Inflation
Supply chain disruption
Product Mix
Let's dig in…🧵
The innate desire to buy things is built into the human social construct.
To paint broad strokes, the “things” we buy as material goods can be classified into discretionary (want) and non-discretionary (need).
We spend money as a medium of exchange in order to obtain goods.
This exchange of goods is done trillions of times across thousands of industries that make up the free market economy.
Just like any other market, price is set at an equilibrium where supply meets demand.
For Consumer Goods:
Supply side = Retailers
Demand side = Consumers
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