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19 cities where rent is falling fast, even as price hikes continue to frustrate consumers

India's retail inflation is projected to surge to 6.15% in October, exceeding the Reserve Bank of India's (RBI) tolerance threshold of 6%, according to a new report by Union Bank of India. The spike is attributed to persistent <keyword id="21013592" type="General" weightage="20" keywordseo="food-price-pressures" source="keywords">food price pressures</keyword> and the waning of favorable base effects from the previous year. Earlier this month, RBI governor Shaktikanta Das also echoed similar sentiments and noted that the inflation print for October 2024 could stay well above 5.5%. This is why, as Das highlighted, cutting interest rates as early as December would be very early and premature The <keyword id="19999655" type="General" weightage="20" keywordseo="Consumer-Price-Index" source="keywords">Consumer Price Index</keyword> (CPI) data for October, which will be released at 4 pm on Tuesday, as opposed to the previous practice of releasing this data at 5:30 pm on the 12th of every month, follows September's inflation reading of 5.49%, up from 3.65% in August 2024. The last time inflation breached the RBI's upper limit was in August 2023. Despite the RBI's anticipation of an October inflation "hump," the Union Bank report suggests that the magnitude of the increase might raise concerns, particularly as November's figures are also tracking at elevated levels. The bank maintains its forecast of unchanged interest rates in December's monetary policy meeting, with a modest 50 basis points rate cut cycle predicted to begin in February 2025. Food inflation remains a key driver of price pressures, with vegetables and edible oils leading the recent surge. In September 2024, India's YoY food inflation rate hit 9.24%, up from 5.66% in the month prior. However, the report projects some easing of food inflation in the January-March quarter, citing typical winter price moderation and improving prospects for rabi crops. Despite this, potential risks from food supply disruptions, imported edible oil prices, and the impact of potential trade tariff hikes will exist. The RBI, which aims to maintain retail inflation at 4%, has held the repo rate steady at 6.5% for the tenth consecutive time in its last meeting as part of its inflation containment strategy. A recent SBI report also noted that expecting rate cuts in this quarter would be immature, and easing was possible only during the first half of 2025. "Given the current estimates of FY25 real GDP growth at 7.2% and CPI at 4.50%, the RBI would quite possibly keep policy rates stable over the coming quarter at least. Emerging trends in the growth outlook would possibly determine the timing and extent of any policy easing. With near-term CPI numbers likely to stay elevated, it’s premature to consider expectations of any easing in the December review. "However, high-frequency data do validate a softness in growth data on an incremental basis. Given the anticipated aligning of CPI closer to the target over H2, a shallow easing, if any can be a reasonable possibility over H1 of CY 25", it added.

Retail inflation expected to breach 6% mark in October, says UBI Report

Amid the ongoing geopolitical tension, the <keyword id="19904988" type="General" weightage="20" keywordseo="energy-sector" source="keywords">energy sector</keyword> will continue to face challenge while the <keyword id="20468174" type="General" weightage="20" keywordseo="consumer-goods" source="keywords">consumer goods</keyword>, automotive, healthcare is set to expand in 2025, highlighted a report 'Industry Outlook 2025' by <keyword id="20618515" type="General" weightage="100" keywordseo="Economist-Intelligence-Unit" source="keywords" meta.keywordsubtype="org" meta.entityname="Economist Intelligence Unit" meta.hostid="261" meta.entityid="Economist Intelligence Unit">Economist Intelligence Unit</keyword>. The report noted that the Fossil fuel markets will continue to face risks from geopolitical conflicts, particularly in the Middle East and Ukraine. However, investments in <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword> will remain strong, especially in China, as the world pushes toward cleaner and more sustainable energy sources. The report said "Fossil-fuel markets will continue to face <keyword id="20064250" type="General" weightage="20" keywordseo="geopolitical-risks" source="keywords">geopolitical risks</keyword> amid conflicts in the Middle East and Ukraine, but investment into renewables will remain strong, particularly in China." It also added that the financial sector faces a mixed outlook with falling interest rates anticipated to narrow bank profit margins, potentially leading to smaller dividend payouts for shareholders. Yet, regulatory easing could provide relief, with the Basel III endgame likely seeing further delays, softening the impact on banking institutions amid a challenging economic landscape. For the consumer goods and retailing the report added that the Global retail volumes are forecast to grow by 2.2 per cent in 2025, thanks to easing inflation. However, stricter regulations on online retailing will target high-volume, low-price retailers, to ensure fair competition and consumer protection. It said "Global retail volumes will expand by 2.2 per cent, helped by disinflation, but regulations around online retailing will tighten further" As per report, the <keyword id="20359760" type="General" weightage="20" keywordseo="automotive-sector" source="keywords">automotive sector</keyword> is set for a record year, it said "After a difficult few years, annual new-vehicle sales will reach a record 97.2m units in 2025. This includes a 2 per cent rise in new car sales, a 4 per cent increase in commercial vehicle sales, and a significant 16 per cent growth in <keyword id="19963112" type="General" weightage="20" keywordseo="electric-vehicle-sales" source="keywords">electric vehicle sales</keyword>, reflecting the sector's recovery and the shift toward cleaner mobility. In technology the report added more countries will adopt satellite internet, although the primary users will be enterprise clients, including military and maritime sectors. Amazon's Project Kuiper will challenge the existing market dominance of Starlink and EutelSat OneWeb, offering more competition and potential growth in satellite connectivity. The resulting tensions will continue to affect investment into production and market entry, with companies taking advantage of government incentives to build out more flexible supply chains. <keyword id="23684177" type="General" weightage="20" keywordseo="investment-in-technology" source="keywords">Investment in technology</keyword>, particularly artificial intelligence (AI), will also be strong as projects gather pace. However, technology companies will face pressure from several directions as regulations tighten (particularly in Europe), investors become more impatient for profits and their energy usage comes under more scrutiny.

Consumer goods, auto and healthcare sector to expand but energy may face challenge in 2025: Report

<ul><li>The <keyword id="8194701" type="General" weightage="20" keywordseo="refurbished-smartphone" source="Orion">refurbished smartphone</keyword> market has recorded rapid growth in India.</li><li>While the unorganised sellers dominate the market, the organised sellers are also growing.</li><li>Affordability and shorter upgrade cycles are among the factors fueling the refurbished smartphone market.</li></ul> India's refurbished smartphone market is experiencing significant growth, outpacing the new smartphone sector. This reflects a maturing market which is increasingly catering to consumers looking for affordable yet reliable options. According to a report by Counterpoint Research, unorganised sellers dominate the refurbished smartphone market, accounting for 77% of transactions. The Indian refurbished smartphone sector has traditionally been dominated by unorganised players, offering devices at a fraction of the cost of the new models. However, the introduction of value-added services like warranties, quality assurance, and after-sales support by emerging e-commerce platforms is beginning to formalise this market, enhancing consumer trust and driving further growth. <h2>What’s fueling the refurbished smartphone market</h2><h3>Affordability</h3><keyword id="2698558" type="General" weightage="20" keywordseo="refurbished-smartphones" source="Orion">Refurbished smartphones</keyword> offer consumers access to higher-end hardware at lower costs, making premium technology more accessible to a broader audience. This aspect is particularly appealing in a price-sensitive market like India. <h3>Shorter upgrade cycles</h3>With technology evolving rapidly, many users prefer to upgrade their phones more frequently. Refurbished devices provide an avenue for this without the high cost associated with new purchases. <h3>Environmental impact</h3>There's a growing awareness of the environmental benefits of using refurbished products, which reduces electronic waste and the demand for new manufacturing, which is resource-intensive. <h3>Consumer confidence</h3>The entry of organised players who provide guarantees and quality checks on refurbished devices has significantly boosted consumer confidence. These services add a layer of reliability to what was once a market fraught with uncertainty about product condition and longevity. Despite the growth in the unorganised sector, there's a noticeable trend towards formalisation. E-commerce platforms specialising in refurbished goods are expanding, providing consumers with the convenience of online shopping backed by credible service commitments. The report also notes that this growth is not just contained within India. Globally, the refurbished smartphone market is on an upward trajectory, with similar trends observed in markets like Latin America, suggesting a broader international shift towards sustainable consumption in electronics. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/moto-g35-5g-with-120hz-5000mah-battery-launched-at-9999/articleshow/116172283.cms">Moto G35 5G with 120Hz display, 5,000mAh battery launched at ₹9,999</a> <a href="https://www.businessinsider.in/tech/mobile/news/redmi-note-14-pro-and-redmi-note-14-pro-launched-in-india-starting-at-24999/articleshow/116134415.cms">Redmi Note 14 Pro and Redmi Note 14 Pro+ launched in India starting at ₹24,999</a> <a href="https://www.businessinsider.in/tech/mobile/news/vivo-x200-and-x200-pro-camera-centric-to-launch-in-india-on-december-12/articleshow/115930004.cms">Vivo X200 and X200 Pro camera-centric smartphones to launch in India on December 12</a>

India's refurbished smartphone market witnesses accelerated growth

<ul><li>The <keyword id="21407809" type="General" weightage="20" keywordseo="Indian-tablet-market" source="keywords">Indian tablet market</keyword> has recorded a 128.8% year-on-year growth in shipments in Q2 2024.</li><li>The <keyword id="21529438" type="General" weightage="20" keywordseo="consumer-segment" source="keywords">consumer segment</keyword> has recorded a 27.5% growth, recording growth for the third consecutive quarter.</li><li><keyword id="19897758" type="General" weightage="20" keywordseo="Samsung" source="keywords" meta.keywordsubtype="org" meta.entityname="Samsung" meta.hostid="261" meta.entityid="Samsung">Samsung</keyword> continues to lead the market, with nearly 50% market share.</li></ul> The Indian tablet market recorded good growth in Q2 2024, registering a 128.8% year-on-year increase in shipments. The tablet market includes detachable and slates, along with traditional tablets. According to a report by the International Data Corporation (IDC), 1.84 million tablets were shipped in India in Q2 2024. One of the reasons for the high growth in shipments was the fulfilment of a government education order in Uttar Pradesh. <div type="Article" hostid="261" msid="112926834" title="SEBI brings in new norms to regulate finfluencers" mstype="2" mssubtype="0"></div> In Q2 2024, the education segment recorded a growth of 455% year-on-year, helping the overall commercial segment record a growth of 279.1%. The consumer segment on the other hand recorded a growth of 27.5%, boosted by strong sales during summer sales. “Discounts and cashback make the purchases more lucrative, leading to robust demand for consumer tablets, and this trend is expected to continue in the near future,” said Priyansh Tiwari, research analyst, devices research, IDC India &amp; South Asia. Indian tablet shipments market share <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #356854 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#356854;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #356854 0.39999975pt;border-right:solid #356854 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#356854;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Q2 2024 </td><td style="border-left:solid #356854 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#356854;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Q2 2023 </td></tr><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Samsung </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">48.70% </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #284e3f 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">37.10% </td></tr><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Acer Group </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">23.60% </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">3.30% </td></tr><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Apple </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">9.50% </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">19.40% </td></tr><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Lenovo </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">6.90% </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #cccccc 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#f6f8f9;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">16.20% </td></tr><tr><td style="border-left:solid #284e3f 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">Xiaomi </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #cccccc 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">4.70% </td><td style="border-left:solid #cccccc 0.39999975pt;border-right:solid #284e3f 0.39999975pt;border-bottom:solid #284e3f 0.39999975pt;border-top:solid #cccccc 0.39999975pt;vertical-align:middle;background-color:#ffffff;padding:2pt 6pt 2pt 6pt;overflow:hidden;overflow-wrap:break-word;">5.80% </td></tr></tbody></table> <h2>Samsung leads the market</h2>Samsung continues to lead the Indian tablet market with a nearly 50% share. The company recorded a market share of 48.7% in Q2 2024. The company recorded a share of 54.1% in the commercial segment and 38% in the consumer segment. Acer was able to boost its market share at the back of education projects, which helped boost its share in the commercial segment to 35.5%. The company was able to take its market share in overall tablet shipments to 23.6% in Q2 2024. Apple recorded a market share of 9.5% in Q2 2024, with its growth in the consumer segment driven by new product launches and price cuts for older products. Lenovo and Xiaomi take the fourth and fifth positions respectively. While Lenovo recorded a market share of 6.9%, Xiaomi recorded a market share of 4.7%. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/webstories/upcoming-smartphones-launching-in-india-in-september-2024/slidelist/112841889.cms">Upcoming smartphones launching in India in September 2024</a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-increases-prices-of-prepaid-plans-with-netflix-bundle-new-prices-benefits-detailed/articleshow/112873781.cms">Reliance Jio increases prices of prepaid plans with Netflix bundle: New prices, benefits detailed</a> <a href="https://www.businessinsider.in/tech/mobile/news/apple-iphone-16-to-be-launched-on-september-9-heres-everything-we-know-so-far/articleshow/112828818.cms">Apple iPhone 16 to be launched on September 9 – here’s everything we know so far</a>

Indian tablet market records good growth in Q2 2024, 1 in 2 tablets sold was from Samsung

Indian companies across multiple sectors have reported disappointing results in the second quarter of fiscal year 2025, notes a new JM Financials report. Consequently, their poor performance has triggered stock price corrections for affected companies. The brunt of this weaker than expected earnings was largely borne by consumer centric sectors like FMCG (fast moving consumer goods), retail, and auto, which slacked largely due to dampened urban demand. For instance, India's largest automaker, Maruti Suzuki, reported a 5% YoY decline in its total domestic passenger vehicle wholesales, largely on the back of pent-up inventory. Similarly, Honda reported a staggering 23% YoY dip in its total sales during October 2024. A recent report by Bernstein noted that around 48% of the companies listed on the NSE100 index missed their earnings estimate for Q2FY25, the highest since March 2020. Most companies have mentioned deteriorated domestic demand, urban slowing, macroeconomic risk, and margin pressures as the main reasons behind the dip. "The quarter's earnings have made investors nervous," noted the JM Financials report. The challenging environment stems from multiple factors: softening consumer demand, rising input costs, and companies' limited ability to increase prices. Moreover, this is not limited to just one quarter. Companies have been reporting weak, single-digit earnings growth for the last six consecutive quarters. Data from India Data Hub also suggests that corporate profits of listed companies plunged by as much as 3.4% during the quarter ended September 30, 2024. This is in stark contrast to the year-ago period, where they had shot up by over 40% The oil and gas sector had a difficult quarter, with refiners hit by weak margins and city gas distributors struggling with higher input costs. Financial institutions showed mixed results. While government-owned banks reported strong numbers, microfinance institutions and some private lenders faced massive difficulties with their unsecured loans. Most notable amongst this was the case of IndusInd Bank, which saw its net profits dip by 40% amidst burgeoning provisions, which climbed 87% to Rs 1,820 crore in Q2, as against Rs 974 crore reported in the year-ago period. <h2>Markets head southwards</h2>The selling trend by FPIs has dragged down the major Indian indices, the Nifty 50 and Sensex, both of which have dropped by around 8% since the beginning of this selling spree in October. According to National Securities Depository Ltd. (NSDL) data, FPIs offloaded equities worth a significant Rs 19,994 crore in just the first five trading sessions of November last week. The impact is clearly visible on Indian stock markets. Data suggests that while every sector in October closed the month in red, auto, oil and gas, and consumer durables were the most badly hit, each declining by as much as 10% during the month. Another indicator underlining the inherent weakness of the market was that the month saw only 242 stocks hit their 52-week high, significantly below the usual monthly average of 310.

India Inc. stares at an earnings dearth in Q2, FMCG, auto, and consumer durables falter

<ul class="summary-list"><li><a target="_blank" class="" href="https://www.businessinsider.com/whats-behind-china-luxury-goods-slowdown-economy-changing-consumer-tastes-2024-10">China's luxury slump</a> is spreading to more consumer brands.</li><li>Companies like Starbucks, Estée Lauder, and Nike have reported falling sales in the region.</li></ul>For the better part of this year, <a target="_blank" href="https://www.businessinsider.com/china-luxury-retail-sales-slowdown-brands-fashion-2024-7">China has experienced a slump</a> in the most opulent of sectors. Sales for luxury powerhouses like LVMH, Richemont, and <a target="_blank" class="" href="https://www.businessinsider.com/how-burberry-became-fashions-biggest-fail-stock-drop-ceo-ousting-2024-8">Burberry</a> have fallen in the region that once seemed to represent limitless growth for high-end goods.Now, that downturn is coming for a wider set of consumer industries. Chinese people aren't just saving on <a target="_blank" class="" href="https://www.businessinsider.com/gucci-sales-profit-reputation-falling-luxury-kering-michele-china-2024-5">Gucci</a> and cognac but also cutting back on spending on cheaper products like beer and lipstick. It's hitting Western brands particularly hard, as reflected by companies across the consumer sector reporting muted sales in China in the most recent quarter.Consumer spending in China never fully recovered after the government started lifting COVID-19 curbs in late 2022. Since then, the country has struggled with weak consumer sentiment and multiple economic challenges, including a property crisis, deflation, and high youth unemployment. China's<a target="_blank" href="https://www.businessinsider.com/china-economy-3q-gdp-growth-stock-market-stimulus-2024-10"> third-quarter GDP</a> grew 4.6% year-on-year — the slowest pace in over a year and below Beijing's growth target of around 5%.In late September, Beijing announced <a target="_blank" class="" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9">aggressive stimulus</a> measures to boost the economy, but analysts say much more is needed to spur and drive consumer confidence.Meanwhile, China's once-free-spending consumers are holding back and prefer to save — in cash or <a target="_blank" href="https://www.businessinsider.com/china-economy-gold-rush-consumer-spending-money-savings-starbucks-gucci-2024-5">gold.</a> Cautious spenders are also trading down to knockoffs and lower-priced or local alternatives across a range of products from beauty and fashion to travel.The prevailing zeitgeist in China is about "aiming to <a target="_blank" href="https://www.businessinsider.com/chinese-economy-young-shoppers-looking-dupes-substitutes-pingti-fashion-travel-2024-9#">live well while spending less,</a>" MingYii Lai, a strategy consultant at Beijing-based market research firm Daxue Consulting, told Business Insider in September.Last week, AB InBev, the world's largest beer producer, announced declining revenue in the region, joining rival Carlsberg in reporting disappointing results. AB InBev, which makes Budweiser, has struggled in China all year and reported a 16% sales drop in the country for the third quarter.People in China are skimping on on-trade alcohol purchases, meaning they are spending less at bars and restaurants, Spiros Malandrakis, Euromonitor's head of research in the alcohol sector, told Business Insider."There is some flexibility, but it is not entirely recession-resistant," he added.It looks like they aren't going out for coffee or burgers, either. Negative sales in China brought down McDonald's results for the third quarter. And <a target="_blank" class="" href="https://www.businessinsider.com/why-starbucks-is-struggling-in-china-sales-prices-competition-coffee-2024-8">Starbucks</a>, which announced its fourth-quarter earnings last week, saw comparable store sales fall 14% in China."All indications show me the competitive environment is extreme, the macro environment is tough," <a target="_blank" href="https://www.businessinsider.com/starbucks-ceo-to-lay-out-strategy-to-fix-coffee-chain-2024-10">Brian Niccol, the coffee giant's new CEO</a>, said about China during the company's earnings call.A similar phenomenon has arisen in fashion and beauty, where nonluxury brands are seeing consumer confidence, leading to an overall tightening of belts.Beauty brands like Estée Lauder and L'Oréal have reported worse-than-expected results in the region. Sales for the former decreased 11% in the most recent quarter, driven by mainland China, where the company noted a declining appetite for skincare. It doesn't expect recent government stimulus to help sales in the current quarter.Those results came on the heels of Nike's, which had lowered its full-year guidance over the summer, blaming China's unstable economy. The sneaker giant cited "softness" in the country, its third-largest market by revenue.Even <a target="_blank" href="https://www.businessinsider.com/apple-stock-earnings-report-call-live-updates-2024-10">Apple</a>, once bulletproof in the region, missed revenue estimates in the Greater China division.Despite the headwinds, there have been bright spots.Adidas managed to buck the trend, reporting sales up 9% in Greater China in the third quarter. Heineken, too, saw growth in the region last quarter.Sectors offering discretionary <a target="_blank" href="https://www.businessinsider.com/china-economy-lopsided-recovery-consumer-retail-spending-industrial-output-property-2024-5">"eat, drink, and play"</a> experiences outperformed the wider consumer sector in China earlier this year, though their momentum has slowed in the past few months, wrote Lynn Song, the chief economist for Greater China at ING, in an October 28 note."More consumers appear to be gravitating toward higher value-for-money options," Song wrote.

China's luxury slump is trickling down to other consumer companies

<ul class="summary-list"><li>The California Fast Food Workers Union is calling for the state's minimum wage to rise to $20.70.</li><li>The union says the increase will help workers "keep up with inflation."</li></ul>Fresh off the heels of a major wage hike in April, California fast food workers are calling for a new one "to keep up with <a target="_blank" class="" href="https://www.businessinsider.com/cost-of-living-in-california-cities-prices-housing-medical-energy-2023-8">the rising cost of living</a>."The California Fast Food Workers Union presented its demand for a new wage of $20.70 (up from $20) at the first-ever meeting of the newly formed Fast Food Council, <a target="_blank" href="https://ktla.com/news/california/california-fast-food-workers-want-another-minimum-wage-increase/">KTLA News</a> reported. Annual cost-of-living adjustments are a common feature of labor contracts, and the new wage would take effect on January 1, 2025."It's always been about more than $20/hr, and we're just getting started," a CAFFWU memo shared with Business Insider said.But the impact of the last (and more significant) raise — from $16 to $20 on April 1 — is still rippling through California's foodservice industry, with business leaders and labor organizers offering divergent narratives.McDonald's CEO Chris Kempczinski told CNBC on Thursday <a target="_blank" href="https://www.businessinsider.com/mcdonalds-fast-food-sales-suffer-most-in-california-wage-hike-2024-7">sales have fallen off more in California</a> than elsewhere in the US after the chain raised prices to pay for the wage increase. McDonald's previously lobbied against the law.At Chipotle, CEO Brian Niccol said the law drove <a target="_blank" href="https://www.businessinsider.com/chipotle-california-minimum-wage-pushed-menu-prices-2024-4">a 20% increase in earnings</a> for its restaurant staff and that it raised menu prices by 6% to 7% in the state to offset that.McDonald's and Chipotle didn't immediately respond to requests for comment from Business Insider.Other <a target="_blank" href="https://www.businessinsider.com/california-fast-food-restaurants-lay-off-workers-minimum-wage-hike-2024-3">fast-food chains have laid off workers</a>, in some cases by closing restaurants altogether, citing the new rules.Data from the US Bureau of Labor Statistics is not likely to satisfy either side: Before adjusting for seasonality, the state added more than 5,000 new fast food jobs between April and June, but the seasonally adjusted figure is a 3,000-job decline. The numbers are effectively flat over the past year.Still, some fast food workers have praised the wage increase: "It's been really good because I can now put more food on the table and in my fridge and pay my rent on time, which was always a challenge," Wendy's employee Romualda Alcazar Cruz told <a target="_blank" href="https://ktla.com/news/california/california-fast-food-workers-want-another-minimum-wage-increase/">KXTL</a> in Spanish.The union also said in the memo that it is seeking more stable scheduling as well as investigations into "abuses" including unsafe working conditions, harassment, discrimination, and wage theft.The Fast Food Council next meets in September.If you are a fast food worker in California who wants to share your perspective, please <a target="_blank" href="mailto:dreuter@businessinsider.com">contact Dominick via email</a> or text/call/Signal at 646.768.4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a non-work device when reaching out.

Fast food giants like McDonald's and Chipotle may be forced to hike prices in California again.

<ul class="summary-list"><li>Fast-food prices have risen so much they've hit a "tipping point," one analyst said.</li><li>Restaurants are having to reset their menus with value deals, Chris O'Cull of Stifel said.</li></ul>Prices at fast-food chains have been skyrocketing since the start of the pandemic — and one analyst thinks they may now have reached a "tipping point."<a target="_blank" class="" href="https://www.businessinsider.com/mcdonalds-starbucks-kfc-us-sales-diners-cut-back-prices-expensive-2024-8">McDonald's, Starbucks, and KFC</a> all recently reported decreases in US same-store sales as rising prices kept some customers away.In response, fast-food chains have been turning to combo deals and value menus. <a target="_blank" rel="" class="" href="https://www.businessinsider.com/why-mcdonalds-5-dollar-meal-deal-pulling-in-customers-inflation-2024-7">McDonald's</a>, <a target="_blank" rel="" class="" href="https://www.businessinsider.com/burger-king-launches-5-dollar-value-meal-before-mcdonalds-months-2024-5">Burger King</a>, <a target="_blank" class="" href="https://www.facebook.com/jackinthebox/videos/485945577257950/">Jack in the Box</a>, and <a target="_blank" rel=" nofollow" class="" href="https://www.kfc.com/newsroom/kfc-introduces-new-taste-of-kfc-deals">KFC</a> have all launched $5 combo deals — and even <a target="_blank" class="" href="https://www.businessinsider.com/starbucks-bundling-breakfast-combo-deals-sandwich-croissant-tea-coffee-meal-2024-6">Starbucks</a> experimented with bundling."I think pricing has probably hit a tipping point now where a lot of these restaurants are having to reset their menus with these value menus and value deals," Stifel analyst Chris O'Cull told Business Insider.<h2 id="68de75e7-4102-4a02-b732-66162a1e6127">Too expensive</h2>Before the pandemic, limited-service restaurants in the US generally put their prices up by less than 3.5% a year, <a target="_blank" class="" href="https://data.bls.gov/dataViewer/view/timeseries/CUUR0000SEFV02">consumer price index</a> data shows. All that changed in 2020. The cost of labor and commodities soared — and chains raised their prices in response. In the year to April 2023, prices at limited-service restaurants went up by 8.2%.Those rises are cooling, but remain far above pre-pandemic levels — and are coming back to bite fast-food chains."Consumers are kind of pushing back on spending and are deciding to find cheaper ways to eat," O'Cull said. Low-income diners in particular are <a target="_blank" class="" href="https://www.businessinsider.com/fast-food-expensive-americans-cook-at-home-visit-independent-restaurants-2024-5">buying more groceries</a>, turning to diners or casual-dining chains to get a sit-down experience for just a few dollars more — or they're still getting their fast-food burgers and fries, but are being more prudent about what they buy."Quick service posted its fifth straight quarter of decelerating comp trends, marking a change from prior times of consumer choppiness during which quick service tended to be the most resilient space," William Blair analyst Sharon Zackfia said in a note on Thursday.<div type="image" title="McDonald's fast food restaurant in Manhattan, New York, United States of America, on July 6th, 2024." height="2001" width="3000" msid="112630663" hostid="261" sizebytes="600222"></div>During a slowdown, lower-end consumers cut down on fast food, but this is typically more than offset by the influx of middle- and higher-income consumers, Brian Yarbrough, an Edward Jones analyst, told BI.But in this instance, fast-food chains have raised prices "so much" that it's shrunk the gap between fast-food and fast-casual prices, meaning more low-earners are trading out of the sector than high-earners are trading in, he said.<h2 id="cdef5103-6ac0-4864-b952-122ac26b7600">Traffic boost </h2>As customers turn their noses up at high prices, restaurants have resorted to value meals and combo bundles to draw in new diners. Andy Barish, an analyst at Jefferies, said this represented a return to a pre-pandemic promotional approach.Executives at McDonald's and Burger King have said their $5 deals have proved popular, especially among lower-income consumers.But restaurants have to ensure the deals drive enough traffic to offset the lower prices, Yarbrough said.Bosses also hope that once value menus get customers through the door, they'll end up bulking up their orders with extra items, too. Both McDonald's and Burger King said the average order including their combo meals came to more than $10. Jack in the Box said that its Munchies Under $4 deal didn't drive as much traffic as expected, but did lead to higher average order sizes.O'Cull of Stifel said he thought the value deals had been a "positive" for both fast-food chains and their franchisees: "For the time being, I think they'll probably stick with this."

Fast-food price hikes reach 'tipping point' as chains try to reset their menus with value deals and combos

Mobile phone users might have to spend notably more for their recharge packs after the general election, as reports indicate that telecom firms are gearing up for a fourth round of <keyword id="891186" type="General" weightage="20" keywordseo="tariff-hikes" source="Orion">tariff hikes</keyword> in recent times. According to a report by brokerage Axis Capital, a meaningful hike of approximately 25% by operators is anticipated soon. This surge is attributed to a stable competitive environment, the necessity to bolster profitability post heavy <keyword id="21245910" type="General" weightage="20" keywordseo="5G-investments" source="keywords">5G investments</keyword>, and ongoing government support. Despite the apparent magnitude of the increase, the report suggests it should be manageable for both urban and rural users. Urban households may witness a rise in telecom expenditure from 3.2% to 3.6% of total expenditure, while for rural subscribers, spending could escalate from 5.2% to 5.9%. Analysts predict that the consumers are likely to remain loyal and pay up, especially if they continue to enjoy high-speed connectivity — a vital need of these modern times. For <keyword id="20055601" type="General" weightage="20" keywordseo="telecom-operators" source="keywords">telecom operators</keyword>, the projected roughly 25% hike in headline rates is expected to correspond to a 16% growth in the average revenue per user (ARPU), as estimated by Axis Capital. While <keyword id="2003276" type="General" weightage="20" keywordseo="jio" source="Orion">Jio</keyword> reported an ARPU of Rs 181.7 for the quarter ending March, Bharti Airtel and <keyword id="19899016" type="General" weightage="20" keywordseo="vodafone-idea" source="keywords">Vodafone Idea</keyword> (Vi) are yet to disclose their March quarter numbers. However, their figures stood at Rs 208 and Rs 145 respectively for the October-December 2023 period. Peeyush Vaish, TMT industry leader at Deloitte, South Asia, anticipates a 10-15% increase in ARPUs, adding approximately Rs 100 per subscriber by the end of this calendar year. This hike is expected to be driven by price increases for 4G/5G bundled packs and the phasing out of low-value packs. Analysts foresee Bharti Airtel and Jio emerging as the primary beneficiaries of the <keyword id="21656632" type="General" weightage="20" keywordseo="wireless-pack-price-hike" source="keywords">wireless pack price hike</keyword>. While Vi is also expected to boost its ARPU by fortifying its network and minimising subscriber churn, the overall revenue impact may still be limited compared to its competitors. At the end of Q4 FY24, Jio’s total assets stood at Rs 4,87,405 crore, while its net profit from January to March climbed to Rs 5,337 crore from Rs 4,716 crore a year ago. On the other hand, Bharti Airtel’s consolidated Q4 revenue came in at Rs 37,599 crore, with its net profit of Rs 2,072 crore dropping 31.1% compared to a year ago. (With inputs from The Economic Times)

Mobile recharge packs to get more expensive as telcos gear up for another round of tariff hikes: Report

<ul class="summary-list"><li>Since 2020, wages have outpaced inflation for the majority of American workers.</li><li>Average wages for most US workers are up roughly 25.7% since 2020, while inflation is up about 20.9%.</li></ul>American consumers have been frustrated by <a target="_blank" class="" href="https://www.businessinsider.com/high-prices-inflation-sticking-interest-rate-hikes-stock-market-2024-5">high prices</a> over past years, but there's some good news: <a target="_blank" class="" href="https://www.businessinsider.com/wage-growth-faster-than-inflation-first-time-2-years-2023-6">wages</a> have outpaced inflation since the start of the COVID-19 pandemic.Since 2020, average hourly wages for most US workers have risen faster than the consumer price index, meaning income has maintained its purchasing power against rising prices.Furthermore, <a target="_blank" class="" href="https://www.businessinsider.com/wage-growth-faster-than-inflation-first-time-2-years-2023-6">real wages</a> — earnings adjusted for inflation — have been positive over the <a target="_blank" class="" href="https://www.epi.org/blog/average-wages-have-surpassed-inflation-for-12-straight-months/">past year</a>, according to the Bureau of Labor Statistics, meaning workers are gaining purchasing power.But while wage gains show promising signs for US workers, it can take longer for consumers' perspectives to shift; many Americans are still reckoning with past years' <a target="_blank" class="" href="https://www.businessinsider.com/inflation-cost-of-living-what-is-middle-class-housing-market-2024-4">sticker shock</a> and <a target="_blank" class="" href="https://www.businessinsider.com/housing-crisis-unaffordable-high-rent-prices-cost-burdened-renters-cities-2024-7">high housing costs</a>.<h2 id="aa403d6e-35c8-4365-aee2-c63b2d01f926">Economic data vs consumer sentiment</h2>Nearly four in five US voters said price increases were the top source of their financial stress in the last three months, according to the <a target="_blank" class="" href="https://www.ft.com/content/7aa63450-5ff2-4ea3-b639-1a21db372527?emailId=97961c1a-deb9-48c2-a1b8-95b4d7d4c1d0&amp;segmentId=1ce3de53-bbd6-f782-fb6e-1124c8f8297f">FT-Michigan Ross Poll</a>.While wage gains have outpaced inflation, it can be difficult for consumers to feel the growth, and plenty of people still miss the "good old days" of lower prices.According to Bankrate Analyst Sarah Foster, that's because economists and consumers see prices differently.Economists pay attention to inflation indicators which measure the rate of change of prices. Meanwhile, many consumers focus on the price levels for individual goods (like grocery store receipts) and how they compare to previous years, Foster said.While inflation is now slowing, many Americans still feel burdened by what they see as a jump in the price tags of various items over the past four years."They remember how much it used to cost to fill up their gas tank; they remember how much it used to cost to buy a cart full of groceries," Foster said.Since 2020, prices have risen 20.9%, according to the Bureau of Labor Statistics. However, across that same period, average hourly earnings for production and nonsupervisory workers — most US workers — have risen roughly 25.7%.Furthermore, the 25.7% increase in hourly wages for production and nonsupervisory workers is slightly ahead of the 23.1% increase in wages for all private workers, meaning employees have gained a bit more than their bosses.That wage growth is due in part to a tight labor market and state-level minimum wage increases from 2019 to 2023, according to the nonprofit think tank <a target="_blank" rel=" nofollow" href="https://www.epi.org/publication/swa-wages-2023/">Economic Policy Institute</a>.Nonetheless, wage growth has differed across industries, and while average growth is strong, high prices can be crippling for those whose incomes have paced behind inflation, Foster said.Furthermore, Foster said that industries with strong wage growth, like food services, leisure, and hospitality, are often low-paying jobs to begin with, meaning people are already sensitive to higher prices.<h2 id="2a0eff72-8496-4bfb-8b12-31cbd2fd5faa">Wages are still beating inflation</h2>Consumer prices rose 3.0% year-over-year in <a target="_blank" href="https://www.businessinsider.com/inflation-cpi-june-prices-food-energy-fed-interest-rate-cuts-2024-7#:~:text=The%20consumer%20price%20index%20increased,%25%20month%2Dover%2Dmonth.">June</a>, according to the Bureau of Labor Statistics, the lowest rate in a year and far below the pandemic-era peak of 9.1% year-over-year in June 2022.Meanwhile, average hourly earnings for production and nonsupervisory workers increased 4.0% year-over-year in June, continuing a yearlong trend of hourly wage growth beating out inflation.Since spring 2023, year-over-year wage growth for production and nonsupervisory workers has consistently been above inflation.In another positive sign for people's wallets, prices also decreased 0.1% from May to June, marking the first month-over-month drop since the start of the COVID-19 pandemic.There were <a target="_blank" class="" href="https://www.businessinsider.com/why-costs-keep-rising-inflation-goes-down-eggs-tickets-insurance-2024-7">some price outliers</a>, such as uncooked beef, which was up 10.5% year-over-year in June. Nonetheless, inflation has come down a lot since 2022.Still, prices themselves have not. Overall, price levels are up roughly 7% since inflation's peak in 2022. Yet, wages are up about 10% in the same period, highlighting that income has maintained its power.And higher price levels can be good for the economy. The Federal Reserve targets a 2% inflation rate, so even in a healthy economy, price levels are rising — what matters is managing the rate at which they increase and how that compares to rising incomes.In fact, broad and prolonged deflation — falling prices — is a recipe for high unemployment, economist Paul Krugman wrote in a July 16 <a target="_blank" class="" href="https://www.nytimes.com/2024/07/16/opinion/inflation-prices-economy.html">New York Times column</a>.While US consumers adjust to higher prices, strong wage growth should help ease affordability concerns, Krugman wrote.Have you had a pay increase but still feel burdened by high prices? Please reach out at <a target="_blank" class="" href="mailto:jtowfighi@businessinsider.com">jtowfighi@businessinsider.com</a>.

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