what is an optional consumer industry? Refers to optional consumption, but also consumer goods. It is opposite to necessary consumption, which is often consumed in our lives, such as cigarettes, wine, food and drinks. These products have low unit price, but high consumption frequency, which is just needed.
optional consumption refers to optional consumption, but the frequency of consumption is not so high. optional consumption refers to all consumption except compulsory consumption, which is optional consumption. It covers all aspects of family consumption life, such as automobiles, media, hotel catering and leisure, Internet retail, clothing and luxury goods, auto parts, leisure equipment and supplies, comprehensive consumer services and so on.
In the S&P American Optional Consumer Index, well-known companies include Amazon, The Home Depot, Disney, McDonald's, Starbucks, Yum! Brands, Nike, General Motors, Ford Motor Company, Marriott, Starwood, 21th Century Fox, Coach, etc.
What are the stocks included in our optional consumer industries in China?
They are all well-known companies in our lives, such as Midea, SAIC, Gree, etc.
We can see that the optional consumer industry belongs to the second echelon among all good industries, which is not as good as the necessary consumer and pharmaceutical industries in the first echelon, but it is also a good industry in the second echelon.
** Characteristics of optional consumption: **
1. Demand is weaker than necessary consumption, and there is a certain periodicity.
Optional consumption is mainly consumed when there is money, which is closely related to the national economy. When the economy is better, everyone is willing to spend, and the optional consumption industry is hot. For example, if a family can buy a car, they can also choose to take public transportation. Consumable industries have a great relationship with the improvement of per capita consumption level. If you are at the bottom of the economic cycle, everyone's willingness to consume will be poor and will delay consumption.
2. Benefit from the demographic dividend, especially the increase in per capita consumption.
** Optional consumption benefits greatly from the demographic dividend, especially the increase of per capita disposable income * *. The growth of new population and the per capita consumption amount reach a certain level, which will promote the rise of corresponding optional consumption enterprises
3. The upgrading characteristics of optional consumption < P > The products in optional industries are upgraded faster, such as washing machines. I remember that we used to be old-fashioned double cylinders, but now they are all fully automatic and very convenient. If an enterprise is not updated, it will decline.
this is in sharp contrast to necessary consumption. We don't have any requirements for upgrading essential consumer products such as cola, oil, salt, sauce and vinegar, cigarettes, etc. The salt we eat today is not much different from that of 21 years ago. But every once in a while, the products that can be consumed are upgraded. If we don't have this ability circle, choosing a poor enterprise will make us lose money. But this industry is a good industry with the improvement of per capita level.
optional consumer industry is a good industry, but it is not as good as necessary consumer industry and pharmaceutical industry. It is a cyclical industry. If we invest through industry indexes, we will avoid many pits and be suitable for investing with index funds.