By, Alishba K.
What are Consumer goods?
Consumer goods are products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. For example: Clothing, food, automobiles, jewelry, etc.
Three types of consumer goods:
Durable Goods: Consumer durable goods include items like furniture, jewelry and cars. Large appliances such as stoves and washing machines are durable goods. The category also includes defense and commercial procurement of heavy equipment and assets like aircraft, trucks and ships.
Non-Durable: Non-durable goods include food, medicines and other consumables, as well as products that last a limited lifetime such as clothing, shoes and small electronic devices.
Perform routine maintenance or repair work on (a vehicle or machine).
Examples in Local Marketplace:
These are some Local market brands:
How Consumer Goods Impact The Economy:
Consumer Goods impact the economy by tariffs. Tariffs hurt the country that imposes them, as their costs outweigh their benefits. Tariffs are a boon to domestic producers who now face reduced competition in their home market. The reduced competition causes prices to rise. The sales of domestic producers should also rise, all else being equal. The increased production and price causes domestic producers to hire more workers which causes consumer spending to rise.
The importance of Consumer Goods:
The measurement of consumer goods sales is important in the assessment of gross domestic product and in determining the health of the overall economy. Demand for consumer goods indicates whether consumers are willing to part with cash.
THE GAME HAS CHANGED:
Earlier this month P&G reported profits of $2.5 billion, down 18% in the most recent quarter from a year earlier. Brands such as Bounty paper towels and Tide detergent—were down 11%. For most packaged-goods firms, recent earnings reports were grim. Unilever, the world's third-largest consumer-goods firm by sales, announced this month that profits in the second quarter were down 17% from a year ago. Consumer goods were once believed to be as recession-proof as any industry can be. Shoppers might not be able to afford Rolex watches and champagne during a downturn, the theory ran, but everyone still needs staples such as soap and toilet paper. Yet sales have fallen in this downturn, thanks largely to growing competition from stores' own brands, or “private labels”....