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NPD assesses tariff impact on US sales across categories

Sep '19
Pic: NPD
Pic: NPD
US buying decisions will be affected less by household income or cost and more by whether a product is considered a ‘necessity’, according to a report from The NPD Group, which maps more than three dozen general merchandise categories against the relative potential impact of tariffs and offers insight into the effects of tariffs in force in select categories.

Sales in automotive categories, men’s and women’s underwear, skin care, and baby gear will respond less to price increases from tariffs, as consumers consider them necessities, the report, ‘Navigating Pricing in a Post-Tariff World’, said.

The largest expected sales impacts from price increases will likely occur in categories that consumers consider ‘nice to have’, such as bicycles, handbags, luggage, watches, games, televisions and headphones.

NPD is already observing sales reductions in some of the categories where tariffs were introduced in 2018, the market research company said in a press release.

The average selling price of items in a category does not predict the consumer-reported potential for sales impact from price increases. High- and low-priced items appear in all category groups, regardless of the expected magnitude of the tariff impact. However, higher prices do correlate somewhat with increased odds of delaying a purchase. (DS)

Fibre2Fashion News Desk – India

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