[Soup] It hurts in the New Year, but I recommend the 'No Spending Challenge'.

1. It's the new year.

I hope everyone has a year that goes well with the things they want.

It's time to think of several plans for that.

I would like to add a prophecy and advice related to the economy to help you, even if it is small.

It means that it is time to reduce consumption as much as possible.

There are two main reasons.

First of all, it's time to save money.

And secondly, it's because there will be opportunities to buy the same thing cheaper as you go forward.

2. I think it will help you understand if you look at the US situation first.

In America, people spend a lot of money during the holidays.

During this period of this year, it is predicted that Americans have spent 942 billion dollars, or 120 trillion won in our money.

It's at an all-time high, so it's not a recession, you might think.

But, in fact, there is a bigger reason.

Look at the graph above.

A graph showing inventory held by US distributors.

As of October this year, we are carrying 930 trillion won worth of our money.

It is also the highest level ever.

For example, each US clothing store has 25% more stock than last year.

In the United States, distributors buy goods in advance and then sell them, so there is an emergency for distributors.

The economy could get worse next year, but

The easiest way to think is to sell things cheaply.

A typical example is home appliances.

Since many people live inside their homes because of the corona, the demand for home appliances has increased, and retailers have also built up a lot of inventory.

But now that Corona is over, this has become a nuisance.

On Cyber ​​Monday last year, the average price of home appliances was discounted by only 8%, but this year, so, a 25% discount, almost zero sales continued.

Even this didn't work, so distributors pushed another new way.

You all know that Americans don't save much.

There is even an analysis that 28% of people who use credit cards are likely to take money away.

So credit is a really risky method for distributors.

However, rather than dying with the stock, they even came up with a strategy to leave it to consumers and see if they can see it later.

That's why sales increased in a flash, but there are still many places that haven't reduced inventory as much as expected.

Nike, a leading athletic apparel company, reported a 30% increase in sales in the United States between September and November compared to last year.

It was the effect of continuing sales, sales, and sales, discount sales.

So the stock price went up.

But the problem is that

Even if you sell or sell, you will not decrease.

3. The reason why I talked about other people's countries for so long is that it is something that can happen to our economy in the end.

First of all, it is a blow to our exporters.

US distribution companies are reducing orders, starting with home appliances, clothing, and household goods.

The Wall Street Journal says it will likely last at least a year.

If this happens, our exporters such as home appliances, household goods companies, semiconductors, and automobiles will also be affected.

Right now, the inventory ratio of our manufacturers has soared to the highest level in 25 years.

The manufacturing inventory ratio has usually stayed around 100.

It means that you have kept your inventory as much as you normally sell for a month.

By the way

If inventory is piled up and not released, orders will not come in, and companies will not be able to make money.

Then you have to reduce production by running fewer factories, and if this doesn't solve it, you have to reduce people in the end.

4.

As I explained before, US distribution companies purchase and distribute products directly.

That's why distributors are responsible for inventory, so they are alert to market conditions and make quick decisions.

Representatively, Wal-Mart, the No. 1 offline retailer, and Target, the No. 3 department store company, have already started selling their inventory discounts in early June in early summer.

At the time, I saw the news and thought it was a bit early, but I was completely wrong.

Perhaps because they are companies that are more alert than anyone else, their foresight worked, and the two companies succeeded in reducing their inventory relatively considerably.

When distributors act as 'market experts' in this way, manufacturers feel a little more at ease.

It is fundamental for distributors to gradually reduce orders to give them time to adjust to the economic cold wave.

We also discuss ways to survive.

For example, US distributors have recently asked manufacturers to "supply them in significantly smaller packaging than they are now."

This is because when the economy is bad, small packages will sell better than large packages.

However, the situation in the retail industry in Korea is very different.

Large retailers are often effectively store leasing businesses.

Instead of buying and selling things yourself, you only rent the store and take a commission.

And most of the inventory burden is borne by each manufacturer.

Then, each person has to anticipate and respond to the market situation, but it is not an easy task for small companies that have a hard time developing and marketing products.

I'm not saying it's good or bad, just the way things are.

Do you have any experiences of seeing banners of 'Clean up your tears' posted here and there when something goes wrong?

It is a story that such things can happen everywhere as companies are driven to the crossroads of life and death.

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