It happens quite regularly that what you are reading about in the news doesn’t necessarily manifest itself to the same extent in your day-to-day experiences.
Either because the stories are specific to a particular demographic or place, or that they the impact of the story has been exaggerated for greater cut-through.
The reason I mention this is because the absolute reverse of this phenomena happened to me only yesterday, as I encountered real world examples of three things I had been hearing a lot about. And the problem is that collectively they don’t make for a positive outlook.
The High Street is quiet.
We’ve been reporting on the monthly footfall figures from the BRC for a while now, and they have been stuttering at best. I have got used to my local town centre being quieter post-lockdown, to the point where it had stopped registering. But walking down a couple of different High Streets yesterday, and then talking to a couple of Music Store owners reminded that we are nowhere near back to normal.
Omicron may not be as potent, but it is arguably more prevalent, and it may be a factor in our continued change in shopping habits. I am not totally convinced COVID has turned us into a nation of pure e-consumers just yet, but there is no doubt we need more of a reason to hit the shops than we used to.
Less cash to splash.
There can be little doubt that we are hearing the phrase ‘cost of living crisis’ on a daily (almost hourly) basis in 2022. It’s being used as a bit of a catchall at the moment, but perhaps the most worrying outcome of it is the impact on disposable income.
The argument goes that certain household expenditure is non-negotiable, so as the cost of heating the house, stocking the fridge, or filling the car increases it simply reduces the amount of free cash available for the nicer stuff.
Yesterday I called at the petrol station and got my quarterly fuel bill. In both cases the increase in cost is easy to quantify. Factor in a tax rise from April and suddenly that phrase that I have been hearing just got very real.
And everything is getting dearer.
The big story on the radio yesterday morning was the release of the retail inflation figures for January. We know that the number has been rising for a while, but this has largely been due to things like fuel and house prices, which don’t necessarily work their way through into the everyday shop.
What we heard yesterday was that most stuff was succumbing to inflationary pressure, and this was particularly acute in the case of the supermarket basket and the everyday essentials. Normally this kind of story might not hit home, but I have to admit that at the moment it is resonating, and I am finding myself more aware of the actual cost of the things I am consuming.
As a result, there is no doubt I am sense-checking more potential purchases and as a result probably buying less.
Why are you even pointing this out…
Knowing that things may be tough for MI sales this year (and I say ‘may’ because I have no more idea than anybody else) isn’t a bad thing. If what I am noticing turns out to be fairly common, then it will probably have an impact on consumer behaviour.
That doesn’t mean I won’t be buying a new guitar in 2022, but that maybe I will need a little more help coming to a decision. I might want to watch a few more videos, read a few more articles and have a few more conversations before I hand over my credit card.
So yes, maybe a bit of a perfect storm for the coming year that will probably mean a bit more thought and a more creative approach. But recognising the wider factors that can impact on a purchase journey will help us all this year as we try and put more instruments in the hands of more music makers.
