Weekly Insights Jun 23, 2016

Executive Summary

• This week’s note “From the Desk of Deborah Weinswig” looks at new data that indicate US shoppers are continuing to prioritize spending on leisure services, such as dining out, ahead of retail categories, such as apparel. In the letter, we outline two possible reasons for this ongoing shift in spending.
• In a recent Daymon Worldwide survey of 7,000 global consumers ages 18–55, 35% of millennial and Gen X consumers polled said they prefer to buy sustainable products. However, the millennials surveyed were more likely than the Gen Xers to prefer buying products that directly benefit them, while the Gen Xers were more likely than the millennials to prefer buying from companies that support their community or give to charities.
• India has loosened restrictions in order to become the most open economy for foreign direct investment (FDI). The country allows for automatic FDI approval for companies in the aviation sector and some other sectors, while defense, broadcasting, pharmaceutical and single-brand retail companies can increase their FDI with government approval.
• Swedish retail giant H&M continues to bet on Latin America, opening a new store in Mexico, its 18th in the country. The new store is located in the Plaza Mayor in the city of León, and is H&M’s second store in the city. The company plans to open 11 new stores in Mexico during 2016. It opened its first store in the country in 2012.