It is the turn of the ladies to boost the world economy this summer. Forget Abenomics or Trussonomics, it’s all about Swiftonomics now.
- Taylor Swift, Beyonce and Barbie are becoming economic phenomenon in their own right
- Taylor Swift’s ‘Eras’ tour could generate $4.6 billion in consumer spending for the US economy
- The leisure sector – which was so unloved in the wake of Covid – is experiencing a significant bounce-back
There have been a lot of different types of ‘onomics’ over the years: from the serious-minded Abeonomics, which slowly transformed the Japanese economy, to the more reckless Trussonomics, that temporarily derailed the UK economy. However, today the tag is just as likely to attach to Taylor Swift, Beyonce or Barbie.
So rich and powerful have these ladies become that they are becoming an economic phenomenon in their own right. In June, Beyonce’s concerts in Stockholm were blamed for contributing to Sweden’s high inflation numbers, drawing in foreign tourists and filling up hotels. There are concerns that Bruce Springsteen could generate a similar phenomenon during his three nights of concerts in Gothenburg.
The Swiftonomics phenomenon could be even more profound. One survey company reported that Taylor Swift’s ‘Eras’ tour could generate $4.6 billion in consumer spending for the US economy, with fans spending $1,300 on average on tickets, travel and new outfits for the concert night. It is unknown whether self-confessed ‘Swifty’ Rishi Sunak is among them.
This has also been the summer of Barbie-mania, which has inspired a range of pink-themed merchandising opportunities and is in line to become a billion-Dollar phenomenon. Mattel, the maker of the Barbie doll, has seen a share price bounce in response.
There are some investment conclusions to be drawn from this. The first is that the right products and services still have enormous pricing power. People will spend find the money for once-in-a-lifetime experiences even amid a cost of living crisis. Equally, it shows that the leisure sector – which was so unloved in the wake of Covid – is experiencing a significant bounce-back.
Airlines are also benefiting from a post-Covid preference for experiences over goods. Easyjet, for example, reported record Q3 results on the back of significant summer travel demand. Those companies that survived the hardships of the pandemic have often emerged with stronger market share and improved margins.
It may also say something about the health of the global economy. While a US recession remains a possibility for 2024 as credit conditions continue to tighten and the economy feels the effect of higher interest rates, there are some powerful forces at work that may defer it indefinitely.
