It’s not a fad. We are seeing a permanent decoupling of economic activity from resource extraction, driven by several key factors, including continuous inflation that is eroding the purchasing power of regular people, acute resource scarcity threatening supply chains, and tightened regulations forcing corporations to internalise environmental externalities.

The statistics are clear. The global secondhand fashion and luxury market is projected to reach approximately $360 billion in the next four years and is growing three times as fast as the primary market. The market can be broken down into several key segments. The global secondhand apparel market reached $200 billion in 2023 and is expected to hit about $350 billion in 2028. It represents an incredible compound annual growth rate of 12%. The luxury resale segment is expected to grow from $32.47 billion in 2024 to $50.06 billion by 2030. The primary driver behind this growth is the “assetization” of luxury goods. The refurbished electronics market is also growing rapidly and is projected to hit $65 billion through 2029, with an annual growth rate of 14.2%. Finally, the secondhand furniture market is expected to reach $91.6 billion by 2027.

Well, the public narrative is mostly about fashion, but there’s a lot more going on. For example, when it comes to consumer electronics, there is something called the Right to Repair movement. It is now being codified into law across the European Union and several United States jurisdictions.

The legislative momentum creates entirely new secondary markets for refurbished devices, validated by sophisticated grading standards and data sanitisation technologies. But it’s important to note that rapid change creates complex contradictions. Resale as a service has commoditised circularity. The change has empowered fast fashion giants to launch resale platforms that many argue are a way to hide systemic overproduction through what people call greenwashing. At the same time, AI and digital product passports are emerging as critical infrastructure to bridge the trust gap in secondary markets.

The resale market has effectively separated from traditional retail cycles, functioning less like a distressed asset class and more like a preferred primary consumption channel. Growth is not uniform across geographies. In the United States, 87% of consumers cite affordability as their primary motivator, 11 percentage points higher than their European counterparts. Conversely, the European market is heavily influenced by regulatory pressures and a cultural inclination toward wardrobe curation, supported by denser networks of independent vintage stores.

The global cost-of-living crisis has acted as a potent accelerant, shifting circularity from a sustainability feature to a household survival strategy. Persistent inflation has forced consumers to trade down to secondhand goods to maintain brand access without primary market premiums. It’s particularly evident in electronics, where flagship smartphone prices exceeding $1,400 push consumers toward certified refurbished models selling for 30% to 40% less. However, the psychology extends beyond frugality. A “treasure hunt” dynamic drives engagement, with nearly 50% of resale buyers citing the search experience as a key enjoyment factor. For Generation Z, resale has become the primary discovery channel, with 80% using resale platforms to explore brands they haven’t purchased firsthand, effectively making the secondary market a gateway for primary luxury customer acquisition.

A primary brand hesitation is cannibalisation fear, but data from BCG and RaaS providers suggest the opposite. Cannibalisation has already occurred on third-party sites; by reclaiming this volume, brands capture revenue, customer relationships, and data. Furthermore, brand-owned resale increases customer lifetime value. Programmes like Lululemon’s “Like New” drive loyalty by rewarding trade-ins with store credit that is almost inevitably spent on new inventory, creating a flywheel where secondary markets subsidise primary purchases. Resale shoppers are often aspirational consumers who eventually graduate to buying new, effectively lowering customer acquisition costs for new segments.

Unlike forward logistics, which ships identical palletised items, reverse logistics processes unique items with varying conditions, defects, and values, requiring specialised infrastructure. Companies like Optoro use AI to determine the next best action for returned items to maximise recovery value, reportedly diverting 95% of returns from landfills. However, the cost of processing a single used garment can exceed its resale value. RaaS providers leverage volume and proprietary data to drive costs down, but profitability remains challenging without subsidy from primary brand marketing.

In the luxury sector, the goods are increasingly viewed as tradable assets, sometimes outperforming traditional investments. The market grows at 7.48% annually, fuelled by aggressive primary market price increases that make the secondary market the only accessible entry point for many consumers. The existential threat is counterfeiting, giving rise to AI-based authentication services.

Entrupy uses microscopic computer vision, analysing materials with 99.1% accuracy and offering financial guarantees. The RealReal employs hybrid AI tools, filtering high-risk items for human expert review. The watch segment is projected to reach 35%-40% of the global market by 2030, with mechanical durability making watches ideal for multiple ownership cycles.

The electronics resale market is driven by functional utility and grading standards. Back Market forecasts €3 billion in gross merchandise value in 2025, driven by inflation and the desire to avoid the massive carbon footprint of manufacturing new devices.

A critical barrier to corporate electronics recycling is data privacy. Blancco provides enterprise-grade sanitisation, ensuring devices from banks or hospitals can be safely resold, automating diagnostics and erasure for up to eighty devices simultaneously. The EU’s 2024 Right to Repair Directive forces manufacturers to provide spare parts and manuals for seven to ten years, fundamentally altering refurbishment economics and breaking planned obsolescence cycles, empowering independent repair shops that are critical to local circular economies.

Without digitisation, the circular economy cannot grow. A product’s journey (made, reused, repurposed) needs one steady digital link. By the late 2020s, EU rules will quietly require Digital Product Passports for clothes and tech items. These digital records store fixed facts, such as where a product started, what it’s made of, whether it can be fixed, and whether it can become new material. Starting from a shared base, the Aura Blockchain Consortium takes shape through collaboration among LVMH, Prada, and Cartier. Built around uniform blockchain systems, each item receives a distinct digital form. Should a product change hands during resale, those new owners gain access to linked records, unchangeable proof of origin and past possession. Instead of full public visibility, Aura applies controlled networks where openness meets boundaries, supporting trustworthy changes in ownership, especially where market value runs high.

The government used to encourage recycling through policy, until very recently, but now it is mandating circularity. The EU is leading the change globally, exporting regulatory standards worldwide through the “Brussels effect.” It helps multinationals adopt EU standards to simplify the supply chain.

The Right to Repair Directive by the EU came into force in June 2024. It is an incredible piece of legislation because it requires manufacturers to repair goods even outside legal guarantee periods, mandates the creation of a European online repair platform, and standardises repair information forms.

Not to mention the Eco-Design for Sustainable Products Regulation, which imposes tough standards by demanding durability, reusability, upgradability, and repairability from the start of product design. Also, the Waste Shipment Regulation prohibits plastic waste from leaving OECD borders after 2026. This regulation has led to an increase in recycling within Europe instead of shipping trash abroad.

Unlike the EU’s federal approach, the United States relies on state-level legislation, creating complex compliance maps. California, Minnesota, New York, and Colorado have passed vigorous Right to Repair laws. California’s SB 244, effective July 2024, requires parts and manuals for electronics and appliances costing over $100 to be available for seven years, crucially not excluding business-to-business equipment. Manufacturers cannot easily make California-only versions, so these laws have national ripple effects. Without federal equivalents to EU regulations, US companies often default to EU standards to maintain global supply chain consistency, essentially importing EU regulations.

They say the resale boom is a great win for sustainability, but if we critically examine it, there are some inconsistencies in that claim. For example, fast fashion brands have adopted resale aggressively. Some argue that these are sophisticated greenwashing tactics that distract people from the core overproduction business models. The Changing Markets Foundation is one such critic. Shein, for example, produces thousands of new styles daily using ultra-fast fashion models that rely on synthetic materials and labour exploitation. The platform might contribute only a microscopic fraction compared to what dominates sustainability marketing.

Investigations have revealed that clothes taken back through take-back schemes and other systems often end up incinerated, downcycled, or exported rather than resold. By using tracking devices, investigators have found that items in perfect condition were destroyed or lost, exposing a significant lack of transparency.

Academic research confirms rebound effects, where efficiency gains are offset by increased consumption. When consumers can sell used clothes, they may feel financially and morally justified in buying more new clothes. Studies estimate substitution rates at 1:1.23, implying resale markets might actually increase overall throughput rather than reduce primary production. Consumers buy with the intent to resell, treating clothes as temporary holdings. Similarly, the environmental savings of refurbished smartphones can be offset if consumers use monetary savings to buy more devices or upgrade more frequently, nullifying carbon reduction benefits.

By 2030, resale is expected to comprise 10% of the total global fashion and luxury markets. In high-value categories like handbags, secondhand items already make up 40% of consumers’ wardrobes, indicating saturation, where “used” becomes normal. The distinction between new and used retail channels will blur, with major retailers offering both side by side. The circular economy is inherently labour-intensive, requiring a human touch for repair, authentication, sorting, and logistics. The ILO and World Bank estimate the sector already employs 121 to 142 million people globally, poised to be a major engine of green jobs offering employment that is difficult to offshore.

The ultimate evolution is the dissolution of ownership toward “usership” models, where goods are leased or subscribed to through Product-as-a-Service. In such a model, manufacturers retain ownership and responsibility throughout product lifecycles, aligning incentives perfectly. If manufacturers pay for disposal, they design products to last forever and be easily repaired. Right now, it’s rare, yet forecasts show it spreading into expensive household items by 2030, especially as trash disposal gets more costly. At that point, Digital Product Passports probably won’t be hard to find for high-end products, letting shoppers scan a secondhand coat and immediately access details like the farm origin of fibres, handworker location, past owners, repair tips, plus reuse value.

Nowhere is change clearer than in how goods move across borders. Pushed by need, rules, and tools that connect economies differently, old ways of making and moving things fade. Even though doubts about real sustainability linger, with fake claims, energy tradeoffs, and delivery hurdles adding pressure, forward motion cannot stall. A time when buying and tossing came easily now shifts toward reusing, repairing, and reusing again. Nowhere is change clearer than in what companies must do about used goods. Instead of resisting, smart players are learning to shape these secondary trades. Success in the years ahead hinges less on selling new items than on turning every product into profit.

The post The permanent circular economy appeared first on International Finance.

Before each journey, he cleans both and loads only the information he will need. Lackey has even gone so far as to maintain separate travel sets for each country to forensically examine the devices upon his return home and look for indications of manipulation.

According to Lackey, the United States may also warrant a paranoid approach to travel. This applies not only to Americans like him but also to anyone with a foreign passport who might be subject to the increasingly harsh and unpredictable scrutiny of the United States Customs and Border Protection (CBP).

“All of this applies to America more than it has in the past. If I thought I were likely to be a targeted person, I would go through this same level of protection,” Lackey stated.

The number of foreign visitors to the United States who are denied entrance and sent back to their original destinations or detained appears to have increased since the beginning of the second Trump administration. When trying to enter the United States, citizens from Germany, the United Kingdom, and France have all reported being delayed, sometimes for weeks, or denied admission.

Several of these individuals claim to be legal residents with Green Cards. According to the country’s education minister, a French scientist was refused admission after immigration officers looked through his phone and discovered chats in which “he expressed a personal opinion on the Donald Trump administration’s research policy.”

Officials in Germany and Britain have revised their travel advice in response to the more stringent enforcement of visa and travel permit laws; Britain has warned that the rules are applied “strictly.”

If the Trump administration moves forward with its plan to implement a new “travel ban” on over 40 countries, that de facto border crackdown is expected to become much more explicit. The ban would reportedly completely bar entry from at least 10 countries and subject visitors from another five to additional scrutiny and automatic interviews at the border. The policy’s implementation would determine the status of another 26 nations, placing them in a third group.

Given all these developments, it appears that US borders will soon become less welcoming to visitors and even to Americans returning from outside. Additionally, there will undoubtedly be aggressive attempts to monitor travellers’ electronic devices in conjunction with these new border enforcement procedures. This poses a threat to digital privacy and free expression for foreigners and US citizens.

And warning signs are already emerging. In May 2025, workers building an apartment complex near the Florida State University campus were detained by agents from the US Homeland Security, the US Marshals Service, and the Florida Highway Patrol. After entering a construction site in Tallahassee, federal and state officials asked workers for identification and separated them into two categories. After that, some were allowed to go, while others were handcuffed and led onto white buses with metal-covered windows to be transported away from the worksite, escorted by the Highway Patrol.

The Trump supporters were not spared either. In Nashville, the restaurant named “Kid Rock’s,” owned by the conservative restaurateur Steve Smith, where undocumented kitchen staff were asked to go home to avoid rumoured immigration raids. The restaurant, licensed by the right-wing musician Kid Rock, who has also become one of the US president’s highest-profile backers, reportedly found itself struggling to serve post-concert crowds on one Saturday night after the order from managers instructing employees without legal status to leave.

“Around 9.30 pm on Saturday, our manager came back and told anyone without legal status to go home. Events at the Ryman, Ascend, and the Savannah Bananas’ baseball game all let out, and it was crazy busy. But there was no one in the kitchen to cook the food,” an anonymous employee narrated the ordeal to the Nashville Scene.

An aggressive immigration sweep began on 3rd May, when state troopers and unmarked ICE vehicles significantly increased traffic stops throughout South Nashville. The operation has resulted in at least 196 arrests, including 101 individuals with no criminal history, according to a Department of Homeland Security (DHS) press release. While Trump and the DHS secretary, Kristi Noem, have publicly celebrated “accelerated deportations” nationwide, these actions have created panic among legal residents as well.

Nathan Wessler, deputy director of the American Civil Liberties Union’s Speech, Privacy, and Technology Project, said, “We’re witnessing incredibly unsettling instances of retaliatory action based on people’s speech and political opinions. People of all political persuasions—as well as those with various citizenship and immigration statuses—should be especially concerned when that is coupled with extremely broad authority to search through the contents of our phones and laptops, looking at what we have written and what others have sent us.”

Customs and Border Protection (CBP) has long regarded US borders and airports as a Fourth Amendment loophole, granting them broad authority to detain and inspect travellers’ devices. With little official justification or supervision, the agency has long taken advantage of that chance to detain border-crossers based on the smallest suspicion and seek access to their phones and computers.

Citizens are not immune at all. Agents have confiscated the gadgets of CBP detainees, including journalists, filmmakers, and security experts.

The following tips from legal and security professionals have been compiled to assist in protecting your digital privacy when travelling across US borders, as those incursions become more frequent and forceful under the second Trump administration.

Call home

If you suspect you may be stopped or interrogated at the border, notify a lawyer or a loved one who can be contacted before crossing customs.

Then, get in touch with them again after you exit. You may not have access to your devices or other means of communication while in custody. Additionally, you’ll want legal counsel and an advocate for your release in the worst-case event of a protracted imprisonment.

Lock down devices

Don’t make it simple for customs officers to steal your electronics. Select a secure passcode and encrypt your hard drive using programmes like Apple’s FileVault, BitLocker, or VeraCrypt. Create a secure PIN on your phone.

The most effective way to secure your phone is to use a hard-to-crack alphanumeric code instead of biometrics or a four-digit PIN. Turn off “Allow Siri When Locked” from the Siri menu in Settings on an iPhone to prevent Siri from appearing on the lock screen.

Don’t forget to switch off your electronics before going through customs. Hard-drive encryption solutions only provide complete safety when a machine is completely shut down. An iPhone is the safest when it’s off because Face ID requires a PIN instead of a face scan when it initially boots up, eliminating any doubt about whether border officials may force you to unlock the device using your biometrics.

You can now keep sensitive apps separate from other apps on your phone by putting them in a different folder and adding an extra degree of verification. Apple and Google have made this feature possible in recent years. Private spaces on Android may be enabled through the security and privacy settings menu, and on iOS, you can choose to hide an app by long-tapping on it.

Lastly, Wessler advises visitors to make sure they update the operating systems on their phones and laptops before entering the country. This is because, in certain situations, CBP might utilise programmes like Cellebrite or GrayKey to take advantage of unpatched flaws in certain devices, gaining access to them without the user having to unlock them.

Wessler said, “Your device may be vulnerable if your operating system is six months out of date.”

Don’t divulge passwords

Wessler of the ACLU claims that Americans cannot be deported for refusing to disclose the passwords to their encrypted devices or social media accounts.

Accordingly, you may be arrested and have your devices seized, even taken to a forensic facility, if you refuse to give up your passwords or PINs, but you will ultimately escape with your privacy much more intact than if you reveal secrets.

“They can seize your device, even for months, while they try to break into it. But you’re going to get home,” Wessler added.

This protection also extends to green card holders, Wessler notes, notwithstanding the Trump administration’s startling treatment of foreign permanent residents in certain situations.

However, be advised that refusing entry to customs officers may result in hours of uncertain incarceration in a desolate, windowless CBP office, at the absolute least. Court rulings have limited the powers of CBP officials at some US airports and states, but these restrictions may not be enforced if border agents have your computer or phone unsupervised.

The CBP distinguishes between two kinds of device searches. Basic, in which the content of a device is examined “manually” by an officer, and advanced, in which a device is linked to other devices and its contents can be examined or copied.

According to CBP, the latter search necessitates a “reasonable suspicion” of criminal activity. The agency’s official advice avoids specifically stating that individuals must turn over passwords by stating that devices should be submitted “in a condition that allows for the examination.”

According to the agency’s website, “If the electronic device is protected by a passcode, encryption, or other security mechanism and cannot be inspected, that device may be subject to exclusion, detention, or other appropriate action or disposition.”

Wessler cautions that non-Americans entering the US with a visa or from a nation that waives visas face a much more difficult situation: you risk being refused entrance if you refuse to provide a passcode or PIN.

According to him, “People have to make a very practical assessment about what’s most important to them: entry into the country at the risk of being turned around at the border, either by sacrificing or by protecting your privacy.”

Reduce the amount of data you keep

The best approach to keep customs away from your data is to just not bring it on your trip. This is the obvious option for the most susceptible tourists. Set up travel devices that store the least amount of sensitive data possible, much like Lackey did.

Avoid connecting those “dirty” devices to your personal accounts. If you must, make new accounts with distinct identities and passwords, such as an Apple ID for iOS devices.

“If they ask for access and you can’t refuse, you want to be able to give it to them without losing any sensitive information,” Lackey explains.

Admittedly, social media accounts are difficult to delete. While keeping a more important account secret, some security experts advise developing backup personas that can be presented to customs agents. However, you may face extended detention and, in the case of noncitizens, even refusal of entry if CBP officers connect your name to an account you attempted to conceal.

To prevent border agents from accessing documents or data you store remotely, the Electronic Frontier Foundation also advises shutting down apps and cloud services like Google Drive and Microsoft OneDrive if you are unable to set up a separate travel device. Backing up files or images to cloud services before your trip might facilitate data removal from the phone.

According to Wessler of the American Civil Liberties Union, “The only sure way to protect yourself is to not carry information with you or to carry as little as possible. As long as you have a device and there’s stuff on it, that’s potentially vulnerable to search.”

In light of the current political climate and the increasingly unpredictable nature of US Customs and Border Protection (CBP) scrutiny, travellers are advised to take proactive steps to protect their digital privacy. While the methods outlined above offer some degree of protection, it is crucial to remember that there is no foolproof way to guarantee privacy at the US border.

The erratic and often undocumented practices of CBP mean that any traveller could be subject to scrutiny, and their electronic devices could be searched without warning. Therefore, it is essential to weigh the risks and benefits of each privacy protection method and choose the ones that best suit your individual needs and circumstances.

For US citizens, the risk of deportation for refusing to divulge passwords is low. However, non-citizens may face more severe consequences, including denial of entry. Therefore, non-citizens must carefully consider the potential repercussions of refusing to cooperate with CBP officials.

Regardless of citizenship status, all travellers should be aware of the potential for lengthy detentions and intrusive searches. By taking steps to minimise the amount of sensitive data they carry and by being prepared for the possibility of a device search, travellers can help to protect their privacy and avoid unnecessary complications at the border.

Ultimately, the responsibility for protecting digital privacy at the US border rests with the individual traveller. By being informed and prepared, travellers can navigate the complexities of border security while minimising the risk to their personal information. While the future of digital privacy at the US border remains uncertain, travellers can take comfort in knowing that they have options to protect themselves and their data.

Remember, the border is a zone of heightened security, and CBP officials have broad authority to search and detain travellers. By understanding your rights and taking proactive steps to protect your privacy, you can ensure a smoother and less stressful border crossing experience. Stay informed, stay prepared, and safeguard your digital privacy.

The post Crossing into America? Lock down your tech appeared first on International Finance.

“Project Infinity” is made up of several task forces that make sure the billions of Galaxy smartphone users around the world are safe from the ever-increasing threat of cybercrime.

A Cyber Threat Intelligence (CTI) taskforce and three separate teams—Red, Blue, and Purple—are at the centre of Project Infinity. These organisations work in secret to stop and lessen cyberattacks, operating throughout the world in nations like Brazil, Poland, and Vietnam.

From proactive threat detection to developing and implementing defensive measures, each team has a distinct role. The public is largely unaware of their work; it only becomes apparent when the user’s device receives a security patch.

By spotting possible cyber threats, the CTI task force makes sure that hackers can’t take advantage of weaknesses in Galaxy devices. In search of evidence of illegal activity, such as malware or stolen data, the team searches the Deep Web and Dark Web.

The team can detect and eliminate threats while working with other departments to implement security updates by examining system behaviours, such as odd data requests or suspicious network traffic.

“Occasionally, we engage in security research by simulating real-world transactions. We closely monitor forums and marketplaces for mentions of zero-day or N-day exploits targeting Galaxy devices, as well as any leaked intelligence that could potentially serve as an entry point for system infiltration,” Justin Choi, Vice President and Head of the Security Team, Mobile eXperience Business at Samsung Electronics said, as reported by TechRadar.

The Red and Blue teams at Samsung’s security operation mimic attacks and defences, respectively, to emulate military-style strategies. Through techniques like “fuzzing,” which involves throwing random data at software, these professionals can find hidden vulnerabilities that might otherwise go unnoticed. The Blue team, on the other hand, works tirelessly to develop and implement patches that protect against these vulnerabilities.

The Purple team combines the expertise of both Red and Blue teams, focusing on critical areas of Galaxy’s security infrastructure. They also work with external security researchers to ensure no potential weak spot goes unnoticed.

The post Project Infinity: All you need to know about Samsung’s classified security operation appeared first on International Finance.

Walmart has become a dominant force in the global retail industry thanks to this strategy. Walmart has continuously reduced costs and passed savings on to customers, maintaining its competitive edge thanks to its vast supply chain and economies of scale. The business operates under several names, such as Asda in the United Kingdom and Walmart in the United States. Walmart has considerably increased its online presence in addition to its physical locations by making large investments in e-commerce platforms to fulfil the changing demands of customers in the digital era. The company aims to improve customer loyalty and engagement by implementing programmes such as Walmart+, a subscription-based service that provides benefits like unlimited free delivery.

A wide range of product categories, including groceries, clothing, electronics, home goods, and more, are included in Walmart’s business model. The company’s initiatives to cut waste, support renewable energy, and assist local communities through various philanthropic endeavours demonstrate its commitment to sustainability and corporate responsibility. Walmart is still a powerful player in the retail industry despite backlash over its labour policies and effects on small businesses. It keeps coming up with new ideas and innovations to stay ahead of the competition.

Walmart has looked into strategic alliances and acquisitions in recent years to bolster its position in important markets and diversify its sources of income. In an ever-evolving retail landscape, the company shows a proactive approach to staying relevant by investing in technology start-ups and forming alliances with other industry leaders. While navigating the opportunities and challenges of the digital era, Walmart continues to shape the future of retail with its vast resources, global reach, and dedication to delivering value to customers.

Today, Walmart has achieved new heights all because of Carl Douglas McMillon, an American businessman, and the president and chief executive officer (CEO) of the company.

Who is Carl Douglas McMillon?
• Doug McMillon was born in Memphis, Tennessee, and grew up in Jonesboro, Arkansas, USA
• He studied for a Master of Business Administration (MBA) from University of Tulsa, USA
• Doug McMillon joined Walmart as a summer associate in high school in 1984, and since then he worked for the company throughout his career
• At the start of his career, he became a buyer, and later worked as a general merchandise manager for Walmart’s wholesale store division Sam’s Club before taking an executive role, overseeing toys, electronics, and sporting goods, among other areas
• Doug McMillon became the company’s fifth CEO in 2014
• He raised wages for hourly workers in the United States, boosted the company’s commitment to e-commerce and revamped Walmart’s executive team, within his first two years as chief executive
• Doug McMillon announced Walmart would invest an additional USD 2.7 billion in higher associate wages, benefits and training, including raising its lowest wage to USS 9 an hour in 2015 and USD 10 an hour for 2016
• Forbes named him to its World’s Most Powerful People list in 2014, 2015 and 2016
• As of 2024, according to Forbes, Doug McMillon’s net worth is around 2,770 crores USD

Walmart Continues Its Growth Journey Despite Challenges

In February 2024, Walmart said that its quarterly revenue rose 6%, as shoppers turned to the retail giant’s outlets throughout the holiday season. The revenue growth also got backed by the company’s global e-commerce sales growth, which touched the double digit mark.

The retail giant is all set to acquire smart TV maker Vizio to accelerate the growth of its advertising business. Walmart’s Chief Financial Officer John David Rainey told CNBC that while customers were putting expensive items like electronics, TVs and computers in the backburner (in terms of their buying preferences), they were shopping more frequently. Even after the change in consumer behaviour, Walmart has been witnessing continued sales strength.

In the three months that ended January 31, Walmart’s net income fell to USD 5.49 billion or USD 2.03 per share, compared with USD 6.28 billion, or USD 2.32 per share, in the year-ago period. Also, revenue increased from USD 164.05 billion in the year-ago period. The venture now expects its consolidated net sales to rise 4% to 5% in its fiscal first quarter. It also anticipates adjusted earnings of USD 1.48 to USD 1.56 per share on a pre-stock split basis.

For its fiscal 2025, the retailer expects consolidated net sales will climb 3% to 4%, while anticipating adjusted earnings of USD 6.70 to USD 7.12 per share on a pre-stock split basis.

The post Business Leader of the Week: Meet Doug McMillon, CEO of Walmart appeared first on International Finance.

According to the NRF’s poll of 7,843 consumers, families with children in elementary through high school anticipate spending an average of $510 on back-to-school supplies, which is approximately $125 less than the 2022 record. The largest percentage in the history of the NRF study, 53% of respondents did not purchase electronics or other computer-related accessories in 2023 so far, down from 65% in 2022.

Meanwhile, Washington-based business, Kent, was forced to pass along 15% price increases in January 2023 to its retail clients because of soaring transportation costs. But by May, as gas and food prices also surged, shoppers abruptly shifted away from the $35 higher-end rain boots to the no-frills versions that run $5 to $10 cheaper, its CEO Karl Moehring said.

“We are seeing consumers shift down, noting dramatic 20% sales swings in opposite directions for both types of products. Wages are not keeping up with inflation,” Moehring said, as reported by the AFP.

Parents, especially those in the low to middle-income range, are focusing on the necessities during the back-to-school shopping season while also switching to less expensive stores due to the inflationary trend, which reached a new 40-year high in June 2023.

Walmart stated that rising gas and food prices are preventing consumers from spending as much on discretionary products, particularly apparel. Inflation has slowed down consumer spending on devices, according to Best Buy, the biggest retailer of consumer electronics in the country. As a result, both businesses reduced their profit projections.

Such financial difficulties contrasted sharply a year ago when many low-income consumers were flush with government stimulus and encouraged by salary rises, and they were able to spend freely. This is because the industry is experiencing its second-most significant shopping season after the winter vacations.

When consumers received their two-hundred dollar monthly child tax credit checks in 2022, Footwear Distributors & Retailers of America CEO Matt Priest remarked, there was a noteworthy increase in online sales for the group’s retail members. Without that increase, he anticipates that consumers will purchase fewer pairs of children’s shoes this season and will turn to private-label goods.

Jessica Reyes, 34, took her children Jalysa, 7, and Jenesis, 5, to a “Back to School Bash” event in August in Chicago’s northside where students could receive free backpacks full of supplies due to inflation-straining household resources.

“I feel like everything is going up these days. We’re a one-income household right now…so I think it’s greatly affected us in all areas, in bills and in house necessities and school necessities,” she said at the event, as reported by CNBC.

While shopping, her daughters were lured to the school supplies that featured their favourite TV characters and animals, but she concentrated on the simple designs.

“They want the cute ones, you know, the kitty ones. And those are always more expensive than the simple ones. And the same thing with folders, or notebooks, or pencils,” Reyes said.

Earlier, Manny Colon dropped at the back-to-school fair to select backpacks for his daughters Jubilee age 8, and Audrey age 5.

Colon, 38, works at the primary school where his daughters go. He claimed that due to the high costs of petrol, groceries, and school supplies, his wife has been forced to take on additional jobs.

“I think it’s definitely impacted us,” he said.

Numerous predictions indicate a successful back-to-school shopping season.

According to Mastercard Spending Pulse, which monitors spending across all payment methods, including cash, back-to-school spending decreased by 7.5% from July 14 through September 5 compared to the same time in 2022, when sales increased by 11%.

Sales decreased by 0.8% for the 2020 back-to-school season as the pandemic severely disrupted preparations for school reopening and back-to-school purchasing. However, many of the figures are being supported by increasing pricing.

According to retail analytics company DataWeave, a basket of about a dozen supply items revealed an average price increase of about 15% for the 2017 back-to-school season compared with a year earlier. For instance, the cost of backpacks has increased by over 12% to an average of $70.

According to Matthew Kurtzman, the CEO of Back 2 School America, an Illinois-based non-profit that provides back-to-school kits to children from low-income families, there has been “a significant increase in the costs of supplies,” including a 10% increase from their vendor and another possible mark-up on the horizon. Additionally, shipping expenses have increased.

Back 2 School America will be able to cover the new expenses in 2023 because of increasing support, and the organisation is on schedule to provide more school kits than ever before – 12,000 so far and more than 30,000 by the end of September, according to Kurtzman.

Retailers struggle mightily to persuade customers to purchase, especially on apparel.

Walmart announced that it was offering more reductions on apparel in order to reduce inventory. Analysts predict that these sales will increase the pressure on competitors to offer deeper discounts in order to compete. Walmart, though, stated that it is encouraged by the early indications of school supply purchases.

In terms of Washington Shoe, Moehring stated that he will switch production in the next months from more expensive children’s boots to more reasonably priced goods. Although he’s being cautious, the company still expects annual revenues to surpass those of the previous year.

“I believe it is a muddy outlook,” he said.

Cost of raising a child

Meanwhile, USDA recently issued ‘Expenditures on Children by Families, 2023.’ This report is also known as ‘The Cost of Raising a Child.’ USDA has been tracking the cost of raising a child since 1960 and this analysis examines expenses by age of child, household income, budgetary component, and region of the country.

According to the most recent Consumer Expenditures Survey statistics, a household with two children and a middle-income ($59,200–$107,400) married couple will spend about $12,980 per child per year in 2022.

For food, shelter, and other requirements to raise a child to age 17, middle-class, married parents can anticipate spending $233,610 ($284,570 if expected inflation prices are taken into account). The price of a college education is not included in this.

Education and child care can take up another large portion of the family budget. Research shows that, on average, they account for about 16% of children’s spending. Young children can be particularly expensive, as day care can cost more than college. However, most families report not spending anything on childcare. They may rely on family members to babysit or send their school-age children to public school. That means families who hire nannies, send their children to private schools, and pay for a variety of summer camps and special programmes are likely spending far more than the average amount reported here.

Regardless of income, families tend to spend more on groceries as their children get older. Teenagers are the most expensive, said Mark Lino, an economist at the Department of Agriculture’s Centre for Nutrition Policy and Promotion and lead author of the USDA report. They eat more. Data shows that families spend about 18% of their childcare budget on groceries, a category that includes groceries, school lunches and restaurant meals, all of which are hit hard by inflation.

Car, gas, insurance, airfare and public transportation costs peak when children are between 15 and 17 years old. Of course, this is the time when many teenagers start driving. But this also reflects increasing participation in activities further from home, according to USDA data. These are the years when they start driving, so you include them in insurance or even buy them a car, Lino said.

Overall, healthcare accounts for about 9% of children’s spending, but higher-income families tend to spend much more. In addition to increased insurance premiums, these costs include medical, dental and psychiatric services not covered by insurance, as well as prescription medications.

From diapers to Dr. Martens and Garanimals to graduation gowns – clothing accounts for about 6% of children’s spending. Unlike most other costs, this number has fallen over the past 50 years as Americans turn to cheap, foreign-made clothing. Also unusual: The cost of clothing tends to fluctuate from year to year, depending on the latest trends.

What happens to the money?

With a 29% share of all child-rearing expenses for a middle-class family, housing costs are the highest single expense. Food comes in second at 18%, followed by child care/education (for those who can afford it) at 16%. Depending on the child’s age, costs change.

The USDA conducted the analysis based on the household income level, the child’s age, and the area of residence. It is not unexpected that more money was spent on a child the greater the family’s income, notably for child care/education and other ancillary costs.

Additionally, costs rise as a youngster gets older. For infants to toddlers, annual expenses were on average roughly $300 lower, while for teenagers between the ages of 15 and 17, they were on average $900 higher.

Teenagers have greater food and transportation expenditures because this is the age when they start driving, thus insurance is usually included or maybe even a second car is bought for them.

Additionally, regional diversity was noted. The highest money was spent on children by families in the urban Northeast, followed by those in the urban West, urban South, and urban Midwest. Families in rural locations across the nation spent the least money raising a child; costs for housing, child care, and schooling were 27% cheaper in rural areas than in the metropolitan Northeast.

The cost of raising children is susceptible to economies of scale. That is, costs for each child decrease as there are more children. Compared to families with two children, expenses for married couples with one child were on average 27% more for each child.

The average cost per kid in households with three or more children was 24% lower than the cost per child in a family with two children.

The “cheaper by the dozen” effect is another name for this phenomenon. Each extra child costs less because families may buy food in greater, more economical amounts, share bedrooms, pass down clothing and toys, and frequently babysit younger siblings.

The post Back-to-school season in the shadow of inflation appeared first on International Finance.

In 2011, Xiaomi introduced its first smartphone and by 2014, Xiaomi had the greatest market share of smartphones sold in China. In the beginning, the company mostly used to sell its product online. However, it later developed physical stores in the country. By 2015, the company was creating a variety of consumer gadgets. The business sold 146.3 million smartphones in 2020, and MIUI, its mobile user interface, has more than 500 million active monthly users.

According to Counterpoint, Xiaomi will be the third-largest smartphone seller in the world by the end of 2023, with a 12% market share. Xiaomi is also a major manufacturer of appliances including televisions, flashlights, unmanned aerial vehicles, and air purifiers. The company is expanding its domestic product line-up with its Internet of Things and Xiaomi Smart Home product ecosystems.

Xiaomi keeps its prices close to its production expenses and bill of materials costs. It also keeps most of its products on the market for 18 months, longer than most smartphone manufacturers. The company also uses flash sales and inventory optimization to maintain minimal inventories.

In 2021, Xiaomi was placed second worldwide in the evaluation of WIPO’s annual Global Intellectual Property Indicators, with 216 designs in industrial design registrations up from their previous third-place ranking in 2019. As per the 2022 first quarter report, the company was leading Indian smartphone sales. It is one of the top smartphone manufacturers in India that keeps product prices low.

In 2022, Xiaomi unveiled the company’s first humanoid robot prototype to the public. The announcement marked the company’s ambitions to integrate AI into its product designs as well as develop its humanoid robot project in the future.

The brain behind this successful consumer electronics company is a 53-year-old Chinese billionaire entrepreneur and philanthropist Lei Jun. He is the Founder and CEO of Xiaomi with an estimated personal net worth of around USD 8.1 billion. According to the Bloomberg Billionaires Index, he is the 203rd richest person in the world.

Who is Lei Jun?
• Lei Jun was born in Xiantao, in the underdeveloped countryside of Hubei, China
• He completed his bachelor’s degree in computer science from Wuhan University in 1991
• In 1992, Lei Jun joined the Beijing-based software company Kingsoft Corporation, and by 1998, he became the CEO
• He founded Joyo.com, an online bookstore, which he sold for USD 75 million to Amazon in 2004
• In 2007, Lei Jun resigned as the president and CEO of Kingsoft for health reasons and in 2010, founded Xiaomi
• Lei Jun co-founded Shunwei Capital in 2011, an investment firm through which he makes investments in the e-commerce, social networking, and mobile sectors
• The same year he joined Kingsoft as Chairman
• Lei Jun was named Businessman of the Year by Forbes in 2014 and 100 most influential people in the world by Times Magazine
• In 2018, he oversaw the company’s Initial Public Offering (IPO), which raised about USD 3 billion
• Lei Jun had donated USD 1 billion to charities, starting with a ¥140,000 donation in 1997 to Wuhan University, later in 2021, he also donated over USD 2.2 billion worth of Xiaomi shares

Lei Jun On Xiaomi

In an interview given to ExamineChina in 2015, Lei Jun talks about Xiaomi and its market journey.

Lei Jun said, “Around 7.4 million pre-orders of a budget Red Rice phone prove that Xiaomi is a big player in the Chinese smartphone market. In Q2 2013, it outclassed Apple, reaching 5% of the market share. It is still lower than big companies such as Samsung, Lenovo or Huawei, but Xiaomi entered the market no sooner than in 2011. By October 2013, Xiaomi was the fifth most-used smartphone brand in China. In Q2 2014, Xiaomi shipped 15 million devices, around 14% of China’s market share, meanwhile, Samsung shipped slightly more than 13 million.”

As of today, Xiaomi continues to dominate the smartphone market. The company has a market share of 21% during Q3, 2022, shipping 9.2 million units. The annual growth rate, however, was down by 18% as the company shipped 11.2 million units during the same quarter, 2021, according to a report by Canalys.

The post Business Leader of the Week: Meet Lei Jun, Xiaomi’s guiding force appeared first on International Finance.

The US President Donald Trump’s implementation of tariffs on its imports has already made analysts and policy makers contemplate the adverse effects it will have on trade. The downward graph of Singapore’s exports is seen as one of the outcomes of the imposition of tariffs.

The export of electronics has the worst hit since July 2016. Electronics sale is down for three months straight forecasting a slowdown in exports for the current year. The sales of non-electronics also had a plunge.

Bloomberg survey median recorded 5.9 % drop for February 2018, compared to 4.8% gain from the same period last year.

According to World Bank, exports in 2016 accounted for 172% of Singapore’s gross domestic product.

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