The United States is considered one of the most open markets in the world, with a very large annual import and export trade volume. Its consumer market has the following main characteristics.
(1) Large market size, mainly credit consumption
The United States is a typical consumption-led economic growth model. People have strong consumption power, and their personal consumption accounts for more than 70% of GDP. According to data released by the U.S. Census Bureau, the average personal income in 2016 was US$31,099, while the average personal consumption expenditure was as high as US$57,311. Historical data shows that the United States is a typical country of over-consumption. People have a weak sense of savings, and individuals have multiple credit cards and strong consumption power. In addition, the labor cost in the United States is high, and the manufacturing of many labor-intensive products has been transferred overseas. The United States has a large demand for imports of daily consumer goods (such as stationery, clothing, shoes, luggage, accessories, furniture, toys, etc.), and a fast demand for commodity replacement. The “new and old” is more obvious.
(2) Strong market acceptance
The United States is a multi-ethnic immigrant country with a total population of approximately 320 million in 2017, most of whom are immigrants from different ethnic groups around the world, or their descendants. They have different cultural traditions and customs. The diversity of the U.S. population structure determines the diversity of the U.S. consumer goods market. Most U.S. residents are accustomed to using products of their own ethnic group and traditions, and are also curious and fresh about products of other ethnic groups in the world. Therefore, American mass consumers are very receptive to various products on the market and rarely reject them.
The strong acceptance of the U.S. market is also reflected in the different demands for product grades. Since social classes with different incomes constitute different levels of consumer groups and different levels of specific consumer markets, the U.S. consumer market has a large demand for high, medium and low-end products.
(3) Sound market regulations, industry associations influence the market
The US market economy is relatively mature. The government rarely restricts the business scope and business methods of enterprises. However, it has extremely detailed regulations on the import and export of goods, wholesale and retail in all walks of life, and the law enforcement is very strict, especially in terms of trademarks and intellectual property rights. For example, Amazon’s cross-border e-commerce platform is particularly strict in cracking down on business practices that infringe intellectual property rights. Many domestic merchants have had their stores frozen due to non-compliant goods. Therefore, when engaging in business activities in the United States, it is necessary to learn relevant laws and regulations and act in accordance with the law to avoid accidentally violating regulations.
In addition, there are associations in all walks of life in the United States. American industry associations play an important role in its economic and social life. Industry associations represent the interests of their members. They will protect the development and interests of their industries and provide a variety of services to their members, such as regularly holding various seminars and education and training, coordinating the relationship between employers and employees, publishing relevant trade information, etc., to promote the sustainable development of enterprises within the association. Some of the more famous industry associations in the United States include the American Manufacturers Association, the American Electronics Industry Association, the US-China Business Council, and the American Chamber of Commerce.
(4) The market values quality, brand, and product safety
The United States is a country with a relatively sound rule of law and has established a mature and effective product quality and safety supervision system. The laws related to product quality promulgated by the US government include some that apply to all products, such as the Mark Euson-Moses Warranty Act and the Product Liability Act, and some that only apply to certain types of products, such as the National Traffic and Motor Vehicle Safety Act and the Federal Food, Drug, and Cosmetic Act. These laws and regulations are detailed and rigorous, highly operational, and provide clear guidance on how to enforce the law. In addition, the United States has many product quality and safety regulatory agencies, each with its own responsibilities, such as the U.S. Food and Drug Administration (FDA), the U.S. Consumer Product Safety Commission (CPSC), and the U.S. Environmental Protection Agency (EPA). They have fully exerted their regulatory functions for product quality and safety and ensured the safety of consumers. Therefore, the United States has very strict quality requirements for products. The labels, packaging, and instructions of various products must comply with the requirements of the U.S. market to clarify responsibilities. The most prominent of these are safety standards, such as electronic products must comply with UL standards, lighters must be child-proof and prevent fires, and toy parts must not fall off and be swallowed by children. The United States has stricter safety requirements for various types of food, and does not allow some products to be arbitrarily labeled as having medicinal functions.
American customers also have a high degree of recognition of product brands. Because brands fully reflect their understanding of the concept of quality and more accurately reflect the consumption level of American customers, they tend to buy branded products and are willing to pay more. However, branded products are not necessarily expensive. American brands often target different consumer groups, and their prices can generally be determined by the brand.
(5) Strong seasonality of sales
The demand for various products in the American consumer goods market is highly seasonal, usually divided into spring (March to June), summer (July to September) and holiday season (November to December). Each season has a sales peak when products change seasons. For example, starting from Thanksgiving (end of November) is the winter holiday shopping season for Americans, while Christmas is the peak sales season for American products throughout the year, usually accounting for one-third of annual sales. Import orders by US importers are organized according to the domestic sales season. Therefore, if the sales season is missed, these products will be difficult to sell, which means that the company will withdraw from the US market this year, or even be excluded from the market by competitors for a long time. In addition, there are many holidays in the United States, such as Valentine’s Day and Mother’s Day, which are good opportunities for businesses to sell gifts. As a country of immigrants, each ethnic group in the United States has its own traditional festivals, which have formed a large number of consumer markets. Businesses often try to use these traditional festivals to promote sales.