Consumer discretionary refers to a category for services and goods that aren’t essential. For instance, you would consider wheat and rice as essential products but streaming services as non-essential.
So, when will a consumer invest in this category of services?
Consumers will only purchase this category of products when they have enough funds to pay for the items on the last day of the month. Consumers may want to buy new clothes or items, but they’ll avoid purchasing those if they cannot finance them.
Hence, these products and services are consumer discretionary, also known as consumer cyclical.
Run-through: The sub-industries within Consumer Discretionary
1. Consumer Products:
When you buy fine jewelry, you contribute to the consumer products segment of consumer discretionary. This further has 4 parts – impulse convenience (cigarettes), shopping (TV and furniture), specialty (fine jewelry and furs), and unsought (life insurance)
2. Consumer Services:
When you get a haircut, you are helping the consumer services section. It includes landscaping, auto repairs, haircuts, and similar intangible services and products.
Education and training comprise every instruction and training provided by universities, colleges, schools and similar specialized establishments.
Love having burgers and pizzas? The food industry has catering operations, school and hospital cafeterias, restaurants and such cart, banquet, and butlered services.
This segment supports boosts to small scale and export industry. Some of the most developed economies have their GDP accounting for a large percentage of the retail segment.
6. Transportation Services:
Being a very large and diverse sector, transportation services take care of almost 5.5% of the GDP. Out of the air, rail and road transport, the road transportation services consume the lion’s share.
7. Travel and Leisure:
When you are simply making a booking to visit a stunning place across the country, you are helping the sector that accounts for 39 million jobs.
Deep Dive: Explore which sub-industry resonates with you
1. Consumer Products
Companies that produce and manufacture goods that are bought for consumption by the average consumer. These products are what a consumer will see on a store shelf. Swipe left to explore!
Est. swipe time: 4 min
2. Consumer Services
Companies that primarily earn revenues through intangible products and services. Swipe left to explore!
Est. swipe time: 3 min
Companies that produce, package or distribute food. Swipe left to explore!
Est. swipe time: 2 min
Companies or establishments that provide instruction & training on a wide variety of subjects. Swipe left to explore!
Est. swipe time: 1 min
Companies that sell consumer goods. Swipe left to explore!
Est. swipe time: 4 min
6. Transportation Services
Companies that provide air, rail, truck, and waterborne transportation; transit and ground passenger, pipeline, postal, courier and messenger transportation services; and warehousing and storage services. Swipe left to explore!
Est.swipe time: 1 min
7. Travel & Leisure
Companies focused on recreation, entertainment, sports and tourism-related products and services. Swipe left to explore!
Est. swipe time: 2 min
Wait, I’m confused? –
Ok, I like this industry, but will I be able to get a job here?
What skills and experiences do OTHER people in this industry typically have?
Are there any more resources to find out about this industry and job roles?
Lucky for you, these aspects have been taken care of, lets begin!
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