Japan Summer Heat and Economic Situation: Updated July 14, 2024.

 

Does summer heat mean better sales? Maybe not for temps over 35 C, say Japan economists

Article Source:  https://mainichi.jp/english/articles/20240708/p2a/00m/0bu/015000c

Ideas:

Yea, no, maybe depending on the consumer and the product, and the time of summer when it it gets hot.

The summer season, traditionally might be a slow season as maybe people are traveling and maybe don't spend so much at home, but maybe they spend a lot when traveling, so it depends on the location and what they are doing.

If people go to so-called malls or in Japan, go to subway/train stations where there is a lot of air conditioning and a lot of stores and restaurants, then yes, there might be increased consumer spending and maybe consumers aren't just sitting in the subway station/train area to stay out of the heat.

But in the rural areas, maybe of course there is less consumer spending as they might just be staying in their homes to stay out of the heat.

Now add in online spending, as maybe some consumers instead of going outside to beat the heat, they will shop online and not have to go out in the heat during the day.

That all maybe be true, but again, whether hot weather or extreme cold weather and snow, online shopping might be the one variable that allows shoppers to avoid extreme heat and o extreme cold.

It depends on the shopper and how he or she thinks. For example, some people like to go to stores but some people now prefer to shop online and avoid the crowds in the stores. And then add in extreme heat and or extreme cold weather and its another variable the a shopper has to deal with.

And yes, over 35 C, and add in humidity, some shoppers just will not go out and or maybe just in the early morning hours or the late evening or afternoon hours.

Even though restaurants might have air conditioning some people might not want to try and go to a restaurant when the temperature gets above 35 C and the high humidity.

When the temperature does get above 35 C some consumers might go the mega train station complex areas in Japan where there are a lot of stores, restaurants, and of course a lot of air conditioning to avoid running the air conditioners in their homes.

The only negative, in some large cities in Japan, is there just are not enough coffee shops for people to sit in or take a rest or just get out of the heat and have a cold drink for a few minutes.

Weather, either extreme heat and extreme cold can affect the vegetable growing season, causing a shortage or surplus depending on the type of vegetables being grown.

If there is shortage, of course prices will increase, and if there is surplus prices might go down too.

There is always the possibility that the Japanese government could put price limits on some products such as vegetables if there is a severe shortage of a product, as some producers might try to take advantage of consumers and increase their prices too much.

At the same time, to help producers the Japanese government might provide subsidies if the hot weather caused a not so good growing season and there was/is a shortage of some vegetables.

And again, as inflation continues on in Japan as prices increase on normal products such as vegetables, unfortunately there might be some consumers trying to find substitutes because of the price increases.

Unfortunately, again, that is part of a market economy where there are going to be all kinds of variables that can affect prices, and as such a government might try to help consumers, but at the same time a government can't protect consumers from all negative activities in an economy.

Have a nice day and be safe!