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Disposable income is extremely pointless to compare if you want to figure out how much people will have left to pay for your product. Look at actual spending in
by chmod775 3y ago
Disposable income is extremely pointless to compare if you want to figure out how much people will have left to pay for your product. Look at actual spending in whichever category you're interested in.
To illustrate, let's subtract some spending categories from that disposable income which tech companies generally don't compete for: Germans spend $13713 + $1604 on housing/lodging vs $22624 for Americans, education $255 vs $1226, food $5706 vs $8289, health $1632 vs $5452.
So comparatively Americans are already down $14681 of that disposable income, which definitely won't be spent on whatever some American tech darling produces - food, housing, education, and health spending is generally considered more important than getting a Meta Quest headset.
At the end of the day US/Germany spend the same amount of money on entertainment/recreation almost to the dollar. France is similar in that regard and together Germany and France are already a market of close to 150 million people.
Numbers are from 2021 using the historic EUR/USD exchange rates.
The point is: drill down to some category and compare actual spending in it. You'll be surprised how wildly some things vary even between countries that nominally have the same disposable income.
US Data: https://www.bls.gov/news.release/cesan.nr0.htm https://www.bls.gov/news.release/cesan.nr0.htm
German Data: https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Einkommen-Konsum-Lebensbedingungen/Konsumausgaben-Lebenshaltungskosten/Tabellen/privater-konsum-d-lwr.html https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Einkom...