Consumer, Retail & Telecom Terms

A number built from surveys on how optimistic consumers are about the economy and their own finances. When it rises, consumers are more likely to spend, which is read as a positive sign for retail and consumer stocks.

e.g. In Korea, the Bank of Korea's Consumer Composite Sentiment Index (CCSI) is widely watched. A reading above 100 means optimism.

The average amount one customer spends per purchase. Sales equal the number of customers times the average transaction value, so even if customers decline, a higher average transaction value can protect sales.

e.g. Daily sales of $1,000 from 50 customers = $20 average transaction value

The sales growth rate comparing only existing stores that have been open for over a year, excluding newly opened ones. It shows whether business is really doing well rather than growing just by adding stores, so it is a key metric for retail and restaurant companies.

e.g. New stores opened last year are excluded, and only stores open over a year are compared between last year and this year.

Shows how quickly goods brought in are sold. Fast turnover means less cash tied up in inventory and fewer discounts, which is good for profit. Slower turnover can cut margins through clearance discounts.

Products a retailer plans itself and sells under its own name. Cutting out middle distribution steps usually gives higher margins than ordinary products, so a rising private brand share supports better retailer profitability.

e.g. Instant noodles or bottled water that a big supermarket sells under its own label are private brand products.

Raising product prices to pass higher raw material costs on to consumers. A company that can raise prices without losing much volume can absorb cost pressure, which signals a strong brand.

The trend of consumer purchases moving from stores to online. Retailers focused on physical stores must make their stores more efficient and respond online, and delivery and logistics strength makes the difference between companies.

Sales made without tax at airport and downtown duty-free shops. They swing widely with foreign tourists, group travel and policies on bulk-buying resellers, so they are an important variable for cosmetics and duty-free company earnings.

A business that develops and manufactures cosmetics on behalf of brand companies. It depends less on the success of any one brand and takes orders from many clients, so it benefits broadly from the whole industry's growth. Korea has several large listed cosmetics ODM companies.

Overseas sales of Korean cosmetics and food. The Korea Customs Service publishes export statistics by item every month, giving an early read on the trend and a clue to related companies' earnings.

A telecom's average monthly revenue per subscriber (ARPU) and its total subscriber count. Subscriber numbers are hard to grow much, so the key to revenue growth is whether more people moving to pricier plans lifts ARPU.

5G is a mobile technology faster than earlier generations, and 5G plans are generally pricier than LTE. A larger share of 5G subscribers lifts ARPU, but government pressure to cut rates can weigh the other way.

Telecoms spend heavily on building base stations and buying the right to use spectrum from the government. Investment bunches up when a new generation starts, cutting profit, and cash flow improves as spending winds down. This cycle repeats.

Telecom revenue is steady regardless of the economy, so telecoms tend to pay stable dividends. Investors seeking income over growth often choose them, and when interest rates rise their relative appeal fades, which can affect their share prices.