Wall Street Journal Custom Content is a unit of The Wall Street Journal advertising department.
The Wall Street Journal news organization was not involved in the creation of this content.
Fidelity Investments and the Fidelity Investments and pyramid design logo are registered trademarks of FMR LLC. The third-party trademarks and service marks appearing herein are the property of their respective owners. Wall Street Journal Custom Content and Fidelity Investments are independent entities and are not legally affiliated. Fidelity products and services are offered by Fidelity Brokerage Services LLC, Member NYSE, SIPC. 883213.5.0
FIND OUT MORE AT FIDELITY
Fidelity’s portfolio managers immerse themselves in each business with relentless focus. Gaining great insights through people and technology, they are able to respond to the market quickly. Learn why active management can provide benefits that help you invest with confidence.
INVESTING at Fidelity
ALL IN A DAY:
KATIE SHAW
With consumer preferences changing at warp speed, Fidelity Investments Sector Leader Katie Shaw digs deep to understand the economic, social and emotional factors driving purchasing trends. Watch how her process blends analytics with on-the-ground research.
SHOPPING THE SHOPPERS
As the Sector Leader of the global consumer team at Fidelity Investments, Katie Shaw monitors retail and consumer-driven brands—as she puts it, everything from washing machines and sneakers to cruise lines and cars.
And while careful research supports her team’s efforts to assess the shifting consumer landscape, there’s still no replacement for putting boots on the ground.
“When you go to a store and touch a product, or see customers having a fantastic experience, that’s when the numbers on paper come to life and the stories start to tell themselves,” Shaw says. “In a sense, I’m actually shopping the shoppers. What products are they choosing? What products are being put back? What kinds of restaurants have a lot of cars outside at lunch hour?”
“Companies are forced to keep up with consumer preferences at warp speed.”
For Shaw, the past decade has been an era of sweeping change as digital technology pushes brands to rethink the customer experience, blurring the line between e-commerce and brick-and-mortar shopping. Already, the most successful consumer brands are using technology to turn shops into virtual showrooms where customers can design a pair of sneakers on their phone, for instance, or summon a sales associate with the tap of a button. At the same time, the accelerating rate of change poses one of the steepest challenges for businesses in her sector.
“Companies are forced to keep up with consumer preferences at warp speed,” Shaw says. “Forget two-day shipping. I want to buy online and pick up in store, get my item personalized and receive a special offer just for shopping on my phone. It’s a huge challenge but also an amazing opportunity, both for these companies and the analysts watching it all take place.”
As one of those analysts, Shaw’s work goes deeper than rating stocks and deciding whether to buy or sell. There’s a psychological undercurrent to the process of charting consumer behavior and understanding the economic, social and even emotional factors that compel someone to make a purchase. Look to how social media and influencer culture has amplified the notion of keeping up with the Joneses to a constant ambient hum, Shaw says, creating an appetite for luxury goods in markets far outside the U.S. Or how wage gains among lower- and middle-income Americans has spurred optimism around the prospects of discount retailers.
“Measuring consumer sentiment can be very similar to measuring the economy, but consumers are also more fragile than we think,” she says. “So understanding what is selling and why is very important to our job, and catching an inflection point is dramatically impactful for results within Fidelity for our shareholders. There is an emotional connection, not only between the consumer and the company, but also what that then translates to in terms of the stock price. Measuring that connection is at the heart of what we do.”
Watch Katie’s video to find out how she keeps an eye on consumer trends, both in and out of the office.
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Shaw and her team explore the emotional relationship between consumer and brand.
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During store visits,
Shaw observes shifting consumer preferences in action.
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A daily run helps Shaw grapple with the most challenging investment decisions.
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During store visits, Shaw observes shifting consumer preferences in action.
Wall Street Journal Custom Content is a unit of The Wall Street Journal advertising department.
The Wall Street Journal news organization was not involved in the creation of this content.
Fidelity Investments and the Fidelity Investments and pyramid design logo are registered trademarks of FMR LLC. The third-party trademarks and service marks appearing herein are the property of their respective owners. Wall Street Journal Custom Content and Fidelity Investments are independent entities and are not legally affiliated. Fidelity products and services are offered by Fidelity Brokerage Services LLC, Member NYSE, SIPC. 883213.5.0
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