Taylor Swift is in her engagement era. Will it improve the economy? – Nationwide

The global economy may be trying to get out of the woods, but after pop star Taylor Swift announces his engagement to two-time Super Bowl champion Travis Kelce, the celebrity wedding may be something that needs to rock.

The news raises hope that it could provide much-needed boosts for retail sales and consumer spending.

Swift's impact on the local economy and retail industry has long been the subject of research, and estimates that the singer-songwriter's 2023 US tour could have generated US$4.6 billion in total consumer spending, which is greater than GDP in 35 countries.

A report called Swiftonomics: The ERAS Tour's impact on Colorado was found to have two Swift shows in July boosted the state's GDP annually by US$140 million.

Canada also felt the haze of lavender from the performers' shows here.

Payment processing company Moneris has released data showing downtown Vancouver's spending levels increased by 154% during its 2024 ERAS tour. This is a spike that has not been seen since the 2010 Vancouver Olympics.

Sales at clothing stores increased by 923%, while cosmetics sales increased by 529%. Variety stores saw a 178% increase in sales.

Swift and Kelce's engagement could attract more attention than the ERAS tour, some experts argue.

“Taylor Swift actually broke Instagram a bit. Meta has issued reports that there have been some outages as this is one of the most preferred Instagram posts ever,” said Bree Mcewan, professor at the Institute of Communication, Culture, Information and Information Technology at the University of Toronto.

“You have two very complicated fandoms (more Swift than the NFL guys) that are coming together to celebrate the relationship they've been watching for a while.”

Less than 24 hours after the couple announced their engagement, e-commerce platform Etsy was flooded with Taylor-Travis products.

Images of the couple touching their foreheads are displayed on T-shirts and sweatshirts that are sold on the site for up to $100.

Other products include Onesy for babies with the text “My English teacher and gym teacher are married.”

McEwan said it's particularly suited to the product boom as Swift's fandom, or Swifties likes to blow its own. That's because of Swift's tendency towards catchy lyrics and her tendency towards Easter eggs hidden across her music and engagement with the public.

“Taylor Swift fans have their own secret language and secret code,” she said.

Prince Harry's 2018 wedding to Meghan Markle is said to have added £1.05 billion (US$1.43 billion) to the UK economy.

But the impact of individual artists and events on the broader economy may be exaggerated, according to Mosche Lander, an economist at Concordia University.

“Taylor Swift is the 21st century answer to Madonna,” he said.

“When she (Madonna) was releasing her album, or when she was making headlines in tabloids for the person she was dating, we get hooked. Has it improved our quality of life?

The impact on major events may help retail sales in some sectors, but it can hurt other sectors.

“They (fans) need to withdraw disposable income from somewhere else and move towards the ticket,” he said, citing an example of an ERAS tour show in Toronto.

For example, people who spend their money on tickets and items for ERAS tours may choose to delay money costs in other areas, such as house renovations or eating out. This is because if the pot doesn't expand, most people have the same amount to spend on discretionary expenses.

“The economic impact of Taylor Swift can be positive both inside and outside the Rogers Center, but it's negative in and around the Eton Center,” added Lander.

Swift, Kelce and its marketing team have been careful not to alienate fans who may be in a pinch with their pocketbooks, McEwan said.

“This is a downward economy and if she has a very expensive, very expensive and very flashy choice, it won't resonate with the fans,” she added.

Economic observers should be wary of exaggerating the impact, Lander warned.

“She's not a financial engine other than herself.

Trend now

Whether or not Swift-Kelce's weddings cause new spending across the fan base, it certainly can shape retail trends among fans with disposable incomes where spending is already trending.

“You've already seen it on your engagement ring, right? That's a really rare cut,” McEwan said.

“If you're currently thinking about engagement rings or wedding dresses, you'll see what Taylor will showcase his fans,” she added.

Montreal-based Chateau Daiboir, a high-end jeweller, said that within 24 hours of Swift's photo of her engagement ring, his clients were asking about similar designs.

“They've talked to me about the size, cushion cuts, style, design and how they designed it,” said Rachel Chan, sales professional at Chateau de Ivoire.

“She wore a vintage Cartier watch to match her vintage engagement ring. This is amazing. It could be a timeless piece forever,” she said, adding that she has also been inquired about the watch.

The internet is already bustling, McWan said.

“We already have an entire Reddit board dedicated to what this ring is, how much it costs and how you can cut such cushions,” she said.

However, most people cannot afford the taste of gem billionaires.

“Not everyone can afford the kind of luxury that Taylor can buy,” McEwan said.

“What you see is a trendy (cheap) spinoff,” she added.

Etsy sellers are already trying to win cash, with a fake diamond ring that looks like Swift's rings are on sale for just $300. Even high-end jewellers are trying to cater to a wide range of customer bases.

“Not many people go looking for such a big cut. Taylor wears 13 carats. It's a huge stone. From our experience, people are looking for something around one or two carats. Even three carats are rare,” Chan said.

However, McEwan added that Swifties should ease expectations about the couple wanting to broadcast.

“She has a huge marketing team behind her. They are very knowledgeable about what they show and what they don't,” she said, adding that Swift is particularly wary of fans who develop parasocial relationships with her.

“She has to manage that very carefully because people can be over-engaged,” added McEwan.

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