Hollywood stars have achieved the feat of bringing an ugly, out-of-date sandal out of limbo to make the company that has been manufacturing them since 1775 a company valued at nearly US$10 billion, whose shares have just been listed on the Stock Exchange of New York.
The story of Birkenstock is a good illustration of the power of stars and the impact they can have on economic activity. It was enough for Leonardo DiCaprio, Gwyneth Paltrow and a few other celebrities to appear in Birkenstock for the brand to begin a glamorous existence with a new owner, the king of luxury LVMH who bought it in 2021.
Artists are important economic actors, but their contribution to growth is rarely translated into figures. We know, for example, that Céline Dion, in her time, propelled the economy of Las Vegas, in addition to supporting specialized SMEs right here in Quebec.
When it comes to numbers, the phenomenon Taylor Swift is starting to put together a series of them. The crowd-pleasing singer is on track to surpass Elton John as the top 10 most popular tour act of all time, with revenues that could top US$1 billion for the first time and possibly reach US$2 billion .
The impact of Taylor Swift’s popularity goes far beyond record sales and show tickets. The artist arouses such enthusiasm that she has helped to create an entire ecosystem of commercial activities that supports many people.
In cities where his tour stops, the Wall Street Journal reported recently, bakeries bake donuts decorated with the themes of his songs and sell them for US$65 a dozen or US$6 each. Since Swifties – hardcore Taylor Swift fans – aren’t much of a bar fixture, some bars are branching out into other activities, such as running shuttles to transport fans to the city where the star is performing. will produce. A Nashville museum that hastily organized a Swifties-themed exhibit experienced the best attendance in its 65-year history during the singer’s visit.
Taylor Swift even managed the feat of seeing her name mentioned in a report from the American Federal Reserve which noted a sudden revival in the Philadelphia economy during the passage of her tour. The city’s hotels notably had their best month since the pandemic.
Hotels, restaurants, plane tickets and related products, all this activity ends up accumulating and it will leave a trace in the official statistics. Already, specialist firms estimate that Taylor Swift alone could increase the gross domestic product (GDP) of the United States by $5 billion in 2023.
Bloomberg Economics predicts that the activities of Taylor Swift and Beyoncé, whose tour is also phenomenal, as well as the success of the films Oppenheimer and Barbie increased the GDP of the world’s largest economy by 0.5% in the second quarter.
No, it is neither Taylor Swift nor Beyoncé who can prevent the American economy from plunging into a recession, but we can still salute their contribution to the country’s economic growth.