Betting on consumer demand

Strong spending by consumers has been a linchpin keeping the U.S. economy out of a recession, and Vivid Seats CEO Stan Chia doesn’t see demand in the live performance sector falling off.

He says customers are still using Vivid Seats to find tickets to concerts, sports games and the theater even if interest rates are high. Vivid Seats’ marketplace allows people to buy and sell their tickets to live events.

It seems like the economy is riding on whether U.S. consumers can keep spending. How do you see the state of the consumer today?

I think what we can certainly see in our category is live events continues to be one that consumers are prioritizing in their discretionary income.

This category, while it is discretionary by definition, doesn’t behave like others, like buying a new TV. You don’t really think about buying a new TV in the same way as whether you’re going to a Guns N’ Roses concert.

We are now past any point of potential pent-up demand release. What we’re really into is secular trends of the industry that really drive it forward. I think about where the generational priority is on spending. If you think about Gen Z, as they come into purchasing power, they have prioritized experiences over goods and services.

You’ve got folks like myself — the Guns N’ Roses reference shows I’m a geriatric millennial — I’ve certainly got a little more money than I did 20 years ago, and the bands that I love are touring, and I love the opportunity to go see that.

So what do you make of all these surveys where consumers say they’re worried? When will they stop spending?

I certainly read and see all the things out there about the strength of the consumer and where sentiment is, but in this category, we’ve continued to see strength.

We’re headquartered in Chicago, Illinois, and the example I like to give, which unfortunately is not going to be true this year, is if the Bears go to the Super Bowl, you’re going to see a lot of fans who want to go to that event. This category in particular has that FOMO-esque truth to it. That’s what continues to drive consumer purchasing.

Does it bother you that one of the first search-engine results for your company is: Is it safe to buy on Vivid Seats?

No. Until we become a household name, and we are on our way there, you’re always going to look and see who is this company. You’ll find we are an award-winning customer service company with a 100% buyer guarantee and a rewards program.

Are you seeing any differences in consumer behavior? Concert goers in high-income ZIP codes versus lowerincome ones?

I think fandom just traverses all categories and all demographics. You’ve got a very consistent level of intensity whether you’re talking about sports fans, concert fans, theater fans, comedy fans, down to the team level.