Supplyframe Holiday Shopping Survey Says Most Americans Plan to Buy Early, Buy Electronics, and Look for Fast Delivery, Despite Supply Chain Challenges
PASADENA, Calif .– (COMMERCIAL THREAD) – New search for Procurement framework says most Americans (64%) plan to jump into holiday shopping early this year in hopes of overcoming possible shipping or other supply chain constraints. More than three-quarters (79%) of Americans said they have already started shopping or plan to do so before Black Friday. Perhaps that’s at least in part because more than a third (35%) of the group said they had personally experienced order delays in the past year for products that rely on electronics.
This new research is based on an October 2021 survey of more than 1,000 Americans aged 18 and over conducted by Propeller Research on behalf of Suppyframe.
“The holidays are fast approaching, but the challenges in the supply chain drag on,” said Steve Flagg, CEO and Founder of Supplyframe. “This season will put enormous pressure on the supply chain as it struggles to emerge from the scarcity situation created by the pandemic.”
Supply chain challenges make customers increasingly frustrated
Delays in delivery and unavailable products arouse the ire of many customers.
More than half (52%) of Americans polled said they understood the delays, but were frustrated that they were happening. A quarter of the group (25%) said they feel frustrated with wait times and believe companies should account for delays on their purchase orders.
Just over a fifth (22%) of those surveyed said they were comfortable waiting two weeks for purchases to be delivered. And only 10% of those polled said they were willing to wait more than two weeks for shipment, despite widespread media coverage of supply chain issues.
Delivery times will play an important role in Americans buying decisions this holiday season
While 43% of Americans said they enjoy shopping online for fear of shopping in large crowds, even larger shares plan to buy online to get better deals online (44%) , order gifts in advance (46%) or simply because they prefer the ease of shopping online (64%).
But while online shopping offers a wide range of benefits, supply chain challenges could cause delays in delivering the holiday gifts people buy online to their recipients. And Supplyframe research suggests Americans can buy with these constraints in mind.
While 62% said the “longer” delivery times did not deter them from purchasing a product this year, 90% said time will be very (44%) or quite (46%) important when they will make decisions related to the purchase of Christmas gifts. year. And nearly a third (30%) said they were more likely to choose the product with the fastest shipping, even if it’s not their first choice.
Inventory issues persist and could lead to far fewer electronics retail discounts
Out-of-stock messages on U.S. e-commerce sites for all consumer products rose 172% as the holiday season approached, compared to the pre-pandemic period in January 2020, according to Adobe. And out-of-stock messages are up 360% from January 2019.
Half of the Supplyframe investigative group that had issues with product inventory said they were related to consumer electronics purchases. Yet more than half (55%) said they still plan to donate electronic devices such as computers, smartphones and tablets during the holiday season. And although 55% of those surveyed said vehicle availability had been an issue for them in the past year, more than a tenth (12%) said they planned to offer a vehicle during the holiday season.
Shortages of electronic components and semiconductors – and, therefore, automobiles and devices – could mean far fewer retail discounts on vehicles and electronics. It will also put enormous pressure on supply chains to better manage constraints, as consumer demand remains strong.
Current sourcing approaches are not sustainable for electronics manufacturers
Consumers are not optimistic that the New Year will bring many improvements in terms of supply chain shortages. Almost half (47%) believe the shortages will continue until 2022. But the shortages are expected to last even longer. Like our Supplyframe Commodity IQ fourth-quarter data showed shortages in the electronic supply chain are expected to last through the first half of 2023.
This shows that manufacturers’ current approach to supply chain risk management is not sustainable. Manufacturers must resolve to use the available data to gain better visibility and understanding of the supply chain so that they can make more informed decisions when designing the product.
“Supply chain constraints have reached an unprecedented level for over 30 years,” Flagg said. “Manufacturers cannot simply meet these challenges. To cope with current and future supply chain complexity and increasing customer expectations, manufacturers must transform their supply chain strategies using data intelligence. Manufacturers and distributors who are not yet deeply engaged in the digital transformation of their supply chains are already behind.
Supplyframe’s unmatched industry ecosystem and pioneering design-at-source (DSI) intelligence solutions are transforming the way people and businesses design, source, market and sell products across the value chain world of electronics. Leveraging billions of continuous signals of design intent, demand, supply, and risk factors, Supplyframe’s DSI platform is the world’s richest intelligence resource for the electronics industry. Over 10 million engineering and supply chain professionals worldwide engage with our SaaS solutions, search engines and multimedia properties to drive rapid innovation and leverage over $ 120 billion direct annual expenditure on materials. Supplyframe is headquartered in Pasadena, California with offices in Austin, Belgrade, Grenoble, Oxford, San Francisco, Shanghai and Shenzhen. To join the Supplyframe community, visit supplyframe.com and follow us on Twitter, Instagram, and Youtube.