Supply problems killing brand loyalty
Supply problems killing brand loyalty
“ This will deliver a detailed understanding of what ’ s the best product , inventory level and location and channel , at the right time for the right consumer . It will change the inventory accuracy discussion in a dramatic way .”
Joelle Dove agrees that it has never been more important for retailers to guarantee consumers ’ favorites are in stock .
“ Around 86 % of consumers bought private brands for Christmas gifts this year , so it ’ s important retailers meet this demand ,” she
Supply problems are having a profound effect on brand loyalty and customer behaviour , research from McKinsey reveals , with product availability the single most important purchasing factor .
Just 13 % of respondents who faced outof-stock products in the past three month say they waited for an item to come back in stock , the report shows . About 70 % switched retailers or brands .
For its US Holiday Shopping Report 2021 , McKinsey surveyed 2,095 shoppers on their spending habits during the pandemic , and combined this with third-party data showing actual spending behaviour . The twin-prong approach provides a fascinating picture of consumers ’ evolving attitudes and behavior .
The report shows shoppers ’ biggest concern is stock running out , and that this means they are more willing than ever to switch brands or retailers , especially when items are unavailable .
McKinsey says overstretched supply chains , inventory shortages , and a lack of available labour all pose significant problems for retailers looking to meet demand and maintain profitability .
“ For short-term inventory surprises , retailers should prioritise procuring the most essential items ,” McKinsey advises .
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