As the Omicron variant of Covid-19 has spread faster than any variant, many supply chains and distributors have felt the effect. Although experts are predicting that sales will continue to grow and not be impacted by this variant, tighter restrictions and shutdowns are occurring. Many businesses have not seen their sales impacted but there is a strong prediction that supply and acquiring products will remain to be an issue.
As these issues continue to grow without allowing production to resume back to pre-pandemic levels, it is expected that inventory will be difficult to acquire, and the prices of these products will rise again. There is as mix of conflicting ideas as to how consumers purchasing habits will be affected by these new restrictions. The future of supply and how pricing is going to be set is going to be determined on how consumers will behave with these new restrictions. If there is another rise in demand and higher spending, inflation will occur and prices of production, shipping and supply grow higher. If consumers slow in their spending habit the opposite will occur, helping alleviate the backlogs at ports and production facilities will be able to restock to comfortable levels again, causing prices the level out in the long run. Either of these events will create a different type of problem for suppliers and distributors whether it causes a loss of profits and slower sales, or if the current supply issues persist or worsen.
These factors put distributors in a tough position, as they are unable to take precautionary steps to secure inventory or accurately predict upcoming emerging trends in the market. The best way to solve these issues are having consumers reach out with their upcoming or predicted products that they will need to keep their personal lives and businesses running. With all these issues, the one that is hardest to manage is trying to keep pricing at a reasonable price is also becoming a difficult challenge. With all these factors, there is one thing that the industry does know, and that is how to keep consumers interested with a large choice of products and how to persist through these difficult times to get customers the products that they so desperately need, even if it takes a little longer with all these obstacles in place.
Questions? Need help finding the right promotional product? Stop searching and allow us to help.
Head Office: 740 Huronia Road, Unit 12
Barrie, Ontario L4N 6C6
Inquiry@tsgbrandedsolutions.com
Fax: 905-326-6303
Copyright 2024© | TSG Branded Solutions | Powered by WebXpertz.ca