MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Elementum, the real-time supply chain platform that’s connecting the dots of the $25T global product economy, today released the results of a new survey on brand loyalty and consumer stress about potential holiday product shortages. The survey found that parents are especially concerned about holiday shortages, that product shortages drive a fear of missing out among Millennials, and that 63 percent of Americans would consider switching favored electronics brands if a shortage occurred. These insights into consumer behaviors can be critical indicators of how companies ultimately perform this holiday season.
The survey was conducted online within the United States by Harris Poll on behalf of Elementum from October 20-24, 2016, among 2,001 adults ages 18 and older.
Gotta Catch ‘Em All… Before they Sell Out
Much like Santa’s workshop, many product companies spend the year preparing for the holiday shopping rush. By December, their work has either payed off, or been wasted on inventory issues. One of the biggest headaches that plague big sellers are stockouts. And the public knows it: nearly half (48 percent) of parents of kids under 18 worry about product shortages this holiday season. Twenty-eight percent are specifically worried about the availability of popular kids’ toys like Pokémon, Furreal Friends, and Hatchimals. 21 percent are concerned that retailers will run out of toys inspired by recent movies (like Star Wars: The Force Awakens). And other gadgets are eliciting the same fears: as another 15 percent of parents worry about smartphone shortages.
Millennials have FOMO
Emotions about product shortages are running high. Forty percent of Americans admit to feeling alarmed when they hear about product shortages in the media/in stores for a product they want to purchase. Among Millennials (ages 18-34), that number shoots up to 56 percent. In addition, 28 percent of Millennials specifically fear missing out on buying the product.
New products depend on consumer loyalty and trust to meet sales expectations—but that brand loyalty is tenuous at best. 63 percent of Americans admitted they would be somewhat to highly likely to look for an alternative brand if a product shortage affected their favorite electronics brand. Only 14 percent said they would stay loyal to their favorite brand in the event of a shortage.
In the case of a recall on a product they bought, American consumers are even less loyal:
- 74 percent would lose trust in their preferred electronics brand
- 38 percent say it would take more than a month for that trust to recover
- 12 percent said it would take more than a year for trust to recover
- 9 percent said the brand would never regain their trust
Women were statistically more likely than men (14 percent versus 9 percent) to take more than a year to rebuild trust in the brand. 81 percent of Millennials said that a recall on a product they bought from their favorite electronics brand would cause them to lose trust in that brand.
It’s time to upgrade your supply chain. How? With a real-time platform that unifies procurement, logistics, manufacturing, and inventory operations. Elementum maximizes supply chain velocity through the world’s Product Graph™, providing a full picture of the global product economy for smarter, more proactive decision-making. Get actionable insights and early warning signals to assign, collaborate on, and resolve issues—from the C-level to boots on the ground. Elementum’s customers include Fortune 500 companies spanning the automotive, healthcare, food & beverage, industrial, consumer, and technology sectors. For more information, visit www.elementum.com.
This survey was conducted online within the United States by Harris Poll on behalf of Elementum from October 20-24, 2016, among 2,001 adults ages 18 and older. This online survey is not based on a probability sample, and, therefore, no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Gabrielle Jasinski.