D2C manufacturing in a recession: a 2022 review of holiday peaks
From recession to the Covid-19 crisis, a cascade of events has put tremendous strain on the global supply chain and economy. Download the full report based on data from real D2C manufacturers to explore key trends and actionable insights that will help you navigate economic volatility.
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Summary
In 2022, the global economy experienced its toughest set of challenges since World War II. While the residual impact of the COVID-19 crisis lingered, political unrest spurred global inflation to the highest levels since 2001. And for the next two years, it’s not expected to drop to prepandemic levels.
Combining expert consumer and market research and data from real D2C manufacturers, the report is concluded with actionable insights that can support D2C manufacturers as they continue to navigate economic volatility.
About the report
Key trends and observations from the report
Contrary to the gloomy economic landscape, Shopify reported 17% more Black Friday sales in 2022 compared to 2021. And consumer research published by PwC cited that 74% of respondents planned to spend as much or more in 2022 than they did the year before. Consumer behavior aside, profitability and success for D2C manufacturers and retailers is still threatened by inflation, rising material costs, and more.
Key insights when looking at D2C manufacturers in seasonal industries
Black Friday and Cyber Monday are characterized by soaring online discount rates, particularly in seasonal industries where discounts range between 11-32%. E-commerce and D2C manufacturing businesses often use this as an opportunity to ride the wave of high demand. At the same time, they are also forced to compete with lowball offers for the same products.
- Forecasting demand and understanding the impact of pricing is an ongoing challenge for D2C manufacturers.
- D2C manufacturers wait until very close to peak sales periods to prepare their software and struggle to update it.
- Preparation is key to ensuring delivery despite other challenges that come with global supply chain issues.
The biggest challenges for
D2C manufacturers in
2022 and beyond
Forecasting demand and understanding the impact of pricing is an ongoing challenge for D2C manufacturers that won’t be going anywhere based on the current global economic outlook.
Issues with fulfilling sales orders during demand surges are resolved with the rightpreparation
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