Summary
We have moved on to the October quarter of 2021. We are getting to terms with the pandemic. We have survived an era of lockdowns and are coming to grips with vaccinations and waves of attacks from the virus. Logibee’s research into the market outlook for the quarter beginning October has revealed that there are superb opportunities waiting to be utilized. But also, there are challenges to be overcome. Here’s a glimpse into what we learnt.
How is the Consumer Outlook for the quarter beginning Oct 2021?
The holiday season has started in India with Dussehra kicking off and Diwali in the offing. These are two biggest consumer purchase seasons. Also, Halloween season at the end of October and Christmas purchases are around the corner across the globe. Potential wise, this is the best time of the year for the Retail, 3PL and D2C Brands. Let’s look at some expectations for the market
Research is suggesting that spending patterns will be more reflective of 2019. However a few changes in the consumer psychology are definitely noteworthy:
So, there is enough reason to believe that this will be a golden quarter. However, what remains to be seen is how retailers, 3PL players and D2C brands would leverage this period to create wealth for themselves. However what remains to be seen is how each of these sectors are going to capitalize on this season to carve a niche for themselves and get a share of the pie
Market Outlook for Retail in the quarter beginning October
The pandemic has made more retailers come online and experiment with online order and delivery models. Research says that, for the same period in 2020, retailers with creative pickup options like curbside, in-store, drive-through, etc., had 60% more growth than those that didn’t have these options, especially in the last five days before christmas. In the list of evaluation criteria that consumers use to see if their online experience has been good or bad, one that matters a lot is the delivery. If customers are ordering online, here’s what they expect from you, from the perspective of delivery:
Market Outlook for 3PL in the quarter beginning October 2021
With the boom of ECommerce, Consumers willing to spend time and money in online purchases and the success of some of the early entrants into the ECommerce space, retailers and D2C brands have tasted blood. They are now planning more Supply Chain Investments in 2021. Research shows that Order fulfilment (e.g., last-mile delivery and curbside pickup) will see the heaviest investments, followed by warehouse management and procurement. This is a great time for you, if you are in the 3rd Party Logistics space. Many retailers and D2C brands would think that having and managing their own fleet is not possible in the short run. So, either to try how this works initially or to immediately cater to pent up consumer demand they are likely to partner with you. Here’s what your customers will expect from you:
Market Outlook for D2C Brands in the quarter beginning Oct 2021
Research suggests that globally 52% of 25-34 year olds will buy directly from international online brands. This number can go upto 63% in India and Africa. With the festive season in the offing, it is likely that your D2C brands will see greater traction provided you get your act together and do some smart marketing. For instance, consider the following two facts unearthed by consumer research::
The key here is that you will have to absorb the cost of free shipping. If the order ticket size increases, then you can absorb the cost and still make profits. As pointed out earlier, customers expect free or very minimal cost shipping! Further if you have your own fleet, it would make sense to use your brand on the fleet and on packaging. Helps local marketing.
Conclusion
The festive season in this quarter combined with people wanting to buy stuff for their family and friends is beginning to look better than in 2021. But Retailers, 3PL Service Providers and D2C Brands have to build their muscle in delivery operations to take full advantage of the situation.
