Consumers to face higher prices this festive season, says Salesforce
CRM global leader Salesforce predicted that consumers would face higher prices this coming Festive Season.
Given Majola | IOL
The firm announced new consumer insights and predictions for the 2021 holiday shopping season.
Once again, the company said it expects digital sales to top $1 trillion (R15.06 trillion) globally, but consumers, retailers, and suppliers were predicted to face rising costs and decreased inventory due to pressure on the global supply chain.
The impact of the worldwide pandemic on digital shopping habits was expected to persist. Though the rise in online commerce may not compare to last year's historic 50 percent surge, total sales were expected to reach record rates for the upcoming holiday season.
Salesforce forecasted a 7 percent year-over-year overall growth in global digital commerce for November and December (slowing down from 50 percent year-over-year growth of last year. Total digital sales were expected to reach a record high of $1.2 trillion globally, and digital commerce growth would be driven by a 20 percent rise in consumer prices despite fewer global (-2 percent) holiday orders expected.
Despite this global rise, the market for retailers, suppliers and consumers were said to have become more challenging. Manufacturing capacity, logistics costs and labour shortage have become pressure points in the industry which was likely to cause higher retail prices for merchandise. On top of that, product availability was likely to decrease, replacing shipping delays as the season’s biggest spoiler.
Nevertheless, the rise in prices and costs remained unlikely to deter consumers from spending this festive season, the first that resembled relative normality in two years.