Consumer ISG - Holiday Guide 2021 - Flipbook - Page 6
The Hogan Lovells Holiday Guide 2021
Will Santa’s presents get
through this Christmas?
Peter Elkin, London
With the UK preparing for its first post-Brexit Christmas,
COVID-19 flaring up in Central Europe, and demand
for products dramatically changed around the world,
supply chain issues threatened to spoil holiday plans.
Last year, local, regional and nationwide lockdowns
kept millions at home and avoiding travel to see their
families. This year the picture looks brighter, and
many families hope to resume their typical holiday
routines. However, with constant reports of shipping
delays and supply chain issues, global shortage of
workers, many shoppers are inclined to plan ahead
this holiday season, and the rest of us need all the help
we can get! Both groups are likely to be receptive to
marketing efforts during the early Christmas period
and even the Grinches among us might be thankful for
an early reminder that Christmas is coming this year.
Though late and problematic deliveries may cause
consumer rights and breach of contract claims, the
more acute risk to consumer businesses is a loss of
consumer loyalty and sales. So what should companies
do to prepare for the 2021 holidays season:
• increase the amount of stock held in the run-up
to the holidays to hedge against supply chain
delays causing stock shortages and lost sales;
• consider the availability of delivery options at times
of concentrated consumer demand such as Black
Friday (26 November 2021) and Cyber Monday
(29 November 2021);
•o
ffer incentives for consumers to shop early, including
discounts on high-value baskets that can ship in
one package;
•b
e transparent with consumers on delivery times and
publicise “last days” for obtaining holiday delivery
(with an extended amount of leeway to cater for the
added risk of delivery problems);
• s et a strategy for delivery delays and keep customers
up to date with any changes in delivery times and
expected setbacks;
•u
tilise third party “buy now, pay later” services or set
up other financing options to help consumers spread
the cost of purchases across the lead up to the holidays:
• consider
click and collect services or manage localised
delivery in-house to avoid reliance on standard
haulage services; and
• e nsure to build in leniency and flexibility in contracts
with suppliers and delivery companies to allow
for delays and problems with driver capacity.
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