- 86% say the rise of the COVID-19 Delta variant is increasing their supply chain concerns
- 68% are scared that they will never end
- 82% say delays and shortages could cause them to cut ties with favorite brands
Gurugram: Recent supply chain delays and disruptions have negatively impacted the lives of Indians, leaving many feeling frustrated, angry, and scared that the disruptions will never end, according to a new study by Oracle. The study of more than 1,000 Indian consumers found that worries about more delivery delays, product shortages, and disruptions are worsening across the nation due to the rise of the COVID-19 Delta variant, and that people are looking to brands to help settle their concerns.
Supply Chain Disruptions Are Impacting Indians in Negative Ways
Over the past year, supply chain disruptions have become top-of-mind for nearly all Indians and have had a widespread impact on day-to-day life.
- Almost half (83 percent) of people admit they never thought about how products were delivered prior to the COVID-19 pandemic, but now (77 percent) considers the supply chain when making a purchase.
- 93 percent of people have been negatively impacted by supply chain issues over the past year, with many Indians unable to purchase certain items due to shortages (45 percent), forced to cancel orders due to delays (53 percent), and even rationing essential items out of fear of running out (41 percent).
- 61 percent of people admitted they've blamed missed gifts for special occasions on supply chain issues and that they have hurt people they care about as a result (25 percent).
- Men (53 percent) are women (69 percent) to blame the lack of a gift on supply chain issues. Men (21 percent) women (30 percent) to cry over not being able to buy the items they need.
- Supply chain disruptions have left people feeling frustrated (51 percent), impatient (45 percent), anxious (41 percent), and angry (40 percent). Nearly (50 percent) are concerned that supply chain shortages will prevent them from being able to buy what they need, and (48 percent) are worried it will ruin their holidays.
People are Scared That the Supply Chain Disruptions will Never End
Indians are increasingly worried that supply chain disruptions will continue to negatively impact their futures with many seeing no end in sight.
- 74 percent of people are concerned that ongoing supply chain disruptions will ruin their life plans, such as birthdays, holidays, trips, and purchasing necessary items like school supplies.
- 86 percent are more concerned now with the rise of the COVID-19 Delta variant.
- (68 percent) of people are scared that supply chain disruption issues will never end.
- 93 percent of people believe supply chain disruptions will continue to negatively impact their futures. People are most fearful of out-of-stock items (49 percent), challenges in buying seasonal products (46 percent), and increased stress and anxiety while shopping (39 percent).
- 94 percent of people plan to change their buying behavior moving forward, including buying in bulk and stocking up on items (36 percent), purchasing gifts earlier to allow for delays (39 percent), and paying closer attention to global shortages of items they regularly use (38 percent).
If Brands Don’t Prepare for Disruptions, They’ll Risk Losing Valuable Customers
The supply chain has become a critical part of people’s purchasing decisions. Organizations that don’t prioritize their supply chains risk declines in customer loyalty and revenue.
- 92 percent of people are willing to pay a premium for smooth and timely delivery of their items.
- 53 percent say delays would cause them to cancel their order and (82 percent) say delays or shortages would even cause them to stop buying from a brand entirely.
- 49 percent of people would stop buying from a brand after 1-3 delays or disruptions.
- Most people (87 percent) understand that supply chains are complex
- People want brands to provide more regular updates about shipping status (57 percent), be more transparent on inventory (54 percent) and potential supply chain issues (54 percent), and offer refunds (53 percent) or discounts (48 percent) if items are delayed or cancelled.
- 94 percent of people would trust and be more willing to buy from a company if they knew it used advanced technologies like artificial intelligence to manage its supply chain.
“The pandemic has highlighted the vulnerabilities of global supply chains and prompted all marketers to rethink their current policies The overall economic environment has influenced customer preferences and spending habits. Some of the insights are extremely concerning, and it is abundantly clear that supply chain issues must be addressed because these are directly correlated with customer satisfaction and purchasing habits. Stakeholders who work to develop shock-resistant, integrated, and customer-oriented supply chains will significantly gain and have an edge over others, allowing them to thrive in the long run. The most important aspect will be to win customer’s trust, which is something every retailer strives for regardless of the nature of their business.” said Hirak Kayal, Oracle Applications Development, JAPAC
