Online shopping is addicting but the popular hobby is facing a big test amid changing trends and economic turmoil. How can brands meet consumer expectations and tackle supply chain complexity?
New data from Körber’s 2023 ‘State of Shipping and Returns’ report has revealed that 90 per cent of consumers are less likely to buy from a brand again after a poor online shopping experience.
The research also showed 70 per cent of consumers are having experienced a delayed online order in the last six months.
To address how to tackle supply chain complexity to help remedy these issues and meet consumer expectations – and drive future business success – more than 200 industry leaders from Australia, New Zealand, India, China and the United States met at Körber’s annual flagship conference Elevate APAC 2023 in Melbourne last week (2-3 May).
Anthony Beavis,Managing Director, ANZ. Image: Körber
The ‘State of Shipping and Returns’ survey announced at Elevate APAC 2023 gathered insights from 2,200 consumer across eight global regions (Australia, UK, Germany, France, US, Canada, Mexico and Brazil) on their post-purchase experience between the moment they click the ‘buy’ button and when the product reaches their doorstep.
Additional findings showed that over a third (35%) of respondents who experienced delays were not provided with a reason.
With speed and convenience driving online purchase decisions, the impact of these delays on customer satisfaction and subsequent brand loyalty is significant.
How can businesses best adapt to the post-pandemic supply chain world?
Körber leadership team, customers and other industry thought leaders, including McKinsey and Company, Accenture, Super Retail Group and Zebra gathered under the event theme of ‘Find Your Rhythm’ to tackle this very question.
Darren O’Connor, Körber’s Director of Solution Delivery says it all starts with the consumer and ensuring satisfaction across the online shopping experience is critical.
“Ensuring satisfaction across the online shopping experience is critical. The findings from our latest State of Shipping and Returns survey highlight these online consumer expectations and how necessary it is for organisations to build resilient and efficient supply chains – powered by technology and digitisation – to help meet these standards, allowing them to retain customers and scale their businesses.”
Darren O’Connor, Körber’s Director of Solution Delivery
A key insight discussed at the conference was new thinking and tools focused on gamification as a way to transform a disengaged warehouse operation workforce to an engaged workflow, positively impacting businesses.
Innovations include the launch of Körber’s ‘Robotics-as-a-Service (Raas) for e-fulfilment offering for APAC customers, providing simple access to a global network of robotics service partners for every business size and industry as well as Körber’s new warehouse Unified Control System (UCS). The UCS will orchestrate AMR, people-driven workflows and classic automation systems to boost throughput and productivity, and its Order Management System (OMS), enabling order visibility across channels and actionable data.
A vital keynote from John Laing, Senior Expert from McKinsey and Company on the role of Industry 4.0, and how actionable steps – including how prepositioning inventory close to the consumer to reduce delivery times, end-to-end supply chain transparency and advanced analytics to improve forecast accuracy through the supply chain – can help safeguard against economic challenges and future-proof supply chains.
Anthony Beavis,Managing Director, ANZ from Körber says the company were delighted to be able to come together in-person with customers and other industry leaders to learn from each other and “shine a light on some of the new solutions we can offer our customers”.
“As the first in-person flagship conference for Körber down under, the conference demonstrated how the APAC region will be a major focus for our future, and the investment we are making here to support that.”
Dow climbs 400 points as trade tensions ease, Trump signals no plan to fire Fed Chairman Powell.
In Short
Stocks rose significantly on Wednesday, with the Dow up 461 points amid optimism about reduced U.S.-China tariffs.
Investors reacted positively to President Trump’s comments on trade, improving overall market sentiment after a four-day losing streak.
Stocks saw significant movement on Wednesday, with the Dow Jones Industrial Average rising by 461 points, or 1.2%.
The S&P 500 and Nasdaq Composite also experienced gains of 1.7% and 2.6%, respectively.
Initially, the Dow surged by 1,100 points due to optimism surrounding U.S.-China trade relations.
President Donald Trump indicated a willingness to adopt a less aggressive trade strategy, suggesting that the current 145% tariff on imports from China would be significantly reduced but not eliminated entirely.
Trade agreement
Treasury Secretary Scott Bessent commented on the potential for a beneficial trade agreement between the two nations, expressing a desire for joint efforts to address trade imbalances.
Market reactions reflected relief at the prospect of eased tensions, with Keith Buchanan from Globalt Investments noting that investors were hopeful the worst might be over, though uncertainties remain.
Reports indicated that the U.S. administration was contemplating reducing tariffs on China to between 50% and 65%, contingent upon mutual concessions from both countries.
Stocks affected by trade dynamics, particularly tech companies like Apple and Nvidia, showed marked increases, with Tesla’s shares rising 5% partly attributed to these easing tariff concerns.
Investor sentiment improved further when Trump reaffirmed that he has no intention of dismissing Federal Reserve Chairman Jerome Powell, a shift from his previous criticism of Powell’s leadership.
Credit card companies prepare for economic downturn; rising delinquencies prompt tighter lending despite continued consumer spending.
In Short
US credit card companies are preparing for a possible economic downturn by tightening lending and increasing reserves, even as consumer spending remains high.
While the wealthy continue to spend, access to credit is diminishing for lower-income individuals, and caution is growing among banks.
Credit card companies in the US are preparing for a potential economic downturn despite current consumer spending levels. Businesses are increasing reserves and tightening lending as delinquencies rise to pre-pandemic levels.
JPMorgan Chase and Citigroup have augmented their rainy day funds to mitigate expected losses. Retail card issuer Synchrony is applying stricter lending criteria, while U.S. Bancorp is targeting wealthier customers to reduce risk.
Although large lenders are still reporting profits, the effects of Trump’s trade war have yet to reflect in financial results. Recent data shows that Americans are spending and borrowing at a faster pace compared to last year.
Travel and entertainment
However, there are warning signs as consumers begin to cut back on nonessential expenditures such as travel and entertainment. The trend of cardholders making only minimum payments is above pre-pandemic levels.
Despite consumers showing confidence in spending in early April, banks remain cautious. They are redirecting their marketing strategies towards affluent households, recognising that the wealthiest individuals account for a significant proportion of total spending.
Conversely, access to credit is tightening for lower-income individuals, with Synchrony reporting declines in active accounts and purchase volumes. American Express, meanwhile, continues to perform well among high-income clients, with strong consumer spending growth reported.
Unemployment rates among white-collar workers remain low, offering some stability in credit card portfolios for certain issuers.
U.S. shares rebound over 2.5% amid tariff optimism, despite economic warnings and mixed global market performance.
In Short
U.S. shares rebounded significantly due to optimism over tariff negotiations, with major indexes rising over 2.5%. However, companies continue to face challenges from tariffs and uncertainty in the market, leading to mixed results overseas.
U.S. shares saw a significant rebound on Tuesday, with major indexes increasing by over 2.5%.
This recovery was influenced by optimism regarding tariff negotiations, as noted by Treasury Secretary Scott Bessent, who expressed confidence in a potential de-escalation of the trade war with China.
Despite this positive sentiment, companies are still grappling with the effects of the Trump administration’s tariffs.
Defense contractor RTX announced an anticipated $850 million financial impact, and Kimberly-Clark cited a “global geopolitical landscape” for a lowered profit outlook.
Economic forecasts
The International Monetary Fund has revised its economic forecasts for the U.S. and globally, highlighting tariffs as a factor in slower growth.
Goldman Sachs CEO David Solomon indicated that high levels of uncertainty are hindering corporate decisions and impacting asset prices, and the Institute of International Finance warned of a probable U.S. recession later this year.
Gold prices have fluctuated, retreating after reaching a record high on Tuesday, reinforcing its status in uncertain markets.
Tesla’s quarterly earnings did not meet estimates, but the company’s share price remained stable.
Concerns about President Trump’s trade policies and his remarks regarding Federal Reserve Chair Jerome Powell contributed to market volatility earlier in the week.
In trading results, the Dow Jones increased by 1,017 points or 2.7%, while the Nasdaq and S&P 500 both rose by 2.7% and 2.5%, respectively.
Treasury yields decreased slightly, and Bitcoin’s value climbed past $91,000.