Manufacturers must adapt to consumer shifts

Posted on 4 Dec 2015 by Fred Tongue

A report with research from JDA and YouGov has shown that consumers are more frequently going direct to manufacturers.

The information comes from a study of over 6,000 adults in the UK, Germany,France and Sweden and shows that 42% of those surveyed had bought products directly from a manufacturer in the last 12 months. The study also found that 30% said they had bought directly from manufacturers more now than compared to five years ago.

This change in consumer behaviour has marked problems for manufacturers with 43% of those surveyed saying that a lack of desired delivery or collection options would stop them buying directly from a manufacturer. A seperate 43% also said that they were frustrated when manufacturers didn’t have their desired item in stock.

Compared to more traditional retailers, 40% said the experience was better shopping with a manufacturer than with a non manufacturer. The main reasons for shopping with a manufacturer were:

  • Product availability 39%
  • Product warranty 32%
  • Product choice 31%
  • Product knowledge/experience 24%

When shopping directly with a manufacturer 68% had gone in-store to make there purchase compared to 53% going online. This goes to show that despite being online, many manufacturers don’t have a purchasing option on their sites.

The research also found that manufacturers could also make improvements in connecting with the customer. After shopping online 38% believed that manufacturers had used their costumer data well after buying online with a manufacturer in the last 12 months. The research also shows that over that same period 32% of repondents said reviews posted on sites and social media had influenced their purchasing decision.

Hans-Georg Kaltenbrunner, VP Manufacturing Strategy EMEA, JDA.
Hans-Georg Kaltenbrunner, VP Manufacturing Strategy EMEA, JDA.

Hans-Georg Kaltenbrunner, VP Manufacturing Industry Strategy EMEA, at JDA, remarked, “In order to meet the demands of today’s digital consumer, manufacturers need a digital supply chain. Digital capabilities in planning, manufacturing and fulfillment will allow physical supply chains to be configured in a way that can support both manufacturers’ traditional and direct channels. If manufacturers ignore or take only a piecemeal approach to their direct channel, it will prove unprofitable and may damage brand reputation. Those that invest in it, supported with the necessary supply chain planning and execution capabilities, have the opportunity to improve profitability and create positive customer experiences.”