As the $2 trillion global wellness market evolves, Gen Z and millennials are turning up the heat on food and beauty brands, blurring category lines, demanding personalization, and prioritizing function…

The United Parcel Service (UPS) revenue slipped in Q2, with its international segment mitigating the decrease. Part of that decrease came from reducing the volume of parcels UPS processes from Amazon. Director and CEO Carol Tome told investors on the carrier’s Q2 earnings call that its financial results “reflect the impact of a complex macro environment, driven by ever-evolving trade policies, as well as the significant actions we are taking to strengthen UPS’ competitive and financial positioning.” She cited data from consultancy firm McKinsey & Company that indicated consumer spending on discretionary categories, including restaurants and automobiles, outpaced growth in essential items for the first time in three years. Additionally, she said, manufacturing activity in the U.S. “remains soft.” In turn, those macroeconomic factors impacted market demand. “The overall U.S. economy demonstrated continued resilience, but our sector, specifically the U.S. small package market, was unfavorably impacted by U.S. consumer sentiment that was near historic lows,” Tome told investors.

The scarcity is real, and for most retailers – the occasional backorder went from a low-grade and fairly infrequent problem to major outages, much of the time, and backorders of 3-4 months are increasingly common. Customer reactions range from anger and frustration to panic that they won’t get what they need. Believe it or not, it’s possible to make the best of a bad situation. A brand’s response to trying situations: returns, backorders, and out-of-stocks, can make or break your customers’ perception. So what moves make sense? First, your customer has an immediate need. So when possible, sell what’s available today (SWAT). Something that can fill that is far superior to a perfect solution that’s available in 4-6 months. You need a reliable inventory system, and a knowledgeable staff that’s empowered and capable to direct customers to the right solution that’s available on hand, or smart website algorithms that can suggest an appropriate alternate product. But what if offering an alternative product is not possible? Then it becomes about managing expectations, communicating early and often, and empathizing with the customers’ likely frustrations. More at: https://www.brandunited.com/article/supply-chain-woes-communicating-customers/