AND PRICES GLOBALLY THERE
DISCUSSES ELAINE KWAN MANAGING
PARTNER AT QUANTIFIED LANE
WELCOME TO THE SHOW SOME
CONTACTS ON CHINA'S ENERGY
PRODUCTION AND WHY I IT'S IN
THIS POWER. CRUNCH THAT WE'RE
SEEING NOW.
>> THANKS FOR HAVING ME AND ALL
I THINK THAT WE'RE WHAT WE'RE
SEEING RIGHT NOW IS FRANKLY A
HUGE CRISIS WITH
GLOBAL IMPLICATIONS. NOW THERE
ARE MANY FACTORS THAT ARE NOW
CURRENTLY AFFECTING WHAT'S
GOING TO HAPPEN IN THE NEXT
COMING
MONTHS, BUT I THINK ONE THING
THAT WE CAN ABSOLUTELY THINK
ABOUT IS THE FACT THAT THIS
HOLIDAY SEASON IS JUST GOING TO
BE A PREVIEW OF WHAT'S TO COME
IF THESE
ISSUES PERSIST.
>> HOW IS THE GOVERNMENT
STEPPING IN TO EASE THESE
ENERGY PRESSURES.
WE ARE SEEING THAT THEY ARE
TAKING A VERY
STRONG ACTION AND THEY ARE
LIMITING WHAT CERTAIN FACTORIES
IN CERTAIN CITIES ARE ABLE TO
DO HOWEVER IT IS QUITE
AN IMPACT ON THE LIVELIHOODS
AND THE LIFESTYLE LIVING
CONDITIONS OF
THOSE AFFECTED.
>> I WANT TO TALK ABOUT THAT
BECAUSE I'M SURE A LOT OF
PEOPLE SOME VIEWERS THAT MIGHT
BE WATCHING ARE THINKING HEY
THIS IS CHINA'S ENERGY CRISIS
THAT HAS NOTHING TO DO
WITH US. BUT WHAT WHAT EFFECT
WILL IT HAVE ON SHIPPING AND
PRODUCTION GLOBALLY AROUND THE
WORLD.
>> THAT'S A GREAT QUESTION.
I THINK FIRST AND FOREMOST
WE'RE ACTUALLY GOING TO SEE A
FEW SPECIFIC AREAS AFFECTED
IMMEDIATELY AND OTHER AREAS
AFFECTED LONG COURAGE
IMMEDIATELY I THINK WE CAN
EXPECT THAT PACKAGING FOR
DELIVERIES AND SHOPPING THIS
YEAR IS GOING TO GET VERY
CREATIVE. I THINK WE'RE GOING
TO SEE A HEAVIER EMPHASIS ON
IN-STORE PICKUP INSTEAD OF LAST
MONTH DELIVERY SO WHEREAS
CUSTOMERS ARE USED
TO EXPECTING. PRODUCTS SHIPPED
AND DELIVERED WITHIN 2 DAYS IF
ORDERED ONLINE I THINK WE'RE
GOING TO SEE INCENTIVES TO GO
IN DEPTH UNDER STORE WHICH
WOULD ALLEVIATE THE NEED FOR
CARDBOARD PACKAGING OF JUST
CURRENTLY SEEING
GREAT CONSTRAINTS.
>> WHAT SPECIFIC INDUSTRIES OR
PRODUCTS ELAINE DO YOU THINK
WILL BE IMPACTED.
WELL I THINK THAT FIRST AND
FOREMOST ELECTRONICS IS GOING
TO SEE A FAIRLY
LARGE IMPACT AND I THINK THAT
THE PRODUCT CATEGORIES OUTSIDE
OF THAT ARE GOING TO SEE A
MARKET GIFTING CHOICES THIS
HOLIDAY SEASON IS GOING TO GET
CREATED. I WOULD SAY PRODUCTS
MADE IN AMERICA ALSO WILL SEE
MARKET ADVANTAGE ONE THAT WE
HAVEN'T EXPERIENCED RECENTLY
HOW THAT'S INTERESTING AND
SOMETHING I DIDN'T THINK ABOUT
WHAT ARE THE LASTING EFFECTS OF
THIS CRISIS LANE TO HOW LONG IS
A BETTER QUESTION HOW LONG DO
ANTICIPATE THIS TO CONTINUE.
WELL WHILE I KNOW ENERGY EXPERT
I THINK WE CAN EXPECT TO FEEL
THE REPERCUSSIONS. WELL INTO
2022 AND POTENTIALLY BEYOND
ESPECIALLY A SOLUTION.
WE ALREADY PREDICT THAT SUPPLY
CHAIN ISSUES RELATED TO COVID
WILL PERSIST FOR THE NEXT
3 TO 5 YEARS. SO THIS IS REALLY
ONE MORE DOING ENOUGH ALREADY
PARTYING
LOCAL ECOSYSTEM.
>> WHAT ADVICE YOU HAVE FOR
BRANDS WHO ARE ALREADY
STRUGGLING WITH THE STRAIN
GLOBAL SUPPLY CHAIN ON HOW TO
NAVIGATE
THIS CHALLENGE.
>> AND SO I WOULD SAY THERE ARE
4 IMPORTANT THINGS FOR BRANDS
AND WE CHOSE TO ANTICIPATE FOR
THIS
HOLIDAY SEASON. NUMBER ONE IS
THAT SHIPPING DELAYS ARE GOING
TO CONTINUE TO HAVE
AND FROM THE AIRPORT TO THE
WAREHOUSE NUMBER 2 IS THAT
TRANSPORTATION ISSUES DUE TO
INCLEMENT WEATHER AFFECTING DC
LAST
MONTH DELIVERIES WILL LIKELY
OCCUR NUMBER 3 IS THAT
INVENTORY SHORTAGES DUE TO
THESE CONSTRAINTS ARE GOING TO
PERSIST LIKELY INTO THE NEW
YEAR. AND NUMBER 4 IS THAT COST
INCREASES DUE TO SOURCING RAW
MATERIALS AND INGREDIENTS
ARE LIKELY GOING TO STAY AND SO
WITH THAT SAID WE WOULD
ABSOLUTELY ADVISE THAT BRANDS
AND RETAILERS INCREASE YOUR
COMMUNICATION WITH YOUR
CONSUMER LET THEM KNOW WHAT'S
PLANNED TO BE OUT OF STOCK OR
STACK STOCK SO THEY CAN PLAN
ACCORDINGLY AND I WOULD SAY
FOR CONSUMERS PLANNED BY NOW
PLAN
TO BUY THE LIMITS ARE KEEN AND
IF YOU SEE A PART OF THAT YOU
NEED OR WANT DON'T WAIT FOR
SALE NOT FOR CYBER MONDAY, NOT
FOR
BLACK FRIDAY.
>> YOU US AS A CONSUMER COULD
EXCEPT EXPECT DELIVERY DELAYS
WHAT ELSE SHOULD WE EXPECT AS
CONSUMERS AND SHOPPERS.
>> I WOULD SAY THAT PRICING IS
GOING TO BE SOMETHING WE WILL
RADICALLY SCENE CHANGE IN SHIFT
OVER THE COMING MONTHS. WE'RE
ALREADY EXPECTING PRICE
INCREASES IN SHE WON OF
NEXT YEAR. SOME EVEN PLANNED
FOR LATER THIS YEAR AS A RESULT
OF COST INCREASES FOR
TRANSPORTATION
AND SOURCING BUT COMBINED
WITH HIS ENERGY PRICES WHICH
MAY CONSTRAIN PRODUCTION NOW WE
HAVE MULTIPLE FACTORS AFFECTING
PRODUCTS APPLY FOR THE HOLIDAY
SEASON.
>> DO YOU THINK THIS WILL EASE
NEXT YEAR AROUND THIS TIME
>> AND SAY THAT THE KILLERS AND
BRANDS ARE CERTAINLY
TRYING TO HOLD AND FRANKLY TAKE
ON THE RIGHTS OF THESE COST
INCREASES THEMSELVES DIRECTLY
SO AS NOT TO AFFECT THE
CONSUMER.
HOWEVER, GIVEN HOW HOW HOW MUCH
THESE RETAILERS ARE HANGING BY
A THREAD IN
SOME CASES. I WOULD RECOMMEND