To shift excess stock, brands are adopting an offensive strategy, with over half (52%) claiming they would invest more in their marketing despite the economic decline. In contrast, just 16% said they were cutting back, suggesting those that do look to advertise may encounter higher competition for advertising space than they anticipated.
“Through the pandemic, brands were hampered by a lack of stock, and our survey shows that plenty in the consumer electronics sector have overcorrected,” said Vladi Shlesman, managing director, EMEA at Rithum.
“Excess stock has a significant cost to businesses and as such brands will undoubtedly be looking for ways to shift it. One way retailers can deal with this issue is by expanding their market channels. Contemplating a broader channel mix doesn’t necessarily mean using new, unfamiliar channels, it can mean simply exploring the avenues for global selling within the platforms you already use. This enables your business to reach new territories without the risk of taking on a whole new channel.
“Additionally, many retailers are scaling back on the inventory that they buy, and instead they’re leaning into models where they don’t need to own the inventory, like drop ship and marketplace models. This enables them to adapt more quickly to demand patterns, maintain profitability and get consumers the products they want without incurring the potential costs and headaches of having excess owned inventory.”
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