Back to SCHOOL Supply Chain

 

    Hello Readers, This is Muhammad Jassim from Amrita School of Business Coimbaotore. Welcome to my fifth blog on Supply Chain , Hope you find it interesting and insightful. This week blog is all about Back to School Supply Chain.

      The minute we’ve all finally settled into the slower pace of the summer months, the signs go up: Back to School! Whether you have children who are getting ready to go back or whether you are thinking wistfully of your own school days, the back-to-school supply chain is an amazing feat that affects most of the retail industry. It is actually the second biggest shopping season of the year.

        While we can all appreciate the magic of new pencils and notebooks, looking at this shopping season as a supply chain professional requires a different perspective – and offers a few surprises about buyer preferences and retail industry impact.

Brick Beat Mortar.

        Before looking at the report, I would have expected the vast majority of back-to-school shopping to be done online. Not only is that not the case, the trend towards online spending seems to have slowed and remains less than half. For the last 5 years, the percentage of back-to-school shopping done online has been as follows: 2015 36%; 2016 46%; 2017 46%; 2018 49%; 2019 49% (K-12). Given the contained percentage (and growth) of online demand, perhaps due to the personalized nature of clothing and shoe shopping, the advantage may actually go to discount or department stores that can accommodate consumers’ desire to order online and pick up in store, where the rest of the purchase can be competed in person.

 Time is Everything.

        Amazon, whose Prime Day event directly affects the back-to-school shopping season, faces off with more traditional retailers like Target and Walmart in a tight competition for consumer dollars. Some analysts, including Forbes contributor Bryan Pearson, credit Prime Day with starting the shopping season earlier despite general consumer expectations for quick, free last minute shipping that might otherwise lead to spending delays. This extended timeframe has effectively created a bigger pie for the retail industry, as other players piggyback on Amazon’s timing with back-to-school events of their own. Pearson also points out that consumers who participate in Prime Day spend an average of 16-17% more during the back-to-school season than those who don’t, indicating that a longer shopping season leads to higher spending levels overall.

Happy Learning ! Do share your views.