More than $65 billion worth of holiday gifts are at stake as the supply chain crisis continues to delay shipments of goods all over the world, according to the latest analysis from Quincus, a leading global provider of AI-driven supply chain optimization technology, and the Centre for Economics and Business Research (Cebr), the global economics think tank.
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Quincus and Cebr measured the value of goods in the global economy across three categories – clothes, consumer electronics and toys – the sectors that account for the majority of holiday gifts.
The research shows that the value of gifts in the global holiday supply chain is forecast to be worth $65.1 billion this year. With current global supply chain uncertainty, businesses have no knowledge of whether those gifts will arrive in time or remain in limbo, creating great economic uncertainty in place of the expected seasonal cheer.
The data also show that the current global supply chain log jam has caused the expected value of gifts shipped for the holidays in 2021 to fall slightly compared with the same gifts in the same period last year. This finding indicates that the hold-ups are already having a real dampening effect on the global economy.
“With $65 billion worth of gifts locked up in this global supply chain it is clear there is a lot at stake,” says Katherina Lacey, Quincus co-founder and Chief Product Officer. “The fact that we are not seeing the increase that we would expect indicates that the global supply chain crisis is having a cooling effect on the global economy at a crucial time.”
Nina Skero, Cebr Chief Executive, added, “Our research highlights the ongoing supply-side disruption the global economy faces, a key macroeconomic theme throughout much of the pandemic. As the global economic recovery continues, supply chains are expected to face additional pressure as businesses attempt to satisfy increasing demand levels.”
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To find out more read the full report: The Global Holiday Supply Chain, How Much is at Stake?
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Key Data: |
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Category |
Estimated value of 2021 holiday supply chain |
Percent Change |
|
Consumer Electronics |
$30.6 billion |
+2.3% YoY |
|
Clothing |
$33 billion |
-2.1% YoY |
|
Toys |
$1.4 billion |
-2.7% YoY |
|
Overall |
$65 billion |
-0.1% YoY |