CES: Retailers Must Cop Price Rises Concern Over 2022 Products
Suppliers to the CE industry are facing a major dilemma as tens of thousands of retail buyers stay away from CES 2022 due to COVID restrictions resulting, in questions about the viability of a new 2022 product.
Another big issue is price rises with brands telling ChannelNews that retailers “have to wear the cost of price rises of up to 25% coming in 2022”.
Several of the brands at CES are holding back press releases because they are uncertain as to whether their new 2022 which they are unable to show to buyers at the show, will be picked up when they do one on one visits with retailers locally.
Normally manufacturers design a product, show it to retailers and if they get orders at CES they move it into production.
One major brand who did not want to be named said “New designs in particular new product innovation is often driven by new processors or processor innovation. During the past year it’s been impossible to get chips let alone new generation processors.”
“This is having an impact on what new products a Company can deliver resulting in a lot of the new 2022 CES products being design variations of last years products”.
Several Australian distributors that are at the show told ChannelNews that it’s going to be tough getting a fix on new products for 2022 because so many brands have chosen to not attend the Las Vegas event.
There is also major concern about price rises with several brands telling ChannelNews that prices are set to rise by up to 25% because of material price rises and shipping cost.
One local executive said “Retailers have to absorb these cost rises. Prior to the holiday season retailers were pushing brands to absorb price rises this cannot happen in 2022”.
Another major brand executive said “We have grown our online operation in Australia by over 500% and if CE retailers keep pushing back against price rises we will simply sell direct as we have no other choice because suppliers like us are not prepared to absorb the cost of price rises”.