Letter from America Peter Grimes welcomes the new year and looks at the positives ahead, as well as the negatives that could affect progress
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n the States, as I suspect for the UK, it is the best of times… and the worst of times… a time of promise and a time of uncertainty, Best of times cines with the surge we experienced in the number of brides shopping and buying in brick and click boutiques this last quarter will be dwarfed by the potential increase in business forecast for 2022 and extending into 2023, partially based on the predictions that wedding numbers for the two coming years will vastly exceed 2021 numbers. Worst of times in that costs throughout the system are dramatically increasing, including labour, goods, freight and shipping, with the added aggravation of product availability and shipping delays. Freight costs in particular, remain
volatile, dramatically increasing both for domestic and international, with recent ‘capacity surcharges’ for international freight adding $15-22 per kilo. In addition to escalating rates, labour difficulties continue to be an issue both in increasing costs and in flow of production as factories increase rates for components and finished goods. And it is not just Chinese production; these same issues affect India, Vietnam and Myanmar, with no predictable end in sight. In reaction, manufacturers struggle to absorb what they can before passing along increases, and/or adding transportation surcharges to invoices; stores pass along what they can within the price of the gown, while appeasing a world-weary and anxious bride.
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Light at the end of the tunnel? However, in my optimistic view, the best of times and promising future clearly outweigh the drag of the worst of times and uncertainty of what variant is next... and what impact it will have on our businesses. The reasons for my optimism include these: ✔ Consumers are very aware of shipping delays and rising prices, which provide a legitimate and added incentive for brides to make their buying decisions sooner. ✔ During this period, so different than pre-COVID, we are not seeing push back from brides regarding the price of their gowns. ✔ Online direct-to-consumer bridal resources are facing the same issues, but do not have the infrastructure and face-to-face contact you do that could help carry them through. ✔ Shipping delays may serve to drive brides into your store, where they can experience an actual person to assist, guide and answer their questions.
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