Media Markt, Leroy Merlin and Beko prepare for a ‘Black Friday’ marked by the supply crisis

Media Markt, Leroy Merlin and Beko prepare for a ‘Black Friday’ marked by the supply crisis

Most companies will assume price increases in raw materials without passing them on to the final consumer.

The supply crisis, mainly in China, is putting FMCG companies to the test. So much so that there has long been a fear of supply chain collapses and longer delivery times. Fear that grows if we take into account that there are three major consumer campaigns before the end of the year: the ‘Singles’ Day’, the black friday and Christmas.

The million dollar question is: Will there be problems buying the products we want without delays or price increases? In general, it does not seem that problems are going to occur thanks to the strategy that some companies such as Media Markt have followed.

The chain has implemented one of the lessons learned during the pandemic: plan ahead. For example, with the lack of chips now orders are placed 20 or 25 weeks in advance when before there were eight.

“There are global situations that have generated tensions in emblematic telephony products or consoles, but there will be no lack of supply of articles for the campaigns of black friday and Christmas”, advanced the director of purchases of MediaMarkt, Samuel González, during his speech at the 36th edition of the Congress of Great Consumption that is celebrated in Barcelona.

This is “optimistic” regarding both campaigns, thanks to the full opening of the establishments that the company expects this year, compared to the restrictions that were experienced in 2020. Despite this, the company recognizes that “we are not alien in installments or because an iconic product may be missing”.

For Beko’s Marketing Director, Manuel Royo, “the positive inertia of the market will continue in the black friday and Christmas”. Royo explained that the consumer has already assimilated the Black Friday campaign as the time to make purchases ahead of the Christmas holidays and stressed that “the stabilization that we are already experiencing in supply will help to have sufficient supply.”

Leroy Merlin has it much easier. According to its director, Eduardo Nussio, 84% of purchases are made in Spainso the tensions in the chains affect them less.

The Samsung B2C Sales Director, Daniel Molero, advanced that in these key campaigns at the end of the year “there may be fewer acts of purchase, but they will be of more value”. Molero also highlighted that during the black friday (November 26) the consumer will mainly look for 5G technology phones or smart watches.

without raising prices

In this context, the supply crisis is also compounded by concerns about a possible rise in prices due to inflationary pressures. In fact, for 66% of the companies attending the Aecoc Congress -held between October 20 and 21- what will most determine the future of the sector is the increase in the costs of raw materials and energy.

Nevertheless, the president of Aecoc, Ignacio González, He stressed that, in this scenario, “the entire value chain is doing a great exercise of containment so as not to have to be forced to pass on this increase in costs to a consumer who is going through a difficult time”.

Hence, companies like Media Markt, Beko or Leroy Merlin also reject the idea of ​​raising prices. “For this end of the year you cannot afford to transfer increases to the final product,” they point out from Media Markt.

Ellsworth Weber