Continuing a series of feedback on the current challenges facing international shipping and the soaring cost of freight, Steve Galbraith, group buying and supply chain director at RKW reports:
“Market data indicated that after Chinese New Year shipping costs would slowly reduce back to pre-Covid levels. However, rates from China to the UK are now almost 10 times the normal ocean freight vs the same period in 2020. This has significantly increased the cost of products in general and, in many cases, the cost of freight per unit is now greater than the cost of the product.”
However, Steve recognises that innovation continues to be key to successfully navigating the challenges. He states: “Our team continues to work closely with our longstanding factory partners and forwarders to minimise the increases, but we (as an industry) need to recognise that the main price driven influences are out of our control. Research shows consumers are willing to pay more where both the brand and product meet or exceeds their expectations.”
In conclusion, Steve comments: “Offering consumers exceptional quality, aspirational products at unbeatable value stands at the heart of everything we do. By focusing on this ethos, we have continued to re-invest back into our business by increasing the amount of new product development so consumers are presented with new, innovative, and design led products that delight and inspire.”
