As a result of production and delivery complications, especially in Asia, some items will experience shortages and inflation.Continue reading
As a result of the lack of supply from Asia and slower international maritime transport, one can expect supply bottlenecks and more expensive products in Hungary’s shops during the Christmas season.
This article was originally published on our sister-site, Ungarn Heute. Translated by Péter Cseresnyés.
Although there were operational interruptions and capacity bottlenecks as early as 2020, one had to wait months for the negative effects to also reach end consumers. The currently noticeable supply bottlenecks can still be traced back to the production difficulties of last year, but according to Norbert Madar, the senior consultant at GKI digital, these problems will be resolved at the beginning of next year.
As a result of the capacity bottlenecks, consumers will not be able to find the usual quality and selection on store shelves. The shortage of goods is not like the one at the beginning of the epidemic, when customers were hunting for flour, yeast, toilet paper, etc. The current production crisis mainly affects electronic chips, thus reducing the supply of smartphones, laptops, tablets, televisions, and games consoles. In addition, consumers might also have to wait a long time for products that are slightly larger and come from Asia, such as furniture, larger household appliances, and various sports equipment.
Even Amazon recently warned that this year, it is a good idea to start shopping for Christmas gifts a month early. Hungarian retailers think it is safer to buy products that are already in Hungary, or at least in the European Union.
Products that are currently traveling in the containers of a cargo ship are unlikely to find their way under this year’s Christmas tree, says Norbert Madar, who believes that the shelves will not be empty, but that consumers have to reckon with a smaller, limited supply.
Prices have also increased- depending on the product category, one can expect a price increase of as much as 30 percent. However, the price increase is applied differently, while the higher price for the new iPhone has already been factored in, you won’t have to pay more for a coffee machine until the Christmas season, for example. As a result, Hungarians will spend an average of more than 8,000 forints more this year during the Christmas season.
According to the survey of GKI Digital, Hungarians spent an average of 52,300 forints on gifts last year, and this year it will be more than 60,000 forints. Christmas gift spending can represent up to 17% of a household’s average monthly net income. Almost 28% is spent on gifts for children.
Featured photo illustration by Zoltán Máthé/MTI