Are we ready for programmatic commerce?
In case you havent h...
Is programmatic commerce a popular idea with consumers? The answer, if you are a consumer in the UK, is a resounding 'yes'.
In case you haven’t heard of it, programmatic commerce is the automatic reordering of items by smart devices – an internet-enabled fridge knowing when the milk is running low, for example.
And a consumer study conducted by global ecommerce consultancy Salmon has discovered that more than half of respondents (57 percent) will be ready within two years to use a system that orders items automatically, with 13 percent being ready for this now.
So consumers are ready – and their homes are almost there, too. Around a third (35 percent) of consumers either already use a form of smart tech in their home or plan to do so within the next 12 months. Add to this that 58 percent of consumers say that when they need to replace a device like a fridge in the future, they would be likely to opt for a smart technology option if it would allow them to use automated shopping.
Neil Stewart, CEO of Salmon, said: “The rise of digital has been the single greatest change in retail over the past decade. Consumers have wholeheartedly embraced online shopping services for the convenience, time-saving and enjoyment they can bring. While we expected consumers to already appreciate the benefits of digital, we have been pleasantly surprised by how ready they are for automated shopping. Our research paints a picture of a sophisticated and engaged consumer, ready to take advantage of the impact of smart technology in their digital shopping.”
The study also highlighted that consumers have a clear idea of what types of programmatic commerce they would be most comfortable with: household supplies, food and drink, beauty and healthcare and personal hygiene products. The main concerns would be lack of control over purchases and security of personal data.
Neil Stewart added: “Connected devices are growing at an incredible rate, with 26 billion expected to exist by 2020. The possibilities that these devices can offer in retail are astounding, from fridges ordering weekly groceries to cars ordering replacement tyres when they are worn down. We have already seen consumer appetite for purchases through connected devices in the launch of Amazon Dash, and Programmatic Commerce will take this further. Brands, retailers and manufacturers must prepare themselves for Programmatic Commerce, both through technology advances and through the partnerships to bring these services into British homes. Consumers will embrace the convenience of Programmatic Commerce, and those that offer it first will reap the advantages.”
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EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”