Consumers put their trust in manufacturers and retailers to look after suppliers and are prepared to pay more to shop at retailers who treat their suppliers better. 

The latest research from sourcing with optimisation specialist Trade Extensions reveals the implicit trust consumers place in manufactures and retailers to look after supplier welfare and the penalties retailers face should they betray this trust. 

The research reveals that while only 20% of UK and US consumers ranked suppliers as the most important consideration at the point of purchase, 76% feel manufacturers and retailers have a responsibility to look after suppliers and only 9% feel that manufacturers and retailers have no responsibility.   

This implicit trust that consumers place in manufacturers and retailers is further demonstrated by the fact that 75% say they would prefer to shop at a retailer if it can demonstrate they treat their suppliers better and over 75% of consumers are prepared to pay a premium.  In addition, only 25% of consumers feel the government should get involved in supplier welfare. 

Trade Extensions, CEO, Garry Mansell, said “Companies often talk about the ‘trust’ that exists between consumers and their brands and sometimes this ‘trust’ feels intangible.  However, what this research shows us is when trust is broken, consumers let companies know very quickly by taking their custom elsewhere.” 

In addition, consumers are also prepared to pay a premium if a retailer can demonstrate they treat their suppliers better than their competitors.  Overall, 76% of consumers are willing to pay more and 28% will pay between 5% - 10% extra and 17% are prepared to pay an additional 10%.  

Mansell said, “It is clear that consumers expect suppliers to be treated well and they are prepared to pay extra.  Good buyers manage their suppliers in a sustainable way and while buyers and suppliers need each other, they both need the end consumers to be happy as well.” 

-ends- 

Editor’s Notes
The Trade Extensions ‘Research Bulletin’ series looks at sourcing and supply issues from the point of view of the end consumers and allows supply chain professionals to get into the mind of their ultimate customer.

Download the report here:
https://tradeextensions.com/s/Trade-Extensions-Research-Bulletin-October-2016.pdf