As we go into the New Year, external factors will continue to challenge suppliers to include sourcing issues, the supply chain, shipping times, shipping costs, international regulations – most notably President-Elect Donald Trump’s proposed 20% tariff on all imports to the US – plus increases in employer’s National Insurance contributions.
“In 2025, we expect a mix of challenges and opportunities as we navigate the evolving marketplace, but overall, we are feeling positive about the year to come,” says Anthony David, commercial director at Something Different Wholesale.
“Managing production and shipping times remain a challenge. However, we have built in additional time into our purchasing process to allow for the increased shipping times, especially with containers avoiding the Suez Canal route. We’ll also need to stay on top of international trade regulations to make sure our products comply with international standards. Additionally, fluctuating container prices and rising employer National Insurance contributions will put pressure on our profit margins. To address these challenges, we are streamlining our supply chain processes and keeping a close eye on regulatory changes to adjust our plans accordingly.”
Continues Anthony: “On the other hand, there are many potential opportunities.We are expanding our product range, to include a new T-shirt line, which is set to launch in spring 2025, and which should help us appeal to an even wider audience. We’ve seen increasing demand from international customers, and we will continue to focus on our growth potential in overseas markets. We will also continue to drive mutual growth by strengthening our relationships with our key accounts through collaboration on new product development opportunities. Finally, we will continue to listen to customer feedback through surveys and other channels, which helps us stay responsive and innovative. Initiatives like our no minimum order policy for UK orders, inspired by customer input, continue to set us apart.”
At Talking Tables, director of supply chain, Daniel Fagan, comments: “The election of Donald Trump in the US, and his commitment to tariffs, highlights the increasing need for suppliers to have an agile and diverse sourcing strategy that can adapt to any change in circumstances. It’s simply too much risk to put all your eggs in one basket when it comes to sourcing.
“At Talking Tables we’ve been diversifying our supply chain, not simply in response to the US political situation -there was much talk of tariffs on certain Far East sourced products well before the election – but, more importantly, general global uncertainty. This ranges from the political – for example, the recent disruption of shipping routes – and even weather events exacerbated by climate change. Layered on top of this is our focus on sourcing closer to home, part of our commitment to sustainability. Today around 44% of our product is sourced from Europe and we are exploring new sourcing markets such as India. At the same time, having a more adaptable sourcing landscape supports our global sales strategy as we move into new markets like Australia.”
Adds Dan: “We also see great opportunity for us in product diversification.While we remain committed to recyclable single use paper products, this coming spring/summer sees us launch a collection of predominately reusable tabletop items called Bon Appetit. We feel it’s a natural extension as it reflects our brand proposition – bringing people together around a table and having a brightly coloured and playful handwriting. Again, it fits with our sustainability journey and follows a growing shift in consumer opinion towards valuing reusability we witnessed in a survey we carried out earlier this year.”
Adds Gisela Graham’s commercial director Mark Jones: “As in recent years, we will be keeping a close eye on shipping prices which remain volatile and have the potential to continue their steep upward trajectory,” states Gisela Graham’s commercial director Mark Jones. “If this occurs, we will again face the difficult decision, faced by many in our position, as to how to handle the financial hit. Wherever possible, we always endeavour to absorb these costs ourselves rather than passing them onto our customers, but clearly there are limits to this.
“Aside from price challenges, shipping also presents issues in the length of time everything now takes to arrive, and we predict that these lead times will remain lengthy. Our business model has adapted over recent years to enable us to place our orders much earlier so, to some extent, we are fortunate enough to have been able to alleviate the issues created by lengthy shipping times. However, it does, of course, mean that we have to handle a large amount of stock in a shorter window when it arrives at our warehouse. A further challenge for 2025, which no doubt will also present some opportunities too, is the amount of political change both domestically and overseas and a continued pressure on the spending power of individual households.”
He continues: “Like all UK-based suppliers, we must adapt quickly and efficiently to demands made of our business at home but with these changes will also inevitably come new possibilities. 2025 promises to be a fast-moving year of continued vigilance within a challenging yet exciting trading landscape.”
To read the full article, click through to pages 17-19 in the January 2025 issue of Progressive Gift & Home magazine.
Top: Production and shipping times remain a challenge for gift suppliers.
