Are Consumers using products longer ? What is the Impact ?

A New York Times article (February 26, 2011) provides data suggesting that consumers are waiting longer to replace products – 4.5 months longer for cars, 2 months longer for cellphones and one month longer for laptops.  Some of the reasons are worries about the economy, sustainability concerns etc. Should OEMs be concerned – the article cites Levi Strauss as encouraging consumers to wash jeans less often and thus have them last longer.  What will be the impact on the supply chain if US consumers wait longer to replace products – would this require the development of more durable products or higher prices as demand volumes drop ? Will new product introductions decrease as a result ? Will successive generations of products require more significant technology or attribute changes to be adopted ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , . Bookmark the permalink.

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