Changes – both for better or for worse – should only be expected as the retail business world continues to evolve. A clear-cut example is how the competition for a larger market share has become fiercer than ever. This may be a result of consumer demands growing at an incredibly fast rate and digital technologies that continue to be integrated into industrial operations.
Learning about trends that’ll affect all marketplace retailers globally can help businesses adapt to changes and continue to operate. Read through the rest of this blog post to discover what might happen in the global sourcing industry in the coming months.
Continued Hostility Between Top Trading Countries
US and China, the world’s top 2 producers and exporters of goods, will continue to be antagonistic against each other. The so-called Trade War can cause serious problems for multinational companies that’ll be caught in between the confrontational relationship between both countries. This hostility will further result in raised tariffs, which significantly increase procurement costs and subsequently decrease business profits.
When the 2 countries continue to raise tariffs, companies will resort to obtaining items and raw materials from other sourcing suppliers. For instance, many businesses today are already sealing contracts with manufacturers from Southeast Asia. This may soon become a trend, causing other firms to also procure goods from other regions of the globe. If that happens, it’ll result in plenty of hard-to-fix issues across all industries.
For instance, companies that choose to import goods from farther countries have to shoulder larger shipping fees. They can also face unexpected circumstances, like delays caused by storms at sea. These problems may not be felt instantly, but businesses eventually may be forced to increase the prices of their products, which could have unfavorable effects on the economies of all involved nations.
Exporting countries will deal with several concerns, as well. They may find it difficult to adjust to the sudden increase in the demand for the goods that they produce.
Constant Support for Sustainable Products
In the last few years, different businesses have received backlash after it was revealed that their production processes had adverse effects on the ecosystem, such as pollution of the ocean, land, and atmosphere in many parts of the world. A lot of people and organizations have gone as far as to call for a boycott of brands that continue to manufacture goods through means that harm the environment.
Citing the irreversible effects of global warming and climate change, consumers demanded that firms employ environmentally conscious manufacturing practices. This request was addressed to businesses across all industries, including food and beverage, fast fashion, mining, and oil. The companies that complied received massive support from businesses that push for a healthier ecosystem.
Now that a trend to show support for sustainable brands and products has been started, more and more companies may start to go green as well. They’ll try to adjust their manufacturing processes and discontinue existing practices that harm the environment. These include disposing of sewage materials into the river, emitting large amounts of carbon dioxide and other greenhouse gases, and dumping solid wastes into landfills.
Embracing More Advanced Technologies
The positive impacts of emerging digital technologies on the supply chain have long been projected and anticipated. Businesses will try to integrate these innovations into their manufacturing processes. For example, more companies will adopt big data analytics in their industrial operations. This can help them follow market trends, identify useful patterns, determine customer preferences, and obtain crucial bits of information about different industries.
Aside from big data analytics, other advanced technologies that can be valuable for suppliers include artificial intelligence, natural language processing techniques, and machine learning. To make the best use of these innovations, businesses may create a whole new department in charge of employing digital strategies in their operations.
By employing cutting-edge technologies, your company can reach out to more potential business partners. For example, you can find new suppliers through a product sourcing app. Get in touch with TradeBeyond to learn about an advanced digital tool that you can use to search for manufacturers where you can procure goods and raw materials.