The future of retail globalization 2.0
Globalization 2.0 has largely shattered close to 100 years of retail and consumer product manufacturing, operations, sales, marketing and supply chain structures, closing down the old routes to growth and profit while opening new ones. Globalization 2.0 has completely changed how retailers and brands must operate and how they must approach making, moving and selling consumer products.
Road I, you must reframe your business for a Globalization 2.0 world. Wealth has shifted to the East. Emerging markets have become linchpins of consumer culture. Advantages and disadvantages of low cost country manufacturing are shifting faster than they used to. Supply chain strategy, product agility and visibility have become critical to success. Retailers and brands need to reset their “make it, sell it, move it” strategies.
Road II, international expansion, for retail and brand growth it is necessary to expand in developing markets, in particular China. China is now home to the fastest growing and largest consumer class in the world as outlined in, “China’s Super Consumers.”
Road III, omnichannel + borderless e-commerce + Alibaba, omnichannel is the ability to present a brand, a product, an experience and to facilitate frictionless sales and returns across all channels. China is the largest e-commerce market in the world. Alibaba is the largest and most profitable e-commerce company in the world having a touch on close to 75% of all e-commerce transactions in China. Selling on Alibaba now will give companies entry and advantages in the US, India, Brazil, Russia and Africa eventually. To fully understand Alibaba, what it has accomplished and where it is going you need to watch “The Alibaba Effect” Tompkins International’s extremely popular video that covers all things Alibaba.
Road IV, profits are gained through mastering the six mega-processes of the supply chain (MAKE-BUY-MOVE-DISTRIBUTE-STORE-SELL). In a world where your customers are global, where your product sourcing is global and where omnichannel sales and e-commerce excellence are a must have, your supply chain network is a central business strategy and profit driver.
In today’s environment companies using the legacy of Globalization 1.0 world supply chain networks will not be able to keep up with competitors who have shifted to a Globalization 2.0 world supply chain network.
