As we navigate the third quarter of what has been a turbulent year, the retail landscape faces lingering uncertainty around market dynamics including widespread drops in demand and ongoing supply chain challenges.
From de-dollarization to the evolving Chinese manufacturing picture and the growing importance of sustainability initiatives, here are trends we are watching.
1. De-dollarization: Adapting to a Changing Global Economy
A renewed push to reduce reliance on the U.S. dollar in international trade has significant implications for businesses as they navigate currency fluctuations, changing trade agreements, and geopolitical dynamics.
While the majority of international transactions are conducted in U.S. dollars, numerous geopolitical factors – including the war in Ukraine and rising interest rates – have fueled proposals for alternatives. In August, South Africa will host the leaders of Brazil, Russia, India, and China – a group known by the acronym BRICS – to discuss the creation of a new joint currency.
Understanding the potential risks and opportunities associated with de-dollarization can help organizations adjust their pricing strategies, explore new markets, and manage currency risks effectively. Considerations include:
- Currency Volatility: as countries reduce their reliance on the U.S. dollar, it could result in increased volatility in the foreign exchange markets, affecting the stability of other currencies
- Trade Imbalances: de-dollarization may lead to trade imbalances due to fluctuating currency values, which can affect the cost of imports and exports, impacting businesses reliant on international trade
- Inflation: countries moving away from the U.S. dollar may face potential inflation risks if their domestic currencies are not stable or strong enough to handle increased demand
2. Flat Logistics: Streamlining Supply Chains for Efficiency
Flat logistics refers to the optimization of supply chains to enhance efficiency and cost-effectiveness. By eliminating unnecessary steps, reducing delays, and implementing streamlined workflows, businesses can improve operational efficiency and customer satisfaction.
Embracing flat logistics means identifying bottlenecks, enhancing process flows, and leveraging technology to optimize the movement of goods, ultimately improving overall supply chain performance.
3. Evolving Chinese Manufacturing Landscape
China’s manufacturing sector is facing challenges on multiple fronts, from geopolitical dynamics, supply chain disruptions, and demographic challenges. As foreign buyers increasingly seek alternatives to products “Made in China,” Chinese exporters are establishing factories abroad.
Organizations can adapt by diversifying sourcing strategies, exploring manufacturing opportunities in emerging markets, and staying informed about changing global manufacturing dynamics.
4. Focus on Sustainability: Reducing Environmental Footprint
Sustainability is no longer a buzzword; it has become a central consideration for the retail industry encompassing the reduction of environmental impact, promotion of responsible resource usage, and adoption of sustainable practices throughout the supply chain.
Key initiatives include waste reduction, using recyclable and compostable materials for packaging, sourcing sustainably, and optimizing supply chain processes to minimize carbon emissions. Embracing such practices goes beyond the environmental benefits to align with both consumer preferences and retailer goals and expectations.
Sustainability at TPH Global Solutions
At TPH Global Solutions®, we have embraced sustainability as a core value since our earliest days as the original supplier for McDonald’s Happy Meals and french fry boxes.
Today, sustainability at TPH extends to material usage and waste reduction, diversity, equity, and inclusion (DEI), as well as ESG (Environmental, Social, and Governance) practices.
TPH Global Solutions sustainability efforts for product packaging and displays incorporate:
- Sustainable Design: creating product packaging and displays with a sustainability-first approach
- Waste Reduction: reducing waste through innovative strategies, including reusing and recycling materials wherever possible
- Thoughtful Material Usage: utilizing eco-friendly materials, such as compostable, recyclable, and reusable options, while also sourcing materials sustainably with certifications like FSC
- Green Supply Chain: reducing carbon emissions, optimizing supply chain workflows, and partnering with geo-located suppliers to maximize efficiency and minimize waste
A Strategic Partner for Retail Success Amid Global Uncertainty
Adapting to changes in global economics, understanding shifts in manufacturing, and placing sustainability at the heart of business strategies are critical to survival in the modern retail environment, paving the way for growth, sound supply chain management processes, and a greener future.
TPH Global Solutions works as the strategic packaging and display partner you need to guide your business through the intricacies of supply chain logistics, marketplace uncertainty, retailer demands and more. With a foundational commitment to sustainability, operational efficiency, and innovative solutions, TPH Global is poised to help your business thrive in an increasingly complex retail landscape.
Let us help you make 2023 and beyond a turning point for your business with end-to-end retail support the makes getting your product to market easy.