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Decoupling your supply chain from China may not be voluntary - and it may not be initiated by the US side. The China+1 strategy seems manageable right now, but front-line managers and negotiators need a plan for a “hard decouple”. Both marketers and manufacturers should prepare for permanent shifts in their supply chains and distribution networks – not just short term disruptions. The same thing that is happening in the Chinese lux market will soon be playing out in other emerging middle class markets throughout the world. As consumption patterns diverge, Western brands will not only lose customers – but their economies of scale that drove prices to the floor will lose their power.
By globalism2 / Andrew HupertDecoupling your supply chain from China may not be voluntary - and it may not be initiated by the US side. The China+1 strategy seems manageable right now, but front-line managers and negotiators need a plan for a “hard decouple”. Both marketers and manufacturers should prepare for permanent shifts in their supply chains and distribution networks – not just short term disruptions. The same thing that is happening in the Chinese lux market will soon be playing out in other emerging middle class markets throughout the world. As consumption patterns diverge, Western brands will not only lose customers – but their economies of scale that drove prices to the floor will lose their power.