In 2024, businesses need to be ready for changes in global trade. To succeed, they should plan ahead and be flexible. Here are some important trends to watch for.
1. Digital Advancements in Trade Digital transformations are redefining global trade processes. Secure transactions via blockchain, AI enhanced logistics, and IoT-backed supply chain surveillance are increasingly becoming the norm. Leveraging these digital innovations will be pivotal for businesses in 2024 to streamline operations and stay competitive[1].
Examples: Businesses are increasingly using digital tools to improve their trading processes. For example, companies like Walmart use blockchain technology to track the journey of food items, ensuring they're safe and fresh. Amazon uses AI to optimize its delivery routes, getting packages to customers faster. And large manufacturing companies, such as General Electric, use IoT (Internet of Things) sensors to monitor equipment in real-time, reducing breakdowns and improving production efficiency. As we head into 2024, such digital solutions will be essential for companies to keep up with competitors and meet customer expectations.
2. Emphasis on Eco-friendly Trade Practice's shift towards sustainable operations is no longer optional. With mounting emphasis on reducing carbon footprints and ethical sourcing, businesses integrating sustainability will gain market favorability and potentially tap into newer markets[2].
Examples: More companies are focusing on green and ethical practices, and it's making a difference in their success. For instance, Adidas launched sneakers made from ocean plastic, resonating with eco conscious consumers and boosting their sales. Similarly, Apple has increased its focus on sourcing minerals responsibly, ensuring that they aren't funding conflict or child labor. This not only benefits the environment and vulnerable communities but also attracts consumers who value ethical practices. By 2024, companies that adopt sustainable methods are likely to attract more customers and explore new markets
3. Navigating Trade Policy ChangesKeeping up with changes in trading rules and fees is really important. As global trading rules keep changing, businesses need to stay informed to do well. The ever-evolving international trading norms, with the WTO at its center, demand that businesses remain updated and flexible to thrive[3].
Example: In 2023, the European Union introduced new environmental regulations affecting imports, promoting eco-friendly products. Apple, keenly aware of these changes, adapted by showcasing their commitment to sustainability, emphasizing their product recycling programs, and using sustainable materials in their products. By doing so, they not only complied with regulations but also appealed to environmentally conscious European consumers.
4. Supply Chain Strengthening The pandemic showed that the way businesses get and send goods worldwide has weak points. For companies to keep running smoothly, they need to get their products from different places, manage their stock better, and have plans for unexpected problems. For example, during the pandemic, Apple faced delays in getting parts for their iPhones because many came from areas hit hard by the virus. To avoid this in the future, they might consider getting parts from various places or keeping a backup stock. This way, they can still make and sell phones even if one supplier has issues.
5. The E-commerce Surge With the digital boom, cross-border e-commerce is witnessing unparalleled growth. Adapting to changing consumer behavior and enhancing online platforms is essential to remain at the forefront of this trend[4].
Example: Online shopping across different countries is growing fast because of new digital tools. This means people are buying more from other countries online. For businesses to keep up, they need to understand what their customers like and improve their websites. For example, in 2020, during the COVID-19 pandemic, many people preferred online shopping. Amazon, seeing this trend, improved its delivery system and added more products, making it even easier for people to shop from home. As a result, their sales went up significantly.
6. Monitoring Geopolitical Shifts Trade is often affected by world events. For example, when political tensions rose between the U.S. and China in 2019, it led to a trade war. This meant higher tariffs on many goods. Companies that were aware of these tensions early could have diversified their suppliers or adjusted prices. By watching such events, businesses can better plan and avoid problems.
7. Tapping into New Markets Emerging markets, particularly in Asia, Africa, and Latin America, are bustling with opportunity. Tailoring strategies to resonate with local tastes and conditions can pave the way for business expansion[5].
Example: Let's take a global brand like McDonald's. When they expanded into India, a country in Asia with specific dietary preferences and religious considerations, they customized their menu. Recognizing that a large portion of Indians are vegetarian and don't consume beef for religious reasons, McDonald's introduced the McAloo Tikki burger - a potato-based vegetarian burger. This adaptation to local tastes has made the McAloo Tikki one of the top-selling items in Indian McDonald's outlets. By understanding and adjusting to the local conditions and preferences, McDonald's successfully expanded its business in the Indian market.
Final Thoughts: As 2024 approaches, businesses that are well-informed, flexible, and always ready for what's coming will have a big advantage. In the fast-changing world of international trade, getting ready in advance can make a huge difference. Being well-prepared means businesses are already halfway to success.
