Global exports are likely to amass USD 68.5 by 2050, with a 4x increase ever since 2015 level, reports a novel HBSC study which foresees a third wave of globalization regardless of the recent slump in the trade volumes.
The report predicts a world wherein services-led enterprises will be the dominating force and wherein businesses having explicit sustainability objectives will triumph. The stress will be given on ensuring that the supply chain are sustainable. The report highlights 2 major trends predicted for the future of global trade.
Industrial evolution: drive to sustainability and digital innovation
Digital innovation will continue offering opportunities for individuals as well as businesses. Novel technologies will create business models an products that have an adaptable nature for different markets, overruling the significance of location. Interconnected economies will increasingly bring fast modifications and transmission of ideals globally. Experts comment that smart data innovations have the potential to generate volumes of efficiency along with optimizing each cycle, which will finally drive economic growth.
The supply chain will require rapid innovation for responding to increasing demands and expectations for superior sustainability, more because some marketers will get stricter in setting the criteria for sustainability with their multilateral efforts for countering global warming.
Mass customization & reverse innovation
Reverse innovation is a flourishing phenomenon wherein businesses initially make products and services for the emerging marketplace instead of the developed world. Later, when selling products and services in different markets, they can easily be customized – highlighting a shift of momentum from mass production to mass customization. Customization will be immensely supported by huge volumes of consumer data and use of sophisticated marketing strategies for analyze and influence consumer requirements.
The technique to use data for tracking the world will help businesses build robust and intelligent systems for gathering information and tracking consumer demands. 3D printing will bolster innovation in the supply chain, with the majority of local factories providing goods on demand using latest technologies, a process that can be termed as additive manufacturing. Forensic data analysis utilities will be utilized for identifying patterns in big data and improvements as well as best practices will be shared across the network via cloud technology.
About the author
Ari Afilalo is a professor and scholar of international trade. He loves sharing his insights and predictions about global trade to various relevant communities.