What I Learned in Supply Chain This Week

Insight – Thinking Ahead: The storm before the calm

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Insights: What I Learned In Supply Chain This Week Series
Thinking Ahead Part VI: The storm before the calm
Tags: First Mile, Global Supply Chain, Import, Supply Chain, Technology
Dallas-based startup empowers businesses to optimize international trade.
If you are sensitive, please stop reading here! According to Forrester, retail is expected to lose $2.2T in 2020. T = Trillion.

Essentials will do better than discretionary, and online is expected to stay flat, however Forrester estimates it will take retail at least four years to recover from this.

The hardest hit category will be fashion. Apparel and footwear expected to drop between 25 and 30 percent in 2020, according to a McKinsey study.

That survey found the impact will hit sourcing volumes fully this quarter. 2/3 of fashion sourcing executives expect orders to decline by at least 20 percent. 1/4 expect to make cuts up to 50%. This on top of orders already cancelled, where in Bangladesh alone, they estimate a $10B drop.

Will this cause a reshaping of the retail and fashion landscape as we know it?

The survey concludes that the move to a new (and possibly better) normal has already begun. While the pandemic is a catalyst - the industry was full of self-imposed wounds, which are glaringly exposed.

76% of the respondents think the pandemic will finally propel change in an industry long overdue for it.

In my next post I will discuss some possible remedies.
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
GT Nexus founder and supply chain industry veteran, John Urban, has joined the Mercado board of directors.
If you are sensitive, please stop reading here! According to Forrester, retail is expected to lose $2.2T in 2020. T = Trillion.

Essentials will do better than discretionary, and online is expected to stay flat, however Forrester estimates it will take retail at least four years to recover from this.

The hardest hit category will be fashion. Apparel and footwear expected to drop between 25 and 30 percent in 2020, according to a McKinsey study.

That survey found the impact will hit sourcing volumes fully this quarter. 2/3 of fashion sourcing executives expect orders to decline by at least 20 percent. 1/4 expect to make cuts up to 50%. This on top of orders already cancelled, where in Bangladesh alone, they estimate a $10B drop.

Will this cause a reshaping of the retail and fashion landscape as we know it?

The survey concludes that the move to a new (and possibly better) normal has already begun. While the pandemic is a catalyst - the industry was full of self-imposed wounds, which are glaringly exposed.

76% of the respondents think the pandemic will finally propel change in an industry long overdue for it.

In my next post I will discuss some possible remedies.
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
                       

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Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
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Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency