Transformation experts believe that times of great change also bring immense opportunities, and the period we’re experiencing is no different. Small business owners and export companies are uniquely placed to benefit from the following growth prospects in 2022.
1. Reorganized supply chains
Before the pandemic, distributed supply chains were a central tenet of manufacturing. Companies sourced components from suppliers in regions worldwide, gaining cost-effective access to input products and manufacturing resources. But the peculiar challenges of COVID exposed these sourcing chains as fragile.
Now, there’s a move to remove the inherent risks in distributed supply chains as companies look to build resilience. Companies want to explore better and safer sourcing options, preferably closer to home. As the McKinsey Global Institute reports, roughly 15% to 25% of world trade may shift to new markets in the next five years.
Essentially, global trade flows are about to change. Proactive exporters can take advantage by starting to build pedigree and showcase their dependable export services to would-be clients.
2. Increased uptake in e-commerce selling
The move to digital has been a critical feature of the global economic recovery so far. We expect this trend to continue in 2022. Sellers and buyers around the world now recognize the value of an extensive, always-on digital presence, and they are pivoting accordingly.
The fabric of global trade is changing, and the core access key to this new world is a digital platform. As one of the world’s largest B2B e-commerce platforms, Alibaba.com provides sellers with the digital tools they need to reach millions of potential clients globally. The platform gives businesses the information, fulfillment assistance, and technology they need to serve clients on a global scale from a single digital storefront.
3. New ASEAN trade agreement
A new Regional Comprehensive Economic Partnership (RCEP) between ASEAN countries and four non-member states took effect from 1 January 2022. The agreement is one of the most significant trade treaties globally in terms of population and GDP, says IHS Markit.
Exporters trading with the bloc will be accessing roughly 29% of global GDP and 29% of the world’s population in one economic group. Accordingly, sellers from domestic markets within the region and foreign markets from without stand to gain impressive trade advantages.
While domestic sellers can look forward to a stronger bargaining position and reach, foreign sellers will anticipate being able to effortlessly access nearly a third of the global market under the RCEP.
4. EU-UK Trade and Cooperation Agreement
Similarly, the EU and UK have completed their Trade and Cooperation Agreement which formally commenced on 1 May 2021. The deal, which was a long time in the making, has settled many outstanding trade issues between the parties.
For instance, goods traded between the parties will be free of quotas and tariffs under the TCA. The agreement also includes provisions that lessen technical barriers to trade so the mutual flow of import and export products can accelerate.
Although the TCA has many rough edges, it’s still a move in the right direction. Therefore, import and export sales between the parties will likely benefit from the agreement.
5. Surging global trade
As mentioned earlier, worldwide consumer demand is holding firm. So, while businesses and individuals try to get back up to speed, we can expect the demand levels to continue.
Savvy exporters know that there’s no better time than this to position correctly and enjoy a slice of that global demand. With a digital platform, you can reach clients who need your services worldwide.
You can sell to US exporters, trade with companies in Russia, Mexico, and China, or enjoy broad access to global regions like Africa, North America, Latin America, and the Middle East without overstretching your operations.
Source:Alibaba
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