In a world rife with pessimistic economic headlines, a handful of Asian Pacific (APAC) economies offer promising opportunities, a reality that will shape the way electronics OEMs approach supply chain decisions.
A recent survey from DHL titled Demystifying Asia Pacific Trade Trends points to six key Asian economies, including China, India, Vietnam, Thailand, Indonesia, and Malaysia, and highlights the importance if intra-APAC trading.
Mei Yee Pang, vice president, Innovation, Solution Delivery & Service Management APAC, DHL in a written statement, said:
To exploit this increase in regional-movement of goods, businesses should be looking to invest in the Asian 6 economies. Companies must leverage on initiatives such as TPP, ASEAN Economic Community (AEC), and China's Belt and Road, to lower barriers in intra-APAC trade and increase multimodal transport solutions. Businesses have opportunities to adopt new regional strategies delivering better service at lower cost.
In APAC, manufacturing hubs are emerging, domestic consumption is on the rise, and e-commerce if finding robust growth, which all contributes to strong growth. "Asia Pacific is the world's biggest and fastest growing B2C e-commerce region, recording US$877.61 billion in retail e-commerce sales in 2015, and is expected to grow to over US$1.89 trillion by 2018," Statistica said.
China continues to lead in manufacturing, but many manufacturers are diversifying to neighboring countries such as India and Vietnam. Further, organizations are looking for ways to decrease labor costs, increase resilience, and capture growth potential. "Trade initiatives such as the Trans-Pacific Partnership (TPP) will make APAC countries even more attractive as manufacturing bases, especially Vietnam," the study said.
Click on the image below to start a slideshow of some of the trends in this geographic region and the resulting shifts in the supply chain.
Take a look and let us know how the importance of these regions is changing for your organization.
In APAC, the general profile of consumers are young, tech-savvy people who want innovative products and services. They want an omnichannel shopping experience that provides convenience. Cross-border e-commerce infrastructure will be a critical growth enabler in the region.
— Hailey Lynne McKeefry, Editor in Chief, EBN