Nobody could have imagined a retail world without cash, but it is the reality now. This new-age retail world screens of smartphones have become the new storefronts. Though physical stores do exist, most stores are run like showrooms for more engrossed purchases or as inventories of products for emergency consumption. Moreover, Artificial Intelligence or AI helps in setting up the product prices and similar other technologies are also steadily holding a grip on the merchants. Across the globe, COVID-19 has led the transition of retail towards a digital future. But one thing is going to be static- the dominance of Asian sourcing. Yes, sourcing in Asia will always be the first preference of western retail businesses.

In China and other regions of Asia-pacific, retail is at its best level. Most companies are no more interested in expanding the periphery of physical store space in Western countries; rather, they are looking for an immediate solution that can answer cutting-edge e-commerce solutions. Apps such as WeChat, Paytm are dominating the market.

This digitalization is one of the key reasons why Asia sourcing will be the pillar of the growth of the industry. Presently, the region is contributing to two-thirds of global retail growth and about two-thirds of online growth. In 2014-2019, the growth of online sales of this particular region was double the rest of the world.

The Diversity Found in Asia Sourcing

In the Asian retail market, a huge variation is visible. In India, for example, conventional stores run by families still consume most of the retail sales while small family operations in Japan have been mostly overtaken by the chains and big-boxa formats many years ago.

If you want to explore the unseen patterns of the diverse Asia-pacific sourcing market, you need to evaluate the retailer concentration ratios, the physical setting space per capita, and other measures of the local development. Next, the maturity assessment should be compared against the present ferocity of an Asian country’s digital disruption with the help of some metrics such as online retail penetration. This is how the sourcing in Asia is diversified into four categories- digital leaders (China), fast modernizers (India, Vietnam, etc.), mature followers (South Korea), and developing digitalizes (Russia).

A few imperatives that can thrive in the future of Asian sourcing

The Reinvention of the Value Proposition

The last few decades have witnessed a huge growth in Asia sourcing. Most suppliers are trying to ensure that their value proposition meets the requirements of this fast-evolving customer base. It also includes putting ultra-convenience at the bottom of their offerings in reply to denser urbanization and the hike of time-consuming poor dual-income households.

Digital Engagement

No matter what the evolving value proposition is, enhanced digital engagement with shoppers has always been a vital force. The use of smartphones has further accelerated this digital engagement.

Retool for Digital

Asia-based retailers and suppliers have been stealing the limelight for deploying new technologies. Digital insurgents are now dealing with vast stores of data, which are enriched in competitive advantages.

From the above discussion, an insight into the future of Asian sourcing is visible. Asian suppliers are going to be even stronger in the coming days.

Share This: