Q3/Q4 2024 Insights & Indicators

The landscape of global retail sourcing is continuously evolving, shaped by shifting market dynamics, economic trends, and geopolitical forces. Our latest Retail Sourcing Report, “Q3/Q4 Insights & Indicators,” offers crucial insights into these changes, providing detailed analysis and actionable data for the second half of 2024.

This edition is particularly significant as it marks a pivotal moment where, for the first time since the pandemic, retail is observing signs of stabilization in the global sourcing landscape. The report also extensively examines the recent decoupling of global supply chains, highlighting the shift from globalization to regionalization in the wake of growing geopolitical tensions and economic realignments.

Download the report to understand the forces shaping global sourcing and to strategize effectively.

Key Insights from the Report:

• Resilience in the Global Supply Chain: For the first time in over a year, the Global Supply Chain Volatility Index has shown positive signs, signaling a robust rebound in global manufacturing driven by heightened activity in India, China, and South Korea.

• Decoupling and Regionalism: Global powers such as the U.S., China, and Russia are driving increasing polarization and the formation of regional trading entities. This shift is transforming trade networks and creating new alliances based on geopolitical and economic considerations.

• Economic Indicators Forecasting Growth: With a projected global GDP growth of 2.6% for 2024, the world economy is on a secure footing, although its growth still lags the pre-pandemic era.

• Impact of Geopolitical Tensions on Trade: U.S. tariffs on Chinese imports are reshaping supply chain strategies, with a notable pivot toward Southeast Asia and India as emerging manufacturing hubs. Additional tariffs planned by the Biden administration are likely to accelerate this shift.

• Freight Cost Fluctuations: Despite a general stabilization, unexpected spikes in freight rates have resulted from logistical disruptions and geopolitical instability, particularly in the Red Sea region.

Understand the undercurrents of economic and geopolitical changes to align your sourcing strategies accordingly.