The Growing Need for Global Logistics in Today’s Retail Business Landscape
The revolutionary advent of e-commerce has almost entirely changed the face of the retail industry. Before the rise of online shopping, large retail companies with bigger brand recognition and wider physical reach had a definite advantage in capturing the consumer market. Smaller companies and startups were therefore limited to local exposure, smaller market share and business opportunities.
Today, e-commerce has effectively removed the entry barrier for starting a new business, giving a platform for small and new retailers to compete on the same level as those who are more established and globally recognized. This results in a burgeoning cross-border market where local startups can go global even without physical market presence.
Hong Kong: the ideal base for business
With cross-border e-commerce growing bigger and faster, it is worth noting that an increasing number of retailers are choosing Hong Kong as their base location. In fact, a recent study commissioned by DHL revealed that Hong Kong is one of the leading markets in Asia where cross-border retailers can grow two to three times faster than the global average. Perhaps a big factor to this development is the city’s free-trade policy. There are no imposed taxes for goods going in and out of Hong Kong, so companies save costs when importing their products from their plants in South China, and customers can return goods easily.
The need for a trusted, reliable logistics partner
Businesses going from local to the international market cannot count on sheer luck to succeed. Aside from excellent product quality and thorough knowledge of their target markets, it is equally important for retail companies to find a trusted logistics partner that possesses strong knowledge in their base location and facilitate trade efficiently. Startups gain incredible advantage out of a good logistics partnership by utilizing a global network to enhance their customers’ experience, thus upholding their reputation in every delivery.
Working with an express company with a strong international presence definitely helps businesses focus on providing better services and products to their customers. An experienced logistics partner has the expertise to handle customs clearance, and navigate duties, taxes and regulatory requirements, leaving retailers with more time to explore business opportunities in their target markets.
Sealing the deal with express delivery services that provides high flexibility
A DHL-commissioned study also found that companies who offer express delivery services grow 60 per cent faster than average retailers. Fast and accurate deliveries can only be ensured by working with a reliable logistics management company.
In addition to time-sensitive goods that need to be delivered right away, consumers now have high demands and expectations for secure and flexible service. As a value-added service, deliveries can now be easily tracked.
Express delivery companies now provide services that allow shippers and receivers around the world a wide range of customized delivery options, and DHL’s On Demand Delivery serves as a great example. The solution allows shippers and receivers globally to select from a range of delivery options, and enhances retailers’ competitiveness with hassle-free, value-added services, earning a good reputation for the retail brands.
The retail industry will see more innovations in the coming years. Retailers must effectively engage with the global market, and a trusted international logistic partner is greatly needed as new doors of opportunities open in a fast-changing world.