1.
TOP 6 WHOLESALE DISTRIBUTION
TRENDS FOR 2019

2.
WHAT DOES 2019 HOLD
FOR THE WHOLESALE AND
DISTRIBUTION INDUSTRY

3.
PRESENTING
General outlook
WHOLESALE AND
DISTRIBUTION
INDUSTRY

4.
Business Costs Will Rise
1

5.
US-BASED BUSINESSES
Higher tariffs on imported raw materials
and goods for sale
Shipping costs are also expected to spike
upwards

6.
THE RISE AND RISE OF
CHINA
 China as the world’s manufacturing hub
 China become the de facto manufacturer of
consumer goods
 Like no other country could in large
volumes, at consistent quality and at
competitive prices
 “Made in china” became commonplace at
brick-and-mortar stores and online retailers

7.
THE RISE AND RISE OF
CHINA
 Grow dependent and accustomed to
working with Chinese manufacturers and
suppliers
 Business costs will rise for those who are
sourcing some or most of their raw
materials or goods from china
 Few countries in the world can match the
economies of scale and sophisticated supply
chain that china has perfected

8.
Supply Chains Will Be Redefined
2

9.
Customers’ minds is
finding alternative countries for their
goods and raw materials. It’s hard
enough to gauge and evaluate
wholesale suppliers in China

10.
RELOCATE TO AVOID
TARIFFS
 Japanese brands moved their manufacturing
operations from high-cost Japan to low-cost
countries
 “Made in Japan” label was reserved for
upmarket goods

11.
SUBSTITUTES NOT
READILY AVAILABLE
 China is the catch-all for all manufacturing
of goods, from clothing and footwear to cars
and computers
 Taiwan is a prime candidate to replace
Chinese exports due to its proximity

12.
DEVELOPING NATIONS
LIKELY TO BENEFIT
 Alternative manufacturing hubs is that
developing Asian nations stand to benefit
 Natural progression of china to move
further up the value chain
 Chinese firms can leverage on their past
clout as contract manufacturers

13.
Drop Shipping Will Face a Decline
3

14.
For EMERGE App customers who
engage in drop shipping, they
gave us a grim prognosis of the
year ahead

15.
SHIPPING COSTS ARE
RISING
 Shipping rates are set to jump in the short
term after languishing at low rates
 Shipping costs from export replacement
countries may not enjoy the same
efficiencies and competitive costs as
Chinese ports
 It may not be easy to find similar or
substitute goods from another country

16.
Some Countries Will Face
Short-Term Pain
4

17.
As orders from China wind-down
or are scaled back, they need to
find replacement customers
quickly

18.
If Chinese exports to the States see a
fall in demand, then it is likely to have a
knock-down effect on China’s imports
of intermediates and raw materials in
the value chain as well

19.
Trade With East Asian Countries
Will Accelerate
5

20.
As production diversifies itself
away from China, it is likely that
Asian nations, in particular, will
pick up the manufacturing slack

21.
BENEFITS MAY NOT BE
SHARED EQUALLY
 Competition between countries as they
jostle to fill the void left by Chinese imports
 investing in their strong sectors
 supply capacity may limit the Chinese export
replacement potential
 Don’t just simply source everything from
China

22.
Trade With East Asian Countries
Will Accelerate
6

23.
Technology will continue to
advance and march on. Small and
medium-sized businesses may
not have the budget and need for
automated picking by robots

24.
EMERGE App
 Built from the ground up to support
international trade.
 Multiple warehouse locations, to ship orders
from locations closest to your customer
 Expedites your export workflow, such as
automatic calculation of CBM from packing
dimensionsInventory Management Software

25.
2019 will be the year that
geopolitical news will continue to
take center stage
The effect of a tit-for-tat trade war highlights the
dependency of the united states on china
A drop in chinese exports has a knock-on effect
on economies and businesses around the east
asia region

26.
https://emergeapp.net/wholesale-
business/wholesale-distribution-trends-
for-2019/
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