Global Supply Chains - Part 3
Investigating the current and future state of global e-commerce supply chains.
Una storia: Half of my family lives in Italy, so gift giving has always been tough, especially for Christmas. My littlest sister, Emanuela, adores American culture and desperately follows the Biebers and the Kardashians on social media, not unlike many GenZ here who aspire to American pop culture royalty.
A couple years ago when it launched, all Emanuela wanted was Kylie’s lip kit (for those living under a rock, Kylie Jenner’s beauty brand Kyle Cosmetics catapulted her to be named the youngest self-made billionaire in 2019). There was an issue, though: my sister couldn’t get a lip kit shipped to her in Italy.
This doesn’t make sense, though, right? An international fan, who knows and loves the Kylie brand and is willing to pay, found it nearly impossible to get the items she wanted delivered. So I took it upon myself to be a good older sister and paid nearly $100 in shipping and customs to send her a $30 lip kit much to her surprise and delight. Here in lies the problem and opportunity of cross-border logistics.
The Problem
With the rise of social media and the now 50 million creators globally, it is easier than ever to discover interesting content and commerce from all corners of the earth. The rise of K Beauty serves as a standout example of this trend for me. There is a halo effect, in particular, for US brands shucked by internationally recognized celebrities like Bella Hadid, Emily Ratajkowski, The Kardashians, and Kanye West (just to name a few) who help people all over the globe discover the latest lifestyle and beauty trends.
“Consumers have changed their behavior and how they connect with brands. They find them on Instagram, Snap, and Facebook now.” — Rathna Sharad — Founder & CEO @ FlavorCloud
However, if you’ve ever ordered something from an international store and dealt with customs delays or a lack of end-to-end tracking information, then you probably know cross-border e-commerce has room for improvement. As the world becomes more global, so must the e-commerce supply chain. So, why is cross-border selling so painful?
»»»»»»Enabling Cross-Border Commerce. ««««««