GELF sees smart market localization driving the growth of global ecommerce. The deep thinkers at Boston Consulting Group seem to agree – and point to the birth of a radical new phase of globalization as proof; one that re-balances geopolitics with geoeconomics.
They quote Jeff Immelt, the CEO of GE, whose says “It is time for a bold pivot….in the face of a protectionist global environment….We will localize. In the future, sustainable growth will require a local capability inside a global footprint.”
BCG says we are at the beginning of the fourth phase of globalization – one where the growth of digital is transforming global trade.
The authors point to the rapid growth of digital commerce platforms, which has started to make national borders and traditional country-based business models redundant. Today, goods worth $700 billion are traded through Alibaba and Amazon—an amount that represents a compound annual growth rate of more than 33% since 2012.