When winter comes,

prepare for spring

Post COVID-19 global consumer market

outlook and supply chain reshaping

May 2020
 1 2

Consumer Reshaping future

market outlook supply chain
trend and
strategy

2
1. Consumer market
outlook

3
Before COVID-19: Retail sales of top 10 consumption countries
(2004–2019E, $ billion)
4,500
World consumption growth 4,000 US
China
3,500
was mostly driven by the US 3,000
Japan
India
and China, followed by India 2,500
2,000
Germany
France
and Japan 1,500 Russia
1,000 UK
500 Brazil
0 Italy

How key markets’ consumption

2011
2007

2012

2017
2004
2005
2006

2008
2009
2010

2013
2014
2015
2016

2018
2019E
moves post COVID-19 will shape
future global consumption trend
YoY retail sales growth contribution1
(%)
5 3 2 15 US
22 4
5 4 China
6
2 9 54 Japan
2 0 5 40 5 3 5
2 5
11 1 7 18 India
5
18 19 52 Germany
27
33
57 France
40 30
28 19 22 UK
-2 -2 7 -2 0 -6
-14 -6 -1 Italy
-5
1 Global consumer trend before -7
COVID-19 2005 2008 2016 2017 2018 2019E

4 1Year on year retail sales growth over total top 10 retail sales growth (%)
Sources: EIU, IMF; Kearney analysis
Before COVID-
19： A. B. C.
What we are
Trading Trading Individual
used to
online globally centric

1 Global consumer trend before

COVID-19

5 Source: Kearney: The Consumer Goods Forum Global Summit report 2017
A. Moving E-commerce as % of total retail sales
(2014–2019)
online
30% China, South Korea, Japan,
28% 28%
and Asia lead in the online
trend
25%

The US and Western Europe

are moving at a slower pace
20%
18%
18%
Much of the rest of the world
15%
is still in nascent stages
15%
13%
12%
11%
10%
10% 10%
9% China Western Europe
7%
South Korea Australasia
UK France
5% 5% Asia Pacific Japan
US Eastern Europe
World Latin America
2%
Germany MEA1
0%
2014 2015 2016 2017 2018 2019
1 Global consumer trend before
COVID-19
1Middle East and Africa
6 Sources: Passport; Kearney analysis
B. Trading Global trade % of global GDP
(1985–2018)
globally
65.0%
61%
59%
60.0%

55.0% 52%

50.0%

45.0%

40.0%
38% But the world
globalization trend
35.0%
has been stagnant
30.0% since 2008
There has been a
25.0%
long globalization
20.0% movement since
15.0%
the 1980s
10.0%

5.0%

0.0%
1985

1992

1998

2005

2012

2018
1986
1987
1988
1989
1990
1991

1993
1994
1995
1996
1997

1999
2000
2001
2002
2003
2004

2006
2007
2008
2009
2010

2013
2014
2015
2016
2017
2011
1 Global consumer trend before
COVID-19

7 Sources: World Bank; Kearney analysis

C. Individual-
centric Affluence Seduction Scale
influence Core values of
model is consumers
becoming the
global trend 1 Trust
2 Authenticity
3 Efficiency
4 Social conscience
5 Responsibility
Individual- 6 Self-expression
centric
influence
model

1 Global consumer trend before

COVID-19

8 Source: Kearney: The Consumer Goods Forum Global Summit report 2017
The impact of Recovery scenarios
COVID-19 on
the economy is
still uncertain
V U W
V-shape: Quick recovery
or
U- or W-shape: Severe 2020
L
L-shape: 18-month
impact, 2021 recovery downturn, prolonged
global recession

Experience of Experience of Experience of

SARs financial crisis economic
recession

2003 2008 1930s

2 Global macroeconomic outlook

9 Source: Kearney global study

 High international
How the world cooperation
works on it will
shape the Scenario 4: Scenario 1:
future of the “To have and have not” “A moveable feast”
world High international cooperation High international cooperation
Low social cohesion High social cohesion

Low High
social social
cohesion cohesion

Scenario 3: Scenario 2:
“For whom the bell tolls” “The sun also rises”

Low international cooperation Low international cooperation

Low social cohesion High social cohesion
2 Global macroeconomic outlook
Low international
10 Sources: Oxford Economics, Kearney analysis
cooperation
Look forward, Global economic output, 2007–2022
(YoY percentage growth) Forecasts are
prepare for continually changing
difficulties and Average 2.0%

uncertainties 7.0% 6.4%

6.0%

5.0% 4.4% 4.2%

3.8%
4.0% 3.5% 3.3% 3.2%
3.2% 3.1%
2.8% 2.8% 2.7% 2.6%
3.0%
2.2%
2.0%

1.0%

0.0%
-1.1%
-1.0%

-2.0%

-3.0% -3.5%

-4.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E

2 Global macroeconomic outlook

11 Sources: IMF; Kearney analysis

Post COVID-19: Four accelerated trends Two new trends

What are long- A. E-commerce E. In-home becomes the

term impacts new out-of-home
on consumers?
B. Purpose-driven F. Value focus
consumption

C. Health and wellness 2.0

D. More differentiated
consumers

3 Global consumer trend post

COVID-19

12 Source: Kearney global study

A. Consumers Would you do more e-commerce vs. in-shop purchasing?
(% of respondents)
will be more
open to e-
commerce post +30 +26 +21

COVID-19 43 43 43

+19
+20 +16
33 +15 +11
30 30

Consumers’ 27 27

acceptance of e- 22
commerce has 17
increased substantially 14 14
16
13
in the past two months 10
12

Canada UK Italy Russia US France Australia Japan

March 12–14 April 16–19

3 Global consumer trend post
COVID-19

13 Sources: Ipsos; Kearney analysis

A. … but at a E-commerce as a % of total retail sales
(2019)
different pace
Internet
3.0
Internet 2.0 – Asian countries such as
Internet 1.0 China will move from
28.2% 28.2% Internet 2.0 to Internet 3.0
(for example, explore
online/offline integration
and new business model)
18.3% 18.0%
– Europe and America may
15.2% -26.5% move from Internet 1.0 to
13.2%
11.7% 10.7%
Internet 2.0 (getting used
10.5% 9.8% to more e-commerce)
9.1%
7.0%
– Other underdeveloped
4.6% 4.9%
countries may enter
1.7% Internet 1.0 (more
acceptance of e-
commerce)

Germany

Australasia

UAE1
World
UK

Asia Pacific

US

France
South Korea

MEA2
China

Japan
Western Europe

Latin America
East Europe
Selected country
Region

3 Global consumer trend post

COVID-19
1United Arab Emirates
2Middle East and Africa
14 Sources: Passport; Kearney analysis
A. “Touchless” Perfect Diary’s makeup artists all turned into anchors
during the pandemic, and they sent live messages to
and unmanned Perfect Diary customers through the community. In February, the
number of viewers increased by 3–10x compared to
service has January.
gained more
opportunities
In Wuhan, Ele.me (a leading food delivery platform)
cooperated with community convenience stores to Ele.me
set up a fresh convenience store to encourage
self-collection in the community.

Starbucks members can use the "Coffee Express"

function to order online. After receiving the pick-up
China example Starbucks notification on their mobile phone, customers go to the
store, present their “fetch number,” and pick up their
order from the “Coffee Express” dining counter.

3 Global consumer trend post

Hema’s daily sales in mature markets doubled
COVID-19 year-on-year, even in some market segments the Hema
premium fresh food model has been verified.
15 Sources: Public information; Kearney analysis
B. Purpose-driven consumption is accelerating globally

Rank Description % of respondents

Who do you 1 Recommendations from friends and family 46%
currently trust when 2 Your doctor/personal medical professional 44%
making decisions 3 Doctors/medical professionals (for example, on TV, online) 37%
about products?
4 Scientists 30%
5 Brands and companies 30%
Respondents indicated they 6 Government authorities (for example, CDC) 24%
trusted brands and 7 Your pharmacist 22%
companies more than
8 Social media you visit/use 14%
government authorities or
the news 9 Your governor 14%
10 The president 13%
11 Newscaster/news reporting that you listen to 11%
12 Social media influencers 10%
13 Your mayor 5%
3 Global consumer trend post
COVID-19
Note: April 2020, N=1,006 participants
16 Source: Kearney Proprietary Survey
B. Consumers are recognizing brands for their contributions to
society

Rank Description % of respondents

During this crisis, what 1 Manufacturing/researching needed products (masks, ventilators) 15%
are characteristics of 2 Availability of goods 13%
brands that have 3 Making a difference/giving back to society 13%
distinguished 4 Safety measures 13%
themselves in a 5 Customer care 13%
positive way?
6 Quality of goods/service 11%
7 It is an essential good/service 11%
8 Deferring payments/offering free or discounted services 9%
9 Educating the public/providing accurate information 7%
10 Treating employees well/hiring extra workers 7%
11 Delivery/online presence 7%
12 Good reputation/reliable 6%
3 Global consumer trend post
COVID-19
Notes: April 2020, N=853 participants. Not shown: Characteristics with response rates under 5%, including Open for business, Affordability, Helping people stay connected/entertained, Popularity, Proximity/ease of
use, Authenticity
17 Source: Kearney Proprietary Survey
B. …though UN Sustainable Development Accelerating behaviors in different
Goals (SDG) Index (2019) countries
social
responsibility Common gap in Common gap in
responsible life on land, life
could mean consumption below water,
different focus health, and
responsible – Developed
in different consumption countries are
countries more interested
81.5 81.1 79.4 78.9 in recycling and
75.8 74.5 73.2
70.9 70.6 resource
61.1 sustainability (for
example, meat-
free)
– Developing
countries will
focus more on
wild animal

Italy
Germany

India
China
UK
France

Russia
US
Japan

Brazil
protection and
environmental
protections
SDG
index 4 6 13 15 30 35 39 55 57 115
rank
3 Global consumer trend post Retail 6 5 8 3 10 1 2 7 9 4
COVID-19 sales
rank
18 Sources: United Nations SDG index 2019; Kearney analysis
C. Health and Will you seek out products that are healthier?
wellness 2.0: % Strongly agree + Somewhat agree
consumers will
look for 91% 91%
86% 85% 85%
healthier 83%
80% 79%
76% 75%
products 72% 70% 70% 70%
65%

Italy

Germany
India

Worldwide

Canada

UK
France

Spain

Russia

Australia

US
Switzerland

Brazil

Japan
Mexico

3 Global consumer trend post

COVID-19

19 Sources: Ipsos; Kearney analysis

C. Hygiene and Value sales change % vs. average
(February 2019)
immunity are
becoming Italy Singapore Vietnam
consumption
+112% +162% +78%
priorities Pharma Multivitamin Mouthw
hygiene ash

+582% +45%
+29%
Liquid Personal
Hand
antiseptic wash
soap
+35%
+24% +145%
Selected countries Toilet
Thermo Wet wipes paper
Rapid growth in all meters
markets, especially in the
affected countries

3 Global consumer trend post

COVID-19

20 Sources: Nielsen; Kearney analysis

D. A more Sarah James Peter
Lancashire London Zone 4 Central London
differentiated Gen Z, 19 years old Millennial, 35 years old Gen Z, 25 years old
Single Married, 1 baby Single
consumer Student Lawyer Tech start-up

world： – From price-competitive – From convenience-focused – From online shopping with

supermarket to online to online large retailer to local
different – Essential to improved diet, – Health consideration to supplier (fresh and
natural products immunity focus vegetables)
segments react – Reduced alcohol – From regular visits to food – From premium products to
consumption markets to increased fewer fads, focus on trusted
differently to cooking at home, reduced brands
OOH1 – Daily lunch next to office to
COVID-19 reduce OOH consumption

Food and beverage

example
Jo Tom Linda
Brighton Sunderland Surrey
Gen X, 43 years old Gen X, 40 years old Baby Boomer, 65
Married, 2 young teens Married, 3 young years old
Runs design agency children Married, 2 grown
Car factory line children
– From premium grocery with manager Retired
brand focus to private label – From local Tesco to – From premium grocery store
– From focus on convenience discounter to online
foods to greater attention to – From mainstream brands to – Price conscious with high
ingredients private label mix of private label to
3 Global consumer trend post – Buy wine online instead of at – From premium beer and pet support local retailer
COVID-19 Lidl food to reduction of non- despite higher price
1
essentials (for example, beer, – New dog, new pet category
Out-of-home
21 Source: Kearney analysis snacks) spend
E. Traditional activities are moving to online

Work at home Event at home Concert at home Shopping at home

- Video conference at – Berkeley 2020 – WHO “One world: - Live streaming

home virtual graduation together at home” shopping
ceremony on online charity
Minecraft concert

3 Global consumer trend post

COVID-19

22 Sources: Public information; Kearney analysis

E. Paradigm Home cleaning Home casuals Home entertainment
shift will boost
unpenetrated Greater attention to immunity
and hygiene, increasing
Increasing work-from-home
concept, stimulates the
Need for electronic
equipment and
“in-home” needs for safe products: demand for comfortable accessories related to
dress: home work and home
consumptions – Clothing cleaning entertainment is increasing:
– Home and kitchen – Casual shoes
cleaning – Pajamas – Mobile phone and
– … – … accessories
– Video games and
accessories
– …

3 Global consumer trend post

COVID-19

23 Source: Kearney analysis

F. Consumers Consumers concern: financial, health, both, or less concerned
（%, March 19–21, 2020）
are more value
100%
focused and 10% 10% 12% 12% 14%
5%
4%
4%
11% 11% 10%
15% 7%
concerned 21%
6%
19% 1%
2%
5% 5% 7%
31% 11%
about 2% 11%
4%
19%
11%
10% 4% 3% 1%

10%
individual 5% 17% 1%
4% 2%

2% 37%
finances 8% 22%
15% 25% 58%
37%
2% 6% 28% 43%
5% 45%
49% 22%
33%

21%

54% 55% 55%

49% 50%
45% 45% 45%
36% 38%
35% 35%
31% 32%

Australia Canada France Germany Italy Japan Russia UK US Viet Switzerland India Brazil Mexico
nam

3 Global consumer trend post Don’t know or not stated Less concerned Primarily health Financial and health Primarily financial
COVID-19
Note: Survey conducted from March 19–21, 2020; n=10,000
24 Sources: Ipsos; Kearney analysis
F. But that does Ford insisted on one- GM provided more
not mean value size-fits-all “T” model options to respond to
brands will win
automatically
consumer needs
– Low cost but no – Multiple brands
differentiation – Different colors
– Mass production – Different models
– One color (black)

Necessities Fashion product

Ford and GM example
GM gained popularity by
launching a series of new
models, Ford lost the leading
position to GM in the 1930s

3 Global consumer trend post

COVID-19

25 Sources: Desktop research; Kearney analysis

F. We expect to
see more
“mass luxury”
and “decent
value” brands

Muji example

– Unique positioning as – Best becomes enough

“No Brand Quality for value consumers who
Goods” is reinforced by want tasteful yet
its quality design affordable products
3 Global consumer trend post
COVID-19

26 Source: Kearney analysis

F. Trading YoY US category shifts
(March 2020)
down to private
label Travel -75–80%
– Sales of private brands
jumped by double digits in
2020 Q1 as US consumers
stocked up on groceries and
Shopping -55–60%
daily essentials during the
initial phase of the
Transportation -35–40% coronavirus pandemic
– In Q1 private-label dollar
sales climbed by 4.1% and
Restaurants -25–30% unit sales by 2.3% across all
US retail outlets
Health and -20–25%
beauty
Groceries +10–15%

– People are buying more groceries during the

crisis, and will turn to private-label products due
to the relatively high share of private-label
products
– The future growth will include other product
3 Global consumer trend post categories as consumers gain trust of private-
COVID-19 label brands
27 Sources: Private Label Manufacturers Association (PLMA), Nielsen; Kearney analysis
How
companies
respond to
consumer
shifts will
shape the
To seize the opportunities:
future winners
– E-commerce proliferation (with seniors as a key new target group)

– Purpose-driven brands (for consumers seeking trust)

– More connection and engagement with consumers (for individual-centric

consumers)

– More “at-home” targeted business and products

4 Implication

28 Source: Kearney analysis

 Production （1）内部自
有版权图

2. Reshaping future
supply chain trend
and strategy

29
Global supply
chain outlook 1. 2. 3.
Global Implication Path to next
supply chain on global normal:
movement supply chain takeaway for
strategies SMEs

30
A. China has Global export data for selected countries
(2009–2018)
been the
horsepower of $ billion
17.3
Market share

18,711 18,779
most of the 19,000
18,000
18,011 17,978
18,583
15,753
17,334
17.5%
17.0%
16.3
change in the 17,000
16,110
16.2 16.5%
16.6 16.0%
global supply 16,000
15,000
15,036 15.5%

chain 14,000
14.1
15.4 15.0%
14.5%
13,000 12,226 14.7 14.0%
12,000 13.2 13.5%
11,000
12.5 13.0%
10,000 13.1 12.5%
9,000
12.0%
8,000
New global supply chain 11.5%
7,000
center: China, the United 11.0%
6,000
States, and Germany 10.5%
5,000 10.0%
4,000
9.3 9.2
9.2 8.9 8.9 9.5%
3,000 8.6 8.7
8.5 8.4 8.5 9.0%
8.2 8.2 8.3 8.3
2,000 8.1 8.5%
7.8 7.8
1,000 8.6 8.4 8.0%
0 0.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1 Global supply chain movement Global export China United States Germany

31 Sources: Ministry of Commerce of the People’s Republic of China, UN comtrade; Kearney analysis
A. In 2020, the Manufacturing US domestic gross Of the
topic of imports from China output of $31 billion in
registered a sharp manufactured US imports that
reshoring is decline from goods reached shifted from China
back in the $816 billion to $6271 billion to other Asian LCC
spotlight after in 2019, virtually countries, almost
the US–China $757 billion in half was absorbed
2019 unchanged vs.
trade war 2018 by Vietnam

Manufacturing From January to COVID-19 is likely

imports from Mexico February, China’s to cost the economy
rose $13 billion net export, export, $1 trillion
and import during 2020
decreased by
9.6%, 15.9%,
and 2.4% (in RMB)
1 Global supply chain movement

32 Sources: Reshoring Index, United Nations; Kearney analysis

A. However, Global export by commodity as of 20181
(%)
China will
remain
dominant as a 60
1.5
global sourcing 55

center 50
9.1
45
10.4
40 26.7
13.3
35 26.4
30

25

20

15

10

0
Aviation, Optical and Machinery Electrical Auto and Plastics and
aerospace medical devices equipment auto parts plastic products
devices

1 Global supply chain movement China Germany Japan Korea, Rep. United States

1The export data has included the major HS codes under each category, not exhaustive
33 Sources: UN Comtrade; Kearney analysis
A. The Ease of reshoring
requirements Ease of reshoring means the geographic industry transfer, which depends upon
of matured the geographic complexity of the supply chain along with the dependency on labor
cost and skill
supply chains
and labor costs Extended, far-reaching, 2
5

make a multi-tier supply chains Mid: Retain supply

network in the short
Difficult to shift
6
massive term 1
7
How geographically 3
reshoring complex is your
highly supply chain? 8
Easy to shift Mid: Retain supply
improbable Regionally driven supply 4 network in the short
chains term

How heavily does the

Low High
industry depend on labor
cost and skill?
Examples of impacted industries
1 Healthcare: pharmacy consumables 5 High-tech: consumer electronics
2 Healthcare: medical devices 6 Auto: components
3 Consumer products: personal care 7 Consumer durables
1 Global supply chain movement 4 Consumer products: food and beverage 8 Consumer products: luxury

34 Source: Kearney analysis

A. For example, API1
manufacturing
~ 80% of the
world’s APIs
Last year, China
global life facilities in are produced accounted for
science is China abroad, the
heavily reliant doubled from majority in
2010–2019 China and – 95% of US imports of ibuprofen
on China India – 91% of US imports of
hydrocortisone
– 70% of US imports of
acetaminophen
70% of the US 80% of the US – 40–45% of US imports of
protective antibiotic penicillin
mask supply supply is made – 40% of US imports of heparin
is made in in China
China

1 Global supply chain movement

1Active pharmaceutical ingredients
35 Source: Kearney analysis
A. Cost Top 15 reasons for US companies to reshore, 2017–2018
(%)
competitiveness
International logistics costs 69.7
is the key
Proximity to customers and markets 55.3
consideration
Total cost of ownership evaluation 51.3
for reshoring, Risk mitigation 50.0
while Quality issues 48.7
government Latency in supply chain 44.7
incentives have Time to market 43.4
less impact IP issues 34.2
Currency exchange 30.3
Localization of product 30.3
Rising labor cost 30.3
Opportunity to innovate 22.4
Political instability 19.7
Communication problems with foreign customers 18.4
Green/sustainability considerations 17.1
US/state/local government incentives 15.8
1 Global supply chain movement

36 Source: Reshoring institute 2019 survey, Organized by Kearney

B. In the era of
uncertainty, we
Diversification
of global
supplier
1 Rapid
responsiveness
toward
2 Increasing
importance on
planning and
3
have identified network uncertainty forecasting
five trends
around
resiliency of
supply chain

Global
resource
4 Supply chain
finance
5
allocation and
integration in
logistics

1 Global supply chain movement

37 Source: Kearney analysis

B1. Companies Supply disruption in Alternative solutions
are shifting to automobile industry for disruptions
their alternative
suppliers to – Only about 11% of automotive – Mazda considers shifting from tier 1
manufacturers have alternative suppliers in supplier in China to tier 2 supplier in Mexico
mitigate risk the event of an emergency to secure supply

– Expected losses in the automobile industry – Mazda's standardized design and

are expected to reach $2.5 billion production model allow it to source from
qualified suppliers across different regions

Automotive example

1 Global supply chain movement

38 Sources: Desktop research; Kearney analysis

B2. Retailers
that made
preemptive
investments
enabled rapid
response to
preserve
market share

Walmart Yonghui Hema Fresh

Cross-border Upstream Outsource
collaboration collaboration

1 Global supply chain movement

39 Source: Kearney analysis

B3. The value
of planning and
forecasting has
become Fail to adapt
increasingly Demand forecast market conditions
evident in the based on and consumer
supply chain product lifecycle behaviors
shock

Nintendo example Nintendo

Ineffective Conservative
communication inventory
with suppliers management

1 Global supply chain movement

40 Source: Desktop research; Kearney analysis

B4. The Year-on-year freight load factor (FLF) change in January and
February 2020 by region
pandemic – 2.2% decrease in the FLF for North American airlines
accelerates the – Estimated $252 billion revenue loss
global resource
allocation and
January 2020
integration in February 2020
Asia Pacific -3.3%
logistics
8.5%

Europe -0.2%

-0.2%
The slowdown in logistics
systems will have a domino
effect throughout the supply Middle East -1.9%
chain
-0.8%

North America -1.7%

-2.2%

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%
1 Global supply chain movement

41 Sources: Statista; Kearney analysis

B5. Companies Kearney aggressive working capital management framework
increasingly – Declining demand for non- – Negotiation of delayed rental
critical products payment
focus on cash – Cancelled orders – Reduction in labor costs
management to – Liquidity issue in upper-stream – Work from home
suppliers
protect their
financial health
Cash inflow Cash management Cash outflow
Accounts receivables, credit Expense and payables
and collection management management

Inventory management
Led by Transaction and billing
supply
chain

Finance: organization
and process
Investment
management
Cash flow and cost model
Led by Currency and interest risk
S&O management
1 Global supply chain movement

42 Source: Kearney analysis

C. The Offline affair Online affair
penetration Sign up for trade show Sign up for online trade
show
growth of
online will be
accelerated Browse printed brochures Join the live streaming

post epidemic
Browse and compare
Live product demo the quotes

Trade show example

Request for quote Use VR1 to visualize the
products and materials

Compare the quotes One-on-one

consultation service

Contact the Place orders using online

salesperson and transaction
place orders

1 Global supply chain movement

1 VRis virtual reality.
43 Source: Kearney analysis
To SMEs, four
key challenges Greater pressure on
global sourcing
associated with
global trends
are identified

Restrained cross-
border activities

Low visibility and

transparency in
supply chain

Stronger need for

2 Implication on global supply outside financing
chain strategies

44 Source: Kearney analysis

In addition, the Post COVID-19: Face a new normal
crisis induced
SMEs to
conduct self-
Identify the Explore new Adapt new
evaluation, vulnerability business business
explore, and model
– Data management with – Target categories with – Explore the possibilities of
adapt new intelligent automation and growing demand remote working across
industries, domains, and
trends analytics – Modularize production and
businesses
– Flexibility with sourcing shift or adapt lines due to
– E-commerce
– Supply risk management demand changes

2 Implication on global supply

chain strategies

45 Source: Kearney analysis

 1 2
The COVID-19 Build up supply Diversify
pivot: build chain traceability supplier base
resilient supply
chain
capabilities

Secure logistics
capacity
3 Manage cash flow
4
3 Path to next normal: takeaway
for SMEs

46 Source: Kearney analysis

The COVID-19 Leverage partners’ expertise to close the resource and digital capability gap
pivot:
collaborate – End-to-end – Omnichannel – Integrated and – Reliable
service: with global trackable financial
with trustful placing logistics support
sourcing
partners orders, capability system
customs
clearance,
foreign
exchange,
tax refund
services

3 Path to next normal: takeaway

for SMEs

47 Source: Kearney analysis

Kearney is a Kearney global footprint
leading global
management
consulting firm Europe
– Amsterdam – Madrid
Key facts
– –
Americas –
Berlin
Brussels –
Milan
Moscow
– Founded in 1926
– Atlanta – Bucharest – Munich and registered in
– Boston – Copenhagen – Oslo
– Chicago – Düsseldorf – Paris UK
– Dallas – –
– Detroit –
Frankfurt
Helsinki –
Prague
Rome
– Over 3,500
– Mexico City – Istanbul – Stockholm consultants
Kearney Global – New York – Kiev – Stuttgart
worldwide
– San – Lisbon – Vienna
Francisco – –
– São Paulo –
Ljubljana
London –
Warsaw
Zurich
– Offices in major
– Toronto business centers of
– Washington,
D.C. 40 countries
– About 2,000
Asia-Pacific projects per year
– Bangkok
– Beijing – 80% of projects
– Hong Kong
– Jakarta
serve repeat clients
– Kuala – >50% of projects in
Lumpur
Africa/Middle – Melbourne strategy areas
East – Mumbai
– Abu Dhabi – New Delhi
– Dubai – Seoul
– Johannesburg – Shanghai
– Manama – Singapore
– Riyadh – Sydney
– Tokyo
– Taipei

48 Source: Kearney
Thank you
Daniel Starta Sherri He
Chairman, Partner of Greater China Global Partner, Managing Partner of
dan.starta@Kearney.com Greater China
sherri.he@Kearney.com

Keat Yap Maple Zhang

Global Partner Greater China Partner
keat.yap@Kearney.com maple.zhang@Kearney.com

Adam Li Mingliang Zheng

Principal Senior Consultant
adam.li@Kearney.com mingliang.zheng@Kearney.com

Vera Wang
Consultant
vera.wang1@Kearney.com

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