Blog: Is localisation the new globalisation?
Dean Best | 4 August 2008
Few terms can have become so synonymous with the rampant changes to the world community that we have seen in the last 25 years as ‘globalisation’. A product of the revolution in communications and the economic boom, at times it seemed that we would all eventually be speaking one language, whilst trading in one currency, shopping at the same supermarket, whilst wearing the same branded clothes.
The economic slowdown has already taken some high-profile casualties. Is the trend of globalisation likely to be next? That’s what a piece in today’s New York Times asks.
“The world economy has become so integrated that shoppers find relatively few T-shirts and sneakers in Wal-Mart and Target carrying a “Made in the USA.” label. But globalisation may be losing some of the inexorable economic power it had for much of the past quarter-century, even as it faces fresh challenges as a political ideology,” the piece says.
The argument is that cheap oil, which has quite literally greased the wheels of inexpensive transportation links across the world, may not return anytime soon, making the search for cheaper labour in far off locations pointless.
In addition “rising concern about global warming, the reaction against lost jobs in rich countries, worries about food safety and security, and the collapse of world trade talks in Geneva last week also signal that political and environmental concerns may make the calculus of globalization far more complex”, the New York Times article said.
Whilst we are unlikely to see globalisation go into complete reverse, there are already numerous examples of companies looking to move production of materials and goods closer to home to save on costs.
With the cost of shipping a 40-foot container from Shanghai to the US having risen to $8,000, compared with $3,000 early in the decade perhaps we are about to enter into a new phase of localisation.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Aryzta FY results, outlook for 2017 - 6 takeaways
- What next for Bernard Matthews? - comment
- Interview: Mondelez eyes sweet success in China
- ConAgra acquires Frontera Foods' "gourmet" brands
- Nestle revamps foodservice arm
- Aryzta FY profits fall
- Nestle close to finalising Garoto deal
- Nestle launches Nesquik Protein Plus for adults
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities