MGR eCommerce Edge Weekly | January 28, 2020
Top News This Week
Trade Deals and Pandemics: Latest on How China Will Impact Your Business
There are two major developments over the last two weeks in China, a new trade deal with the US, and the outbreak of a potential pandemic causing virus. Most of you likely have supply chains that run through China, and even those that don’t may be effected by the Coronavirus as it begins it’s global spread.
The New Trade Deal:
It looks like for now US President Donald Trump and the Chinese Communist Party have come to an agreement. China has agreed to increase it’s purchasing of US goods, committing to buying $200 billion over the next two years.
This means that the tit for tat tariff battles that have been non-stop for the past two years may finally come to an end. President Trump is slashing tariffs on over $120 billion worth of goods that he implemented last year.
Hopes are high that this agreement will last for the foreseeable future and end the uncertainty that has constantly surrounded the US-China trade relationship. Read more trade deal details >
Coronavirus’s Impacts on Supply Chains and Global Trade:
If you’re not aware of the Coronavirus outbreak and it’s potential devastating effects, read here >
Five days ago the number of confirmed cases of Coronavirus was in the hundreds, as of today it’s now in the thousands. China has quarantined entire cities, containing over 30 million Chinese citizens in total, in an effort to control the spread of this highly contagious virus. They are also extending the current Chinese New Year celebrations to stop citizens from going back to work and school.
China is country known for putting its productivity and economic output priorities above their own citizens’s well-being, so when they make drastic measures such as this it’s a clear signal that this outbreak should not be overlooked.
Most countries around the world are now taking measures to prevent the Coronavirus from spreading beyond China. Should the dangers of the virus escalate, we may see countries put a temporary lock down on all travel, including transportation of goods, coming from China.
You do not need to panic yet, but the implications this may have global supply chains and trade should not be ignored. Be prepared for parts of your business to be disrupted if the virus fails to be contained.
Other Notable Links:
1. Acquisition alert: Colgate buys digitally native oral care company Hello – YAHOO FINANCE
2. Understanding Amazon Attribution – MGR
3. Podcasts acquisitions heating up, Bill Simmon’s The Ringer podcast network is in talks to sell to Spotify for $100 Million – MEDIA OPERATOR
4. Customer loyalty is up 20% in the last year, what brand keys drive customers to be loyal? – MARKETING DIVE