While globalisation may be under threat, so-called glocalisation looks set to resurge. In essence, to be “glocal” means making the most of both global and local resources—creating standalone ecosystems in individual markets. The term was popular in marketing parlance several years ago, but in a new incarnation it could apply as much to services and operations.
Dawn of de-globalisation
By many accounts, the advent of covid-19 promises to accelerate an end to the globalised world taken for granted in the 21st century. Boston Consulting Group (BCG), for example, forecasts global trade to drop by 20% in 2020 and doesn’t expect trade to return to the US$18trn recorded in 2019 until 2023.1
With supply chains thrown into chaos, countries are turning their gaze inwards with a new appreciation for self-sufficiency. Symbolic of this shift, the world’s two largest economies appear to be on a path to decouple their economies and technology ecosystems. A Bain & Company report released in October 2020 foresees “two walled gardens in global trade”, one allied with China and the other with the US, presenting major barriers to companies operating across them. The result is a corporate rethink of everything from supply chains to employees.2
Additional insights for this article were obtained from in-depth interviews with experts. Our thanks are due to the following individuals:
Minyoung Kim, vice president, content (Korea), Netflix
Tony Zameczkowski, vice-president of business development, Asia-Pacific, Netflix
Andy Zook, senior vice-president, Asia-Pacific, SAS
Written by David Blecken
1 Boston Consulting Group, July 20th 2020, Redrawing the Map of Global Trade
2 Bain & Company, October 2020, Technology Report 2020: Taming the Flux