Tech and market factors reshape Chinese supply chains; US consumers plan to buy less during holidays

There are three major trends changing global supply chains for Chinese companies, says the Institute of Supply Chain Management in a new article. Each trend has implications for American companies too, as competitors or imitators.

The first is a Reverse Globalization Wave. Rather than merely seeking cost advantages overseas, many Chinese firms are investing abroad for market access, strategic control, and proximity to customers. Unlike past waves, small and medium-sized enterprises (SMEs) are driving much of this outward investment. Around 70% of Chinese outbound investment is by SMEs.

Second is a new focus on building Manufacturer-to-Consumer (M2C) Supply Chains. There is a pivot toward bypassing traditional layers of distribution (wholesalers, importers, retailers) and creating more direct relationships between manufacturers and end consumers. Logistical innovations (faster fulfillment, more efficient customs, chartered flights) help reduce lead times.

Finally, Chinese companies are focusing even more on intelligent supply chains. More investment in robotics, automation, AI, real-time inspection, visual recognition, etc. China leads the world in installed industrial robots, though robot density per employee trails places like South Korea and Singapore, so there's huge room for growth.

The author argues that firms and supply chains that succeed will combine three strengths: Physical presence near markets, digital reach with data and analytics enabling real-time visibility
And an intelligence focus on automation, AI, and smart systems.

More consumers are planning to lower their holiday spend this year, according to a new survey by Kenco Logistics Services.

About 28% of consumers say they will lower their holiday spending in 2025 — that’s up by 11 points from 2024. 58% of those surveyed say that inflation / product pricing is their main concern going into the holiday shopping season. Product availability is the second major concern, but far behind, at 16%.

56% believe trade complications (tariffs, shipping issues, etc.) will be a primary reason for higher prices.

The survey also includes helpful data on consumer preferences for parcel shipping. Respondents ranked features like real-time map tracking (58%), estimated delivery countdown (36%), and photo confirmation (37%) as attractive delivery-related perks.