Forum
Unlocking the Potential of European Brands with Global Supply Chain
Voice from Intern at IHSPLUS
I recently completed the first phase of my internship at IHSPLUS, a newly formed packaging solutions provider, allowing me to contribute to two projects: building and upgrading the company’s official website and participating in initiatives focused on creating sustainable solutions for the future of packaging through innovation and supply chain transformation. Beyond just getting a foundational understanding of the packaging industry, this experience inspired and reshaped my perspective on global supply chain dynamics. As a Gen Z student from China studying in Europe, I found myself looking at these challenges through a unique lens.
Reflecting on my time in Europe, a question has been on my mind: How can local EU brands leverage their natural advantages, such as personalization and sustainability, to meet the evolving demand of Gen Z and navigate the global supply chain trends that come with both challenges and opportunities? I‘ve seen firsthand how the interest in personalized products and sustainability is driving market shifts. Social media has further enhanced this trend, blurring traditional geographical market boundaries and reshaping consumer behaviors. For local brands, this shift creates an exciting opportunity to expand their reach globally, something that has never been more feasible with the growing influence of Gen Z.
In Europe, many small and median-sized brands across various industries emphasize their cultural backgrounds and brand identities. For instance, L’Erbolario and Dr. Hauschka, two of my favorite skincare brands, have successfully built strong, distinctive brand images rooted in their Italian and German origins, respectively. Both are excellent examples of personalization, with a strong consumer perception of authenticity. However, challenges arise when these brands scale up and look to expand globally. The conflict between maintaining personalization and achieving cost efficiency, fast product launching, and scalability is significant and inevitable. So, how can these brands navigate this dilemma when expanding internationally?
From what I’ve seen in my internship, I believe that innovation and technology, particularly in the area of smart supply chains, offer a solution. As AI and technology evolve, brands like Dr. Hauschka could benefit from upgrading their supply chain to maintain their competitive edge. Specifically, one approach could be outsourcing certain production and packaging processes to cost-efficient agencies while focusing on product research and development, which could allow them to scale without sacrificing their core values of sustainability and precision.
Technology can also support the market reach of these brands. As social media plays such an important role in shaping the preferences of Gen Z, leveraging big data and content analysis can help brands target potential consumers more precisely. This data-driven approach would not only enhance brand visibility but also foster deeper connections with consumers.
Once these brands have successfully globalized, they could further optimize costs through localization. By keeping core product development and formulas in their headquarters, they could set up small, localized production facilities or outsource final production and packaging to local markets. This decentralization would allow for faster product launching and adaptation to local preferences while maintaining overall cost efficiency.
Looking ahead, I’m excited about the potential for European brands to combine their rich cultural heritage and sustainability values with the power of smart supply chains. Could this integration be the key to unlocking their growth and competitiveness on the global stage?
Yanhong Chen
Intern at IHSPLUS
Double Degree Master’s Student at Bocconi University and Copenhagen Business School