Wise words from Ray Dalio, founder of hedge fund Bridgewater Associates, who is doing his bit to educate people on them. The coronavirus-inspired economic shock causing the fastest and deepest slowdown in economic activity in various countries around the world is certainly encouraging people to read his works but the collective decision-making that makes up the economy of people buying and selling goods and services is felt most keenly in the consumer sector, which discussed the latest insights in a GCV Analytics webinar yesterday supported by Mark Pihlstrom, partner at law firm Faegre Drinker.
While some companies, such as Kimberly-Clark, posted rising first-quarter revenues as demand for its products, while others struggle as factories and offices close, one of the main pain points is around logistics. Robert Cha at LG Electronics said it had built up a stockpile ahead of the Chinese New Year so had been resilient through the coronavirus crisis but a word of warning from Jay Bunte at Ingredion was cause for concern. He feared national governments could restrict food exports if needed for domestic supply, something Vietnam has already done with rice, although India is expected to continue shipping given its bumper recent harvest.
From food to consumer staples and health to electronics and high-end demand the changes in supply, demand and shipping are in flux. The conversation will continue at the GCV Digital Forum on 3-4 June and my thanks to the panelists and Kaloyan Andonov for organizing the session.
