Swiss retail must invest around 9 billion by 2030

For thousands of years, similar processes have applied in trade: someone produces a good and finds a buyer or someone to trade with. If there are distances between A and B, a trader comes into play. Again and again, the rules of the game are reinvented. This is currently the case again, as Kaspar Engeli, Director of Handel Schweiz, explained at a media briefing: "Swiss trade has some major challenges to overcome by 2030."

Business situation brightens

In view of the corona crisis, the conditions could be worse. After all, in the last KOF survey by Handel Schweiz, 92% of the 500 Swiss wholesalers surveyed said that the business situation was good or satisfactory. It is well known that supply chains, some of which have been disrupted, are a cause for concern. These have increased the cost of new containers tenfold. This slows down transport and makes goods more expensive - for wholesalers as well as for consumers.

Companies active in foreign trade also report an improved business situation. This is the result of a further survey by Handel Schweiz. 40% of the respondents expect sales to increase in 2021 compared with the previous year. Free trade agreements play a very important role here, as 84% of the foreign trade specialists confirm. This applies regardless of the size of the company. According to SECO, small and medium-sized companies benefit most from free trade. While in 2019 - thanks to free trade agreements - Swiss companies with more than 250 employees saved around CHF 728 million in customs duties on imports, SMEs fared even better with a total of CHF 1.134 billion.

Changes until 2030

This money is urgently needed because the Swiss trading companies are facing major changes. These need to be financed. By 2030, foreign trade specialists expect the most important changes to take place in sales channels and markets (26%), sustainability and the circular economy (24%), digitization (23%), and transport and logistics (19%). The topic of circular economy was given high priority by 48% of the respondents. However, one important resource is still missing for this: knowledge. According to the survey, many companies and suppliers do not yet have the necessary knowledge about the circular economy. In addition, there is a shortage of corresponding specialists. However, know-how and expertise are needed to redesign processes, (18%), find new suppliers (11%), change contracts (8%) and deal with rising costs (8%).

Swiss trade faces complex challenges

For retail companies, the challenges are becoming increasingly complex. Digitization continues to play a key role, because some changes in the circular economy and in logistics can only be implemented on this basis at all. Kaspar Engeli emphasizes that Swiss retailers have made enormous progress in digitization and have already invested heavily in recent years. But that is not the end of the story, as the director of the umbrella association points out: "In order to tackle the next stage of development, budgets are now being massively ramped up. If we assume that the 35,000 or so retail companies will invest an average of CHF 250,000 over the next few years, we're talking about around CHF 9 billion in investments in areas such as smart interfaces, Big Data, security, and traceability and circular economy." In addition, digital networking still suffers from incompatible systems. SMEs active in wholesale are often in the sandwich position between clientele and suppliers. Both have their own digital systems that the SME should use or that should be compatible with its own system. This involves additional effort for the SME. Kaspar Engeli: "Handel Schweiz demands progress in the compatibility of digital systems. This would greatly simplify and accelerate the nationwide digitization in trade." In order to promote this and similar processes, Handel Schweiz will increasingly network with research and universities in the future.

Source: Trade Switzerland