**London**: A new study reveals that 57% of UK small and medium-sized enterprises plan to switch suppliers in 2024, with an emphasis on cost efficiency and product quality. The shift highlights the growing importance of digital sourcing channels and new supplier partnerships.
Small and medium-sized enterprises (SMEs) in the UK are poised to significantly revamp their sourcing strategies in 2025, according to a recent study commissioned by Alibaba.com. The research, which surveyed over 1,000 sourcing decision makers in SMEs, reveals that 57% of these businesses intend to switch suppliers this year, with a primary focus on cost efficiency and product quality.
The findings indicate that nearly half (43%) of respondents view sourcing products at more affordable prices as a critical priority. Additionally, 40% highlighted the importance of finding reliable suppliers, while 32% expressed a commitment to sourcing sustainable products. The ability to attract new customers through innovative and trendy products was also a key factor for 31% of those surveyed.
This shift towards new suppliers is driven by the increasing reliance on digital sourcing channels, particularly online business-to-business marketplaces. The study underscores a growing preference for direct sourcing, where businesses purchase goods straight from suppliers rather than through intermediaries. The report shows that 59% of SMEs believe that digital sourcing has become more important compared to the previous year.
Kuo Zhang, President of Alibaba.com, commented on the findings, stating, “UK SMEs are becoming more strategic in their sourcing… Our research shows that SMEs are looking beyond cost savings and actively seeking new suppliers to future-proof their businesses.” He noted that this trend mirrors a broader pattern in Europe, where orders placed by European buyers on Alibaba’s platform surged by 75% year-on-year in February.
In response to these evolving market demands, the upcoming March Expo 2025, starting on 1 March, aims to support SMEs by providing access to over one million new products at competitive prices, as well as various discounts and shipping incentives. The event serves as a vital platform connecting buyers and sellers globally, facilitating the discovery of the latest product opportunities and supplier partnerships.
The study was conducted by Censuswide between 31 January and 6 February 2025, focusing on businesses with fewer than 150 employees. It is clear that as UK SMEs adapt to shifting market conditions, their emphasis on digital sourcing and supplier relationships is set to shape the business landscape in the coming year.
Source: Noah Wire Services
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