Monday, February 11, 2013

Giant Retailers Push China To Cleaner Manufacturing

Here is an interesting article about how LARGE Retailers Pressure Chinese Suppliers to 'Get Clean' outlined how pressure from two giant worldwide retailers, H&M, a Swedish clothing Giant and Walmart has one of their suppliers cut water use by 23% and slash coal consumption by 11% providing them with an annual savings of almost $840,000.

This is “market” regulation at work. Let the buyers and sellers regulate the market and keep government out of the way.

Government regulation and laws are often imposed on companies because they help elected officials stay elected. While many government imposed regulations sound good, in theory, they are often imposed with very little, if any, input from the industry being regulated.

While market based regulations are more subtle, they often work to achieve a greater end result than government imposed mandates.

Walmart, by placing market pressure on their Chinese suppliers, is not only saving those suppliers money but also helping the environment.

The fast expansion and growth of industry in China has not yet been followed up with an education about the importance of clean manufacturing processes and the need for quality control.

In addition to better environmental operations that will ultimately save the manufacturers money, the manufacturing companies must often be educated in the need for quality control.

Market demand will ultimately teach these manufacturers the need for better quality as more buyers begin to seek non-Chinese manufacturing in such areas as India and Mexico.

In the past two years an increasing number of companies who have manufactured goods in China and experienced quality control issues contacted our company in seeking help in locating a manufacturer in Mexico.

The market demands will push Chinese manufacturing to do better in all areas and if they do not improve processes and quality control, they will lose the market share they have enjoyed.

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Wednesday, February 06, 2013

How To Find Large Volume International Buyers For Your Export Products

For a couple of decades the US government has provided trade leads services to help exporters find importers (buyers) through their STAT USA program.

One of the reasons given for ending this service was that importers/buyers were no longer submitting their requests through USA embassies. The importers/buyers could now find manufacturers, exporters and suppliers on the Internet (a very good reason why exporters and exporting manufacturers should have a website NOW).

Additionally, importer buyers were no longer willing to advertise the fact they were looking for products to import and thus expose their contact information, especially their email addresses, to the vast amount of spammers and scammers who thrive on this type of database or directory.

The oldest (37 years in business) and only publisher of printed trade directories of worldwide importers closed their doors in October 2010 due to similar reasons.

So what are Exporters to do?

Many turn to the online trade lead boards where both importers and exporters may post their wants and needs FREE of charge. For a fee that often ranges into several hundred dollars, an exporter may elevate their listings to higher status by having a cursory background check done on their business.

The problem with most trade lead boards that allow FREE posting is the amount of scammers that have proliferated and now I have heard that some of the scammers have made enough money to set themselves up to look legitimate enough to pass the cursory background checks allowing them to scam even more.

Looking at the problem of finding legitimate buyers my research found a possible solution in using lists of existing “Wholesalers” and “Dealers” of products by their SIC Codes (standard industrial classification).

SIC Code Groups 50 and 51 are the two major groups covering ESTABLISHED companies that BUY PRODUCTS IN LARGE AMOUNTS.

Considering that domestic manufacturers generally sell large quantities of their products to wholesalers/dealers and do not market direct to retailers, then it makes sense to focus on the large volume buyers for your export marketing since Importers are no longer advertising the fact they are seeking products.

B2B lists are generally available by SIC codes for most developed countries but may be more difficult to find in lesser developed countries. This again plays into the need for an exporter to have a website so importers who are seeking products are able to find them from you.

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Friday, February 01, 2013

US Risks Trade-Currency War With China

It is interesting to watch the elected officials of the most indebted nation in the history of the world attempt to dictate economic and trade policies to the benefactor that has sustained their level of over-spending and economic incompetence.

Had China not purchased the level of USA debt instruments that it has for the past decade or two, the USA would have fallen into an economic downturn that would make the current one look mild by comparison.

The recent passing of legislation by the U.S. Congress with the support of both parties is a clear indicator that reality does not matter, getting re-elected does.

The US Congress is seeking the appreciation of the Chinese yuan because they feel it is necessary in order to accomplish the present administration’s U.S. manufacturing revitalization plans by helping increase U.S. exports.

China has countered by stating these currency issues are more about the upcoming mid-term US and the U.S. administration's inability to put it’s own financial house in order.

Although I am a home grown, born-in-the-USA person who believes our country is still the best place to live in the world, it is my opinion that our illustrious leaders in Washington should learn from the miracle China has created in the less than 30 years instead of trying to dictate their failed economic policies to them.

A trade war is something the USA or the rest of the world can afford when times are good and could end up being catastrophic for those nations that are already suffering from poor economic conditions.

Instead of trying to push it’s agenda on the very country that has been the USA’s chief benefactor, the U.S. government should take heed their advice and begin working on getting their economic house in order.

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