Vvv
Gtn-advert

Toy Industry News

The Standard - Latest News

« …and the Gender Walls Came Tumbling Down; Harrods Department Store Mixes Up the Toys | Main | Amazon, Hot Topic and Best Buy are in the “Ted the Bear” Business; are you? »

August 10, 2012

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a0133ec87bd6d970b0176172583b1970c

Listed below are links to weblogs that reference Are Chinese Goods Becoming Too Expensive?:

Comments

James Eadon

The drip drip drip effect is due to the thermodynamic tendency of things to equalise over time, to come into equilibrium.

Sheamus J Maher

Closer to home can mean at home. From a parochial UK perspective the decline of Chinese production opportunities has to be a truism. Producing in England can be economic. Sometimes it is all too easy to think mass production = Far East. True the great advantage HK and China have is a great infrastructure; finding stuff once you know your way around could not be easier and there are many support functions (at a cost) on the route. It is too easy to get sucked into the assumption that the UK cannot produce, or that overseas is easier.
I am an expert on, allegedly, many business aspects, one being sourcing of toys and gifts and I was recently retained to advise on outsourcing a decorative product for laptops and phones etc., with a specific request to review moving production of several 100k to China. The client already had a production unit in the UK but it was concerned about both cost and capacity and, not unusually, assumed China would be more cost effective. I would not be writing this if the result was conventional; it transpired after many e-mails & conference calls to raw material suppliers and factories all over china that the UK was not only comparable on cost but probably better by at least a factor of 3, possibly more after full account of cash flow implications and freight etc.
In this case the business owner had started small and sourced the plant, machinery & people he needed to run an SME, one which grew to “medium” pretty fast. What is interesting is to contemplate the idea that had the current volume arrived at one hit he would have tried to place production overseas as no such contract production existed in the UK. In that case the project would have never taken off as the costs would have defeated the opportunity, and hence no wealth and job creation. But, because he grew organically, he had to resource in the UK and has a strong and efficient organisation as a result. This is one example of why banks need to support start-ups, and also a shining example of how to produce in the UK. It is a business plan that will not always work but in today’s climate it is worth thinking about …………..always challenge an accepted truth.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

USA-Globaltoynews-200x400_WEB
200-animated
How to interpret the Credit Collective numbers

Alerts: + indicates a climate of increasing financial uncertainty. + is bad. - is good

Sales Leads: An + indicates new retailers joining the industry. + is good. - is neutral.

References: + indicates a period of increased ordering from retailers. + is good. - is bad

To see how you can get connected to over 300 of your peers click here: CreditCollectiveDemo
Want to view posts by our guest bloggers? Click the Archives tab at the top of the page and search for your favorite guest blogger to view all of their posts together.
Nicolas-sidebar
Tara-sidebar