A growing number of nations are now claiming that they have become victims of globalization. In particular, the main focus seems to be loss of jobs to other countries. As a result, we are hearing a rising call to “buy local,but not foreign goods”.
However, if all nations do the same, what would happen to Free Market and World Trade?
Welcome to isolationism !
There has been much talk about shifting manufacturing from China because of rising labor cost etc. The process, however, will be gradual and not likely impacts China greatly at least short-term due to :-
1. Well-established supply chain not available elsewhere for now
2. Fully-developed logistic infrastructure
3. Pool of skilled and trained labor
4. Rising productivity and manufacturing efficiency
5. Stabilization of RMB, China’s currency with its recent appreciation losing momentum
Not necessarily ! When it comes to sourcing products in Asia in particular.
In order to get your business amid cut-throat competition, the supplier initially lowers the price deliberately to outdo others oftentimes to the level where reasonable profit margin is very thin,or even non-existent.
The likely outcome of this is that he will subsequently deliver a product made with cheaper and inferior material and/or with scaled-down dimension/size to make up for his “lost” margin.
A seasoned buyer, before commitment, makes sure that he has a clear understanding of the cost involved and related market info,plus a good check on the background of the supplier for reliability and reputation.
At times, he even ups the price asked for to ensure goods are properly made with reasonable profit for the supplier.
As the economy in Asia keeps growing, there is increasing demand for quality foreign Health/Wellness Products as well as Stylish and Functional Consumer Goods.
Given the rapid rising of the middle class in the region, the potential is enormous!
I look forward to working with international marketing professionals in areas of mutual interest.
Hong Kong, gateway to emerging Asia