You doubtlessly have heard and read many different stories about sourcing in China. Some are thrilling and others are scary. But ultimately, what really matters is to understand enough of the ins and outs of the China sourcing scene in order to answer a few key questions for your company: To Source or Not To Source; To Source What and What Not To Source?
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Similar to the pharmaceutical supply chain, luxury goods have their own complexities.
Until a few years ago, distribution of luxury goods in China were controlled by state owned companies with little knowledge about sophisticated marketing, distribution and supply chain management strategies. Under WTO commitments, companies like Alfred Dunhill were allowed to open their own stores in China in 2003 – the problem was they didn’t have an effective distribution and logistics solution for mainland China.
Read the rest of “China’s Supply Chain raises the bar - Part II” or post a comment >>
The subprime debacle has rattled retail sales in the U.S., forcing many companies to downgrade sales estimates as consumers shy away from checkout counters. Luxury retailers and credit-card companies in the U.S. have recently reported bearish projections for the coming quarters.
China, however, is a retail market on the rise. In 2007 China posted 17% growth in retail spending.
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Chinese market has been a highly preferred market for many organisations worldwide in the past twenty years. However, it is not an easy market to penetrate. Australian companies are among those Europeans and Americans who have been tackling the market with little positive results. One primary reason is that they do not appreciate the important role and impact of Chinese culture.
Most of the commentary on the Shanghai market depicts the average Chinese investor as unknowledgeable and following the herd. However, a recent study that we’ve (kapronasia) just completed with Amber shows that individual Shanghai A-share investors are actually much more market savvy than commonly thought.
Read the rest of “Betting on the Dragon: Chinese investor behaviour” or post a comment >>
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