By Etienne Charlier

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?

Sourcing in China is a hot topic. Nevertheless, decisions to source (or not to), what to source and how to source are not little decisions to take because it seems like a good idea. A sourcing project in China is a time consuming but rewarding exercise. It is not for the ill-prepared but it can lead not only to lower cost quality supplies but also to increased flexibility and improved products. Read the rest of “Ins and Outs of Sourcing in China” or post a comment

A one-stop luxury logistics solution

By Russel Beron

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.

They turned to their Hong Kong logistics service provider, Kerry EAS. Formed out of a merger between Kerry Logistics and EAS, an air freight business formerly owned by the national security bureau, Kerry acquired EAS to help them enter the mainland market.. Acquiring EAS allowed Kerry to access a wide distribution network in 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.

Read the rest of “China’s Rising Retail Market” or post a comment >>

Sourcing from China has evolved from a straight-forward, cost-driven approach to more elaborate and strategic varieties. While the recent product recalls did not seem to have impacted Chinese exports based on overall figures, however we have come across anecdotal evidence suggesting the otherwise.

Undoubtedly the initial sourcing interest was triggered by China’s notorious low costs, both direct (such as those for labor and land or rent) and indirect …

Read the rest of “Latest China Sourcing Trends” or post a comment >>

For certain luxury brands, China has already outstripped both Japan and Hong Kong as the largest single market in Asia Pacific. But the growing presence of luxury brands in China is bringing with it greater competition. The country’s busiest streets, such as Nanjing Road in Shanghai, are witnessing fierce competition among the world’s luxury brands. While some have warned that the China market is becoming saturated, for the time being the environment is still a positive one for potential entrants.

Read the rest of “Luxury Brands in China: Part III” or post a comment >>