The 123rd Canton Fair Russian Buyer: Chinese suppliers are making progress every year, but technology transformation is imminen
In the spring of 2018, the Canton Fair kicked off. The Hugo network team once again arrived in Pazhou, Guangzhou, closely following the swing trend of China's foreign trade export vanes, truly solving the problem of information asymmetry between the needs of overseas markets and the supply of domestic manufacturers, and standardizing foreign trade export selection. Focus analysis of trends of goods and trends. Hugo.com will continue to provide first-hand information on the status of international supply information and product changes for domestic manufacturers and foreign trade companies, and solve the practical needs of domestic sellers to sell well in the sea.
It has been one of the witnesses to the rapid development stage of China's manufacturing. It is already Denis, the oldest purchaser of Canton Fair in China purchased in China for the 15th year. Let's listen to his unique views on China's “new manufacturing” and his views on the Russian market. Insight.
Denis is the product manager of CTM, the Russian importer's agent company. The company specializes in helping Russian customers purchase power tools and gardening tools, including DIY tools for home use and tools for professionals. And Denis's mission is to help customers find the right product.
CTM will purchase products in the country according to the needs of Russian customers and display them through the company's showroom or a large-scale exhibition held in Moscow. They also provide one-stop shopping for import logistics, independent brand design, packaging and promotion products. Services, purchased products are mainly sold in Russia,
"Sometimes customers don't know what they need. Our goal is to help them find the right product based on their needs and find potential products that are not yet available."
The 123rd Canton Fair was the 15th year for Denis to purchase. As usual, apart from meeting old customers, he also hoped to find some new suppliers. On April 15th, the first day of the Canton Fair was officially opened. This is also his busiest day. He cannot even eat lunch.
As a product manager, Denis took the time to introduce us to some of his company’s product research and marketing methods in the Russian power tool market:
Product research: The products that the general CTM company customers inquire about are basically the same, and then they will report the customer's product requirements to the suppliers who have established relationships; and if the demand is a new product that the company does not understand, they will start Conducting research to inform Chinese suppliers or trading companies of their needs and let them find products is the first step.
However, Denis said that they will not always rely on this move because the price of the products found by this method may sometimes be high. At this time, they will start purchasing on international e-commerce sites such as Alibaba and Made in China.
Denis said that the quality of products on Ali is generally reliable, and most of the time, he can find the products he wants. Although Alibaba's user interface is more complicated than Made in China, it is not user-friendly. However, Alibaba has more options and prices may be cheaper. In addition, they will also compare the prices online and offline. If a new product cannot be provided by its suppliers, they will look for Ali.
The interface operation of Made in China is more direct and simple. Buyers can easily find the product they want and contact the supplier directly.
Promotion methods: including video reviews on some Russian local channels on YouTube and online, as well as publishing valuable content articles on blogs and professional forums (such as DIY tools) to make buyers more aware of the quality of related products. .
The purchasing market center has been transferred from Europe to China
At present, CTM companies mainly purchase from mainland China, partly from Europe and Taiwan.
Denis mentioned that five years ago, Russian customers preferred to purchase from more expensive and better-quality Europe, because Russia’s economic situation was better at that time, and now Russia’s domestic economic situation has deteriorated and its consumption power has declined. Purchasing of European products declined, and the center of the procurement market shifted from Europe to China.
“There are many reasons for the deteriorating economic situation. The first to come is whether the domestic economy has been affected by political instability, including the Sino-US trade war and the international situation (such as the Syrian issue). This has led to instability in the financial market, which has brought about More and more questions have a chain effect."
Although Denis personally is relatively optimistic about the future economic trends in Russia, he said that in reality, the current situation is not optimistic in many aspects.
15 Years of Procurement in China: Chinese Suppliers Are Making Progress Every Year
Talking about these 15 years of procurement experience and feelings, Denis said: "Chinese suppliers are making progress every year. Whether it is the level of service or their level of communication, English is also better."
Denis mentioned that most of today's Chinese suppliers want to find long-term and stable cooperative relationships, not short-term, and they no longer need customers who can only maintain “one day”, and this is a kind of significant progress.
“The quality of Chinese products is also improving, but due to rising labor costs in China, government policies (for environmental pollution reduction considerations), factory input costs, and other reasons, product prices have been rising, but I think the overall price increase is still relatively reasonable of."
"If you want high quality but low price products, China is no longer your goal."
"I'm not sure about other products, but in the case of power tools, the main purchasing countries have long since moved from Europe to China."
China's labor costs continue to rise and technology transformation is imminent
In recent years, labor costs in China have been rising. Many factories in China and abroad have been transferred to Vietnam, Thailand, and Indonesia.
"In a sense, this is actually beneficial to China, and at least it is good for environmental governance."
Denis said that the purchasing market center will not be transferred from China to Europe again. In fact, the current state of transformation in the mainland is similar to that encountered by Taiwan in 20-30 years ago: Before that, the quality and prices of Taiwanese products were also very low, but everything has changed now. Now Taiwan has high prices and high quality. This is the focus of Taiwan’s attention now. This is also the same situation as the mainland is facing now.
CTM will also purchase tools from Taiwan, including some pneumatic tools and specific tools. Denis said that the manufacturing level of Taiwanese products is higher than mainland China and it is also expensive, but it is not the price of the Russian market.
“The professional skills of young Chinese workers are yet to be developed. What they care most about is not how to improve technology, but how much money they can earn, so when their professional quality is really improved, product quality and price will increase accordingly.”
"But it may take more than a decade to see that China's artificial production costs are too high. The factories have all moved to countries like Vietnam. Perhaps we will turn to these countries for procurement, and this possibility is considerable," said Denis.
Sino-US trade war will affect every country and every person in the world
Denis said that the trade war between China and the United States will eventually increase the prices of their imported goods, increase the import prices of the entire industry, and the prices of raw materials.
"This is not the first time. It will not be the last one. This is a good opportunity for the two countries to test the power of big countries."
Denis thinks that the United States is only “bluffing” this time. He believes that China’s position in the international market has surpassed that of the United States, and that China is the second largest holder of creditors in the United States, second only to Japan.
“The main purpose of the US trade war is to try to 'challenges' the market, make it unstable, and take advantage of it. The impact of the trade war is global, and almost everyone in the world will be affected, not just China, the United States, Russia, and even Africa will all suffer.The Russian economy relies heavily on imported products, and 80% of its food depends on imports.Trade wars will increase the prices of imported products and affect consumers in Russia and other countries. ."
Denis said that once the price of imported products in China rises, such as raw materials, this will lead to an increase in the price of almost every product, whether it is electric tools or any other product. Finally, Russian import companies have to pay more, and rising products will eventually be transferred to consumers.
However, he said that the trade war will not affect their purchasing decisions for the time being, and its impact may take some time to become apparent. Small companies are powerless and can only wait and see changes and accept the upcoming changes. (Text / Hugo Net Kang Jie Wei)
Source: Hugo Network Time: 2018-04-16 11:19:05
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