The Power Of The East
18 April 2018
When you look the recent rapid economical transformation achieved in the East, the quickest transformation and progression from poverty to wealth the world has ever seen you cannot help but find it staggering and awe inspiring. East Asia – in Japan, South Korea, Taiwan, and now, and now the sheer scale and force of China.
So on the ground level why is this interesting.
I went into the scene of my Guinness World Record Breaking Metro superstore which is now a pound shop – half the size, scale and range of my supermarket. They import goods directly from China and Taiwan. High quality Chinese products, selfie sticks, charge packs, USB sticks and in median case average retail this product 500-1000% cheaper than renowned budget stores like Clas Ohlson. This is interesting too because my boss for three years Francis Marra – Retail Director, MD. and COO of multinational retailers speciality is start-ups, business turnaround and consultancy.
He oversaw some phenomenal performance, including personal letters from CEO’s, during this spellbinding streak of retail success I had as a young boy with no ability in comparison to my experienced more worldly knowledgeable self now. I hadn’t watched one Dragons Den then, I hadn’t been to college to get a 96% accountancy A – Level exam or read John Naylor’s Management book. I hadn’t read any Sir Alex Ferguson, Lord Sugar or Gordon Ramsay books. Nowadays, I can see product and price and appeal of product to a wider spectrum. The desire to promote Vape as an alternative to tobacco and recruit others to do the same with a possible franchise proposition in future could be revolutionary in terms of long-term health prospects of huge swathes of the nation. There are categories of the population where the norm is to still smoke. For example, alcoholic anonymous groups, it can save the NHS millions of pounds each year. When you hear that governments around the world including Spain have alienated vape businesspersons there is a clear market here.
This is his speciality. Product. Price. Promotions. POS. He came along to me at Oxford Road, Reading shouting about the four Ps.
How many pound shops, Aldi and Lidl's open in the UK each year and how many renowned high street retailers like Dixons and Woolworths close?
There will always be a market for selling products cheap on eBay and Amazon Marketplace.
How can I source cheap product?
Cheaper than competitors on Alibaba?
Who, by the way, supply hundreds of thousands of businesses who make a healthy, consistent profit.
By visiting provinces in China away from the unbelievable human history feat that is Guangdong province, and Shenzhen. Wages here have risen to Hong Kong levels.
Sourcing supply lines in areas with little wi-fi or coders to build e-commerce sites.
Yes, I will need consultancy.
I can name three product ranges I would like to retail because I have knowledge in these lines.
Safety shoes will sell online. They will also sell if you have access to more than one thousand warehouse staff at the largest distribution centre in Europe. I only raised 3 percent charity funds on two charity events, the other 97 percent was all word of mouth.
One metre of tumble-dryer-ducting-hose Great Britain costs £2.19
One metre of tumble-dryer ducting hose in China costs £0.07
I worked in a factory where it took me 14 hours of a Saturday night to produce a 100m tumble-dryer-ducting-hose
In China they can produce 800m tumble-dryer-ducting-hose with 8 people for less than it costs for a company in the UK to produce 100m employing one person.
Another method to source cheaper supply is using sites like Import Genius to compare thousands of competitors customs records of supply. You can search a competitor and pull up a page of all the suppliers they have ever used. You can use excel to make a nice formatted list containing the product they make and which competitor they supply to.
There is a tutorial here.
One of the real strengths of using a supplier using an import records tool is that you can potentially find a supplier not listed on Alibaba. The majority of importers use only Alibaba to find suppliers, so if you’re able to find a supplier not advertising on Alibaba, you’ve immediately eliminated the majority of your competition from selling identical products from the same supplier as you. However along with being a tool to find suppliers, it is a great tool to research suppliers. You can see they are legitimate if they have a long history of supplying to the US. Also its good to size up your orders. If they are only exporting container loads it will be difficult when it come to Minimum Order Quantities (MOQs). If they have a history of exporting small shipments they will be good for negotiating MOQs.
I can use sites such as Chinese Importing for formulating contracts with suppliers
- What are the payment terms?
- What are your shipping terms?
- When is the order to be completed? Mentioning a penalty for each week of delay is not uncommon
- What are your packaging requirements?
- What are your product requirements? Be extremely careful in specifying the materials to be used (it’s quality material on the pretense that you didn’t specify that it was important).
Pre-shipment assurance inspections are surprisingly inexpensive a third party quality assurance company who goes to your suppliers and inspects the export order (your shipment). You can request this company to do anything from ensuring your label has been included on all of your packaging or to test materials to ensure they meet your requirements. So how much does it cost to have a highly trained third party travel into who-knows-where in the middle of China and spend hours inspecting your shipment/ About $300.
Doing this every so often (especially at the beginning of the relationship with your supplier) is a very good idea. Aside from the obvious reasons of ensuring the products you receive meet your expectations it also keeps your supplier on their toes. If they think there's a possibility someone representing your company may show up to inspect your order prior to shipment they’re much less likely to cut corners than if they know there’s no chance of them ever seeing someone from your company. There are countless 3rd party quality assurance companies in China. Three popular ones are Proqc, SoFeast, and Asia Inspection.
Vape mod tester samples in beer gardens giving the licensee a small fee will be a lucrative venture. Beverage drinkers are in a happy buying and trying mood. I will negotiate with licensees to simply sample some vape flavours.
More to come on the power of the east. The way they have demonstrated how to raise economies out of the developing into the developed, the speed at which they’ve done so is the most remarkable feat in the whole human race. The West have to learn from their methods and embrace their knowledge and wisdom.
Beginning in 1997, with seven economies that grew at least 7 percent for at least a quarter of a century.
East Asia entered a period of reckoning of its own, as the Asian financial crisis took hold. By this point Japan had been the super-power, a mature economy that had just began to face a new set of post-developmental structural problems, ones it showed much less capacity to address than the original challenge of becoming rich. Cracks began to appear, their decline in terms of growth was imminent. Korea, Taiwan and China were still in development catch-up stage. These states were either unaffected by the Asian crisis or recovered from it quickly returning to brisk growth and technological progress.
The three topics I will cover in Asian economics a truly astonishing a lesson for us all is
- Agriculture – the most overlooked. This sector employs the vast majority of people in poor countries. Successful Asian States have shown that the way to do this is to restructure agriculture as highly labour intensive household farming – a slightly larger-scale form of gardening. This makes use of all the available labour in a poor economy and pushes up yields and output to phenomenal levels, the highest possible, albeit on the basis on tiny gains per person employed. The overall result is an initial productive surplus that primes demand for goods and services. This drives the economy.
- Manufacturing – The second stage is a clear focused drive to direct investment and entrepreneurs towards manufacturing. This is because manufacturing industry makes the most effective use of the limited productive skills of the workforce of a developing economy, as workers begin to migrate out of agriculture. Relatively unskilled labourers create value in factories by working with machines that can be easily purchased on the whole market. In addition, in east asia successful governments pioneered new ways to promote accelerated technological upgrading in manufacturing through subsidies that were conditioned on export performance. This combination of subsidy and export discipline took the pace of industrialisation to a level never before seen.
- Financial sector – Interventions in this to focus capital on intensive, small scale agriculture and on manufacturing development provide the key to accelerated economic transformation. The states role is to keep money targeted at a development strategy that produces the fastest possible technological learning, and hence the promise of future high profits, rather than on short term returns and individual consumption. This tends to pit the state against many businessmen, and also against consumers, who have shorter strategic horizons.
This economic analysis is critical for small business and start-ups to see what effects and drives economies, the knowledge of this is priceless in small business. It’s similar as a new start-up being proficient in accounting and coding. If the person is not, and has to pay for these two most expensive overheads for a startup then failure is way more likely. Statistics show that only 50 percent of businesses making through the five year mark. 20 percent fail within a year due to hiring in people to do accountancy and web building roles. Coding gives you the ability to start any business in whatever you like. If This Then That automates everything for you in your business. An eight week coding bootcamp and a book you can begin to build multiple businesses.