Shopping in Asia - shopping ideas for retailers / whole sellers and shopping by customers / tourists
When talking Asia, particularly Hong Kong or Singapore - many people always and instantly think shopping. I know Asia a little bit - as i have been working on various assignments in Bangladesh, Thailand, Laos, Cambodia, Hong Kong and Philippines since the early 1970-ies.
Of course there are 2 different ways of shopping ...
- as a tourist shopping best deals for your personal needs
- as a business man shopping quantities for your business or employer at home in your European or American business
The closer you get to the source - the lower the prices !
Hong Kong and Singapore are in no means near the source - as both of these once so famous global trading centers have their own sources or resources outside their own islands - with a very a few exceptions. Both island countries buy at actual manufacturers - directly from sources or even from regional whole-sellers and trade with the world. Hence Buying / shopping in Hong Kong or Singapore can be far more expensive than directly from original sources !!
Of course having whole-seller from almost an entire continent in one single city like Hong Kong or Singapore requires less traveling - but also may make trade far less reliable and predictable and less competitive. The longer the chain from original source to final customers - the less competitive you are. The single most efficient way always is to trade and do business face to face - eyes to eyes - heart to heart - with the bosses of original sources and with your final customers.
The global market has changed during the past many decades and may change even more - people and companies all over the world are often struggling for bear financial survival and may be happy for any true, sincere and stable customers. 1000 good, solid small customers may create a far more stable basis to survive for a manufacturer than one large company who may go broke within a single day and contribute to a loss of a substantial customer base at once for any manufacturer.
With the mainland China being open to the world market more and more - trading centers move from Hong Kong to Shanghai and other major cities in China. With traveling within China being easier than ever before - even searching for and contacting real sources and original manufacturers is becoming more popular.
In todays era of modern communication and cheap global travel - new markets open - for new ways of trading and succeeding.
Quantity makes the price, many say - are you sure that good deals are only available to the large monster companies ?
Large companies have it easy to shop in Asia - whenever you buy 10'000 pcs per model or more, you get an acceptable price. For some larger / more expensive items you may start shopping at 1000 pcs ...
But what about YOU - a family business ? Can a small family business purchase directly from original manufacturers ??
YES of course - every small business or family business can purchase directly from original manufacturers!
Many years ago i was once working as an electronic / wireless technician for a small and very fine Swiss company - Walter Derungs AG, Zürich - a one man business - Walter Derungs the founder and owner, one sales person and one electronic technician. We were importing / selling quality CB radios, Taxi and amateur radio transceivers, scanners, transceiver antennas and other fine electronic products and components, as well as - just for the fun of it - some electronic novelties. We did most of the work in house, modifying / adapting imported electronic to meet our tough Swiss specifications for radio transmissions, as well as repair, maintenance and manufacturing of high end alarm devices, and electronic gambling machines.
Our sales quantities per item - we had MAY different items - all on stock - was anywhere between a few peaces up to maximum a few hundreds per year per item for most electronic devices. And yet Walter - the founder and owner of that company managed to purchase all directly from original manufacturers in Asia !!
Walter was always best friend with any of his employees. There have never been any secrets and we talked openly about sources, resources and business methods. Walter was one of my best friends even long time after i left his company for another assignment in Africa. Now a few years after Walter passed away - i am sure he loves others to know how he got access to original sources in Asia.
He did personal business - face to face !
Usually once a year - seldom once every 2 years, Walter traveled to Asia, to various countries for several weeks. a few thousand US$ expenses all in all per year - to visit his suppliers and potential new suppliers. He visited every of his major suppliers, talked face to face to bosses, and .. went out for diner or a (few) drinks - he established a personal relationship to each of his suppliers ! As a result - he brought "samples" a few pieces or a dozen, and ordered quantities he could sell, dozens or hundreds during the course of each year. Directly from original manufacturers !!
All is possible - if you take your time to meet original sources, talk to people in charge - eyes to eyes, take some time - may be a few days each year for each of your potential valuable suppliers, and be friendly with all. Be honest to all and all understand that even a small business needing just some "normal" quantities can pay and order and contribute to the survival and success of all manufacturers.
Walter got anything he ever needed from any company he wanted - a few hundred diodes here, a few hundred transistors there, a dozen different new transceivers - a few each - as samples and a few hundred main products there - at regular quantity prices - or sometimes at "sample prices" - all you need is to be honest - say how small you are and pay cash whenever you shop directly during your travel. Pay secure banking methods when ever you order from home. make sure all always is 100 % fully paid EARLY - be a reliable customer and make sure your visit to your suppliers has been a pleasant event for your suppliers to assure they easily remember you during coming business relationship as a pleasant person to deal with.
During the years of his business he purchased from direct manufacturers and sources in Asia - very seldom at whole-sellers. He usually visited places like Japan, Taiwan, Korea on his regular trips to Asia.
Depending on the type of your business - you may have to visit other countries - and first of all find out where your products are originally manufactured nd who the original manufacturers are. The modern communication by Internet makes it easier to find out original sources and get in touch with original manufacturers for a personal visit. To save your overhead expenses - you may consider combining a personal annual family vacation with your annual business trip. If you are a smart and knowledgeable business man and a creative smart tax payer - you will know exactly what to do to make your entire trip fully tax deductible within fully legal limits. All you have to do in advance is to study your own tax law in very detail and plan and arrange your travel accordingly to meet all the legal requirements of your country to make your trip fully tax deductible. Whatever is for the benefit of your business also is for the benefit of your country ... hence there is absolutely no reason at all to waste potential tax deductibility.
Be legal but be creative !!!
The companies Walter was visiting were original manufacturers of
- amateur radio equipment
- CB ( Citizens Band ) radio equipment
- antennas for small and large transceivers, short wave, VHF and UHF
- transistors, chips, semiconductors in general
- capacitors
- resistors
- diodes
- as various electronic gadgets and accessories
Most of a.m. parts, equipment and components are originally
- made in Thailand
- made in Malaysia
- made in Indonesia
- made in Philippines
- made in Taiwan
- made in Korea
- made in Japan
When you travel trough Asian countries and look at local prices - you will notice that many prices in South East Asian countries are far lower than in Hong Kong ... because Hong Kong is a terribly expensive place to live and to business - hence all trading companies purchasing from sources and re-selling to business need to add their own overhead to the "whole-sale price" offered to you.
When you are in the Philippines - for example - you notice that most electronic gadgets, cellphones, raw single CD-R/CD-RW, etc are 10-30 % below Hong Kong quantity prices - because most likely in the Philippines you are closer to the source of those products than in Hong Kong.
Traveling for shopping look at your expenses - then calculate the overall price for your shopping
When you travel to Hong Kong for business shopping - you will know that each day - even when traveling on package tour - may be easily 50+ US$ just for simple accommodation. Traveling in Thailand or Philippines - individual travel - you may find suitable nice and clean Hotel accommodation easily for 10-20 US$ and food, taxi, transportation and all extras at a fraction of Hong Kong price level.
Whatever business you have - shopping in Asia always may benefit your customers and your own business.
Many or most sporting and recreational products, as well as fashion, wear, jeans, accessories and more are manufactured in various Asian countries. Specially in South East Asia and exported trough various whole-sellers and dealers into the wide western world.
Fashion for girls - young and older - baby dresses, casual wear or T-shirts
While some of the traditional fashion is tailored in traditional countries like India or Lebanon - many pretty dresses come from South East Asian countries. Custom made sumer fashion - made to your order in less than a day - can be as low as US $ 16 or less - including material of your choice from a wide selection of brilliant colors and materials for a complete nice and cute dress for your angel-wife - in the Philippines ! You got your own ideas - no need to write or draw them on paper - some of these custom tailor may be able to read your mind or see the pictures you have in mind - simple description of what you dream or think of - and you get what you want ..l. a few hours later - ready to wear - made to your individual order.
If you have children or a children's boutique .. look at the reasonable prices for every days children dresses - when even at regular stores colorful and nice quality T-shirts are available at such prices - then you may calculate how prices for quantities may be when you need supply for your boutique.
Above items are 75 PHP each - thats less than 1,4 US$ - seen in a regular retail outlet for children's wear in San Fernando La Union - Philippines.
Its up to you to find the original tailor or hire one existing to make the quantities for your needs. As mentioned in another post here - the payment method of choice when ordering from outside the Philippines always is Western Union - net cash available to your supplier within minutes to assure you get what you want when you want. Worldwide delivery of your goods in smaller or larger quantities is easily done using one of the major logistic companies - UPS or FedEx - both of them doing business in Asia - and most likely in your country as well
.When bargaining such prices as above - always keep in mind that all these people selling and or manufacturing these nice and useful products also have children and an entire family to support - and one day even may want to visit your country. That only is possible if you allow them to make you a honest offer instead of pushing the price as low as possible. All are children of God - even simple people working hard in poor countries !!
Larger US and European companies manufacture here in Asian countries because salaries are far lower than in their home countries - hence they can sell at highest prices and afford the hundreds, dozens or only millions of US$ their CEOs and management level employees ask per year. While they often correctly say that they pay the legal wages - in the Philippines the legal minimum wage for factory employees is approximately PHP 180 per day - that is less than 3.5 US$ per day. It is absolutely needless to emphasize that such price structure never is honest at all !! There need to be a healthy relationship between the wages of those actually producing items - thus doing all the dirty and often dangerous work involving chemicals - and those selling the very same items in Europe or USA or similar end customer countries.
How to improve the relationship of YOUR profit and the profit of original manufacturer employees ? By shopping directly from manufacturers - by looking for small family business producing your resources and by making them to your best friends - to your extended family.
Learn to shop directly at the source - the source should also be selling directly to the end customers and importers - reduce the number of trading partners between original source and end customers. The chain ideally has maximum 3 levels - and all 3 should have equal share of benefits and profits to pay for their efforts and living as well as to invest a honest share into improvement of goods and services.
These 3 parts would be ideally:
- original farmer, carpenter, fisherman, mechanic or producer of raw materials or qualified services
- manufacturer of end products
- importer/retailer selling directly to customers
In some or even many cases this can be reduced to:
- producer of raw materials - like farmers - refining his raw products and producing end products in house
- dealers - or end customers when selling directly in house to end customers - such as is done in many farms already for regular farming products
If you see - eyes to eyes - the manufacturers of your products - if you see how they life and love their own family - then it should be very easy for you to always offer them a really honest price for the goods they offer you in exchange. Since purchasing directly from sources may be substantially cheaper than doing business via middlemen - you may even be able to offer substantially more for the same products - leaving them a honest [profit to allow a decent life style while still being able to compete on your market or lower your retail price - resulting in higher prices for producers - lower prices for end customers and more profits for all from producer to end customers.
Family shopping - for children, husband wife and family members all together
Shopping in Asia is far more than only for businessmen. Imagine you have a family of 2 adults and 3 children ... how much do you spend in winter and summer dresses per year or per 2 years for all family ??
When planing your vacation in one of these original manufacturing countries - you may consider shopping for your annual needs of dresses and shoes and other household goods - even some sporting goods - directly from the sources, at a price that might be as little as 10-20 % of what you normally pay at home. Look at the savings and deduct them from your vacation budget - and a vacation in tropical places suddenly may be far cheaper than a vacation in your own neighborhood. Plus of course - no money can buy the smile you receive here in Asia and new contacts you establish with new people in other cultures and all the exotic experiences you make.
Some of the savings and benefits may be accounted for in earthly money - other benefits may be priceless and never paid for in any money of this world !!
