Experts predict that consumers will be judiciously spending in anticipation of the impending financial crunch that is threatening worldwide economies today. This is a major concern for some businessmen who foresee lesser profits resulting from a diminished consumer demand. However, intrepid entrepreneurs see the prevailing economic climate as a time of opportunity. Rather than bewail the situation, they have reassessed their positions and hunkered down to find new markets.
A means of finding new markets for one’s products is through trade fairs, and we recently attended the Gifts and Home Products China Sourcing Fair at the AsiaWorld Expo in Hong Kong. Organized by Global Sources, a leading business-to-business media company and a primary facilitator of trade with Greater China, the exhibit featured more than 3,200 booths of quality China and Asian products. By gathering export-ready suppliers from China, India, Thailand, Vietnam, the Philippines and others; and then linking them up with over 30,000 volume buyers from around the world, the fair opens up a whole world of possibility for new and profitable business ventures.
“The secret to a successful trade show is to draw quality buyers from both leading markets and important developing markets,” says Craig Pepples, chief operating officer of Global Sources. “The way to attract buyers is through very targeted events. Global Sources’ advantage is that it has been operating for over 37 years and has an active community of more than 725,000 buyers. In addition, it provides sourcing information to volume buyers and integrated marketing services to suppliers.” He explains that along with the company’s vast experience in trade fairs come an excellent database and capital that hold immense benefit for both buyers and sellers.
Pepples continues, “There is no doubt that this is a tough time for manufacturers. Consumer behavior is changing but I believe that there are opportunities in crisis. If, in a free market, they are creative, resilient and nimble, manufacturers can overcome and succeed.”
A buyer survey conducted by Global Sources showed that despite current financial jitters, 38 percent of worldwide buyers will increase their volume in 2009, 39 percent say that their sourcing volume will remain the same, and only 23 percent of buyers predict that they will buy less.
While buying through the Internet undoubtedly reduces environmental impact because it eliminates the need for travel, 77 percent of buyers say that they would still prefer to attend the trade fairs since this allows them to meet face-to-face with suppliers, which improves sourcing efficiency. Likewise, others like the idea of comparing and evaluating products from multiple suppliers under one roof.
Philippine Presence At The Hong Kong Fair
Fewer than 20 Philippine companies were at the buyers’ fair and this number was markedly small compared to other countries. However, interest in particular Philippine displays was considerably high and we observed constant traffic as buyers stopped to examine the displays.
“The creativity of the Filipino is certainly without par,” says Edwin Hernandez, president of Mary Kel Co. “But without adequate trade support we are quickly being left behind.” He cites the plight of numerous Filipino manufacturers who have either downsized or closed shop due to the onslaught of cheaper-priced competition. “Most of us employ grassroots-level individuals who do not have adequate education and cannot otherwise compete in the marketplace. It is for them that we persist although it would be easier for us to close shop and purchase — for example — a convenience store franchise as an alternative business.”
Aside from the need to constantly update designs and stay ahead of imitators, Hernandez identifies expense as one setback in joining fairs such as these. The Filipino exhibitors are at a disadvantage from the onset because while they paid for space out of their own pockets, other countries’ respective national trade associations supported their contingents.
Nevertheless, we were excited to learn that the “Alicia R. Van Doorn” behind the company Chrysara is actually dance icon and ardent art proponent Alice Reyes. “I had people that I felt responsible for,” explains Reyes-Van Doorn when asked why she decided to continue the business despite relocating to the United States. “I told them that I would keep the company if they treated it as their own.” Chrysara is named after her children Chris, an advertising executive, and Sara, a Fordham-educated lawyer and actively exercises a profit-sharing company policy. “The commitment to creativity and excellence is constant. I had to give up dance, but I always think that I have merely transferred my field,” says the woman who continues to provide scholarships to the children of Chrysara employees. “You never stop giving back.”
Other Philippine booths displayed candles (Doc’s Candles), storage/gift boxes and bags, Christmas décor, baskets and hampers, shell and wood crafts and jewelry, sinamay craft, furniture and more. Most outstanding was Tropicale Reflections Inc., a division of Pacific Traders & Manufacturing Corporation, which gained distinction of winning the Best of Show award.
One bright note as we spoke with the other Filipino exhibitors was the realization that the desire to help and improve the national circumstance was a common denominator for all. They hope not merely to generate profit, but more importantly, to provide employment for more Filipinos.
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Global Sources offers over 37 years of experience in identifying quality suppliers through the most effective channels. To learn more about the company, or for details on joining future trade fairs, log on to www.corporate.globalsources.com.