By Chibuike Oguh NEW YORK (Reuters) – Global equity markets rose while U.S. Treasury yields fell on Friday as investors tempered their expectations of the scale of the Federal Reserve’s interest rate raising cycle as falling oil prices helped to cool inflation. Market sentiment has been buoyed by U.S. Labor Department data this week showing a slowdown in consumer and producer prices in July following a series of interest rate hikes by the Fed. “With inflation now backing off, all the managers who stayed in cash and didn’t believe we could move off the June lows are now being forced back into the market,” said Thomas Hayes, chairman at Great Hill Capital. The MSCI world equity index, which tracks shares in 50 countries, was up 1.1%. The pan-European STOXX 600 index gained 0.16%. U.S. Treasury yields were down as traders weighed a likely moderation of the Fed’s monetary policy stance. Benchmark 10-year note yields dipped to 2.8385%, after reaching 2.902% on Thursday, the highest since July 22. “With inflation coming down, consumer confidence is going to be coming back, and employment is still strong, you could see a situation where the market has stabilized and the economic numbers continue to slow based on the lag effect of the Fed tightening that has already happened,” Hayes added. All three main Wall Street indexes ended higher, making it the fourth straight week of gains, driven by stocks in technology, healthcare, communication services, consumer discretionary and financials. The Dow Jones Industrial Average rose 1.27% to 33,761.05, while the S&P 500 gained 1.73% to 4,280.15 and the Nasdaq Composite added 2.09% to 13,047.19. Oil prices dipped around 2% on expectations that supply disruptions in the U.S. Gulf of Mexico would be short-term, while recession fears clouded the demand outlook. Brent crude futures fell 1.5% to settle at $98.15 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.4% to settle at $92.09 a barrel. The dollar rallied but was set for a weekly drop as traders weighed the improving U.S. inflation data against comments from Fed officials who cautioned that the battle against rising prices was far from over. San Francisco Federal Reserve Bank President Mary Daly on Thursday said she was open to the possibility of another 75 basis-point hike in September. The dollar index rose 0.542%, with the euro down 0.6% to $1.0255. Gold prices advanced, helped by a drop in U.S. Treasury yields, and setting bullion on path for a fourth straight week of gains. Spot gold added 0.7% to $1,801.76 an ounce. U.S. gold futures gained 0.56% to $1,799.70 an ounce.
10 advantages of sourcing from China
Manufacturing products from china is considered as a practice that is recognized as a vital asset to have reduced costs in works by international businesses. Various brands utilize this opportunity, and this quality has turned Chinese manufacturing procedure into a staple to successful manufacturing. The product sourcing companies find it advantageous to source various products from China due to the low labor cost. Many small and medium-sized businesses and even some of the leading brands have understood the importance of sourcing products from China over the last few years. For example, in 2019, about 28% of the global vehicle output had been manufactured in China. Other industries have also turned to China to look for reliable Original Equipment Manufacturers. If done successfully, importing products from Chinese manufacturers can help you increase your profit margin, lower labor costs, and ensure uninterrupted supply throughout the year. Unfortunately, you can still see a lot of myths and misinformation flying around. Some say that you can’t find high-quality products made in China. The truth, however, is that sourcing from China can be your best option. We can help you as we are specialists in the Chinese market. 2019 Data Exports (China to EE.UU.) → $429B (RNK 1/209) Main product (China to EE.UU.) → $50,5B (broadcasting equipment). Economic complexity (China) → 1.01 (RNK 29/146) GPD → $14.3T (RNK 2/187) GPD Growth → 181% (6/187) Source. Let’s see 10 benefits or advantages of sourcing products from China, which will help change your mind. The Growing Chinese Economy It is noteworthy that China has set itself up as the second-largest economy of the world. Recently it has shown its credentials as the largest existing manufacturer of the world. It has been acknowledged as the most influential manufacturing country for two years. This country’s economy is increasing rapidly and sourcing the products can prove a good step for a business owner. Most international companies identify the Chinese sourcing agent’s capabilities and establish a selling-buying relationship to flourish in the market. If you are still searching for ideal suppliers, Chinese sourcing agents can provide you with the required products. Low cost country sourcing advantages : Speed E-commerce and the internet have accelerated the pace at which trends spread and vanish, and the rate at which products are copied, turning speed-to-market into a rising priority. China’s integrated supply chains are a key advantage when it comes to fast-tracking your supply chain. Its production ecosystems offer a hard-to-match concentration of input suppliers, assembly factories, skilled workers, and service providers — all at a massive scale and for a broad range of low-tech, mid-tech, and even high-tech products. According to a European Commission report, China adds 76% of the value of the goods it exports on average (close to the EU’s 87%) which shows how little it depends on imported inputs. This explains why the production of goods requiring several components, such as electrical ones, has largely remained in China. Expansive Supplier Base Western businesses can take advantage of an extensive network of suppliers in China, which is why so many of today’s successful companies import goods like electronics, textiles, toys, and more. With such an expansive supplier base at your leisure, you’ll certainly benefit from working with a sourcing agent. Companies like these can leverage years of cultural understanding, knowledge, and relationships to help you import products from anywhere in the world. We can help you. Reducing the Risks When you source products from China, you decide on a well-managed sourcing process that enables you to cut down the potential dangers while sourcing. Sourcing products from China means you will be directly involved with every step. This, in turn, will help you get early warnings of fraud risks, undue profits, and untimely deliveries so that you can act upon them to reduce them efficiently. Cost-Value Even as other considerations gain relevance, finding good value at a reasonable cost remains a sourcing priority. China is at a stage where rising productivity and quality gains are high enough to partly offset the effects of its rising labour, property, and compliance costs (all about China executive search). Fast-paced automation is a key driver behind China’s rising productivity. In 2011, US carmakers deployed three times as many industrial robots as Chinese factories, but China reached parity in just five years, according to a Boston Consulting Group report. Better Scaling Capabilities The infrastructure in China is well established and robust. Most Chinese manufacturers also have years of experience and in-depth knowledge of global supply chain management. Both these factors allow them to scale-up manufacturing as and when required. For example, you can increase your sourcing products from a few thousand to more than a million in just a few days or weeks at the most. Of course, the time for scaling up will depend on the type of your product and the availability of raw materials, among other things. Furthermore, most manufacturers’ policies do not require buyers to invest heavily in Minimum Order Quantity (MOQ). You have to pay considerably lower costs for MOQ, allowing startups and small businesses to start sourcing products in small quantities. You can, however, scale up as your business grows. If you are a new company looking to establish your brand, there is no better alternative than taking advantage of manufacturing in China. Freedom to Choose Desirable Factory When you choose local suppliers, you don’t get the liberty to check the working terms and conditions. You just must inform about the specific product to your supplier. If they can meet your expectations, you will get the desired products else hard luck. But with Chinese product sourcing, you get the provision to visit the factories in person and check their working conditions. You also get to select from a variety of factories and discuss your requirements. Therefore, when you are sourcing the products directly from China, you get to select the appropriate products and the respective factories that manufacturers the required products. Sourcing from China: Sustainability Consumers’ growing demands for ethically
6 problems you may encounter when working with Chinese suppliers
Many people who want to start an import business often do not take the first step because they are afraid of having problems with Chinese suppliers from the very beginning. Many people who want to start an import business often do not take the first step because they are afraid of having problems with Chinese suppliers from the very beginning. Like any kind of business, starting to import from China requires knowledge and caution before we put our money on the line. Below we are going to talk about some problems with Chinese suppliers that you may encounter in different parts of the import process. Resume Lack of motivation on the part of the supplier The supplier is not able to make the product according to your quality standards Uncontrolled production costs and the supplier trying to raise prices all the time Longer delivery times Your production is made by a company you don’t know The supplier does not solve the problems found in the quality inspection Let’s see 6 problems you may encounter with Chinese suppliers. Lack of motivation on the part of the supplier It means that the supplier does not quite believe in your business idea or your product. This happens when you are developing a new product in China. The supplier says yes to everything, but once you get going and start developing the product to your liking, you notice that replies to emails are delayed, deadlines are extended, everything seems to be moving at a suffocatingly slow pace. This happens all too often when you try to over-configure a product. If it’s just changing the logo, everything is easy, but if you want to change a feature of the product and you need to make molds, you may start to notice that days turn into weeks and then into months. The supplier is not able to make the product according to your quality standards It’s more common than you might think. If your quality standards are above average, make sure you locate a supplier who understands them before you start production. If you expect production to be defect-free, be sure to indicate this when you place your order. Even the big brands accept defects in their production. The key is to stipulate everything in advance. Uncontrolled production costs and the supplier trying to raise prices all the time This is one of the problems with Chinese suppliers that often occurs when you search for suppliers and end up selecting the lowest priced one. You have closed the order in a rather informal way with the cheapest supplier and you have made a down payment of 30% of the total order. From that moment on you start receiving a series of emails telling you that such and such a material or other component has gone up in price and they can’t keep the original quote. Or you simply ask them to make a small modification in the packing and you see that the total price of the product increases by 10%. These are signs that the cost of the product was underestimated in the initial quotation and the supplier is trying to make a better profit margin. Longer delivery times Depending on the supplier you have selected and the type of order you are going to place, you may find that the delivery time is stretched out as if there is no end to it. If you are placing a small order with a large company, you should assume that your order will be delayed because your production will only start when there is a gap between their large orders. The same is true if your order is more complex than is usual for a normal production run. This is an important feature when locating suppliers in China. Your production is made by a company you don’t know This is also more frequent than it seems at first glance. This type of problem with Chinese suppliers is due to the fact that we always run the risk that our production is not carried out in the supplier’s main plant and that it is carried out in an external company where the same controls are not in place as in the main company. This problem is easily solved by carrying out the corresponding production controls and warning the supplier that such controls are going to be carried out. In this way, the supplier will be aware that an inspector may come to his company at any time and may notice the deception. The supplier does not solve the problems found in the quality inspection The risk in this case is that the supplier does not fix the problems we have found during the quality inspection. This happens very often when you work with a trading company that does not have enough control over its suppliers. If you are interested in starting to import from the Chinese market, please contact us. We are specialists in the Chinese market and are used to dealing with Western companies. Article from: https://bespokesourcing.com A sourcing company based in Shanghai with more than 12 years experience, offering medium to large international businesses a full range of sourcing services to import from China. We help you find factories, get competitive prices, follow up production, ensure quality, and deliver products to your door. At Bespoke Sourcing Global we have extensive knowledge across all industries. Our highly trained team is divided by categories and we have a carefully curated department for apparel. Throughout the years we have gained a strong network of loyal and recurring clients at an international level. We aim to develop long-term relationships based on trust, transparency and business integrity. We have expanded by opening sales offices across Asia, Europe and the Americas which means we are able to closely integrate with both our clients and their supply markets.
Why Online2Offline Commerce Is A Trillion Dollar Business
What Is Online-To-Offline (O2O) Commerce? Online-to-offline (O2O) commerce is a business strategy that draws potential customers from online channels to make purchases in physical stores. Online-to-offline (O2O) commerce identifies customers in the online space, such as through emails and Internet advertising, and then uses a variety of tools and approaches to entice the customers to leave the online space. This type of strategy incorporates techniques used in online marketing with those used in brick-and-mortar marketing. With the growth of local commerce on the Web, the links between online and physical commerce are becoming stronger. In this guest post, Alex Rampell, the CEO and founder of TrialPay, explores the forces behind what he calls “online2offline” commerce. Online-to-offline (O2O) commerce is a business model that draws potential customers from online channels to make purchases in physical stores. Techniques that O2O commerce companies may employ include in-store pick-up of items purchased online, allowing items purchased online to be returned at a physical store, and allowing customers to place orders online while at a physical store. Amazon’s purchase of Whole Foods Markets and Walmart’s acquisition of Jet.com are two examples of O2O commerce. Target, Walmart, Kroger, Nordstrom, and many other retailers have increased home delivery and/or curbside pickup services as two effective O2O strategies to meet consumer needs for safe shopping options. What do Groupon, OpenTable, Restaurant.com, and SpaFinder all have in common? They grease the wheels of online-to-offline commerce. Groupon’s growth has been nothing short of extraordinary, but it’s merely a small subset of an even larger category which I’d like to call online-to-offline commerce, or On2Off (O2O) commerce, in the vein of other commerce terms like B2C, B2B, and C2C. Bear with me. The key to O2O is that it finds consumers online and brings them into real-world stores. It is a combination of payment model and foot traffic generator for merchants (as well as a “discovery” mechanism for consumers) that creates offline purchases. It is inherently measurable, since every transaction (or reservation, for things like OpenTable) happens online. This is distinctively different from the directory model (think: Yelp, CitySearch, etc) in that the addition of payment helps quantify performance and close the loop—more on that later. In retrospect, the fact that this is “big,” or that Groupon has been able to grow high-margin revenues faster than almost any other company in the history of the Internet, seems pretty obvious. Your average ecommerce shopper spends about $1,000 per year. Let’s say your average American earns about $40,000 per year. What happens to the other $39,000? (The delta is higher when you consider that ecommerce shoppers are higher-income Americans than most, but the point is the same). Answer: most of it (disposable income after taxes) is spent locally. You spend money at coffee shops, bars, gyms, restaurants, gas stations, plumbers, dry-cleaners, and hair salons. Excluding travel, online B2C commerce is largely stuff that you order online and gets shipped to you in a box. It’s boring, although the ecommerce industry has figured out an increasing number of items to sell online (witness Zappos’s success with shoes: $0->$1B in 10 years, or BlueNile’s with jewelry). How Online-To-Offline (O2O) Commerce Works Retailers once fretted that they would not be able to compete with e-commerce companies that sold goods online, especially in terms of price and selection. Physical stores required high fixed costs (rent) and many employees to run the stores and, because of limited space, they were unable to offer as wide a selection of goods. Online retailers could offer a vast selection without having to pay for as many employees and only needed access to shipping companies in order to sell their goods. Some companies that have both an online presence and an offline presence (physical stores) treat the two different channels as complements rather than competitors. The goal of online-to-offline commerce is to create product and service awareness online, allowing potential customers to research different offerings and then visit the local brick-and-mortar store to make a purchase. Techniques that O2O commerce companies may employ include in-store pick-up of items purchased online, allowing items purchased online to be returned at a physical store, and allowing customers to place orders online while at a physical store. FedEx can’t deliver social experiences like restaurants, bars, Yoga, sailing, tennis lessons, or pole dancing, but Groupon does. Moreover, for your locally owned and operated Yoga studio, there is little marginal cost to add customers to a partially filled class, meaning that the business model of reselling “local” is often more lucrative than the traditional ecommerce model of buying commodity inventory low, selling it higher, and keeping the difference while managing perishable or depreciating inventory. The important thing about companies like O2O commerce companies is that performance is readily quantifiable, which is one of the tenets of O2O commerce. Traditional ecommerce tracks conversion using things like cookies and pixels. Zappos can determine their ROI for online marketing because every completed order has “tracking code” on the confirmation page. Offline commerce doesn’t have this luxury; the bouncer at the bar isn’t examining your iPhone’s browsing history. But O2O makes this easy; because the transaction happens online, the same tools are now available to the offline world, and the whole thing is brokered via intermediaries like OpenTable or SpaFinder. This has proven to be a far more profitable and scalable model than selling advertising to local establishments; it’s entirely due to the collection of payment by the online intermediary. Does Groupon deserve a billion-dollar valuation? It’s easy to see a world where O2O commerce dwarfs traditional (stuff in a box) e-commerce—simply because offline commerce itself dwarfs online commerce, and O2O is simply shifting the discovery and payment online. If Groupon can grow its leadership position, I predict a multi-billion dollar valuation based on discounted cash flow alone. Groupon is not a gimmick or a game, but a successful example of offline commerce being driven by an online storefront and transaction engine. Venture capitalists and entrepreneurs would be wise to think
