Contract Manufacturing (Shoes) in China, how?

[Newretailer]

I just want to mention that there are more and more people who will not buy any form of clothes made in China. I believe Woolworths clothing took a big dip once that was all they stocked. All the clothing chain stores are trying to regain the market share they lost by including some ranges made in South Africa.

I will go out of my way to avoid buying any item made in China. I used to love Green Cross, but once they moved there manufacturing to China, the shoes quality went way down and the last pair I bought for my son were uneven sizes. I recently relented and bough a handbag and it was broken within 2 months. I didn't get it cheap either. I know that all my friends feel the same way and we will all go out of our way to avoid Chinese-made clothes.

South African manufactured goods are of much better quality than the imports. Plus you support the South African industry which means more jobs and less crime. And yes, I know the darn unions are trying hard to destroy jobs with their incessant striking and demands, but I still believe you cannot go wrong by finding a South African manufacturer.

[Justloadit]

I also hate this Chinese mentality of trying to make any damn thing so damn cheap, that the product is a nuisance to you to use. You spend your valuable time fixing up the sh!t quality to make the job work, which costs you dearly in time lost, and if you are paid by the hour, you know what I mean.

[Newretailer]

I agree. I didn't know whether to laugh or cry the other day. One of our main hospitals have lifts that have been out of order for a long time. During an interview the hospital representative said that they have been waiting for imported parts from China and that there has been a long delay. Then he added "You cannot find the parts in South Africa anymore". Yes sir, the reason for that is that you didn't support the South African industry and went for cheap imports. Look where that got you: a hospital where patients have to be carried up and down the stairs.

Unless we stop covering our eyes and stop trying to save a few pennies, that is a good
indication of what our future looks like.

[Blurock]

Fools soon learn that buying cheap is not always so cheap! If you buy something at a 30% discount and it does not work, you end up replacing it with the real thing at a total cost of 170%.

In Afrikaans they have a saying; "Goedkoop koop is duur koop."

[Dave A]

The flip side of this conversation is China can produce a quality product. If you ask for a price to produce a widget, the normal response is "how much do you want to pay?"

It's not just a negotiation technique - they understand the relationship between quality and priceas well as anyone else. The question really is - do you want cheap junk or are you prepared to pay for a quality product?

Who's really at fault here when it's junk - the Chinese manufacturer or the cheapskate who's doing the buying?

[Newretailer]

The only reason I see people go to China for, is the cheaper prices. If you are going to pay more, why not just rather order from a South African supplier? I would take a guess and say that at least some of the members here have been negatively affected by Chinese imports. All of us are affected negatively on a daily basis indirectly.

I blame the South African businesses who want to make large profits off cheap quality as much as I blame the steamroller marketing and blatant disregard of intellectual property of the Chinese. We bemoan the fact that there are so few tax payers who have to carry the population but we are also to blame if we do not do our part in trying to encourage the South African manufacturing industry. Can you tell this is something I feel passionate about ?

[Blurock]

Benefits of local manufacturing;

1. Quality can be controlled and improved by ongoing production and design tweaks.
2. Quick response to Market. Production can be adjusted at short notice.
3. Faulty or defective product can be returned immediately. (not have to ship back to China at great cost- they will not replace it anyway).
4. Local suppliers will give credit up to 60 days in some deserving cases.
5. Cash flow improves as you do not have to pay for everything up front.
6. Shorter cash flow cycle as payment is only due after receipt of goods. This enables the business to increase production and sales.
7. Less operational risk as you only pay after receipt of goods.
8. Cost of transit insurance (shipping from China) reduced.
9. No forex risk. No cost of forward cover.
10. Ability to negotiate with local manufacturer.
11. The creation of jobs. More taxpayers and less unemployed leads to stability and a wider tax base to pay for infrastructure and social benefits.
12. Most important; the ability to sleep at night!
There may be many more benefits, but you don't expect me to remember everything at my age , do you?

[Newretailer]

Blurock, you said it perfectly. What makes me happy, is that more and more people are starting to see it that way. I expect this feeling will grow and there will be a huge backlash against imports. Eventually.

[Justloadit]

The flip side of this conversation is China can produce a quality product. If you ask for a price to produce a widget, the normal response is "how much do you want to pay?"

It's not just a negotiation technique - they understand the relationship between quality and priceas well as anyone else. The question really is - do you want cheap junk or are you prepared to pay for a quality product?

Who's really at fault here when it's junk - the Chinese manufacturer or the cheapskate who's doing the buying?

Hi Dave,

Whilst I agree with you, however lets not detract from the fact that the Chinese manufacturer does not really give a rat's ass about you and your customer and the crappy quality, he is in there to make money off you. In my opinion, the manufacturer is also being negligent in the long run, because eventually the norm is that everything manufactured in China is cheap and crappy, making it far more difficult in the future to make better quality products, which will off course cost more.

To me a manufacturer that makes cheap crappy goods is a scamster, because invariably, after the delivery of the first order, he disappears to scam another customer looking for something cheap again. Any reputable manufacturer will refuse to make a cheap and crappy product, and if approached to do so, should inform his client of his standards.

[vieome]

In my earlier post in this thread I said I ordered water dispensers from China and they arrived in Good order. Prior to that we used to order from UAE, but we soon found out that even top brands like daewoo, had chinese parts, the main part the compressor was made in china, so while certain brands may pass for quality lets not forget a chain is only as strong as its weekest link. So unless your manufacture is making sure that all the parts in his manufacturing process are quality and not chinese, one wont get a quality product from so called quality manufacturers. Chinese products are a virus infecting all products.

[Blurock]

Blurock, you said it perfectly. What makes me happy, is that more and more people are starting to see it that way. I expect this feeling will grow and there will be a huge backlash against imports. Eventually.

We may not see the devastating effect of cheap imports in the cities, but a visit to the smaller towns in the rural areas has revealed some shocking facts to me. There are cheap Chinese shops all over. They do not employ locals at all (bar the low paying cleaning jobs). Local businesses have been muscled out and unemployment and financial distress is a visible problem.

I am not saying that we should support local business at all cost. Local business also has a responsibility to trade ethically and not to rip off their customers with high prices, poor quality and service. What I am saying is weigh up the options and the consequences of your decision. There are times when buying an imported product is the better option, but please give us locals a chance before climbing on the cheap wagon.

[Dave A]

The only reason I see people go to China for, is the cheaper prices.

Without doubt. My point is Chinese manufacturers can (and do at times) produce a quality product, at a very competitive rate compared to some other regions for products of similar quality.

he is in there to make money off you.

I'm also expecting to trade at a profit. Does that make me a bad person too?

[Justloadit]

Without doubt. My point is Chinese manufacturers can (and do at times) produce a quality product, at a very competitive rate compared to some other regions for products of similar quality.


I'm also expecting to trade at a profit. Does that make me a bad person too?

Hi Dave,

Absolutely, what I meant is that the Chinese business man will accommodate your request. The usual question is, "How much do you want to pay?".
Based on your reply, he will manufacture according to your price request. Customers then complain that the product is cheap and nasty, however it is not the manufacturers fault, but the buyer who requested the cheap and nasty. Big difference.

[wynn]

My first impulse to this thread was 'The Unions forced the retailers to use cheaper imported products'
But on reflection, it seems the retailers are chasing one another to buy and import cheaper and cheaper crap and then try to skin us by selling it as if it is the same as the quality stuff they used to supply. That is starting to backfire and backlash.

The locals must also be able to compete with this crap quality product by buying cheap low quality raw materials to manufacture a crappier line to compete with cheap imports??? or what? am I missing something here?

The other point is, 'Why do we export so much raw material instead of refining it here ourselves (like gold) and exporting more refined better quality produce (farmers don't sell grapes to french wine producers) why are we selling platinum ore to foreign refiners instead of platinum ingots to foreign manufacturers (except in the case of platinum they export it as tin and score bigtime on the lower export taxes)

[Newretailer]

Wynn, I think it is a combination of the unions, retailers and also customers. When did we learn to settle for paying good money for stuff of the appalling quality we get?

I think the clever entrepeneurs are catching on to the change in attitude towards cheap imports. I saw a plumber advertising the other day that he doesn't use any cheap imported parts. I will definitely give him a call, even if he charges a bit more. The clothing shop Big Blue seems to be growing and they ONLY stock South African-made products. Step Ahead has a whole range of South African-made shoes amongst their imports.

Many people I know will jump to support well-made, local products. The feeling that we don't get given a choice, that all we have available are the cheap imports, that is what I find frustrating.