17_19_21_muk.qxp_New Grid 03/09/2020 15:59 Page 17
Industry Issue: Manufacturing In China
The Roar Of
The Dragon With the world still in the clutches of the Covid-19 pandemic, will China continue to be a major source of manufacture and supply for the UK gift and home industry, or will there be a shift to other countries in the Far East? Without the physical Canton Fair and other Far East trade shows, what effect is it having on sourcing? And with so much negativity about China per se, will consumers avoid buying products that have been imported from there? Leading names in the industry share their views and insights.
Short And Long Term Implications “Covid-19 is likely to have huge short and long-term implications for manufacturing in China and the Far East,” says Stephen Illingworth, head of product development and national accounts sales, Widdop and Co. “In the short term, survival of the supply chain and trying to get back to some sort of dependability will be the key for all of us. Many small factories who have lost significant business at this time from all over the world will struggle to get sufficient demand to survive. If they do survive, as they cut their workforce to adapt to lower demand, their ability to maintain lead times and shipping dates will result in many delays to shipments and the extension of Right: Stephen Illingworth.
the time taken to get replenishment stock on good products. In addition, with seasonal, short term labour filling the peaks of resource needs, their inexperience will potentially lead to a lot more quality problems, especially for factories, where skilled craftsmanship has been the key to their success.” Continues Stephen: “Aside from what we already know we want to order, the biggest challenge we all face in the short term is locating great product and factories without actually travelling there in person. For years we have relied upon looking at quality first hand at shows or factories, spending time looking the owner in the eye and assessing whether they will be someone to partner with, depend upon,
and that will maintain, in Widdop’s case, the extremely high standards of ethical and technical standards we expect to be upheld across our supply chain. “In the long term, aside from the normal volatility that economic crises have upon cost prices and currency, we also cannot ignore the intangible, and hugely unfair, damage this crisis has done to the perceptions and opinions of product imported from China. We will have to look closer to home for affordable manufacturing and we will have to interrogate our supply chain more to maintain the highest standards we seek as compromises are made by factories saving costs.”
Forward Thinking Factories “China is the global centre of manufacturing for our industry,” points out Paul Hooker, commercial director, Joe Davies. “Certainly the inability to travel to the region without entering quarantine, and the cancellation of major trade shows such as the Canton Fair, will make things more difficult. Product development too, is hampered without global demand, and it is unlikely that ‘normality’ will return anytime soon. However, Paul highlights that the Chinese are very resilient, with many forward thinking factories that are already developing and delivering new products. “All that said though, the sad reality is that not all retailers, suppliers or manufacturers will make it through, and there will be Progressive Gifts & Home Worldwide
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