On the yesterday afternoon, quite a few people crowded before the booth of Pomeranian Pet Supplies in the International Trade City District 2. When the reporter found the shopkeeper, Lou Hongxia, two of the foreign businessmen were saying “thank you”, going away without looking back. Sooner and later, the rest of them left putting down the samples. “They just asked the price. They may not be satisfied with that.” Lou said calmly.
“This year, the business is just fine, similar to last year.” Lou talked with the reporter, arranging the pet clothing. Lou has received too much guests like this in the last ten years of pet supplies business, but this years, they just went away more straightforward without any bargain. “Those were two guests of Argentina. They just went away soon after they asked the price.” Lou analyzed that the price of the products might be over their expectation a lot.
“The market quotation of this year is just fine, even many regular customers are hesitated to take the orders, so I do not expect new customers will make a big deal.” Lou’s products all rely on export, mainly selling to Europe and the U.S. after a ten-year development, her products have grown up to hundreds of species, being divided into a dozen of categories.
Xiong Xiaoying, the owner of The Beibei Pet Supplies, was a freshman in this industry, but her shop also displayed hundreds of products. When it came to the topic of this year’s business, she was more trilling than Lou. “It is so difficult to keep going, much less orders, nearly one third.” Xiong’s business largely focuses on Western Europe, North Africa, and Middle East. She did not own a factory so that she had to get the goods from Guangdong, Qingdao or other places. Before getting involved, she thought that although there might be less order but in the meantime, competition would be less severe. But this year’s marketing absolutely gave her a big slap. Xiong said that an increasing number of people joined this industry in the past two years, “there are might be hundreds of business households in the market.” She was more convinced that the business was not getting difficult after estimating the total numbers.
The owner of Ming Yang Pet Supplies, Zhu Mingyang had his own factory; he had changed his business strategy times to times to respond to the market in the past.
Zhu Mingyang recalled that when he first came in to this business, everything was just great. The buyers took whatever the manufacturers made, and sometimes the demand even exceeded the supply. The buyers never complained about the quality or style of the products at that time.
However, his experience was changed few years later. A South Korean consumer had some requirements on his products. “The Korean buyer gets the products from me and labels his own brand for selling. We have kept this mode of cooperation until now.” this cooperative pattern has a high demand on the quality, and relatively the profits are decreased. But Zhu Mingyang knew that the market had changed so his business must adapt to it. In the last two years, more and more buyers asked for semi-finished products. Zhu Mingyang said that this was a signal of changes in the market. “I just make whatever they want, finished products or semi-finished are just fine.” Zhu Mingyang followed the business opportunities to do his business.
In 2011, since the labor costs and raw material costs raised a lot, Zhu Mingyang also sent parts of the products to Qingdao and other places for processing, imitating his Korean customer. For example, he said, the cost price of a product manufactured in Yiwu, is 4.8 Yuan, but it only cost 4 Yuan in other places, plus transportation and other costs total no more than 4.3 Yuan. “Now the business is not as easy that we cannot increase prices for no reason, so we only to ensure our profits through such modifications.” Said Zhu Mingyang.
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