Different Strategy for Buyers and Sellers Gearing up this Holiday Season?

Posted by ruebenmarley at 1:10 pm PT, October 12, 2009

Never before has there been a time of such uncertainty and economic instability in the USA. For the wholesale and retail business especially, this is where it all comes down to a strong finish for the fourth quarter, or a weak ending that leaves a lot of people wondering what happened. There’s going to be some winners, and a lot of losers… but the ones who lose big are going to be the ones who didn’t change their strategy, and relied on pure luck to squeak by in 2009.

It’s no secret that the US economy is practically made entirely from an enormous consumer base, and this makes it pretty important to keep spending up, even as the dollar continues its drop. However, countries around the world are showing signs of moving away from export trade… by instead internalizing their resources, in order to invest in themselves a little more. China is a prime example of this, and in the coming months things will only get more difficult for the wholesalers and retailers that are looking for easy deals through their Chinese partners and sources… until the next developing country takes the spotlight for being the cheap-labor center of manufacturing.

It’s going to take a whole new outlook – coupled with a highly strategic plan – to make the numbers this time around. If this sounds like a harsh dose of reality, it’s only because it is. Does it mean you should throw in the towel? No, of course not… but it does mean that resources like Toptenwholesale.com (search a term like China some time) might become very valuable to you as you look for sourcing options and trends in the industry that lead to solutions!

Let’s talk about China’s changing economy, and the new obstacles in its path. Long gone are the heydays of making money just by sourcing from the cheapest Chinese manufacturers, and while this has affected the US economy substantially… it pays to keep an eye on what the PRC is doing about it. Here are four areas of interest that you should be very interested in, if you are currently doing business with China, and relying upon a trade relationship to fuel your wholesale engine.

• Higher costs of labor, and environmental protection are resulting in higher prices from China’s export sector. Even though cheap labor is the foundation of the current Chinese economy, it’s a model that is quickly reaching its limit.
• Saturation in the international markets is taking its toll. Too much of a good thing, or too many cheap things?
• China has been involved in the world’s largest number of anti-dumping cases in recent years, and this has led to a big rise in trade protection, on the part of other countries that don’t like the way the game is sometimes being played.
• There is a trade imbalance between China and other countries, and it is getting worse. As the RMB continues its climb in value, domestic companies are going to be faced with much bigger exchange risks in import or export-based trade.

What does it all mean to you? It means you had better find the good sources, quick! After all, this is not a passing trend or a fad, this is the truth… and those who face the truth first will be positioned to get the most from new strategies and relationships that form in the coming years. It also means that as many wholesalers fall to the wayside due to poor planning and bad choices, the winners will take the prize. Keep looking here for more, as Toptenwholesale.com continues to give you the news you need, so you can continue to Find it. Source it. Profit!