China is going through many changes, with having higher labor costs, moving of factories into the interior, having to train unskilled labor; it is true that their double digit GNP is slowing down. This statement is true, but they are seriously seeking business, mainly by opening offices in the market places they want to capture and seek business.
The pundits and economists have stated that Bangladesh will be the recipient of increased business, because of China issues stated above, with other specific countries also benefiting in increased orders. These people did not take into consideration that one, the USA importer does not like to change vendors, especially if they had long relationships, and have invested time and monies into these vendors.
The economy we have been in since November 2008 (which has not really improved), and has additionally got hit by the speculators in the raw materials markets (cotton, oil), has made the Textile/Apparel Industries even suffer additional trauma.
The global communications available has made the cost of travel for sourcing a very expensive part of our business. Therefore, if you think the old ways of waiting for the agent to come with orders that were previously for China, in most cases you will be waiting, and just waiting.
True, you will get more opportunities to cost, and hopefully have the capabilities to make correct samples, but all this usually does not get you the order. I am speaking about large importers with consistent programs, and not spot importers. After they get your costing and samples, and compare it with China, and put together all the factors, and relationship they have had for years with China servicing them extremely well, they end up paying the higher price, and maybe give you a small test, to see if you can perform.
China Textile/Apparel have taken the position to open offices, have USA Sales Representatives to sell and service these accounts, and seek new market information, so the buyer has a comfort feeling that they will get the following:
Competitive Cost (not necessarily the lowest), Quality of specifications requested, and ON TIME DELIVERY!
Someway the Textile/Apparel manufacturers of Bangladesh need to visit, and have representation in the USA market in order to get their fair share of business from what is taking place in China.
I cannot speak for the EU importers, but there economy is no better than ours, and the cost of travel is expensive for them, even though they are closer in proximity than the USA.
There are two ways to look at getting the orders:
Like a hunter, you can set traps hoping that the animal will come to you while you wait in the comfort of your home, or you can go out, hunt and seek your animal face-to-face.
When I am asked to speak at many seminars about International Trade, I usually start off with:
RELATIONSHIPS!
These are the three ingredients of doing International Business, and build vendor/buyer relationships. It is never too late to start, just establish the facts, make the plans, then execute the plan, and supervise. Go out and seek business with your capabilities of service and delivery.
