Overseas Manufacturing : It's not worth the risk

Overseas Manufacturing : It's Not Worth The Risk

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Overseas Manufacturing: It's not worth the risk

The creativity and services promotional companies supply to the corporations around the world can not be replaced by the offer of inexpensive products flooding in from Asia, regardless of the how low the price becomes.

Member of Australian Promotional Products Association in Melbourne, Victoria - NSW Member, Sydney
JEM Promotional Products have been proud members of APPA since 2001
(Membership Number: #D2266)

The advantages of dealing with an APPA member rather than directly dealing with an Asian manufacturer:

1. APPA members are advertising specialists.

Product is just product until it is linked with a promotion, it then becomes an advertisement. The most successful advertising campaigns are the result of a well thought out strategy. Throwing products at your target market is wasting your marketing spend. Consult an APPA member who can create advertising and promotional campaigns through the use of promotional products, not just an afterthought or give-a-way.

The product is only one component in the whole campaign. The creativity used to "elicit a response" from the correct delivery of a promotional product is the key to increasing your profits and promoting your brand above the competitions. Are you ensuring that your company is getting a response to your promotional spend?

2. Local knowledge, experience and mistakes no company can afford.

APPA members understand cultural subtleties and differences that can be crucial in the success of a promotional campaign. Asian Suppliers, whose culture is markedly different to Australia's, don't have the essential ingredient for success. APPA members are experienced importers and manufactures who are educated and in touch with the styles, trends and desires of our own cultures.

The risks of getting products directly from overseas are many, and as many marketers have found out, can cost thousands of dollars in mistakes.

Sizing and quality inferiority, late deliveries, lack of duty and custom requirements, payment in advance without delivery guarantees, human rights infringements...are these really worth the time and energy necessary to directly manufacture?

Trust experience:

APPA represents the largest promotional products importers and providers in the world. Our members have been manufacturing in Asia for over 30 years and their expertise can make all the difference between a dream promotion and a promotional nightmare.

International clout:

APPA's membership in the International Federation of Promotional Products Associations (IFPPA) means being a part of an organisation that has;

  • 30,000 member's world wide
  • Employs more than 236,000 people.
  • Collectively turns over more than 36 Billion US dollars globally in promotional product sales.
  • Our associations produce over 300 trade shows world wide, exhibiting the imported and locally manufactured items to our members.

More importantly APPA members know what to ask to ensure that the products you receive are the highest in quality and are willing to take responsibility for the jobs they produce.

There's been an increase in attempts by Hong Kong and Chinese factories to market directly to large corporations in our region.

This is a dangerous risk for companies, as products must be paid for in advance and the control in the production of these products can be minimal.

Marketing Departments who toy with the idea of importing need to ask themselves the hard questions...is it worth it?

1. Is the factory using child labour?

2. Are the proper health and safety requirements necessary for importing being observed?

3. What happens if the product made isn't the quality you require or not made to your specifications?

4. Has the factory used inferior materials that will either not hold the print or fall apart in a few weeks?

5. Do you know the duty requirements on importing and do you know what the Australian Customs Department deem as necessary to import certain products?

6. Have you factored in the time and money spent in chasing promotional product production that would most certainly be outside the core responsibilities of most marketing departments?

The Television stations and the Newspapers can not put the ad agencies of the world out of business. Hong Kong and Chinese Factories can not replace the promotional product professionals.

From August 2005, the law in Europe will require importers of most battery operated items (calculators, torches, radios and lights) to ensure their products have a special recycling symbol showing that the proper procedures will be followed in the products disposal.

Importers will be responsible for setting up recycling facilities and products imported without this symbol (or the proper established disposal procedures) will be blocked from importation. Hong Kong and Chinese manufactures will be advised to go through established supply chains. If they try to deliver products to end user clients; those products will be prohibited from being placed in the market place. In short, direct selling from factories into Europe is about to get regulated in favour of the current supply chain. APPA will be lobbying for similar regulations in our region.

APPA's goal is to establish an environment of mutual respect and understanding, including the flow of products, acceptable currency policies, social and environmentally sound business practices. APPA wants to mutual respect for a unique industry that has a unique structure. To find out more about the promotional product industry email APPA; info@appa.com.au

APPA has started educating the large corporations about the pitfalls and dangers of importing directly from China without the help of the promotional professional. By working through APPA members, large corporations can be assured that manufacture will be environmentally friendly, socially conscious and of a high quality.

There are many examples of direct importation going wrong. We receive complaints throughout the year and most are job provided directly or by non-APPA members.

For example:

* A Chinese factory that manufactured 15,000 watches for a New Zealand company directly without knowing that the NZ target market has thicker wrists than the standard Chinese watches made. None of them fit. The client never recovered their money.

* The 30,000 coffee spoons supplied by non-APPA member through a Hong Kong company that rusted when they were used in coffee. They were not stainless steel. The price might have been right, but the product wasn't.

* The 250,000 pens bought directly by a bank where the logo was printed in the wrong colour, the pens either fell apart or ran out of ink. The factory closed and moved before legal proceedings could begin.

Together we can get a better understanding of the best way to promote your brand and business with the correct products that best represents you.

APPA members are trained to look at your objectives and supply creativity and advice that will make your promotional marketing spend travel the farthest.

Article written by William Kestin - APPA CEO - Copyright © 2006- All rights reserved

(Courtesy of JEM Promotional Products ©2007)

If you have any questions relating to promotional products,, please don't hesitate in contacting us. JEM Promotional Products
Phone: (02) 8205 1334
E-mail: enquiries@jempp.com.au
Website: www.jempp.com.au

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