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Moda rápida – el impacto del Coronavirus: un futuro sustentable

La pandemia del Coronavirus ha centrado la atención en la industria de la moda. A medida que los países y mercados han cerrado en todo el mundo, la industria de la moda rápida se ha visto afectada desde los grandes desfiles hasta los pequeños minoristas.

Las plataformas digitales se han convertido en la norma ahora en muchos aspectos de nuestra vida diaria. Incluso los desfiles de moda en Shanghái, Tokio y Moscú hicieron lo mismo y se digitalizaron. Algunas de las próximas colecciones en las principales capitales de la moda podrían proyectarse a través de una pantalla en esta nueva normalidad post-COVID.

El impacto de la moda rápida

Del mismo modo, la pandemia mundial tuvo un dramático impacto en la moda rápida a nivel minorista. El consumo ha disminuido ya que las tiendas han sido cerradas. Los consumidores han tenido que pensar dos veces antes de comprar ropa por el distanciamiento social y las restricciones para salir de casa que se han estado experimentando.

Indudablemente, estamos reconsiderando nuestro comportamiento anterior; cómo y en qué gastamos nuestro dinero. Se ha discutido antes el impacto que la industria de la moda tiene en el medio ambiente, pero ¿ha acelerado esta pandemia este cambio?

Anaquel de tienda de ropa

 

Un panorama de manufactura cambiante

Un punto evidente que esta pandemia ha resaltado a medida que los mercados entraron en cierre, fue la dramática y visible caída de los gases de efecto invernadero, ya que las fábricas se vieron obligadas a cerrar sus puertas (esto no tiene que ver únicamente con la manufactura, o con el sector de ropa específicamente, pero es importante destacarlo en este punto). La Alianza de Naciones Unidas por una Moda Sustentable (UNASF) estima que la industria de la moda representa entre un 8 y un 10% de las emisiones mundiales de gases de efecto invernadero. Podemos ver visiblemente su impacto como consumidores en el medio ambiente a través de los medios de comunicación internacionales.

¿Retos u oportunidades?

Desde una perspectiva de producto, si uno ve hacia atrás en la cadena de suministro, la industria de la confección ha estado fabricando en gran medida donde pueda encontrar mano de obra barata desde la década de 1970. Marcas occidentales buscaron escalar su oferta usando mano de obra de bajo costo. Estos mercados, los fabricantes y (lo más importante) sus trabajadores están ahora inactivos. Anteriormente hemos usado el ejemplo de Bangladesh. Su industria manufacturera de prendas de vestir (84% de todas las exportaciones) se diezmó durante esta pandemia.

Este choque de demanda ha causado un tsunami económico. ¿Pueden algunos medianos productores seguir sobreviviendo? ¿Querrán aceptar pedidos de clientes que les causaron pérdidas financieras significativas? Lo más probable, en ausencia de cualquier intervención del gobierno local en estos mercados asiáticos, es la consolidación en todo el sector de ropa. Por lo tanto, puede ser que con menos competencia y mayor poder con los proveedores (seleccionados por el cliente) los costos comiencen con una tendencia a la alza.

La moda rápida y el consumidor

El proceso de fabricación de una camisa de algodón emite aproximadamente 5kg de dióxido de carbono y 1,750 litros de agua. La gran mayoría de los consumidores no es consciente de esto ni tendría algún impacto en sus decisiones de compra pasadas. El precio siempre ha sido un elemento clave de cualquier decisión de compra. Pero también afecta cómo se trata una prenda en específico en el futuro. Cuando una camisa cuesta $100 pesos, rápidamente se ve como desechable. Esto combinado con la industria de la moda rápida que vende miles de millones de prendas cada año para brindar a sus consumidores las últimas tendencias y el glamour de las pasarelas, promueve que la ropa sea desechable y fomenta el desperdicio excesivo.

Letrero de descuento en tienda

 

La sustentabilidad y una conducta más sustentable se han visto obligados incluso ante los consumidores más reacios. Sabemos que la sustentabilidad tiene un costo y este ha sido durante mucho tiempo el equilibrio que las marcas han tenido problemas para lograr. Y con cada paso de regreso a la normalidad, la mentalidad del consumidor y los hábitos de compra cambiarán.

 

Un futuro sustentable

Esta pandemia, a pesar de todo el dolor y el sufrimiento, potencialmente ha puesto freno al consumismo, que ha estado devorando los recursos del mundo a un ritmo insostenible en los últimos 30 años. Esto no quiere decir que la moda no tenga futuro. Ciertamente, siempre hemos buscado expresarnos y la ropa es fundamental para esto. Sin embargo, tal vez esto les haya dado a las cadenas minoristas de moda la oportunidad que necesitaban para invertir más en prácticas sustentables (más costosas) como el reciclaje y el uso de materiales más sustentables como Pinatex (hecho de residuos de hoja de piña). Los informes de sustentabilidad ya son una parte central de los informes anuales de las grandes cadenas minoristas y ahora se esperaría que se aceleren algunas de sus metas.

 

 

Ayuda desde la industria de la moda

 

Mientras esperamos que los confinamientos se relajen, es notable que las casas de moda y los minoristas están haciendo todo lo posible para ayudar a prevenir la propagación de este virus. Proféticamente, Burberry ya tenía mascarillas en su pasarela hacia fines de 2019, pero la mascarilla ha comenzado a integrarse en la cultura popular. Además, muchas casas de moda ahora están haciendo y vendiendo versiones de mascarillas de tela para esta nueva realidad Covid-19. Esperemos que esta no sea una tendencia que deba mantenerse a largo plazo.

En ET2C, estamos aquí para ayudar a nuestros clientes en múltiples sectores y mercados. Por ejemplo, actualmente estamos produciendo una gama de mascarillas de tela para satisfacer las necesidades del mundo y combatir este virus mortal.

Para cualquier consulta, contáctanos para para obtener más información en mexico@et2cint.com.

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Face Mask: Fabric is a Safe and Sustainable Choice

Face Mask Fabric is a safe and sustainable choiceWearing a face mask is still one of the safest ways of preventing further spread of the coronavirus.

While many countries are experiencing uncertainty due to unclear Government guidelines and fear of a second/third wave of infections, the case numbers remain persistently high across many places across the world. In the United States, for example, there has been an average of 50,000 cases per day in the past week. At the time of writing, in New York and California, more than 1 million people have been infected.

The ‘R’ number (reproductive rate) still sits above 1 in 20 US States. Some states have had to re-impose limits on the number of people in confined spaces (such as offices) and gatherings as well as inter-state travel restrictions.

Mum mask daughter coronavirus

Meanwhile, the virus is evolving, impacting not only high-risk patients but also young people, previously more resistant to the contagion. Aside from social distancing measures and washing hands regularly, wearing a face mask is still one of the most effective ways to protect people from further contagion (primarily to stop those with the virus being able to spread it).

DIY face mask: is it safe enough?

It is important to remember that the protective masks are not all the same. Different types of masks offer different levels of protection. In particular, homemade masks that do not include any particular filter are not so effective. Already in 2013, research by Public Health England demonstrated that a surgical mask stops transmission 3 times more effectively than a homemade mask. In the last couple of months, we have been working with our partners across Asia to provide a range of Cloth Masks that could represent a more sustainable alternative when compared to disposable products, while assuring some additional protection from further contagion.

Cloth Masks from Vietnam: The Sustainable Alternative

Although at the beginning of the Pandemic protecting peoples’ health was a clear priority, this has now changed and there is a now growing focus on the impact of disposable PPE products on the environment. The Mediterranean already has ‘Covid Waste’ of disposable masks and gloves overlaying the usual cans, bags and disposable cups.

A cloth face mask is certainly a more sustainable option because it is washable, reusable and recyclable. A perfect choice for many consumers that care about the impact they have on the nature around them.
In Vietnam, several textile businesses have been dedicating their production lines to antibacterial masks and Nano Silver Masks to help combat the virus. If you want to choose a sustainable alternative to surgical masks, without sacrificing a level of protection, these cloth masks are a great option for you.

3-PLY Droplet Resistant Antibacterial Face Mask

Material: 100% cotton. You can wash it (up to 30 times) and dry for reuse.
The 3 integrated layers offer great protection against airborne particles and droplets containing viruses and bacteria. The nose adjustable clip helps keep the mask fit to the face. Anti – UV and water-resistant, the internal layers are dust-proof and antibacterial, blocking 99,98% of bacteria. There are two sizes available: S for kids and M for adults.

Nano Silver Mask

100% Cotton, this mask has 3 integrated layers.
The middle layer is treated with Silver Nanotechnology that works as a safety filter. In fact, it eliminates small particles of bacteria that pass through the outer layer of the mask.

Nano Silver technology is an antimicrobial colloid composed of silver nanoparticles stabilized by a polymer that exhibits excellent antimicrobial efficacy across a wide spectrum of microorganisms.
While Silver inhibits the oxygen exchange in bacteria and kills it, this technology has been can enhance that effect.

Looking for Fabric Face Masks? We can help!

We are working with our partners in Vietnam to provide a range of Cloth Masks to combat this deadly virus. In addition, we do have other medical products for the healthcare sector should they be needed to protect peoples’ health. For all enquiries, please contact us for more information at coronasupplies@et2cint.com .

ET2C Vietnam - Cloth Face Mask - Product Offering -
Click here to download our Cloth Masks Offering

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A Sourcing Company in High Definition. Welcome to the new ET2C.com!

Sourcing Company ET2C

The 20-year sourcing company ET2C International takes on a new online guise to better explain how we can meet your sourcing needs. Now, with a renovated interface, navigating the ET2C website has never been easier.

What’s new at ET2C.com

1. Clear Design & Structure

The updated structure and style will allow visitors to better identify the service or product they are looking for, whether it be sourcing and procurement assistance, buying office information, quality assurance, or relevant information and articles on current affairs impacting the world of sourcing.

Buying Office Sourcing Company ET2C

2. How We Work

We have many different ‘touch points’ that allows us to provide tailored solutions to our clients. Certainly, ‘How we work’ is something that we have looked to address with this update to ensure visitors understand how we can add value to their supply chains. We therefore added supplementary material on each of our services that gives you a visual methodology of how we work. The Sourcing, Buying Office and Quality Assurance pages include graphic schemes of the general processes. Also, we added some useful tips for our clients in order to help us quickly align to your needs.

Sourcing Process ET2C

3. What We Do

Established in 2001, for almost 20 years ET2C has been building a strong network of suppliers while offering multi-industry services to many clients.

We wanted to therefore give the right space to our Key Industries: Industrial Components (explaining in detail our proven methodology and expertise with both Metal and Plastic components) and Consumer Goods (with a focus on our main categories: Fashion, Indoor, Outdoor and Medical).
Furthermore, we thought to provide you with concrete examples of our work. For this reason, we added some Case studies that will drive you along the multi-industry services offered over the years to medium-large retailers and wholesalers and to young growth companies as well.

Industrial Components ET2C Sourcing

4. The Team at ET2C

As a Sourcing Company, we are ultimately a people business, and for that reason we wanted to provide you with some of the faces and roles of our key staff. We have some 200 staff across all our offices and so have not been able to provide everyone that is working hard behind the scenes to make our customers lives easier! Have a look at the ‘About Us’page.

5. Contact

Contacting us has never been easier. The contact page has been improved to reflect our international presence more accurately. We have updated our contacts and the landing pages for Vietnam, and Mexico have been enhanced with detailed contact forms. You have just a quick question? Send us a message thought the chat box on the bottom right corner of any page.

Why We’re Upgrading

With this redesign, the message from our website about our market knowledge and product expertise has never been clearer. The new style aims to show what we at ET2C are all about; low-risk profitable solutions that enhance your supply chain.
Also, we have increased the content available on the website, including supplementary material on each of our services as well as our general processes and case studies.

Stay updated with our latest news

Moreover, we will frequently be updating the Resources section. We will provide you with the latest news on sourcing and procurement from our knowledgeable experts. Furthermore, you can check out our latest posts on LinkedIn, Facebook and Twitter. You will find many articles relating to global sourcing, international trends, innovative technologies, sustainability, and much more. And do not forget to subscribe to our ET2C Newsletter to receive our monthly updates for free! We are also planning a series of Webinars that cover some current topics – be sure not to miss these!

ET2C news

Next Steps

The new website plays a critical role in displaying our services as we continue to build our sourcing company to make sure we are always providing relevant and add value services. We also understand that in order to be at the forefront of sourcing, we must be able to adapt and respond to the needs of our clients. If you have any queries regarding our new website or simply a few questions relating to our services, please feel free to contact us.

A huge thanks to the team of Key Element that made this project possible and successful!

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India Sourcing Insights – We Are Garden

e Are Garden India Sourcing Insights

 

India Sourcing – Strengths of the Garden Products sector

As part of our We Are Garden series, we have been looking at alternate markets outside of Vietnam where we had already identified product opportunities within the Garden & Outdoor sector. Our India Sourcing team have therefore been looking for opportunities within this sector to further complement our offer from Vietnam. Raw material, labour cost as well as investment in the manufacturing sector are all advantageous characteristics which India has in abundance.
More than ever, sourcing strategies are looking to remove dependency on any one market and spread risk around different countries. India has a growing workforce and has product expertise in certain categories that plays into the We Are Garden initiative. This is beneficial at both a product and sourcing strategy level. Certainly, companies in this sector would be well placed to look at India sourcing as part of their overall strategy.

Garden Products – Key Industries

As your Asian sourcing expert, we have identified key categories within this sector which include some of the following products:

  • Garden Tools (spades, forks, trowels, rakes and hoes)
  • Coir Products (liners, hanging baskets, fibre, ropes, chip blocks)
  • Jute/Cotton Products (Pot holders, seed bags)
  • Garden Furniture (Stool, benches, wooden couches)
  • Garden Accessories (bird baths, lamps, feeder, watering cans).

Hanging Basket of Flowers, cocoliner

Notably, some of these products have beneficial import duties into certain markets, particularly when compared with China.
To build on some of the insights we have provided at a factory level, we recently spent some time with a Coir supplier in the industrial area of Tuticorin.

The Coir Industry

Coir is largely produced in the coastal regions. The continuous awareness about environmental protection contributed to the increase in its demand. Sustainability and use of a natural fibres has become increasingly important to the Consumer. Being bio-degradable in nature, this has buoyed the category considerably over the past 5 years.
Currently, the Indian coir industry exports to around 70 countries worldwide and the Indian Coir Board is looking at doubling the export revenue in the upcoming years. The Government has also played a vital role in reviving this traditional industry and has set up many initiatives to support it.

Coir Supplier

We arrive at the factory after a long drive, off the main road, we come to the factory site and meet the CEO of the business. Notably, with the current Covid-19 crisis in India, the team let us wear protective clothing for the tour of the facilities.

This vendor, one of the first in this region, opened the doors for business in 1998 and now exports a wide range of coir products to USA, Middle East, Australasia, South America and EU countries.

Production is at full capacity and full use is being taken of their large warehousing unit that is currently holding approximately 30 container loads of products. At capacity, the facility can hold up to 50 container loads. Notably, the factory produces up to 1,000 tonnes of product each month.

COCO FIBRE

India Sourcing – Interview

1. Which countries within the Asian Region do you see as your main competitors?

We see Sri Lanka and Vietnam as our main competitors. Even though these countries are the biggest producers of Coir, the Indian Coir industry is much larger and competitive pricing coupled with quality and Innovation makes India a better proposition.

2. What does ‘Sustainability’ mean to your business?

Coir is a natural product and our production process follows International standards with Zero harm to the natural Environment. Certainly, we believe in creating new organic products based on client requirements. Moreover, we educate our Employees to work ethically towards Zero wastage.

3. How do you continue to develop your export market and client base?

We have both knowledgeable and experienced business development team focusing on increasing our client base. Also, we aim to feature in many Global Trade Shows and are also looking to use Social media to increase our client base. Certainly, we are looking to have long term business relationships with clients by supplying best quality products at right pricings on-time.

COCO PEAT

4. What are your biggest challenges as a business?

It is difficult to keep everyone happy but we strive to work towards zero customer complaints. Due to Covid-19, we have had some manpower issues, but we these have been addressed now.

5. What is the future for the Indian manufacturing base in your product category?

The annual growth of the coir Industry in India is estimated at 5% in terms of Annual Export Volume and Indian factories are working on manufacturing new products as well. In addition, the Indian Government has formed the Coconut Development Board to boost coir production as well. Also, most factories in India are phasing out the traditional production process in the coir industry by replacing manual labour with modern equipment so as to eliminate inefficiencies in the production process and to enhance productivity and quality.

India Sourcing Insights - We Are Garden

Summary

As an India Sourcing company and having been on the ground for over 9 years, we have identified the Garden Product and Outdoor sector as a growth manufacturing sector in India. Where necessary, we are already working with Indian manufacturers to produce high quality products.

For more information, please contact us at india@et2cint.com. We will help your business positively bloom!

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Asia Sourcing in the post Covid-19

Asia Sourcing in the post Covid-19

Back in February, the world was watching the Far East (predominately China) as the onset of this Pandemic took hold of economies and lockdowns were implemented. Albeit over Chinese New Year, companies’ Asian supply chains were shut down and the return of workers remained an unknown.
Now to today, over the past 5 months, this virus has spread widely infecting some 13 million people globally. Moving from Asia to Europe, the Americas are now the epicentre. The number of infections has risen by 1 million in just 5 days. This has led Tedros Adhanom Ghebreyesus, Director General, WHO to comment, “too many countries are headed in the wrong direction”.

Asia Sourcing Covid19 Covid virus Procurement
Whereas Asia is now operating relatively normally within their own borders (China has just announced GDP growth of 3.2% for the second quarter suggesting a V shape recovery), Western markets are hampered by lockdowns and a resultant shift in consumer behaviour. In addition, with borders shut, companies now find themselves locked out of their Asian supply chains. What does this now mean for Asia Sourcing strategies or specifically companies with no buying office in Asia?

The New Asia Sourcing

We have always said that being close to your suppliers is paramount, in whatever guise, to leverage the benefits of buying from Asia. Therefore, we thought it would be useful to run through some ideas of how to manage your suppliers in this current environment:

1. Sourcing new Factories

Should you need to identify new factories, then it is important to look to a local partner who you can collaborate with to visit the sites, engage with the owners and undertake the pre-screening work that you are not able to currently do. This will provide greater visibility and allow you to still go through an objective onboarding process.

2. Quality Control

More than ever, it will be important to use third parties to conduct inspections (inline and final) to ensure that the products being produced are to the quality standard you require. If you usually take TOP samples, make use of high resolution photos as a means to saving money in this tough business environment.

3. Use Technology

Technology, and its use at a corporate level, is something that this Pandemic has certainly accelerated. Certainly, using communication tools can help you get closer to your suppliers. Likewise, digitization of supply chains has been accelerated to better manage data and metrics particularly when access has been restricted.

Product Design Sourcing Footwear

4. Plan B

Should something go wrong with a particular production, it would be advisable to have an option (“Plan B”) of getting people to the factory to work through and resolve any issues. Again, a local QC house, or Sourcing company may be able to help. Trying to address a matter at arm’s length may end up causing more issues than solving the problem.

5. Limit Risk Exposure

Given that budgets are currently restricted, where possible, identify the suppliers and products that carry the most risk. This may be around the value of an order, the strategic importance for your client, the type of product or even the terms (upfront terms) but it will ensure that you are allocating what resource is available as best as you can.

Virtual Buying Trips

As part of our commitment to our clients, we are already working with our clients on Virtual Buying Trips. Depending on your time zone, we have been setting up and managing meetings with clients’ factories. Also,  we are taking clients to new factories via Zoom and Teams. Our staff are on-site and walk you through the production as well as play an integral part in the discussions with the factory management. No more long journeys or waiting for your train and all from the comfort of your own home!

Virtual Buying Trips ET2C Banner-6s

Summary

We hope that this Pandemic will be brought under control in the shortest possible time. The new normal for Asia sourcing needs to rely on an upstream capability being put in place as well as use technology to take you to the factory gates. For all your sourcing needs, please contact us at unlockAsia@et2cint.com

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EVFTA ready to start!

EVFTA ready to start Vietnam Sourcing EU Market

EVFTA will boost Vietnam Sourcing for the EU Market.

After a decade of talks and negotiations, the European Vietnam Free Trade Agreement (EVFTA) has been ratified by the Vietnamese assembly. The trade deal will likely take effect on the 1st August 2020. Vietnam has long been seen as the ‘Workshop of the World’ with its ever-growing manufacturing sector and this trade deal should only support this expansion. It will reduce tariffs on products imported into the EU market over the course of 7 years, with some commentators pointing to 44% increase in imports.

Vietnam

The Current State of Vietnam Manufacturing

Even before this Pandemic, a lot of companies (particularly US-based) were looking to spread their Asian sourcing across the region. This has ensured that they were not too dependent on one market. Certainly, Vietnam sourcing was a key component of this strategy. However, the country’s manufacturing sector was at full capacity.
To a point, there have always been limitations in terms of scale and supplier networks. For the first, you just have to look at the population when compared to China; circa 90 million as a total population against 1.6 billion people. In fact, the migrant worker population within the Chinese manufacturing sector is still estimated as 300 million strong.
Secondly, Vietnam has often relied upon other markets for raw material supplies and accessories. This added to both lead time and also price.

EVFTA & The Future

This trade deal will reduce the tariffs on imports into the EU, almost all tariffs over a 7 year period. The good news is that after the deal takes effect, under the GSP regime, the EU will eliminate approximately 85% of import tariffs on Vietnamese goods. Conversely, it reduces barriers for EU businesses to invest and operate within Vietnam. This is all at a time when trade wars, protectionism are on the rise and the Pandemic has disrupted sales markets globally. Undoubtedly, this will open up the manufacturing sector to additional investment, both domestic and international, as companies look to take advantage of the available labour, rates and manufacturing opportunities.

Product categories that will benefit include:

– Footwear
– Furniture
– Garments & Apparel
– Furniture
Garden Products

Cocoliner Vietnam Sourcing
The key role of raw materials

One point that is pertinent to the benefits of this Free Trade Agreement is centred on the rules of origin that will qualify for the Certificate of Origin being issued and the reduction in the duty on import. In the past, Vietnam has been reliant on the import of raw material coming in from overseas. Consequently, some industries are going to enhance their local supply chains to take advantage of this deal.

Requirements for the tariff reduction

‘’Originating” will be key to the tariff reduction. Products will be considered ‘’originating” under the Treaty if they meet one of the following requirements:
• Wholly obtained in Vietnam; and
• Products produced in Vietnam incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing within Vietnam.
Many goods still do contain materials and components imported from countries not party to a trade agreement. In fact, sectors like automotive and electronic are good examples where greater domestic production is needed before any advantages of the FTA will be attainable. Currently, 62% of materials for the electronics industry and 53% from the automotive sector are sourced from abroad. Therefore, greater efforts are required to improve linkages between domestic suppliers and foreign enterprises.

EVFTA logistics container Vietnam Sourcing EU Market

Vietnam Sourcing & ET2C

ET2C has been on the ground in Vietnam for the past 13 years. We have strong connections across the manufacturing sector for all our clients Vietnam sourcing requirements. In particular, we have been manufacturing and exporting a range of products across Garden Products, furniture, ceramics, soft goods, shoes and even cloth masks during this pandemic.
We have also attained FSC certification back in August 2019 so that we were able to export wooden products from Vietnam and ensure that the raw material is being sustainably managed. We have strong connections with furniture manufacturers throughout Vietnam, which now one of the world’s largest exporting countries for wood and wood exports with around 4,500 timber processing enterprises across the country.

New opportunities for European Retailers.

Vietnam will undoubtedly benefit from the EVFTA. European retailers will see more opportunities to leverage their connections with South East Asia. This coupled with the fall out from coronavirus and the rise in protectionism, will lead to an increased interest in the Vietnamese manufacturing sector. For all your Vietnam sourcing needs, please contact us at Vietnam@et2cint.com.

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Sourcing chronicles: ET2C – 19 years and counting!

Sourcing Chronicles

Sourcing has evolved significantly over the past 20 years. As more members acceded to the WTO around the turn of the Millenium, borders were liberalised and outsource manufacturing on a mass scale followed. Lately, there has been increased protectionism and international trade has been impacted over these last 3 years.

As a celebration of 19 years of business, we thought to explore these years through the eyes of our CEO, Richard Archer-Perkins. He told us how the business was started and how he has managed to continue operating in Asia for such a long period. No easy feat!

The Beginning

Back in 2000, I was asked to come to China to help a friend establish his own oxygen mask manufacturer. He had already been making these products at a facility in Taipei and wanted to leverage the Chinese manufacturing market and labour pool. Initially, with family in the UK, this was to be a nine-month stint. Who could have imagined that twenty years later I would still be here!

ET2C’s History

It all started at the Javits Center in January 2001, when I visited New York at the Pure Exhibition. Having seen the emergence of a mass manufacturing base in China, I walked the show going to every booth asking whether there was anyone interested in working with China. There was a lot of interest, but there was only one company that came to the table; a body jewellery company called Silver Moon Concepts who operated in Florida, USA – not that I knew anything about Body Jewellery! I managed to find a supplier (who traditionally worked with watches), who had the machinery and material to make surgical grade stainless steel (316L) and importantly create the necessary shapes. Then I went about finding staff to create a mini-production line to put the product together and pack them. I opened the office on the 8 May 2001.

ET2C office

The evolution of the business

From then, I managed to onboard additional clients in 2002 and 2003. We were saving our clients considerable cost on goods at a time when China had just begun to open up. On the back of this, I managed to get some large retailers as well as other wholesalers and Brands. Today, we’re proud of having in excess of 100 regular clients. Moreover, we are constantly looking to give them sourcing solutions that drive their bottom-line growth. We now have operations in multiple sourcing markets and are looking at further expansion this year. In addition, we have a food distribution business and are also planning to add more product lines to sell into China in 2020.

ET2C video
Watch our Company Video to know more!

 

Sourcing in Uncertain Times

There is no doubt that the World is in turmoil. COVID-19, trade wars, international sanctions and so on. International trade will continue being an important driver for the global economy as it has over the course of history. There are questions over whether China will continue to be the factory to the world – or rather retain its dominance – and perhaps some countries will look to be more self-reliant. Regardless, ET2C will continue to strive to identify more opportunities for our clients from better suppliers, new markets and in a more sustainable way. Inevitably, technology will also play an increasingly important role in this journey across all facets of our business but also in terms of how we all engage together.

Medical Supplies

We are nimble, which enables us to pivot when required. Consequentially, in what was an incredibly complex regulatory and environment, we managed to help our clients get some PPE products. Importantly, we did not lose one dollar of our clients’ money in an environment that was very high risk. It was important to follow our usual processes to ensure we were dealing with the right suppliers. The South China Morning Post referred to it as the “Wild West”. I am also proud to have supplied to the NHS as they ramped up their PPE stocks.

Top Industries

We work across multiple categories, but primarily these can be defined into two divisions, Consumer goods (Garden, Fashion, Pet, Toys, Furniture, Homewares and Health & Beauty) and Industrial goods. We currently source from India, China and Vietnam. Also, we are looking to add additional jurisdictions as part of our 2020 strategy. Countries being assessed at present include Mexico, Thailand, Malaysia and Taiwan.

Buying Office

Our Buying Office solution has always been the backbone of the company and helped the business to grow. I still believe that this is conceptually correct as there is no doubt that (particularly in these Asian markets) in order to control your supply chain it is important to have people on the ground at the source. Controlling suppliers, quality, on time delivery and compliance from a distance is very difficult. Our model is the most cost effective, transparent and simplest available and second to none.

office sourcing

Challenges and Opportunities

Always be prepared to take risks! One never knows which one will yield opportunities and ultimate success! Who would have thought that dealing in body Jewellery would create the business we have today. It has been an amazing journey full of good and challenging experiences – albeit not always pleasant – but that is life and looking back I really look forward to the next exciting episodes! I look forward to celebrating with everyone at next year’s 20 year celebrations!

et2c team

With almost 20 years of experience, ET2C is well positioned to help you with all your sourcing needs, whatever they may be. We look forward to designing new solutions to make your business more successful. Please contact us at contact@et2cint.com.

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Canton Fair 2.0 – The New Asia Sourcing

Canton Fair – a Trade Fair of the Times

The 127th Canton Fair opened its gates on Monday 15th June, closing on the 24th June. Once again, suppliers had set up their booths in eager anticipation of all the international buyers who would attend – no doubt in the current climate particularly keen to find new clients. However, this is a Trade Fair of the Times; it was in a digital format.

Canton Fair turns digital

As most businesses worldwide have become accustomed to remote working, the fair is coming to you from within your computer. The deep inhale of breath on day one as you stand atop the steps looking down over the cavernous 1.185 million m2 exhibition centre is no more. The Asia sourcing extravaganza has had to be nimble and use technology as a platform to connect sellers and buyers. The Government had hoped to hold the Fair this year as a signal of ‘business as usual’ back in April. However, with the virus spreading worldwide, it was clear that getting foreign visitors was going to be impossible. With travel restrictions in place, there was no other choice and perhaps it is the best option.

Canton Et2C International

Visiting the Fair

Registration was pretty straight forward and simply required buyers to go to the login page to enter their details and gain access to this virtual world. You could then navigate through a range of pages, even into virtual halls, and click on individual suppliers. Information ranged from product pictures (like in Alibaba), pictures of supplier’s facilities and certificates and even an option to speak to sales representatives via live feeds. It has been a good experiment for the digital evolution age, and one that has again perhaps been forced upon us earlier than expected on account of the Pandemic. It will be interesting to get the final footfall figures provided by the organizing body. The Canton Fair usually has some 200,000 visitors, being a traditional feature of many buyers’ Asia sourcing strategies.

The Digital World

However, this digital fair does raise a wider question, which is being asked across all areas of the global economy. Regardless of Covid, is this the format of choice going forward? After all, it is more efficient, cost-effective, more sustainable and still gives buyers the insight they need without the hassle. Of course, there are wider implications on the local Guangzhou economy without the visitors thronging through the hotels, restaurants and bars. In addition, Buyers would not be able to interact fully with the products themselves, try them out or feel them. But is this not a wider question for the consumer as well and can technology address this going forward? Just as consumers are now making purchasing decisions online without trying on the products, perhaps this is simply an extension of this new way of buying up the supply chain.

digital ET2C Int

Locked Out

The fact remains that at the time of writing, Asia sourcing markets have closed their borders. And there does not appear to be any signs that travel will start up over the Summer months, or perhaps even this year – for any meaningful travel at least. Companies have lost access to their suppliers and the markets that they buy from.

Canton Fair travel travelling airport

As we have always said, visibility across your Asian supply base is an integral part of leveraging the benefits. Therefore, it is more important than ever to think through the following points:

1. Access to your Suppliers

Whether it is virtual access or relying on a local partner with a presence on the ground, it is important to continue to manage your spend across price, quality and transparency of production.

2. Sourcing & New Markets

Even though sales markets are generally down, now is the time to be looking for alternative markets. Companies should be reducing dependency on any one market and spreading risk across multiple sourcing jurisdictions.

3. Quality

Managing quality is more important than ever. Without having access to your suppliers yourself, make sure you are working with a partner on the ground who can provide quality checks and quality assurance as required at your factories.

Summary

We will have to wait and see how ‘successful’ the 127th Canton Fair has been, and even after the statistics have been published, we may still not know the wider impact on how companies are engaging with their suppliers. We do know though that your feet will be all the better for the Virtual experience!

The Virtual Buying Trips

As part of your Asia sourcing strategy and help you get to your suppliers, we are currently working with our clients to set up ‘Virtual Buying Trips’. This initiative will enable you to both meet new suppliers as well as catch-up with your current suppliers on ongoing projects. We are facilitating this across multiple sites and countries as required ensuring that our staff are always on site with the factories during these discussions.

Virtual Sourcing ET2C International-s

We have even taken clients around factories during production, and this is all from the comfort of your home!
More broadly, never has a ‘presence on the ground’ been more necessary and at ET2C we have a range of solutions to give our clients access to Asian markets. If you are struggling in this current climate, please send us an email for more information at contact@et2cint.com.

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Buyers meet Suppliers. 5 key metrics to find the perfect match

Buyers Suppliers partnership sourcing Asia ET2C

Buyers are primarily responsible for planning, selecting and buying products for companies to either use in their everyday operations or resell to customers.
They research markets, analyze competitors, negotiate prices. Furthermore, they evaluate, test and eventually buy products and monitor purchase orders. Above all, they are the deal-makers.

Buyers and Suppliers

To succeed in these tasks, buyers also need to build up strong and trusting relationships with suppliers.
Good collaboration between buyers and suppliers is essential to efficiently delivering goods on a commercially sustainable basis.

If this cooperation fails, then the supply chain can begin to break down. This can cause disruption that results in intermittent supply, price fluctuations and quality problems.

Buyers Suppliers. partnership collaboration ET2C

5 key metrics to create the perfect match.

Certainly, relationships matter – even more so with the current travel restrictions in place. Moreover, if you are planning to outsource manufacturing to low-cost countries, you might need additional assistance. True partnerships and the benefits that they can deliver over the medium term will be increasingly important going forward. In this article, we will be providing you with the 5 key-metrics to find the perfect match with your suppliers.

1. Location

Selecting the right supplier requires you to understand why this company’s location is best suited to your needs. There may well be a variety of locations that suit your needs and understanding a range of factors will allow you to make the most informed choice.

sourcing location map Asia ET2C Int.
To find the best suited to manufacture your products, be sure to consider general key factors such as manufacturing capability, market experience, size of the business, financial health and IP as some examples. Also, it is paramount to consider those elements that relate to a specific location. These include access to certain raw materials, ability to export, exchange rate fluctuations, to name just a few.

2. Communication

At the outset, be clear as to the expectations. Set up a critical path with key milestones and agree with your suppliers what you expect from them as part of the management of the information flow. For example, make sure that there is a clear specification sheet that provides product details, colourways, packaging requirements, etc. This eliminates the risk of timing issues or mistakes executing the product quality. Remember: transparency is key to go far together.

Buyers Suppliers communication idea pitch speech

3. Quality Control

Never underestimate the importance of quality assurance and control as an integral part of a production process. Identifying the risks of a production within a critical path should be discussed internally and with the factory from a product perspective and then a quality program implemented to address any of these. Problem-solving is great but problem prevention is even better!

4. Delivery

Any production will always have issues and being able to address these in a timely manner is what is key to hitting delivery deadlines. A key component of this comes down to the supplier relationship and the communication channels. We always say a problem is not a problem if it is identified early and can be addressed.

5. Culture

When selecting a supplier, be sure to consider a wide range of factors, such as quality assurance, certifications, product innovation, terms, MOQs, capacity, stock holding, to name a few. But this will not be enough. You should ultimately be sure that your interests are shared, or at least aligned.
Look at your suppliers as an extension of your own enterprise. Make certain that your supplier’s company culture matches with the culture of your company. For example, this could involve ethical and management standards to ensure a safe working environment for local workers or sustainable production choices.

company culture ET2C Int.

Need help to find the right match?

One option is partnering with a product sourcing company which has a presence on the ground in the local market, product knowledge and can add value when it comes to managing the supplier from development through to shipment.
In the main, having some kind of local presence will only help enhance these relationships whether it be your own office, a sourcing company or some other third party presence.
At ET2C, we provide our clients with the transparency needed to best manage their suppliers across Asia and help with any risk mitigation strategy. For more information on how we can help you, please contact us at contact@et2cint.com.

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Face Mask – WHO Releases New Guidelines

As part of our series on PPE and COVID-19, we wanted to take the opportunity to update you on the latest advice around the use of the face mask. The World Health Organization has issued new guidelines for face masks amid the COVID-19 pandemic, suggesting that they should be used in more situations than previously advised. Specifically, the WHO updated its guidance on the use of masks in areas with community transmission. Some of the key take-outs from this latest update in the battle against this pandemic are:

1. All the people working in clinical areas of a health facility should wear a medical face mask. This means not only workers dealing with patients with COVID-19, but the whole staff; and
2. Governments should encourage the general public to wear masks where there is widespread transmission and physical distancing is difficult. Such situations include, for example, forms of public transport and certain shops.

Masks London Subway ET2C covid19 coronavirus
photo credit: Étienne Godiard

Furthermore, their updated guidance contains additional information about fabric masks, based on new academic research that has recently been published.

Face Mask – how to wear it: Do’s and Don’ts

As a number of countries are now emerging from their respective lockdowns, it is important to understand the do’s and don’ts of wearing non-medical fabric face masks in order to make them effective and continue preventing the coronavirus.

Importantly, masks should only be used by one person and should not be shared. You should change a visibly soiled mask and shouldn’t wear a wet mask for an extended period of time.
Also, you should wash frequently the non-medical masks and handle them carefully. In this way, you will avoid contaminating other items.

WHO World Health Organization coronavirus Face Masks ET2C Int.
WHO has updated its guidance on the use of face masks in areas with community transmission.

Materials

The WHO clarifies that the material selection is an important first-step as filtration and breathability vary depending on the fabric. Also, filtration efficiency depends on the tightness of the weave, fibre or thread diameter, and, in the case of nonwoven materials, the manufacturing process.
The choice of the right material is essential because depending on the fabric used, filtration efficiency and breathability can complement or work against one another.

Number of Layers

According to the WHO guidelines, non-medical masks should present a minimum of three layers, depending on the fabric used.
In particular, the ideal combination of material for non-medical masks should include three layers as follows:
1) an innermost layer of a hydrophilic material (e.g. cotton or cotton blends);
2) an outermost layer made of hydrophobic material (e.g., polypropylene, polyester, or their blends) which may limit external contamination from penetration through to the wearer’s nose and mouth;
3) a middle hydrophobic layer of synthetic non-woven material such as polypropylene or a cotton layer which may enhance filtration or retain droplets.

Face masks – enough to prevent the contagion?

The World Health Organization is really clear about this. Face masks can protect others around you. However, remember that masks alone can’t protect you from COVID-19. To prevent the spread of the virus, you have to maintain at least one metre distance from others (this varies by Government) and wash your hands regularly and thoroughly, even when you are wearing a face mask, claims the WHO.

United Nations coronavirus prevention covid19
photo credit: How To Wash Your Hands. Image created by Olivia Charles. Submitted for United Nations Global Call Out To Creatives – help stop the spread of COVID-19.

Looking for Cotton Masks? We can help!

We are currently working with our partners in Vietnam to provide a range of Cloth Face Masks to meet the world’s needs and to combat this deadly virus. In addition, we have other medical products from disposable masks, protective gloves, face shields, hand-sanitizers, medical suits, gowns, and more. Obviously, as lockdowns are lifted, demand has transitioned into more sustainable supply in key products. For all enquiries, please contact us for more information at coronasupplies@et2cint.com .

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