This month seems to have gone by so quickly. We returned to the UK at the end of the first week of February having enjoyed the festivities of the Chinese New Year. This was an amazing experience and something that we would recommend every customer to include in their travel destination list. It is the one time of the year that families in China get together and really enjoy themselves. The streets were buzzing and the firework display in Hangzhou was unbelievable.

We were very fortunate to have been invited to the home of a supplier with whom we have been working for over 20 years. When we first met this family owned company they had just started producing safes for domestic and contract usage. The products were crude and engineered in a very basic format. Now 20 years on they are one of the largest manufacturers in the world and have diversifying into many other areas. We had a most enjoyable dinner with them and their guests (over 60 people were invited). Over the course of the evening we learnt a lot more about the change in Chinese society as a result of the influx of wealth into the country.

The sales of luxury goods are exploding by nearly 25% per annum. China is now the largest market for Louis Vuitton products and within three years it is forecast that they will account for over 20% of global demand for all luxury products. Due to the high rates of import duties, many Chinese citizens shop abroad for their luxury goods. They will always tell you that the goods were brought abroad to make sure that you realise that they are not one of the counterfeit copies sold in China. The Chinese taste is now very similar to that of the Western economies; however there are some fundamental differences in the profiles of the consumers. The Chinese millionaire is typically only in his 30s which is far younger than in the USA and Europe. The affluent Chinese also make a very conscious effort to display their wealth. This practice is common to both men and women. They believe it is a sign for others to take them seriously. When you visit factories it is now quite common to see a large BMW or Mercedes parked outside.

Whilst clearly we were talking to a very wealthy group of people there is without doubt a new affluent middle-class who also aspire to purchase Western-style goods. These displays of wealth are one of the drivers that are causing so much industrial unrest in the labour market and are fundamentally the same growing pains experienced by the Western economies in the 19th and 20th centuries.

Unfortunately, the effects of inflation are being felt throughout the whole of Asia. The relentless increase in oil prices and the case of China a poor wheat harvest combined with general shortages of raw materials are pushing prices up on a daily basis. The Chinese government is responding to the threat of inflation by increasing its interest rates and in turn this has strengthened the Chinese currency. Factories will no longer give a fixed quote and we have to negotiate prices when placing an order which is making life very difficult.

This phenomenon is not unique to China but applies to all the other major Asian countries. There is currently speculation that the central Asian banks will raise interest rates further as oil prices continue to threaten fuel inflation. The bank borrowing rate in Vietnam has now hit 14% as they are suffering from an increase in consumer prices over the last 12 months of 12.5%.

For the second year running, many workers in China have failed to return to the factories after the New Year and as a result there are numerous delays in the shipment of goods. We are pleased to report that only one of our factories production has been delayed as a result of this problem. In Vietnam, Malaysia and Indonesia all our factories have reported that they are working as usual. Any short term delays in shipment were caused by a lack raw materials following resumption of work after the holidays.

At the current time our focus is on completing all our new ranges for the 2012 gardening season. This may seem alien to many people as this season’s sales have only just begun. We are delighted to report that we are running on time and that samples are already being prepared for shipment to our showroom so that everything is in place by the end of May. We have invested more time effort and money in the new products for the coming season and our intention is to be able to offer our customers, innovative and interesting products. These will be on prominent display in our showroom over the coming months.

In the interim period we have managed to develop and launch some very different and exclusive items. We have listened very carefully to the comments of our customers who are looking for products that will enable them to differentiate themselves from their competitors. The new product ranges that are shown below are a sample of the type of items that have been developed.

We have noticed a big increase in demand over the past few months for our sourcing services. This would appear to be in line with the current trend for reducing overheads by outsourcing product requirements. We pride ourselves on being able to offer customers a very quick and cost effective turnaround service. We are happy to look at any range of items that customers are looking to source. This service is always offered on a totally confidential basis.

For your information we are just about to leave for Asia on a sourcing trip. We will be visiting Vietnam, Malaysia and India. If you have any particular requirements for products from these countries please would you contact your sales executive as soon as possible.

We are continually planning new ranges. We are pleased to say that we have already introduced the following new products for 2011

Artificial Trees
Glass Vases
Water Walls
Bronze Ornaments
Metal Pots & Ornaments
Vinyl Arbors & Pergolas

In the meantime please do remember that our 10,000 sq ft showroom, located by junction 4 of the M1 is open from 8:00am every weekday for you to view the samples of the extensive product range that we offer. Please just phone us to make an appointment.