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Archive for the ‘Economic Downturn’ Category« Previous EntriesThe End of Cheap China?Wednesday, March 28th, 2012  In this week’s Business Surgery, Stephanie Teow assesses whether the appeal of China is on the wane or as strong as ever I read with interest recently an article in The Economist which questioned the extent to which China can continue its position as a low-cost base of manufacturing in an era of rapid social and economic change:
According to the article, many experts suggested that the cost to manufacture in China could soar twofold or even threefold by 2020, when it may be just as cheap to manufacture things in North America as in China. Our experience carrying out research across different markets in China indicates that costs in China have been rising for some time now, and the era of ‘cheap China’ has actually been at an end for a while. Rising labour costs and the growing costs of key raw materials, means that China’s previous competitive advantages as a location for manufacturing are gradually being eroded. However, although it is likely that the future will see a growing proportion of China’s low cost manufacturing moving to other developing economies in the region (or even back to Western countries), it does not necessarily follow that most B2B manufacturing will suddenly up sticks and leave China in the immediate future. As this article notes, China has a number of key advantages as a manufacturing base which other countries in the region find very difficult to emulate, such as:
It is clear that China will remain the manufacturing location of choice for some time to come for manufacturers in most business-to-business markets. While rising costs in China will clearly make exporting from China more prohibitive in the future, it is increasingly the lure of the large Chinese domestic market that is attracting the attention of manufacturers. Equally, the manufacturing complexity and technical expertise required for many b2b manufacturers, along with the importance of reliable supply chain infrastructure, means that for many companies China still represents the most viable manufacturing location. A growing cohort of business-to-business companies are now demanding market intelligence to better understand China less as a manufacturing base for export, and more as a dynamic marketplace of the future. A Recovery for MarketingTuesday, September 7th, 2010  Following a tough couple of years for the industry, good news comes for marketers with reports that marketing recruitment and salaries are set to rise in coming months. The new study by recruitment consultancy Aquent reports that 50% of firms plan to boost numbers in their marketing teams over the next six months; 43% forecast no change. The survey, carried out via face-to-face and telephone interviews, also showed almost one-third (29%) of marketers predicting that salaries will rise; the remainder again forecast no change. Both figures are an indication that the marketing industry, which was hit hard during the recession by widespread job cuts and pay freezes, is starting to recover. Along with marketing budgets, advertising spend is also expected by many to be on the increase. How the economy will impact B2B markets and B2B researchThursday, August 20th, 2009
They are the questions on the lips of many b-to-b marketers right now: How is the current state of the economy impacting on b-to-b markets, and which marketing strategies will help me cope with its impact? Fortunately, the Canadian Marketing Research & Intelligence Association has hosted a webinar tackling these topics. The State of the Economy and How It Will Impact on B2B Markets and Research features two guest speakers: David Skelsey of Strictly Financial and Julia Cupman of B2B International. Skelsey, on reviewing the global financial crisis, discusses whether this presents a challenge or an opportunity for the market research community. He also assesses what the impact will be for specific industry sectors and particular research areas, offering some tips for how market researchers can cope with the challenges. Cupman, research and business development manager of B2B International’s US office, expands further on the challenges and constraints faced by B2B marketing professionals in today’s increasingly pressured environment, highlighting how research and marketing strategies have been – and continue to be – affected by the recession. The webinar is now available as a recording by clicking here. Feelings and forecastFriday, August 14th, 2009
With so many people interested in the state of the economy, Alaric Fairbanks this week takes a look at some of the more unusual indicators which may tell us whether prospects are looking up. Even – perhaps especially – here in Beijing, as elsewhere, not a day goes by without mention of the economy and how quickly it will recover or not. Supplementary to this are the business confidence or climate surveys and their subsequent reports of optimism and pessimism. These are all very well, and may be a good source of column inches or publicity for a research company. This is all OK with me but, even if reflective of whatever business community or industry sector’s level of confidence, it is perhaps worth thinking about which sources of information are behind, say, agreement with a statement expecting an increase in profit, revenue, headcount, etc. From examples I have seen, including, I confess, a climate survey we conducted, there is little attention paid to the sources of information upon which these feelings are based. When it does appear, it is usually a choice of ‘respectable’ sources, such as newspapers, journals, or official statistics. Less expected or rational influences are often overlooked and, even if included in the question set, a respondent may not admit to having been influenced by an alternative or informal source. Of course, it would be great for our business if businesspeople took tailored market research as their main source of guidance for decisions and even opinions, but as this is not always the case, I was curious as to what observations people were making to inform their levels of confidence. To this end we spoke informally to contacts in the Western business community about any indicators used to reflect on their business prospects. A common theme emerged around indicators being derived from the physical environment, especially through observation. A simple example of an informal indicator was counting or estimating the number of new building sites passed on the way to work – the more new sites, the stronger the economic prospects. These conversations suggested that observations were aimed at levels of activity. They tended be a mixture of fairly Beijing-specific and the more general. Observed indicators from work and life in Beijing with a perceived positive correlation included:
And with a perceived negative correlation:
Interestingly, although not all of these are anecdotally based, they all appear to have some underlying rationale. It would be interesting, at least to me, to look into how effective these indicators really are… but things are fairly hectic here at the moment, what with projects, proposals, etc – another way of showing how things are going right now! Free eBook: Effective Marketing Strategies for a RecessionMonday, August 10th, 2009
B2B International is delighted to present its latest free eBook – Effective Marketing Strategies for a Recession. At the present time, many marketing specialists are asking themselves how the recession has been affecting fellow marketers. They are wondering how competitor organisations have responded to the current economic environment, and what their own strategic responses ought to be. Based on her own primary research conducted among 400 marketing professionals, and drawing upon the work of many well-respected experts in the field, Julia Cupman has authored this new eBook. Focusing on the role of marketing strategy, common reactions to an economic downturn and those marketing strategies that are considered to be the most successful in a recession, this eBook will help marketers worldwide adapt to the pressures brought about by today’s global economic downturn.
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