The supplier leverages strong customer service and marketing initiatives to stay ahead.
Market Union Co. Ltd exports a variety of home products, including housewares and pet supplies. The business cites its healthy partnership with clients and efficient sales team as key factors to competitiveness. The expansion to emerging markets also plays a vital role.
In an interview with Global Sources, the company’s general manager Tom Tang discusses strategies to sustain viability amid financial challenges.
What sets you apart from others in the industry?
Market Union boasts a total of 32 sales departments composed of 5 to 30 members, depending on the annual turnover. Each division is flexible, acting like a small company. We do not course business through middlemen, so revenue is shared by the whole group. In addition, our main clients are regular and stable buyers.
Our company also keeps the organizational structure transparent. All teammates have the chance to be promoted every half-year. Moreover, we respect different cultures, open conduct and fair competition.
Given the increase in manufacturing outlay, do you think China will lose some of its export business to less expensive hubs such as Mexico, Vietnam, Bangladesh and India?
The rise in production costs may lead to some order losses as prices are no longer competitive. As such, it is our opinion that dealing with long-time customers is becoming more important. Further, we should sharpen every point in our business to maintain service quality.
What are your perceptions of the global economic crisis?
The global economic crisis will still be a major influence in 2012. Key factors are the US subprime lending and EU debt problems, which have not yet been sorted out. Resultantly, the development of some emerging economies is slowing down, and these areas are facing great pressure from inflation.
What are your target markets in the coming half-year?
We will continue to focus on Eastern Europe and South America, especially since the areas are not directly involved in the US subprime lending and European debt crises. Their economies also performed well in 2011. Another reason is that many of our products are dollar items catering to these markets.
What is your sales outlook in the next six months?
In the next six months, we project a record-breaking 70 percent increase compared with 2011 sales figures. We attribute this to our chosen target markets and the nature of our products. Our main business is daily-use housewares, which remain in demand even among price-sensitive consumers.
How is the yuan’s appreciation affecting China exports?
The revaluation of the yuan has made a big impact on exports as prices in some categories are no longer competitive and may even be higher than in the local market. Further, manufacturers are pushed to be more flexible in terms of quotations and even the materials used.
Many are also changing old working styles and focusing on improving products. We call this “thinking innovation” and “technological innovation.” Through hard work, we believe that the country can still be a “world factory.”
Read the full report on Fostered business ties buoy houseware specialist Market Union. Global Sources is a leading B2B portal and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
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