Get the FLASH PLAYER to view this magazine:

Get Adobe Flash player

- or -

View as HTML version PSI Journal 5/2016 CHINA’S ECONOMY IN TRANSITION: THE PERSPECTIVE OF THE PROMOTIONAL PRODUCTS INDUSTRY The changes outlined above in a country from which the majority of promotional product imports come and where many suppliers have their own offices, branches and manufacturing facilities, will undoubtedly have a major impact on the industry. That is why, following the recent developments in China, we have examined the question of whether and how the industry is affected by these developments and how it reacts to changes. Our interlocutors assess the situation very differently and reveal what is important to them in doing business with China. »We are feeling the impact of higher labour costs and an increase in the cost of living.« JÖRG HERZOG, ZOGI We are taking the economic slowdown in China seriously and monitoring developments there very closely. That is why they have not taken us by surprise. It was clear from an early stage that China’s rapid growth had to peak. In this context, what is happening at the moment can be seen as a natural regulation of the market. LOCAL PRESENCE IS IMPORTANT Our major advantage is that zogi can quickly react to changes because we are locally present in Shenzhen and Hong Kong. However, both our production site in Shenzen (Special Economic Zone) and Hong Kong (Spe­ cial Administrative Region), where the logistics centre of Zogi is located, have a special status and are not directly comparable with other locations within China. RAPID CHANGES We are feeling the impact of higher labour costs and an increase in the cost of living in our sector, the high­tech segment. The rental rates of our offices in Shenzhen are now similar to those in Munich. The changes in China are rapidly taking place, partly with drastic consequences: For instance, a manufacturing plant with 5,000 workers was resettled within a week due to exploding costs. CREATING A DESIGNATED POSITION Despite this, we are relatively unperturbed because we started investing heavily in proximity and in the stability of our relations with our Chinese colleagues and partners at a very early stage by establishing a designated position for this. Xuezheng Wang, a Chinese émigré, has been responsible for direct communication with China at our company for almost two years, and for quality assurance and Far East project management. Language barriers and misunderstandings can thus be avoided. In our view, the cooperation with China and the professionalism have actually improved considerably in recent years. Weekly video conferences and an open dialogue, including about critical tendencies, also contribute to this. DEVELOPING STABILITY AND RESPONSIBILITY We have established a trustful interaction with one another and a mutual appreciation of everyone involved over a long time. We have been working with the same local partners for seven years and have been present as often as possible. Employees in China and in Germany are promoted in equal measure. Our response to the recent developments is derived from the said principles: Maintaining and developing stability, responsibility and proximity in order to remain flexible and responsive in the future. 13

Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
Page 47
Page 48
Page 49
Page 50
Page 51
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
Page 61
Page 62
Page 63
Page 64
Page 65
Page 66
Page 67
Page 68
Page 69
Page 70
Page 71
Page 72
Page 73
Page 74
Page 75
Page 76
Page 77
Page 78
Page 79
Page 80
Page 81
Page 82
Page 83
Page 84
Page 85
Page 86
Page 87
Page 88
Page 89
Page 90
Page 91
Page 92
Page 93
Page 94
Page 95
Page 96
Page 97
Page 98
Page 99
Page 100
Page 101
Page 102