Canadian Retailer - November/December 2010 - (Page 34)

| global sourcing Getting to A Southeast the source By: Kelly Putter Nova Scotia-based Wicker Emporium, which imports the majority of its furniture and home décor products from Southeast Asian nations, enjoys procuring unique furniture styles from Indonesia, where costs are considerably lower than China and India. “We really do deal a lot with Indonesia,” says Jocelyn Isenor, Warehouse and Logistics Manager for the 22-store retail chain. Another advantage to dealing with Indonesia, says Isenor, is the wide variety of product that is available from different suppliers. Challenges: Infrastructure difficulties in dealing with Southeast Asia include shortage of power, roads and airports. “Transportation costs are higher in this region and the lead times are longer out of the countries,” says Huckle, “because it’s not the same frequency of vessels coming out and the pricing is a little higher.” There is also a downside with respect to long timelines involved in securing product as well as cultural differences that are reflected in one side being open and ready for business when the other side is not. There are also delays in obtaining product due to the shortage of skilled labour and major weather conditions such as floods and tsunamis, which can have a major impact on procuring resources such as wood to make furniture. walk through the Canadian retail landscape will tell you that commerce in the country is alive and well and beginning to thrive once again within the abundant and ever-growing reach of a global economy. And as the government works to enhance access to world markets and networks, new economic forces like India, Brazil and Russia have emerged as alternatives to sourcing products from China. In light of this, while Canada’s top partners for retail trade continue to be the United States, the United Kingdom and France, Canadian Retailer decided to explore the emerging countries that retailers are watching as the upcoming economic powerhouses around the globe. Here’s what we found: Sourcing region: The Association of Southeast Asian Nations (ASEAN)—Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam Overview: This area of the world makes up one of the world’s fastest growing economic regions. The main imports brought into Canada from these countries comprise about $3.3 billion worth of electrical equipment, rubber, knit apparel and woven apparel. According to the Department of Foreign Affairs and International Trade, these Southeast Asian nations are quickly becoming the free trade hub of Asia. A growing middle class and proximity to the Chinese and Indian markets propel their growth. Advantages: One of the big advantages to dealing with this region, according to Kevin Huckle, President of Kodiak Group Holdings Co., which represents Terra brand footwear, is circumventing the labour unrest that China has been experiencing in recent months. (In China, labour strikes protesting low pay, grueling work hours and military workplace rules have grown in recent months.) Asia 34 | canadian retailer | november/december 2010 |

Table of Contents for the Digital Edition of Canadian Retailer - November/December 2010

Canadian Retailer - November/december 2010
Table of Contents
Publisher’s Desk
Shop Talk
Store Design
Retail Leader Perspectives
Rcc: Year in Review
Member Profile
Global Sourcing
Rumour Mill
Retail q&a
Grassroots Marketing
Advertisers’ Index
You Asked Us

Canadian Retailer - November/December 2010