Posted by: mulrickillion | December 23, 2011

The cost conundrum for East and West

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A shopper pushes a cart past a display of Christmas trees at a Home Depot store in Newark, New Jersey. The average American plans to spend $751 on gifts this year, according to a latest CNBC All-America Economic Survey. [Emile Wamsteker / Bloomberg].

By David Lariviere, China Daily, 2011-12-16 —

US retailers may turn to other sources as Chinese companies start to lose manufacturing edge

Purchasing demand for Chinese goods has slowed a tad in the United States as higher manufacturing and shipping costs are prompting US retailers to turn to cheaper destinations in a bid to crank up profit margins.

Though most of the new orders are believed to be flowing into emerging economies, many retail industry experts still say that China still has the best brand equity in the US.

"Retail executives have told me that some low end orders are being routed to countries like Vietnam, Indonesia and Bangladesh," says Erik Autor, the International Trade Counsel for the National Retail Federation (NRF), the world’s largest retail trade association. "There might be some empirical data on it but I am yet to see it," he says.

The US Commerce Department, the National Association of Manufacturers, the US Trade Representative and the Toy Industry Association, some of the agencies that provide data on the retail trade in the US, also did not have any figures to support the claim that manufacturing is being routed to newer locations. . . .

The cost conundrum for East and West|Cover Story|chinadaily.com.cn

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