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Price is key factor at Shanghai sourcing fair
By Wang Yanlin |
September 12, 2012, Wednesday
|
Online Edition
Online Edition
SUPPLIERS in China may have to lower their prices if they want to get new orders in the current economic downturn, exhibitors and visitors said at the 11th International Sourcing Fair which opened today in Shanghai.
Johnny Qin, a sourcing engineer at Panduit Communications Components (Wuxi) Co Ltd, said the company expects to procure similar amount of products at the fair this year but at lower costs.
"Demand in the United States is shrinking rapidly in the second half. This fuels competition among suppliers for new orders," Qin said. "We want to take this opportunity to find more competitive prices in China and create a bigger supply pool."
Panduit exhibited a long sourcing list this year that is valued at more than US$3 million.
Heinz Schmiegel, director of purchasing at German automation firm AWH, came to the fair for the first time and was looking for better prices.
"Price is no doubt an important factor for us to decide suppliers, and we will go to other markets like Taiwan and Brazil to compare candidates," Schmiegel told Shanghai Daily.
China's trade performed badly in recent months due to anemic demand in the US and Europe. In the first eight months, China's trade edged up only 6.2 percent from a year ago, unlikely to meet this year's growth target of 10 percent.
Tu Jianqing, chairman of Shanghai International Sourcing Promotion (Group) Co Ltd, said the deals inked at the fair may decline despite more participants this year.
"We expect a total transaction value of US$25 billion, down from last year's 30 billion due to weak demand," Tu said.
More than 430 buyers attended this year's fair, compared with 350 in 2011. But a larger proportion of the firms are small and medium-size enterprises, organizers said.
The International Sourcing Fair started in 2002. Unlike other fairs, it invites buyers to set up booths and allows suppliers to visit.
Johnny Qin, a sourcing engineer at Panduit Communications Components (Wuxi) Co Ltd, said the company expects to procure similar amount of products at the fair this year but at lower costs.
"Demand in the United States is shrinking rapidly in the second half. This fuels competition among suppliers for new orders," Qin said. "We want to take this opportunity to find more competitive prices in China and create a bigger supply pool."
Panduit exhibited a long sourcing list this year that is valued at more than US$3 million.
Heinz Schmiegel, director of purchasing at German automation firm AWH, came to the fair for the first time and was looking for better prices.
"Price is no doubt an important factor for us to decide suppliers, and we will go to other markets like Taiwan and Brazil to compare candidates," Schmiegel told Shanghai Daily.
China's trade performed badly in recent months due to anemic demand in the US and Europe. In the first eight months, China's trade edged up only 6.2 percent from a year ago, unlikely to meet this year's growth target of 10 percent.
Tu Jianqing, chairman of Shanghai International Sourcing Promotion (Group) Co Ltd, said the deals inked at the fair may decline despite more participants this year.
"We expect a total transaction value of US$25 billion, down from last year's 30 billion due to weak demand," Tu said.
More than 430 buyers attended this year's fair, compared with 350 in 2011. But a larger proportion of the firms are small and medium-size enterprises, organizers said.
The International Sourcing Fair started in 2002. Unlike other fairs, it invites buyers to set up booths and allows suppliers to visit.
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