Have you ever wonder where does a simple t-shirt come from…?
Sometimes when you go to a store and you buy your clothes you may see a “Made in China” but you don’t realized all the steps and process that an importer Company made to make it reachable and cheaper for you to buy it
Through "Confecciones Deportivas Mosco SA de CV ", Sport T-shirts will be imported, in order toseize opportunities in the local market of Aguascalientes Aguascalientes México.
This Sport T-shirts will have a licensed Disney character, that it’s very popular through all ages and it’s becoming a big sensation, therefore it’s an attractive business opportunity. This license that will make a difference in the product and will offer to the company the chance to resell the product on a differentmarket and sell it with a good Price that will generate higher profits.
With some Analysis and thanks to a partner in China, the company decided itself to bring these shirts from China.
Maybe you will ask yourself, why China?
The reason is that nowadays, China is the benchmark of cost and prices, even if there are high barriers and taxes, the cost of import is low.
China´s growing andcompetitiveness give access to specialized manufacturing fabrics that sell their trustful products cheaper with good quality.
Other reason for buying in the foreign market was that manufacturing products in the local market is more expensive than in the foreign market.
Nowadays Globalization makes possible to get this product in the foreign market with low cost, tariffs and taxes no impossible toafford.
Globalization offers opportunities to make logistics and distribution of the product easier.
The actual reachable Web Technology also offers opportunities on the market, opportunities for making publicity and marketing cheaper and bigger.
On this content all the actions and requirements that the Company is going to do are enlisted with its specification to make clear the profitable of thisbusiness.
The negotiation process was easier because of the Commercial Partner who lives in China and communicated with Zenkawa International, he is in charge of the relation with this company and makes sure that the product will have a good quality and will arrive to the port in Shangai.
2. Product Selection
The Company chooses to import manufactured t-shirts, with the specifications of thetrade brand that they choose
Nowadays Companies do not manufacture shirts themselves; it is cheaper for them to buy the product already manufactured, also cost is important to be able to compete in the local market.
What this companies do, is buying the shirts already manufactured, they screen print on them brands, drawings, cartoons, characters, etc. These manufactured shirts represent animport opportunity to sell to local companies such as Confecciones Deportivas Mosco S.A. de C.V.
2.1. Analysis and explanation of the product
The product: Sport Shirts
The sport shirts will be imported from China, a definitive import of 5000 shirts (at the beginning), a thousand of each color (340 S, 330 M, 330 L per each color) those are made of 100% cotton, and there will be shirts forboys, girls, women and men in different sizes (S, M, and L)
The shirts will be manufactured in China with Chinese fabrics and force labor. Those will be imported on a consolidated cargo.
2.2. Tariff classification of the product
2.3. Product prices in the world (*2.3)
Sport shirts | 2008 | 2009 | 2010 | 2011 |
China | 1.40 | 1.30 | 1.20 | 0.80 |
Vietnam | 1.42 | 1.32| 1.22 | 0.82 |
Thailand | 1.43 | 1.33 | 1.23 | 0.83 |
Japan | 1.42 | 1.32 | 1.22 | 0.82 |
Average Prices in USD
Same price of all sizes
These numbers shows how since 2008 prices in Chine decreased while in Vietnam, Thailand and Japan the prices were higher and increased. Thanks to some reforms, on 2011 tariffs are expected to be lower.
All this is a good price reference...