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Wal-Mart Goes to China in December
October 22, 2008
Wal-Mart’s decision to move its toy buying trip to Hong Kong from January to December has created distress among some sales representatives and manufacturers. Historically, the toy industry has relocated to Hong Kong the first half of January. It is a long trip, but the time and financial costs have long been incorporated as a cost of business.
Wal-Mart’s decision, however, will result in an additional trip for many reps and manufacturers. This will mean not only a financial cost for many but an absence from home for much of December and January.
Wal-Mart’s decision was predicated on the need to have more time elapse between decision making and shipments. No one can quarrel with their reasoning. It would be in everyone’s best interest, however, that the rest of the industry aligns in December or that Wal-Mart returns to January.
These additional trips generate non-value added costs that do not benefit anyone except hotels and airlines. It is ultimately in the consumers’ best interests that we avoid any unnecessary costs during these times of inflation and recession.
Posted by Richard Gottlieb on October 22, 2008 | Comments (0)
