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Eastern Promise
Listed under: One Voice
Published: Tuesday, February 05, 2008
Rather than being a threat, developing economies can offer excellent opportunities for the craft industry, says Laura Hoke
Last week saw London host the Why India? Why now? conference, an event for leading lights in the creative industries to explore how UK companies can achieve business success in the emerging Indian economy. One speaker was Laura Hoke, director of Creative Connexions, a project founded to help UK creative companies move into world markets. “India represents a great opportunity for businesses that want to expand their scope across a variety of industries,” says Laura.
“There is fantastic potential, but with that comes some challenges,” Laura continues. “It's easy to say that you get low-quality products from these countries, but there is good quality as well. In any developing economy you're going to see a wide variety of different practices, but you can find high-quality manufacturers. Once they are identified, it is essential to ensure that you have the audit capabilities, quality control assurance and facilitators to make sure regular checks are made. This is especially important around work practices, and to avoid the use of child labour.”
But how would she answer those who say this will detract business from UK manufacturers? “The reality of the global marketplace now is that consumers are driving the need for competitiveness, and no country can expect that it won't be submitted to these pressures,” Laura says. “That said, I don't think that low price at any cost is what any consumer is looking for, and expectations will drive up performance. Why shouldn't the UK be participating in the global world? There is a lot that can be bought back here in terms of expertise, so it should become a two-way experience.”
So is it possible for small companies to use these opportunities? “It depends on what is being outsourced,” says Laura. “With manufacturing, you have to consider the benefits throughout the supply chain. If you are only going for cheap product on which the UK value is low, you are probably never going to recoup the cost. Larger volumes will generally get you cheaper prices. However, if you have a highly-specialised product, there may be some opportunity for smaller quantity companies.”
“The UK India Business Council and UK Trade and Investment are good first points of contact, along with Creative Connexions,” says Laura. “If they can't directly help you they can steer you towards someone who can.”
“There is fantastic potential, but with that comes some challenges,” Laura continues. “It's easy to say that you get low-quality products from these countries, but there is good quality as well. In any developing economy you're going to see a wide variety of different practices, but you can find high-quality manufacturers. Once they are identified, it is essential to ensure that you have the audit capabilities, quality control assurance and facilitators to make sure regular checks are made. This is especially important around work practices, and to avoid the use of child labour.”
But how would she answer those who say this will detract business from UK manufacturers? “The reality of the global marketplace now is that consumers are driving the need for competitiveness, and no country can expect that it won't be submitted to these pressures,” Laura says. “That said, I don't think that low price at any cost is what any consumer is looking for, and expectations will drive up performance. Why shouldn't the UK be participating in the global world? There is a lot that can be bought back here in terms of expertise, so it should become a two-way experience.”
So is it possible for small companies to use these opportunities? “It depends on what is being outsourced,” says Laura. “With manufacturing, you have to consider the benefits throughout the supply chain. If you are only going for cheap product on which the UK value is low, you are probably never going to recoup the cost. Larger volumes will generally get you cheaper prices. However, if you have a highly-specialised product, there may be some opportunity for smaller quantity companies.”
“The UK India Business Council and UK Trade and Investment are good first points of contact, along with Creative Connexions,” says Laura. “If they can't directly help you they can steer you towards someone who can.”
