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Chinese Fishing Tackle in Worldwide Economic Recession

The world entered the economic recession in 2008, and there has been no sign of upturn, making 2011 a difficult year for the export-oriented Chinese fishing tackle suppliers. What are the main problems do the Chinese fishing tackle suppliers face and what is the solution?


Problems the Chinese Fishing Tackle Industry Faces


1. Shrinking World Market

The world is in the middle of an economic recession, causing global demand to shrink. In many countries, people suffer from the increased cost of living. Anglers try to save money or give up fishing altogether. These factors result in smaller order quantities.


2. Domestic Inflation

After two decades of rapid development, China has begun to slow down. The CPI index exceeded 7% over the last several years. As a result, there was an increase in many of the raw materials for fishing tackles, some of them even doubling. This put many fishing tackle factories in a touchy situation.


3. Increased Labor Cost and Labor Shortage

The cheap cost of labor used to be China’s biggest advantage, but that seems to be changing now. Many fishing tackle manufacturers in Weihai and Shanghai suffer from labor shortages as many workers would rather stay at home or find a job in their hometowns of West China to avoid the increased cost of living in the southeast coast’s big cities.


What is the solution?


1. Increasing Efficiency

Now that the cheap labor advantage is gone, factories must increase efficiency, completing orders with fewer workers.


2. Innovation

Companies that only copy the design of others in the market or try to obtain orders by cutting prices will be abandoned. If the majority of Chinese suppliers follow this model, the future is bleak. Innovation and creativity are the only way out.