Industrial Distribution

Jack Keough

Global business takes center stage
November 29, 2006

We recently participated in a two-day seminar in Chicago that focused on international business. Seventy executives from manufacturing and distribution firms as well as a number of chief procurement officers attended the meeting, and it clearly showed that U.S. manufacturers and distributors have a thirst for knowledge about developing markets.

What’s most apparent is that the Internet, evolving supply chain technology, advanced logistics, and huge consumer markets in countries such as China and India are causing distributors and manufacturers to rethink their marketing strategies and expand into foreign countries. And that is presenting opportunities and a pent-up demand for U.S.-made products overseas.

The two-day seminar sponsored by the Global Industrial Supply Marketing Organization (GISMO) was co-hosted by Industrial Distribution and Purchasing magazine in conjunction with Thomas Associates of Cleveland, Ohio.

The keynote speaker, author and China expert, James McGregor, told attendees that, “China is doing in 15 years what took 100 years in the U.S.”

McGregor pointed out that in China, “it’s all about business.” He talked about the enormous wealth in China, and noted that the disparity between the “haves and have nots” is becoming increasingly pronounced there.

“In China you have to either have money or be obedient. Money trumps all,” McGregor said.

Author of the best-selling book One Billion Customers: Lessons learned from the front lines of doing business in China , McGregor offered a comparison between China and India.

“China and India will never team up,” he said. “Those countries just don’t like one another. India has profoundly changed.”

The Indian market, he said, is flooded with Chinese goods. He said China has embarrassed and awakened India. He noted the differences between China with its new airports, new highways and cities dotted with skyscrapers while India still has the look of a century ago. But he also noted that Indian factories are modern and up to date and that its workers are well-educated.

“China looks better than it is while India looks worse than it is. India will move ahead slowly,” he said.

McGregor offered tips on doing business in China and other countries, and also covered issues that could disrupt business operations.

“The bird flu could really hurt China,” he said, adding that if it eventually spreads from animals to humans, “it could disrupt the global economy.”

Other panel discussions focused on global distribution, global procurement, and logistics. Rhonda McGee, director of research for Reed Business Information, unveiled an extensive global business research project. Stay tuned for further stories from this important meeting.

Posted by Jack Keough on November 29, 2006 | Comments (3)