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They Flocked to China for Boom Times. Now They’re Thinking Twice.
A.H. Beard, a 123-year-old luxury mattress manufacturer based in Australia, started eyeing China around 2010. At the time, the family-owned company faced looming competition from low-cost, foreign-made mattresses in its home market. China, with its 1.4 billion consumers and a growing middle class with a taste for premium brands, seemed like a good place to expand.
The choice paid off.
A.H. Beard opened its first store there in 2013. Before the coronavirus pandemic, sales in the country were growing more than 30 percent a year. There are now 50 A.H. Beard stores across China, with plans to open 50 more. But like most foreign companies operating in China nowadays, A.H. Beard has started to think more carefully about its strategy.
Beijing’s strict Covid-19 policy has exacted a heavy toll on business. The company’s exports into China are no longer on the rise.
This month, Chinese officials announced that the economy grew at its slowest pace since the early days of the pandemic. Unemployment is high, the housing market is in crisis and nervous consumers — living under the constant threat of lockdowns and mass testing — are not spending.
Now, the once resilient Chinese economy is looking shaky, and the companies that flocked to the country to partake in boom times are being confronted by a sobering reality: flat growth in what was once seen as a reliable economic opportunity.
“I certainly don’t see China returning to the rates of growth that we had seen previously,” said Tony Pearson, chief executive of A.H. Beard.
So far, most companies are staying the course, but there is a steady whiff of caution that did not exist just a few years ago.
Geopolitical tensions and a U.S.-China trade war have unleashed punishing tariffs for some industries. Covid-19 has snarled the flow of goods, lifting the prices of almost everything and delaying shipments by months. China’s pandemic response of quarantines and lockdowns has kept customers at home and out of stores.
A.H. Beard opened its flagship store with a local partner in Shanghai almost 10 years ago. And like any high-end brand, it rolled out products with prices that defy belief. China became the best-selling market for its top-of-the-line $75,000 mattress.
Since then, the cost of shipping a container has jumped sixfold. The cost of mattress materials and components, such as latex and natural fibers, have increased significantly. Other worrying signs have emerged, including a housing slump. (New homes often mean new mattresses.)
Mr. Pearson said he is hoping that the Chinese Communist Party congress later this year will clarify “the trajectory for China” and imbue consumers with more confidence. “The economy still has growth potential,” he said. “But there’s always a degree of risk.”
After the 2008 financial crisis when the rest of the world retrenched, China emerged as an outlier and international businesses rushed in.
European luxury brands erected gleaming stores in China’s biggest cities, while U.S. food and consumer goods companies jostled for supermarket shelf space. German car manufacturers opened dealerships, and South Korean and Japanese chip firms courted Chinese electronics makers. A booming construction market fueled demand for iron ore from Australia and Brazil.
Chinese consumers rewarded those investments by opening their wallets. But the pandemic has rattled the confidence of many shoppers who now see rainy days ahead.
Fang Wei, 34, said she has scaled back her spending since she left a job in 2020. In the past, she spent most of her salary on brands like Michael Kors, Coach and Valentino during frequent shopping trips.
Even though she is employed again, working in advertising in Beijing, she now allocates a quarter of her salary on food, transportation and other living costs. She hands the rest to her mother, who puts the money in the bank.
“Because I’m worried about being laid off, I transfer everything to my mother every month,” Ms. Fang said. “It’s very depressing to go from enjoying life to subsistence.”
A more frugal Chinese consumer is a worry for foreign businesses, many of which offer products that are not the low-cost option but a premium alternatives. A Jun-Min, chief executive of Ginseng by Pharm, a South Korean producer of ginseng products, said he, too, has noticed Chinese “wallets have gotten thinner.”
Mr. An said sales for the company’s main product, a 2-ounce bottle of a ginseng drink that sells for $18, peaked before the pandemic. The company shipped 600,000 bottles into China and Hong Kong in 2019.
Sales plunged in 2020 because it was hard to get products into the country during Covid lockdowns. Business has mostly bounced back, although it is still down 10 to 20 percent from the peak.
While Mr. An said he is concerned about the economic slowdown, he remains optimistic that the market for health products in China, and a familiarity with ginseng — an aromatic root said to have health benefits — will continue to benefit sales. To hedge his bets, though, he is also seeking regulatory approval to sell in Europe.
That is a far cry from the unbridled optimism of the past.
In 2016, when China was its fastest growing and most profitable market, Kasper Rorsted, the chief executive at Adidas, declared that the country was “the star of the company.” Adidas invested aggressively to expand its foothold. It went from 9,000 stores in China in 2015 to its current 12,000, though only 500 are operated by Adidas. Then the music stopped.
After initially projecting that sales in China would accelerate this year, Adidas ratcheted down expectations in May as Covid lockdowns continued to spread. The company said it now expects China revenue to “decline significantly” and that a sudden rebound is unlikely.
For now, Adidas remains undeterred. Mr. Rorsted said on a call with analysts that the company is not planning to slash costs or pull back from the country. Instead, it will “do whatever we can to double down and accelerate the growth.”
Many foreign companies had bet on the rise of a Chinese middle class as a dependable source of that growth. Bain & Company, a consulting firm, said it expects China to be the world’s largest luxury market by 2025, fueled in part by what Federica Levato, a senior partner, said is still “a big wave” of a rising middle class.
But those kinds of predictions look less enticing for some foreign companies that once relied heavily on the Chinese market.
Kamps Hardwoods, a Michigan-based manufacturer of kiln-treated lumber used for homes and furniture, seized on the opportunity to expand in China — at first. At a Chinese trade show in 2015, Rob Kukowski, the company’s general manager, said a Chinese buyer stunned him with a huge offer to buy enough stock to fill 99 shipping containers. The $2 million order of lumber accounted for four months’ worth of business for Kamps.
Chinese buyers were so desperate for lumber back then that they would visit the company’s booth and refuse to leave until Mr. Kukowski accepted a million-dollar deal on the spot. By 2016, China accounted for 80 percent of the company’s sales.
Kamps soon realized that it was hard to make a profit from the large Chinese orders because many buyers were not interested in quality and only wanted the cheapest possible price. The company started to focus its effort on finding customers in the United States and other overseas markets who were willing to pay more for a better product.
It was fortuitous timing. When China raised tariffs on U.S. lumber in 2018 as part of a trade war, Kamps was better positioned to weather the downturn. Today, China accounts for only 10 percent of Kamps’s sales, but it still has a large indirect impact on the company. Mr. Kukowski said China is such a big buyer of U.S. lumber that a downward price war ensues throughout the industry when it stops spending.
Odyssey has been the lead content writer and content marketer. He has vast experience in the field of writing. His SEO strategies help businesses to gain maximum traffic and success.
Candles have been used for centuries to create ambiance, soothe the senses, and add a touch of luxury to any space. Today, luxury candles have become increasingly popular, offering a range of scents, styles, and designs to suit any taste. Private label candles, in particular, have become a popular choice for those looking for a unique and personalized touch.
In this article, we will explore the world of luxury private label candles and what sets them apart from other candles on the market.
What Are Luxury Candles?
Luxury candles are typically made from high-quality materials and feature complex, unique scents. These candles often come in beautiful, decorative containers and are designed to add a touch of elegance and sophistication to any space. Luxury candles may also feature longer burn times than traditional candles, allowing you to enjoy their fragrance for hours on end.
What Are Private Label Candles?
Private label candles are candles that are created specifically for a particular brand or company. These candles are often customized to the brand’s specifications, including scent, packaging, and design. Private label candles can be a powerful branding tool, allowing businesses to create a unique and memorable experience for their customers.
Benefits of Luxury Private Label Candles
There are many benefits to choosing luxury private label candles over traditional candles. For one, private label candles allow you to create a unique and personalized experience for your customers. By selecting your own scents, designs, and packaging, you can create a candle that is perfectly tailored to your brand and your customers’ preferences.
Luxury private label candles also offer a level of quality and attention to detail that is often lacking in mass-produced candles. These candles are often made from high-quality ingredients and are carefully crafted to create a truly luxurious experience. Additionally, luxury candles often feature longer burn times, which means that customers can enjoy their fragrance for longer periods of time.
Where to Find Luxury Private Label Candles
If you’re interested in purchasing luxury private label candles, there are many options available. One option is to work with a candle manufacturer that specializes in private label candles. These manufacturers can work with you to create a custom candle that perfectly fits your brand’s aesthetic and scent preferences. Some examples of private label candle manufacturers include Wax & Wick and Aromatique.
Wrap-up
Luxury private label candles can be a powerful branding tool, allowing businesses to create a unique and memorable experience for their customers. These candles offer a level of quality and attention to detail that is often lacking in mass-produced candles, and can be customized to perfectly fit your brand’s aesthetic and scent preferences. Whether you choose to work with a candle manufacturer or purchase pre-made candles from a supplier, luxury candles are a great way to set the mood and add a touch of luxury to any space.
Big rig trucks are designed to be long-lasting but must be equipped for winter. The snow, ice, and cold can lead to problems with functions that are difficult or impossible to fix. Truckers have found themselves turning their trucks into mobile homes or buying them second-hand online to earn a living when they’re stuck waiting for hours in the mud or stranded on a mountain pass. Trucks can begin to break down in sub-zero temperatures, and the engine can freeze up, causing big problems with the entire truck.
Big rig trucks are designed to be long-lasting but must be equipped for the winter. The snow, ice, and cold can lead to problems with functions that are difficult or impossible to fix. Truckers have found themselves turning their trucks into mobile homes or buying them second-hand online to earn a living when they’re stuck waiting for hours in the mud or stranded on a mountain pass. Trucks can begin to break down in sub-zero temperatures, and the engine can freeze up, causing big problems with the entire truck.
Are big rig trucks equipped for the winter?
Not all big rig trucks are equipped appropriately for the winter season. Some truckers have mobile homes attached to their trailers and change the configuration of their trucks by switching out the trailer for one that is more suitable for driving in snow during the winter season. Others buy used, older trucks that are significantly easier and less expensive to maintain than newer, model-year trucks. The type of truck being used will affect whether it can function in cold weather conditions, but even if it does have the proper equipment, there is still a chance for breakdowns.
Some big rig trucks are typically equipped with a special type of winterized windshield wipers called snowplow. However, keeping the windshield clear of snow and ice is sometimes troublesome. Snowplow wipers are usually only effective on small amounts of snow. They can sometimes cause more problems than they solve when used on icy roads or when there is just a light snowfall.
When it is very cold outside, drivers can use an antifreeze solution to keep the engine lubricated and the oil warm during long periods of driving. It prevents it from freezing in extremely cold temperatures. The anti-freeze solution does not have a long shelf life. It should be used before it becomes completely ineffective.
A truck accident attorney can help many truck drivers in defending themselves against claims filed by insurance companies. Find one with a successful record of winning cases in extreme weather conditions.
If you are a big rig truck driver, you consider the limitations of your vehicle’s equipment and operating conditions. Always be prepared to do maintenance on your truck that may be required during the winter months, such as replacing the windshield wipers if they start to ice up. If you plan on driving during winter, know that it can get extremely cold out there, and you will want to dress appropriately. Winterizing your truck can be expensive, but some big rig truckers find it worthwhile. If you don’t want to spend much on winterization and maintenance, you can always buy a new truck or take an older one suited for the weather.
Odyssey has been the lead content writer and content marketer. He has vast experience in the field of writing. His SEO strategies help businesses to gain maximum traffic and success.
The air filters in your furnace play a vital role in filtering the air getting inside your home. It traps dust, debris, and other elements that reduce air quality. Since the air filters trap all the dust, it is crucial to change them frequently to improve the efficiency and quality of air in your home. However, when do you know it is time to change the air filters? The following information will help you.
How Often Should You Change Your Filters?
How often you change the filters depends on various things, like the efficiency of the HVAC, the manufacturer’s recommendations, and other characteristics. However, if your filter has a low MERV rating, you may need to change it often. That is why it is recommendable to get a high-efficient filter. You can get discount filters to ensure your HVAC has what it needs to perform well. You can also check the packaging to know how often the manufacturer recommends changing the filter.
It is also crucial to change the furnace filter based on the frequency of use of the HVAC. There are seasons, winter and summer when the system is used more often. With more use, more air that requires filtering is passing through. Therefore, ensure you check and change the filters during peak seasons and if you notice dirt buildup. If smokers or pets are in the house, your furnace needs to filter the air more. That means the filters will likely be clogged more due to the contaminants.
Signs the Filters Need Changing
There are things you can watch out for to know when your filter needs replacement. Here are several.
- There is more dust than usual
- The filters are grey, and a lot of dirt accumulating
- Your HVCA has become inefficient
- It has been a long time since you changed the filters
Why Should You Change the Furnace Filters?
The furnace does a great job of improving the comfort and quality of air in your home. Therefore, here are the benefits to enjoy.
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Improved HVAC Efficiency
The filter is a vital part of the furnace. It is dirty due to clogged dirt and contaminants, and its ability to filter the air passing through the unit reduces. The entire system strains to clean the air, and its efficiency decreases. Cleaning the furnace filters allows proper cleaning of air passing through. It keeps the unit healthy, thus improving its efficiency.
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Energy Efficiency
As mentioned, dirty filters put stress on the HVAC. The system works harder to clean the air, requiring more energy. However, with clean filters, less energy is used. Making your home more energy efficient.
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More Comfort
The furnace cannot deliver good air quality when the air filters are clogged. Therefore, you may not get the best cool or warm you need in the house. Furthermore, straining of the unit may cause a malfunction. This causes discomfort.
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Better Air Quality
The work of the filter is to remove contaminants in the air before it circulates in the house. If it cannot capture the pollutants, you are left with dirt air full of allergens and other health threats. That is why changing the filters is prudent.
Key Takeaways
Changing your furnace filter often is paramount to maintaining good indoor air quality. However, always ensure you buy high-quality filters from reputable dealers to ensure efficiency and prolonged use.
Odyssey has been the lead content writer and content marketer. He has vast experience in the field of writing. His SEO strategies help businesses to gain maximum traffic and success.
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