Magazine that helps you do your business right. Issue 02 / 2013
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India-
The Next Source of
Growth?
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Business Chain Issue 2
Cover Story 04 India – The Next Source of Growth?
Happy GOOD Year!
Foreword How many cities have you ever been to within a two-week period? Tradegood visited six in total! In the last two weeks of November, the smiley face was brought to buyers and suppliers in six cities in China: Guangzhou, Dongguan, Shanghai, Quanzhou, Qingdao and Shenzhen. So, stand by to be amazed by the coverage in the later issues of our launch series!
Features Lifestyle 07 “Made in the USA”(Again): 10 Good Travel: The Will Manufacturing Return to the U.S.? 09 Burma (Myanmar) – the new Golden Bowl
Building up a big brand is no easy matter, but we are all glad to see outstanding results at Tradegood. For example, we have recently extended our partnership network with Trendstop.com, the fashion trend professionals! Just as excitingly, our “Made in the USA” project with the Los Angeles Mayor’s Office also made major progress. And the good news doesn't end here. Our website www.iTradegood.com now comes in German and Spanish, catering the needs of buyers and suppliers in half of Europe and throughout Latin America! In 2013, Tradegood will continue to go the extra mile for the supply chain community. So, here we would like to wish you a GOOD year!
13 Good Books
About Tradegood 14 Good News: Tradegood Launch in China! 16 Event Calendar
Business Chain Issue 2 ISBN 978-988-16659-2-8 Published by Global Marketing, Tradegood in February 2013. Please send enquiries or comments to marketing@iTradegood.com. All rights reserved. No reproduction of any part of this publication is allowed without prior written authorization from Tradegood.
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COVER STORY
India-
The Next Source of
Growth?
Back in 2009, the movie “Slumdog Millionaire” swept the Oscars and wowed audiences of millions worldwide. Even though slums can still be found in India, the economy of the world’s second largest nation has been rocketing, and a large number of multinational corporations, finding their current market too niche to move forward, have been seeking success in this giant country for some time. Some of them have been successful and continue to grow. But many of them have already jumped ship. So how did the successful ones make it?
One size doesn’t fit all This sub-heading probably best describes the reason for market-entry failure. With a long and renowned history of development, India takes great pride in its culture, language, ethic and geographic diversity. Something made purely for the West is usually not welcomed by the 04
Business Chain Issue 2
Indians, and thus tapping into this market with an estimated annual GDP growth rate of at least 6% will require inside-out localization. Global food-provider Nestlé demonstrated their market savvy and determination to enter the Indian market by setting up a research and development center there to study the eating habits and culinary practices of Indians. By sending staff to interview over 1,500 Indian families to further understand local tastes, Nestlé formulated tailored products, including instant noodles in malasa and curry flavors in the early 1980s, and these became big hits in India. In the course of their research, Nestlé discovered the fondness Indians have for dairy products, so they raised the quality of their own milk products by educating cattle farmers and improving the refrigeration chains. Nestlé reaped the rewards of their hard work – the Nestlé instant-noodle brand Maggi has already become the generic
term for instant noodles – with an 88% market share, bringing in 27% of Nestlé’s revenue for India, far outclassing the performance of all their competitors in this segment. Eating habits are perhaps the most important facet of any culture, so food providers and caterers need to pay extra attention and work hard to capture the hearts and taste buds of their Indian customers. Six years before opening its first outlet in India in 1996, McDonald’s started working with local suppliers on something unique among all the outlets in this fast-food kingdom – a vegetarian menu to cater to the vast amount of vegetarians in the market. By ‘vegetarian’ McDonald’s means everything, from ingredients and food processing to staffing and serving. Suppliers were selected carefully to ensure that they respect and follow instructions laid down by McDonald’s. No egg (also considered non-vegetarian food) is used throughout the entire production process and only
capabilities. Since most rural Indians received little education and have a lowlevel understanding of English, the TV user interface now comes with Hindi and some other local dialects. Local market segmentation also occurs with other home appliances. In southern India, Idli molds for making steamed rice dumpling also come bundled with microwave oven kits, while plates for heating kulcha, a traditional flat bread, are offered with the kits in the northern region. Similarly, in areas such as the Punjab, where oil and spices are heavily used, refrigerators often come in darker shades to prevent staining, while pastel colors are chosen more in other areas.
McDonald’s in India is an exception in the giant fast food – no beef on menu.
vegetable oil is used for cooking. Separate equipment and utensils were reserved for vegetarian-menu preparation and, in some cases, a dedicated workforce was in place. The physical separation of vegetarian and non-vegetarian menus allowed McDonald’s to gain a foothold in India, which expanded from one outlet to some 235 branches across 45 cities within 16 years. Other aspects of daily life are to be treated in a similar way. Finnish mobile manufacturer Nokia gave beautiful twists to its mobile devices after an in-depth study of the needs of its target customers in India. The company launched the Nokia 1100, a very subtle model compared with mobile devices in other markets, as a total response to its findings: user-friendly interface and functional simplicity, affordable pricing with basic functions such as alarm clock and text messaging, durability against India’s heat, humidity and dust, and a long-lasting battery to cope with an unstable electricity supply throughout the country. The Nokia 1100 ended up being the most popular mobile device in the world, not just in India! Before it was discontinued, the Nokia 1100 racked up sales of 200 million units worldwide.
spice container, Tupperware wowed its Indian customers with a neat, spacesaving design and the use of plastic with custom-made serving spoons. The product was so well received by the market that Tupperware extended its collection to lunch containers, dinner sets, and so on.
Going micro Considering that Indian territory covers some three million square kilometers and comprises 28 states plus seven union territories, simply becoming ‘Indianized’ is not enough. To gain nationwide acceptance, micro-tuning is required to suit the huge variety of tastes and needs. While 3D LED TV might be something common in large Indian cities, this product probably has no appeal for rural Indians who rate price ahead of picture quality and enjoy listening to music on their TVs. As a result, TV manufacturers have been launching TVs with average picture quality but enhanced audio
Renowned UK department store Marks & Spencer is selling more knitwear in northern India and more lightweight apparel in the south, due to the large temperature variation over this continent which stretches over more than 25 degrees of latitude. To attract different groups of customers, apparel lines by Marks & Spencer carry both fashionable and basic items. Seeing the rising numbers of the younger population, the store aims to expand into second-tier cities by introducing a larger collection of children’s garments.
Management differences To enter the market successfully, choosing the right management model is essential. Sole ownership of course allows the most management and decision-making rights. But this also implies a great deal of assistance and guidance from the head office to the local offices. One case worth studying concerns a global manufacturer in the electronics field. Targeting the Indian market, the company launched an aggressive marketing campaign subsidized by the parent company so as to avoid price rises in the local market. To ensure smooth operations in the local offices, the parent company helped them with sourcing materials at lower costs
Typical street corner in India – as large-scale retail or supermarket chains are not yet commonplace, people usually buy from local grocery stores and street stalls.
Nokia sustained its success by incorporating more local elements into its devices, including adding Indian patriotic and Bollywood ring tones, user interfaces in local languages, and text messaging in Hindi. Other players also did the same for the India market: there were cricket-based games in some models by LG and AM radio capabilities by Sony Ericsson, for example. In adapting to domestic needs in this market, Tupperware India changed its product portfolio and design, and its signature spice box is a perfect example illustrating such modifications. As opposed to the traditional round metal Business Chain Issue 2
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before the local offices could stand on their own. Eyeing long-term development and with long-term commitment, the company finally became a top-tier electronics manufacturer. In many cases, finding a local strategic partner is the option chosen by market entrants. Identifying trusted suppliers for raw materials or distributors helps build business in a beneficial and costeffective way. The McDonald’s case above demonstrates how important trustworthiness is in the fast-food arena. To achieve deep market penetration over such large continental area requires a huge input of capital and labor. This is especially so as regards groceries and daily necessities – reaching millions of household through one channel alone is just impossible. One leading beverage company started its journey as a wholly owned foreign enterprise, but quickly turned to contracted distributors when it found out that the previous model led to nothing but very high operational costs and a slower growth pace. Companies can also gain market share by buying out partners and opponents. This offers a relatively straightforward market solution and instantly generates higher market share for players. Joint ventures with local companies, whether to fulfill Indian law or because of a business decision, should be managed carefully. There are several very successful examples of this business model. For example, Japanese automobile manufacturers Toyota, Honda and Suzuki entered the market in joint ventures with local companies in the early 1980s. These collaborations all recorded higher production volumes than the plants owned by the parent companies in Japan.
Yet, not all join ventures run smoothly and, in fact, some have ended in failure. A fundamental reason rests in the lack of long-term commitment and goals between the foreign investors and the local partners as they are often more interested in short-term profits. Another problem that often arises is the lack of cooperation and control between the two stakeholders. Unless a joint venture is absolutely necessary, multinational corporations with sufficient capital and resources might best avoid this business model.
By the people To successfully manage a new set-up in a foreign country, it is probably best to have the company run by local talents; and this has been an important lesson for many companies entering the market. Referring back again to the McDonald’s case, the fast-food chain store is now operated by two local companies in India and this is deemed to be effective and a winning formula. Local owners understand what the market needs and likes, and what needs to be delivered in line with highly regarded customs and values. In addition to marketing and production decisions, the local company and management should be empowered on all other executive and operational issues. By holding management accountable for profits and long-term development, as well as leveraging local management’s native understanding of the market, business operations can be streamlined and target-oriented, raising costeffectiveness and boosting company performance.
Empowerment, accomplished with a clear career path and a well-structured organization, also helps to attract and retain talents that further enable the healthy and prosperous growth of the company. Multinational corporations have an advantage in being able to offer global job-rotation programs or more large-scale talent-development schemes which help them attract applications and compete for available talents.
The next crock of gold? India is clearly no easy game in for every player. Some have learnt harsh lessons in their perspective fields, while some have succeeded in one go. But the key is always to blend the company into Indian culture, values, customs and other cultural facets through the appropriate business operations. India is still growing, and the possibility persists of a crock of gold at the end of the rainbow.
Do you know? Tradegood also has dedicated staff working in India to help you find the right suppliers. Just write to matching@iTradegood.com for help!
Local beats So far, Indians have not been particularly fond of foreign brands – a disappointment for many multinational corporations. This opens up a gap for local enterprises and, in some cases, foreign brands were beaten! Shoppers Stop, founded in 1991, evolved from a single retail shop into a chain of lifestyle stores by observing authentic Indian tastes. It is now a household name among Indians and operates 50 stores across the continent. Shoppers Stop offers both private labels that are 100% for Indians as well as new brands.
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FEATURES
n i e d a M A S U e h t Again M
g n i r u t c a f u Will Man the U.S.? Return to
any in the United States are now predicting a renaissance in U.S. manufacturing, as a growing number of big name companies and SMEs bring their overseas operations back to the U.S. President Obama has called for a new era in U.S. manufacturing as a way to create more American jobs. So is the resurgence of "Made in the USA" reality or hype? And is the “Made in the USA” label right for your company?
The phoenix begins to rise The decline of U.S. manufacturing is a well-known tale, a victim of larger forces that sent thousands of American jobs overseas. The perpetrators were many, but the spread of global trade, the internationalization of key industries, and the rise of Chinese cheap labor were perhaps its most devastating, silent killers. The loss of six million manufacturing jobs and the shuttering of thousands of factories in the U.S. over the last decade rang the final death knell of a golden era in U.S. manufacturing - so many had thought. But just like in the 1990s, when U.S. industry adapted to new global realities that led it to dominate the world in such high-value industries as microchips, aerospace, networking equipment, and software, we may now be witnessing yet another comeback of U.S. manufacturing, what some see as a “manufacturing renaissance,” although it is likely to come in drips and drabs, rather than a flood. After a 35% drop in manufacturing jobs between 1998 and 2010, numbers have risen by almost 500,000, or 4.3%, to close to 12 million workers, equivalent to 9% of the total workforce. Much of that is
due to the U.S. recovery, but the trend is undeniable. Manufacturing jobs are expected to rise 3.2% in 2012, compared to 1.6% for all U.S. jobs. Despite the earlier losses, the U.S. is still the world’s largest manufacturing economy, producing 18.2% of global manufactured products, according to the World Bank.
“Reshoring” to play a larger role The rebirth of U.S. manufacturing obviously has many drivers, but a major component is the growth of “reshoring,” bringing back jobs from overseas, particularly China. According to the Reshoring Initiative, a nonprofit campaign to return manufacturing to the U.S., at least 25,000 manufacturing jobs have found their way back to the U.S. over the past several years. While those numbers are miniscule, the campaign believes they represent the beginning of an upsurge as companies recalculate the costs of producing overseas. One recent survey of 105 American companies done at MIT found that 39% were considering moving some manufacturing back to the U.S. the evidence gets stronger. A landmark study by the Boston Consulting Group (BCG) in 2011
concluded that, by around 2015, for many goods destined for U.S. consumers, manufacturing in some regions of the U.S. would be as economical as manufacturing in China. BCG assessed that China’s manufacturing cost advantage over the U.S. was shrinking fast, and that within five years, rising Chinese wages, higher U.S. productivity, a weaker dollar, and other non-cost factors would reduce the gap for many goods sold in the U.S.
The proof is in the label Indeed, many big name U.S. firms, and some not so famous, have recently made the voyage back to U.S. shores. BCG predicts that more U.S. companies will begin raising capacity in the U.S. to supply the North America market, and while the reallocation of production is still in its early stages, the trend will only accelerate in the years ahead. Caterpillar Inc., for example, announced in 2011 the expansion of its U.S. operations with the construction of a 600,000 square foot hydraulic excavator manufacturing facility in Victoria, Texas. The plant is expected to employ more than 500 people. The company said it was attracted to Victoria’s proximity to its supply base, access to transportation, and its favorable business climate.
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Heavy industry jobs are also coming back
redesign of its products and the use of U.S.-made high-end aluminum, titanium, and special carbon fiber reward it with a higher sticker price in an upscale market.
Real costs can favor “Made in the USA”
NRC Corporation announced in 2009 that it was bringing back production of its ATMs to Columbus, Georgia to cut time to market, increase internal collaboration, and lower operating costs. Toy manufacturer Wham-O Inc. decided in 2011 to return 50% of its Frisbee production from China. Ford Motor is bringing back up to 2,000 jobs following a favorable agreement with the United Auto Workers that allows the company to hire workers at $14 per hour. And the Coleman Company is moving production of its 16-quart wheeled plastic cooler from China to Wichita, Kansas, due to rising Chinese manufacturing and shipping costs. The list goes on and includes other big names such as Whirlpool, Otis Elevator, General Electric, Intel, and Master Lock whose factory President Obama visited in February.
Tired of China hassles, SMEs go upscale in America The experience of one Florida small business owner highlights why lower labor costs in China are no longer enough to keep U.S. companies overseas and why “Made in the USA” offers unexpected new markets at home, and at higher margins. Sleek Audio, a maker of in-ear headphones for audio devices such as iPods and iPhones, decided in 2007 to launch its first product. Due to lower costs in China, it was a no brainer to contract with a factory in Guangdong. But three years later, the company regretted the move and returned to the U.S. Its owners say they were simply fed up with the array of problems in doing business in China - low quality, extensive travel, poor communications, shipping delays, and a ruined shipment that almost broke the company. Now back in the U.S., the company says it can more easily oversee quality control and production schedules. Moreover, the U.S. recession has lowered costs, created pools of willing workers, and generally made it easier to manufacture in the U.S. While the company’s U.S. costs are 1520% higher than they were in China, its
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Sleek Audio’s experience is emblematic of the type of scenarios that bring U.S. companies back to America. The BCG report notes that the same forces that drove U.S. firms overseas are now pushing them to take another look at the U.S. For starters, the rising cost of labor in China and the appreciation of the renminbi are conspiring to make Chinesemade goods more expensive. At the same time, falling wages in the U.S. are making U.S. labor more competitive. Rising shipping costs, concerns about lengthy production schedules, and the risk of intellectual property theft are additional factors making U.S. firms think twice about China. Perhaps most important is that, while American workers may cost more per hour, they are more efficient. With the help of sophisticated manufacturing processes, U.S. productivity is now about three to four times higher than China’s. The BCG report highlights that for goods in which labor is around 25% of the cost, China’s cost advantage will decline to a mere 10% by 2015. When that happens, appliances, computer equipment, furniture, machinery, plastic, rubber and the like will be good candidates for reshoring. According to one supply-chain expert, products that are most likely to be reshored are heavy and bulky items for which shipping costs are high in relation to price, such as machinery. Expensive items subject to frequent changes in consumer demand for certain colors or styles, such as high-end clothing, are also well suited for the “Made in the USA” label. Experts recommend that American companies undertake a rigorous, productby-product analysis of their global supply networks that fully accounts for total costs, rather than just factory wages. For many products sold in North America, the U.S. could turn out to be a more attractive option, while China will continue to be a base for more labor-intensive production or for products destined for the Chinese market.
Value added from going local There’s a saying in the U.S. that all politics is local. The same can be said for “Made in the USA,” as many state governments have started offering aggressive incentives to attract investment. For example, GlobalFoundries is receiving $1.3 billion in cash reimbursements and tax breaks from the State of New York to build a $4.2 billion state-of-the-art silicon-wafer plant. While subsidies are not the deciding factor in where to invest, they can make decisions easier when other cost factors are shifting in favor of the U.S. “Made in the USA” products are also tapping into growing “buy local” attitudes in the U.S. Two non-profit groups, New York’s Pratt Center and SFMade, have formed the Urban Manufacturing Alliance whose goal is to support local manufacturing in American cities. Because “buying local” can have its limits, the Alliance is promoting branding as not just a location, but also a level of quality, particularly in products that are high-end, limited edition, and can’t be found anywhere else, such as Timbuk2 bags made in San Francisco or upscale clothing made by American Apparel in Los Angeles. “Made in the USA” also seems to be attracting a higher-income consumer. American Express reports that three out of four higher income earners surveyed prefer U.S. made products and two-thirds actively try to buy brands that are made at home. The reason? There’s a strong belief that “Made in the USA” stands for the highest quality. So is your company ready to take advantage of the many benefits the “Made in the USA” label can bring to your product?
More articles on "Made in the USA" will come. Stay tuned!
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FEATURES
Burma's low labor costs but high production quality also make the nation irresistible for foreign investors. When it comes to wages, and taking the textile industry as an example, local textile workers’ monthly wage is about $85, much lower than the $400 to $500 in China. The highly competitive labor pool was a major factor that kept the unemployment rate as low as 1.7% only in 2011.
Burma
(Myanmar) –
the new Golden Bowl A
lmost two decades ago, Burma was classified by the United Nations as one of the least developed countries in the world. Nowadays, it is reforming itself and has emerged as a potential Golden Bowl for those looking for countries with above-average economic growth potential.
Rise of the Golden Bowl
The bright side of the Golden Bowl…
The Government of Burma’s reforms in eight areas of agriculture, infrastructure, export, and investment have achieved outstanding results and proven to have speeded up development of the national economy.
Burma is rich in natural resources, such as oil, gas, gold and gems and has an abundant supply of cheap labor.
Ever since Burma officially joined the Association of Southeast Asian Nations ("ASEAN") in 1997, trade development has been steady. With the successful launch of the ASEAN Expo and China– ASEAN Free Trade Area in 2010, Burma has also drawn the attention of her neighboring countries. Trade figures for recent years have all indicated the progressive growth of trade in Burma. In 2010, China–Burma bilateral trade posted year-on-year growth of 53.2% to a total of US$4.4 billion, and grew in 2011 to $50 billion, making China Burma’s largest trading partner. Thailand and Singapore came next with record trade of $4.5 billion and $3 billion respectively. Foreign investment in Burma till May this year totaled $32 billion, with inflows from 31 countries and regions involving 440 projects in 12 areas. The return of the World Bank to Burma in August 2012 after a 25-year blackout period was remarkable both for the country itself and for investors. This not only indicated an improved business environment but also brought in $85 million in funding to support reforms in Burma.
Natural resources form a major component of Burma’s economy. According to data provided by the Ministry of National Planning and Economic Development, as of May last year, oil and gas exploration projects amounted to $13 billion and accounted for 44% of all approved projects, with the power and mining industries accounting for 42% and 7% respectively. All three industries took up a total of over 90% of the nation’s investment income. Let’s take electric power as an example. Water resources are highly accessible along the Irrawaddy and Salween rivers for the purposes of hydroelectric power generation. With the green light from the government, new cooperation between local and foreign enterprises in building power plants, grids and networks has offset the previous lack of technology and expertise of domestic stakeholders.
The Asian Development Bank announced in a 2012 report that Burma might hit an annual growth rate of 7% and a three-fold increase in per-capita income by 2030 if the reforms and development are on the right track.
… and the darker side … While a considerable amount of foreign investment is being attracted to this nation, development projects in Burma might meet some problems that may not be so easily resolved. Poor transportation, communications and power infrastructure is one major obstacle. Despite dedicated work by the government on these factors, transport networks and facilities are still of a low standard and unable to cope with rising demand for freight and passenger transport. Penetration of modern communications equipment remains low and power supply continues to be inadequate and unstable. Nor is Burma very logistics-friendly at present. The nation enjoys no deep-water port and relies on transshipments via Singapore. Civil aviation remains limited and thus no ‘just-in-time’ deliveries of small airfreight quantities can be guaranteed. Domestic political unrest has gradually eased, but the establishment of a new political system has not totally reduced political tensions. The long-standing fundamental problems in Burma, such as the lack of bureaucratic transparency, comprehensive laws and a proper financial system, are dragging down market performance. One noteworthy issue is that Burma has long-established foreign exchange controls, prohibiting free currency exchange and resulting in a big disparity between the official exchange rate and the free-market exchange rate. Foreign investors should take this into consideration seriously. The government of Burma has recently announced tax exemptions for foreign investors on a wide array of items for as many as eight years. Will you be the one to gain from this Golden Bowl?
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High up in the Himalayas, sandwiched between China and India, nestles the sheltered kingdom of Bhutan. It has been called “The last Shangri-La” and was completely closed off from the world until 1972 when the first outsiders were allowed to enter. The tiny nation has been slow to embrace the trappings of modern life. It wasn’t until 1999 that they got television and the Internet and this slow path to progress, carefully overseen by a much-loved King, has allowed it to retain much of its charm and mystique. This is definitely not backpacker territory. Ever since tourists were permitted to enter in the early 1970s, it has maintained a cautious approach to tourism. Up until a few years ago, targets were set to restrict visitor numbers and, although these have since been dropped, strict visa regulations ensure that Bhutan remains an exclusive destination. You don’t come to here for a cheap holiday. It’s the sort of place reserved for special trips – to celebrate a significant birthday or anniversary – and it doesn’t disappoint.
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In terms of face value, a visa for Bhutan is the most expensive in the world. During the peak seasons – March-May and September-November – visitors can expect to pay US$250/ day. This falls to US$200 in the off-peak season. However, this daily visa fee – which must be paid in advance to the Tourism Council of Bhutan – includes everything from accommodation and food to transport, guide and driver. Having your trip planned and paid for before you arrive takes a lot of the stress out of travelling. There’s nothing to do but sit back, relax and soak up the country. And Bhutan is a place that deserves to be savored slowly. Most visitors arrive in the west, at Paro Airport, Bhutan’s only international airport. It is a spectacular introduction to the country – Paro Valley is wide and green and surrounded by 5,500-metre snow-capped mountain peaks. However, the relatively short runway – less than 2,000 meters long – and the strong winds that whip through the valley make it one of the trickiest airports to land at. Only eight pilots in the world are certified to land here – and only in daylight hours.
Taktsang Monastery - or Tiger’s Nest - is perched on a steep cliff above the Paro Valley.
Safely on the ground, the first port of call for most visitors is the Taktsang Monastery, a sacred Buddhist site and temple complex in the upper Paro Valley.
BC
GOOD TRAVEL
The last Shangri-La Bhutan has opened up to the world, but still retains much of its mystique
Guru Rinpoche is said to have visited this spot to meditate in the seventh century AD, but the first Taktsang monastery wasn’t built until 1694. A fire in 1998 destroyed most of the original buildings but these have since been carefully restored. The monastery’s precarious position, clinging to the edge of a 1,200metre cliff, earned it the nickname Tiger’s Nest. It takes two to three hours to hike up to the monastery – all uphill with a cafeteria break halfway – but it’s well worth the effort. Also worth seeing in Paro is Paro Dzong. A dzong is an ancient fortress and there are almost 20 dotted about the countryside and open to visitors. These days, the government as well as monasteries use the dzongs, with the officials and monks sharing their headquarters. The one in Paro, located above the river, is a stunning example of Bhutanese architecture. From Paro, travel itineraries tend to vary depending on what has drawn the traveller to Bhutan. For many it’s the trekking. One of the most popular treks is the Druk Path from Paro to the capital
Thimphu, which takes nine days and cuts through virgin forest. There are plenty of professional outfits that will arrange oneday hikes or weeklong excursions and the breathtaking natural scenery makes it one of the best places in the world for hiking.
in monasteries and dzongs across the country. Thousands of people from the surrounding villages come to watch the religious dances and receive blessings from the lamas.
While neighboring Nepal and India have seen their forests plundered, careful conservation measures mean than more than 70 percent of Bhutan is still forested. As with so many aspects of life in Bhutan, this is thanks to careful planning by the government. It is said that it’s impossible to take a bad photograph here and it would be hard to argue with that. Every turn in the winding Himalayan Mountain trails yields another stunning vista. Bhutan is a deeply Buddhist land and whether you are a follower or not, you can’t help but be touched by the peaceful and spiritual nature of the place. Threequarters of the population is Buddhist. Bhutanese Buddhism originates in Tibet, but the way it is practiced here is unique. It is worth timing your trip to include one or more of the festivals – or Tsheshu – which are held throughout the year
Young monks start their training aged six to nine. They begin by learning to read the sacred texts - in both the local script, Dzongkha, and English.
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Dancing is the highlight of festivals in Bhutan. The dances are performed by monks as well as laymen and attract thousands of people.
The masked dances are incredible spectacles of color and could easily be the highlight of your trip. Festivals are held throughout the year, but if you travel in September or November there are a number clustered together and you could easily plan your trip to take in a few of these. One of the biggest is the Thimphu Tshechu, a three-day festival beginning on September 14 this year. Thousands of people, many of them farmers, flock to the capital to pray, get blessed and have a break from the drudgery of farm life. The ritual dances are the focal point of the festival and barefoot dancers in swirling yellow skirts and lurid masks leap about and spin in circles while the Atsaras – or clowns – entertain on the sidelines. Most visitors spend a little over a week in the country and keep to the western and central areas where most of the “must see” sights are located. This usually means flying into Paro, going to Thimphu and then on to Jakar, and back to Paro via Trongsa. Jakar is the main town in Bumthang Valley, which is seen as the spiritual hub of the country and home to some of the nation’s oldest temples. Traveling around Bhutan involves several hours’ drive each day in a car or van. While there is a highway that cuts through the valleys, most of the journeying is done through Himalayan Mountains and the single-lane windy roads mean that drivers can’t go too fast. Once you settle into the rhythm of
the road, you’ll begin to appreciate the things that this slower pace affords. In the autumn, farmers put their chillies out to dry on the roofs of their houses and these bold patches of color brighten the countryside. The Bhutanese love chillies. They consider it a vegetable and the national dish – ema datshi – is made of green chillies and cheese. Guaranteed to raise a smile, at least the first time you see one, are the phallus paintings. Yes, that’s phallus as in penis and the large depictions of the male member are painted on the sides of houses to ward off evil spirits and bring good luck. Wooden penises are also suspended from the sides of houses for the same purpose. If you have more than 10 days in the country and are feeling adventurous, keep heading east and exit the country through its border with India in the south. There are fewer obvious tourist attractions in the east, but it’s worth going for the remoteness and the sheer beauty. That adventurous spirit will be useful when it comes to stomaching the mountain roads. They become even narrower and more winding the further east you go. The last stretch of road, down to the Indian border town of Samdrup Jongkhar, is the most dangerous and a roadside mystic offers a blessing to all cars and their passengers.
A story about Bhutan would not be complete without mention of the royal family. The former King – Jigme Singye Wangchuck, the fourth Dragon King – ruled from 1972 until 2006 when he abdicated in favor of his eldest son. The fourth Dragon King was the key driver behind Bhutan’s cautious opening up to the world and he implemented a number of policies to help protect his people from the negative influences of the outside world, including a ban on plastic bags because, he said, they didn’t make people happy. But the policy he will be best remembered for is his Gross National Happiness index. Rather than rely on the Gross National Product to measure the well-being of a country, he believes that the true wealth of a nation can be measured by the happiness of its people. The Gross National Happiness index continues today and this philosophy influences government policy from the decision to include daily meditation in the school curriculum to protecting the environment. Bhutan isn’t an obviously wealthy country. Indeed, 70 percent of the population lives without electricity. But it is rich in many other ways from the fresh air and stunning scenery to the fascinating culture – and yes, the warmth and happiness of the people. A trip to Bhutan will not only leave you feeling refreshed, it could well change the way you see the world.
Such e in Paro Valley. on a village hous ted luck. in od pa s go g lu in al br ph A evil spirits and off rd wa to id sa drawings are
Two-thirds of Bhutan’s population are farmers without access to machinery. Much of their work is labor-intensive.
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Business Chain Issue 2
BC
GOOD BOOK
The Violinist's Thumb: And Other Lost Tales of Love, War, and Genius, as Written by Our Genetic Code
Let's Pretend This Never Happened: A Mostly True Memoir
The Economic Naturalist
Author: Sam Kean
Author: Jenny Lawson
Author: Robert H. Frank
Publisher: Little Brown and Company
Publisher: Amy Einhorn Books
Publisher: Virgin Books
Publication Date: July 2012
Publication Date: April 2012
Publication Date: April 2008
ISBN: 9780316182317
ISBN: 9780399159015
ISBN: 9780753513385
Decoding DNA to something down-to-earth in a funny and interesting way, the book tells you why one man survives nuclear bombs and another doesn’t. In many cases, it all depends on genes.
Famous bloggess Jenny Lawson illustrates her own life in a hilarious yet ironic way – moments that we want to avoid most are indeed those that shape us. Um … starting to feel the same already?
Got endless queries on economic phenomena in everyday life? This book leads you to perfect answers, and a long way in your real life.
Business Chain Issue 2
13
BC
GOOD NEWS
(From left) Mr. Christophe Liebon, Intertek Vice President of Global Auditing Supplier Management and Environmental Impact Solutions; Mr. William Quilindo, Chief Operations Officer, Tradegood; Mr. Avedis Seferian, President and CEO of WRAP; and Mr. David Ho, Vice President (Northeast Asia), Tradegood officiated at the launch ceremony in Shanghai.
Launch in China! Following the enthusiastic launch of Tradegood in the U.S. in August, Tradegood arrived in China in November with a series of launch events. Nov 5, 2012 Guangzhou Tradegood Launch Event Nov 7, 2012
Dongguan Tradegood Launch Seminar
Nov 9, 2012 Shanghai Launch cum Supply Chain Conference Nov 12, 2012 Quanzhou Tradegood Launch Seminar Nov 14, 2012 Qingdao Tradegood Launch Seminar Nov 16, 2012 Shenzhen Tradegood Buyer Summit cum Award Presentation Ceremony The six events brought over 500 guests together and attracted considerable media coverage. As the game changer in the global supply chain, Tradegood now brings incomparable transparency and connection between buyers and suppliers everywhere, creating better business in the sourcing community.
The opening Gangnam-style dance at the Shanghai Launch cum Supply Chain Conference was a big hit!
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Business Chain Issue 2
Another innovation by Tradegood in Shanghai – modeling suppliers’ products on the runway!
Scan for the Tradegood debut in Shanghai!
(From left) Mr. Joel Bernstein; Mr. Avedis Seferian; Mr. Flecher Kong, Director of Supply Chain Analysis Center, Tradegood; and buyer representative Mr. Robin Xing shed light on the contemporary supplychain industry landscape at the Shanghai conference.
Mr. Joel Bernstein, Business Development Manager, Tradegood, flew all the way from Los Angeles to China and was one of the most prominent guests throughout the six events.
An auspicious moment at the Shenzhen Tradegood Buyer Summit cum Award Presentation Ceremony.
Business Chain Issue 2
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January 30-February 4
March 1-5
April 19
N端rnberg, Germany Fair N端rnberg, Messezentrum 1
Shanghai, China
Shenzhen, China
International Toy Fair N端rnberg February 1
Tradegood/GermanFashion Press Conference Dusseldorf, Germany Weinkellerei Malkasten Dusseldorf
February 3-6
ISPO Winter - International Trade Fair for Sports Equipment & Fashion Munich, Germany New Munich Trade Fair Centre (Messe M端nchen) Hall: A3 Booth: 319
East China Fair
Tradegood Buyer Summit
March 7
Tradegood Seminar for the members of GermanFashion Frankfurt, Germany
April 22
Supply Chain Forum Bangladesh
April 24
March 19
Tradegood Buyer Summit Shanghai, China
March 22
April
Supply Chain Forum Hangzhou, China
April 26
Tradegood/AAFA Roundtable
Supply Chain Forum Dongguan, China
Dongguan, China
February 13
TW Branchen-Konferenz E-Fashion Frankfurt, Germany Steigenberger Airport Hotel
February 18-21
SOURCING at MAGIC Las Vegas, USA Las Vegas Convention Center Booth: 66831
Event Calendar
Business Chain
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